The long quest to revive the nation’s nuclear power industry suffered a crippling setback Monday when two South Carolina utilities halted construction on a pair of reactors that once were expected to showcase a modern design for a new age of nuclear power.
The project has been plagued by billions of dollars in cost overruns, stagnant demand for electricity, competition from cheap natural gas plants and renewables, and the
bankruptcy of Westinghouse Electric, the lead contractor and the designer of the AP1000 reactor that was supposed to be the foundation of a smarter, cheaper generation of nuclear power plants.
Instead, the partly finished South Carolina reactors, along with two others under construction in Georgia, have demonstrated that the main obstacle to new nuclear power projects is an economic one. The plants would be more viable if the federal government imposed a tax on carbon as part of climate change policy, but that seems unlikely.
“Today’s announcement is another powerful signal of just how bleak the outlook for nuclear in the United States is, a result of a hollowed-out nuclear industry, cheap gas, falling renewable costs and inadequate policies to account for the climate change costs of carbon emissions,” said Jason Bordoff, director of the Columbia University Center on Global Energy Policy.
“Stronger climate policy as well as government support will be needed if we are to realize the much-heralded ‘nuclear renaissance,’ ” he added.
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