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There has been a federal production tax credit available for new nuclear power in the US since 2005: https://www.nei.org/advocacy/build-new-reactors/nuclear-pr
by philipkglass 8y ago
There has been a federal production tax credit available for new nuclear power in the US since 2005:
https://www.nei.org/advocacy/build-new-reactors/nuclear-production-tax-credit https://www.nei.org/advocacy/build-new-reactors/nuclear-prod...
It's structured similarly to the wind power production tax credit but isn't as generous. Presumably this is because in 2005 lawmakers believed that nuclear power was a more mature, more affordable electricity source than wind and needed less subsidy to attract new investment.
I'd be fine with nuclear incentives matching PTC terms for wind power (available for 10 years after construction instead of 8, same per-unit rate, no cap on nationwide capacity). But I don't think even that would be enough to spur new investment. Both wind and nuclear power projects have costs concentrated up-front in construction, but wind projects can go much smaller in terms of capacity and dollar investment. $75 million wind projects are common. Any modern power reactor is a multi-billion dollar commitment at minimum, and there's a longer time lag between pouring first concrete and selling the first watt of power. These long timelines and "chunky" capital requirements made investors wary, even before South Carolina and Georgia demonstrated that the newest reactor projects still have major problems sticking to planned cost and schedule.