Requests for Nuclear Loan Guarantees Far Exceed Funds
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Category: Radiation/NuclearType: News
Source: US Department of Energy (Biomass)
Date: Wednesday, October 15th, 2008
Electric utilities and energy companies hope to build 21 new nuclear reactors at 14 nuclear power plants, but their projects may be stymied by a lack of accessible credit. Most industry experts believe that federal loan guarantees are necessary to help rejuvenate the stalled nuclear power industry, which hasn't built a new nuclear reactor in 3 decades. With that in mind, the D.O.E. Loan Guarantee Plan offered $18.5 billion in loan guarantees in a June solicitation, but the received applications add up to $122 billion, or in excess of 6 times the accessible loan guarantees. D.O.E. will request more detailed applications to help select which plans will gain the loan guarantees.
The $122 billion figure represents just 65% of the total cost of $188 billion for the 21 reactors. That works out to nearly $9 billon per reactor. The 21 reactors would provide an additional 28,800 megawatts of nuclear power capacity, for an average capacity per reactor of 1,371 megawatts, at a cost of about $6.6 million per megawatt. See the D.O.E. press release.
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