Nuclear Reactors 212 - Austria and the United Kingdom Are Fighting About New U.K. Reactor.
I have blogged about the new nuclear reactor that the British intend to build at their Hinkley Point power plant. I just recently blogged about Austria’s campaign to end the use of nuclear power in the European Union. Today, these two subjects collide.
The thirty billion dollar U.K. Hinkley Point project to build a new nuclear power reactor is expected to begin generating its more than three gigawatts of power in the early 2020s. If the project goes as planned, the new reactor will be able to replace the lost generating capacity from the retirement of currently operating power plants. Britain claims that it needs the new reactor to insure that the U.K. does not experience blackouts from lack of electricity in the future.
Although nuclear power is a low-carbon source of energy which fits with the U.K. climate change mitigation plans, it is also much more expensive than fossil fuel power plants. In order to build the new reactor, the U.K. is going to allow EDF, the operators of the new reactor, to charge twice as much as the current going rate for electricity without which the new reactor could not compete in the energy market. Critics say that the whole project lacks transparency and places most of the risk for the new reactor on the back of the ratepayers.
Austria has attacked Britain for offering subsidies to build the reactor. They say that the British are violating E.U. rules with respect to subsidies. Austria has appealed to the European Union headquarters in Brussels to stop the British plan. Austria is not against low-carbon energy subsidies in the E.U. but they want those subsidies to go to renewable sources like solar, wind and hydr.
Not surprisingly, the British are furious at what they consider to be interference from Austria. The Prime Minister has threatened to take “every opportunity to sue or damage Austria” unless Austria backs off. Austria replied that they are not going to be intimidated by British threats. Saying that you are going to “damage” another country in the E.U. does seem a bit extreme.
Apparently Austria’s objections have borne fruit. EDF, the French utility that is going to construct and operate the new reactor for the British, is going to delay its final investment decision with respect the new Hinkley Point reactor until the question of British governmental support is resolved. The longer the delay, the greater the cost is going to be. Austria may hope to kill the project by making it too costly.
The E.U. is in the process of developing an “Energy Union” for member countries. They intend to present the plan later this month. This dispute over nuclear power subsides on the part of two E.U. members is threatening to undermine efforts for a common energy policy in the E.U. Analysts say that questions about nuclear subsidies are a fundamental issue if they distort the economics of the E.U. energy market. The E.U. will have to balance competitiveness, climate change mitigation, renewables and energy security in any “Energy Union.” It will not be easy and may prove impossible.
Artist's concept of Hinkley Point C reactor:
