Manchin Deal Tosses $30 Billion Lifeline to US Nuclear Reactors

FAUlty Gator

HR Legend
Oct 27, 2017
30,581
34,972
113
This seems like a good outcome from the Manchin deal.

Tax credit for nuclear power included in Senate spending bill
  • Tax credit for nuclear power included in Senate spending bill
  • Incentive could save as much as 38% of fleet, analyst says
Struggling nuclear reactors would get a $30 billion lifeline under the Democrats’ climate change and tax bill that could save dozens of nuclear power plants from an early retirement.

Included in the $433 billion Inflation Reduction Act, which is slated for a Senate vote as soon as this week, is a 10-year production tax credit for nuclear energy producers that could be a boon for reactor operators such as Southern Co., Constellation Energy Corp., Public Service Enterprise Group Inc. and Energy Harbor Corp
The proposed $15 per megawatt-hour credit for existing nuclear plants -- which provide about 19% of the nation’s electricity -- will help an industry that has undergone a wave of closures. Reactors have high operating costs and are increasingly struggling to compete with cheaper electricity produced using natural gas and renewables.

Between 22% and 38% of the nation’s nuclear fleet of 93 reactors is at risk of retiring in the 2030s, depending on natural gas prices, according to an analysis by Rhodium Group.

The nuclear provision is expected “to keep much, if not all, of that at-risk capacity on the grid,” said Ben King, an associate director at the independent research firm. “This is really important to continuing progress for decarbonization of the grid.”
 

Slappy Pappy

HR Heisman
Nov 24, 2007
6,130
7,042
113
Nuclear needs to be part of the energy equation going forward...
I guess the real problem is they are so expensive compared to renewables. 3x the cost of solar or wind. You have to find the people who want to triple their energy bill I guess.
 

Rifler

HR Legend
Jan 26, 2011
24,998
19,930
113
I guess the real problem is they are so expensive compared to renewables. 3x the cost of solar or wind. You have to find the people who want to triple their energy bill I guess.
Doesn't matter,.. No single energy source can be relied upon to carry the load and besides, multiple sources provides a level of energy insurance.
 
  • Like
Reactions: TunzaHawk

FAUlty Gator

HR Legend
Oct 27, 2017
30,581
34,972
113
I guess the real problem is they are so expensive compared to renewables. 3x the cost of solar or wind. You have to find the people who want to triple their energy bill I guess.
Who is tripling their bill? The very few people already living on wind or solar don’t have to go on nuclear. You need to compare it to the current fossil fuels we are consuming. And when you do that it’s extremely comparable if not cheaper and emits zero carbon.
 
  • Like
Reactions: globalhawk