https://www.msn.com/en-us/money/companies/taxpayers-pick-up-the-tab-on-nuclear-energy/ar-BB1oHxaC
Various exceprts --
Taxpayers pick up the tab on nuclear energy, Nolan McKendry, The Center Square, 6/22/24
. . . The study (
https://research-api.cbs.dk/ws/portalfiles/portal/100431071/jens_weibezahn_et_al_csei_policy_brief_015.pdf) reports that nuclear power plant projects become financially viable primarily due to government intervention aimed at mitigating investment risks, such as loan and revenue guarantees, full or partial state ownership of suppliers or utilities, and regulatory frameworks that oblige future consumers to contribute to construction costs.
“In this case, the institutional investors issuing loans to the utility company owning the Nuclear Power Plant receive a guarantee from the host government that any outstanding debt will be covered by the state in case of default by the utility company,” the study said. “In this way, the investment becomes more attractive to the financier since the risk is significantly reduced.”
The Biden administration has done a lot to subsidize the U.S,’ nuclear sector. One notable provision is the Zero-Emission Nuclear Power Production Credit, which offers a $15 per megawatt-hour credit for electricity generated by existing nuclear plants. This credit gradually decreases as electricity prices exceed $25 per MWh.
The Department of Energy's loan program office has funded billions of dollars for nuclear energy in accordance with the Inflation Reduction Act. Likewise, the Infrastructure Investment and Jobs Act included subsidies for the existing fleet of 94 reactors to make sure they are financially viable.
In March, the DOE approved a loan of $1.52 billion for a plant in Michigan. On Monday, the Department announced that it intended to fund $900 million for small modular reactor technology projects.
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