Nuclear At Risk In US Because It Is Excluded From Clean Energy Subsidies, Say Scientists

2 Jun (NucNet): Nuclear energy in the US is at risk because it is unfairly excluded from state and federal subsidies and mandates for clean energy, scientists have said in a letter to the governor of Connecticut, Dannel Malloy, a Democrat. The letter, dated 1 June 2017, says that in the US, renewables received $6.3bn (€5.6bn) more or 2.4 times what was given to fossil fuels in tax preferences in 2016, and $10.7bn more or 55 times what was given to nuclear. On a unit of energy basis, renewables received over 100 times what was given to nuclear. Federal data from the Congressional Budget Office show no subsidies for nuclear between 1985 and 2000, and comparatively small subsidies between 2000 and 2005. The letter says Connecticut is at risk of losing its lone nuclear station, the two-unit Millstone, which supplies over half of Connecticut’s electricity consumption and provides 96% of the state’s zero-carbon electricity. In 2016, Millstone provided 46 times more electricity than Connecticut solar and wind combined. If nuclear energy received even a fraction of the subsidies or other preferential treatments that are given to renewables, Millstone would not be in danger of closing, the letter says. Connecticut should guarantee that nuclear is fairly recognised for its benefits. Instead of only crediting nuclear for the clean power that it generates when gas is too expensive or renewables are unavailable, Connecticut should ensure that nuclear is compensated for the affordable energy it provides around the clock. Millstone owner Dominion Energy says the facility faces challenges including sustained low natural gas prices, declining renewable energy costs, slow growth in electricity demand, and power markets structures and policies that do not compensate nuclear for its environmental and reliability attributes. Another problem is that electricity generated by Millstone is sold to middlemen in hedge funds that drive up the costs, as it is excluded from the state authorised energy procurement processes, resulting in Connecticut having the highest residential electric rates in the continental US. Dominion wants to eliminate these middlemen and let Millstone compete to sell its electricity directly to utility companies. The company said legislation recently introduced in the Connecticut General Assembly aims to do just that. The letter is online: http://bit.ly/2rrWEsR