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" AECL’s $26 billion bid was based on the construction of two 1,200-megawatt Advanced Candu Reactors, working out to $10,800 per kilowatt of power capacity.
By comparison, in 2007 the Ontario Power Authority had assumed for planning purposes a price of $2,900 per kilowatt, which works out to about $7 billion for the Darlington expansion. During Ontario Energy Board hearings last summer, the power authority indicated that anything higher than $3,600 per kilowatt would be uneconomical compared to alternatives, primarily natural gas.
Much of the dramatic price increase relates to the cost of labour and materials, which have skyrocketed over the past few years. Nuclear suppliers and their investors also have less tolerance for risk.
The bid from France’s Areva NP also blew past expectations, sources said. Areva’s bid came in at $23.6 billion, with two 1,600-megawatt reactors costing $7.8 billion and the rest of the plant costing $15.8 billion. It works out to $7,375 per kilowatt, and was based on a similar cost estimate Areva had submitted for a plant proposed in Maryland….
Stevens said Areva’s lower price makes sense because the French company wasn’t prepared to take on as much risk as the government had hoped. This made Areva’s bid non-compliant in the end. Crown-owned AECL, however, complied with Ontario’s risk-sharing requirement but was instructed by the federal government to price this risk into its bid. “Which is why it came out so high,” said Stevens."
"This just gets to the heart of the problem with nukes – the safety issues are so high that they have to be built “perfectly”. The problem is that there is nobody you can get to build them perfectly. The government can’t do it, and private industry can’t do it (or, more accurately, won’t even try) without massive profit motive, which we are now seeing priced into the equation. It’s actually a bit sad that we are now at the point in history where no amount of money can buy something done right, on time, on budget."
http://climateprogress.org/2009/07/15/nuclear-power-plant-cost-bombshell-ontario/
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