In Finland, Nuclear Renaissance Runs Into Trouble  

The New York Times has a look at yet another nuclear power cost blowout - In Finland, Nuclear Renaissance Runs Into Trouble.

As the Obama administration tries to steer America toward cleaner sources of energy, it would do well to consider the cautionary tale of this new-generation nuclear reactor site.

After four years of construction and thousands of recorded defects and deficiencies, the price tag on the reactor in Olkiluoto, Finland, has climbed at least 50 percent.

The massive power plant under construction on muddy terrain on this Finnish island was supposed to be the showpiece of a nuclear renaissance. The most powerful reactor ever built, its modular design was supposed to make it faster and cheaper to build. And it was supposed to be safer, too.

But things have not gone as planned.

After four years of construction and thousands of defects and deficiencies, the reactor’s 3 billion euro price tag, about $4.2 billion, has climbed at least 50 percent. And while the reactor was originally meant to be completed this summer, Areva, the French company building it, and the utility that ordered it, are no longer willing to make certain predictions on when it will go online.

While the American nuclear industry has predicted clear sailing after its first plants are built, the problems in Europe suggest these obstacles may be hard to avoid.

A new fleet of reactors would be standardized down to “the carpeting and wallpaper,” as Michael J. Wallace, the chairman of UniStar Nuclear Energy — a joint venture between EDF Group and Constellation Energy, the Maryland-based utility — has said repeatedly.

In the end, he says, that standardization will lead to significant savings.

But early experience suggests these new reactors will be no easier or cheaper to build than the ones of a generation ago, when cost overruns — and then accidents at Three Mile Island and Chernobyl — ended the last nuclear construction boom.

In Flamanville, France, a clone of the Finnish reactor now under construction is also behind schedule and overbudget.

In the United States, Florida and Georgia have changed state laws to raise electricity rates so that consumers will foot some of the bill for new nuclear plants in advance, before construction even begins.

“A number of U.S. companies have looked with trepidation on the situation in Finland and at the magnitude of the investment there,” said Paul L. Joskow, a professor of economics at the Massachusetts Institute of Technology, a co-author of an influential report on the future of nuclear power in 2003. “The rollout of new nuclear reactors will be a good deal slower than a lot of people were assuming.”

For nuclear power to have a high impact on reducing greenhouse gases, an average of 12 reactors would have to be built worldwide each year until 2030, according to the Nuclear Energy Agency at the Organization for Economic Cooperation and Development. Right now, there are not even enough reactors under construction to replace those that are reaching the end of their lives.

And of the 45 reactors being built around the world, 22 have encountered construction delays, according to an analysis prepared this year for the German government by Mycle Schneider, an energy analyst and a critic of the nuclear industry. He added that nine do not have official start-up dates.