According to a Bloomberg analysis, John McCain’s plan to revive the U.S. nuclear power industry with 45 new reactors may cost $315 billion, with taxpayers bearing much of the financial risk.

The Republican presidential nominee expects a 29% increase in electricity demand by 2030, and wants 45 new nuclear power plants built by then. Industry estimates put their cost at $7 billion each.

The Energy Information Administration estimated last year that adding nuclear power capacity would cost $2,143 a kilowatt (kW) before financing and inflation. That compared with $1,434 to $2,302 for clean-coal technologies.

Over the past year, the expense has more than doubled to $5,000 a kilowatt, or $7 billion for a typical reactor, utility filings and company statements show. The increase in part reflects rising prices for commodities such as steel and cement.

In comparison, modern wind turbine generators cost between $1500 and $2000 per kW for wind farms that use multiple-unit arrays of large machines. Smaller individual units cost up to $3000 per kW. It’s projected that by 2015, concentrated solar (a.k.a. solar thermal) plants could produce baseload power at approximately $3000 per kW as well.

Taxpayers are on the hook for most of the nuclear bill if borrowers default. A 2003 Congressional Budget Office report said that the default rate on nuclear construction debts might be as high as 50%, in part because of the project’s high cost. In short, such defaults could potentially cost taxpayers $100 billion.

Senator McCain’s primary solutions to the United States’ energy problems are increased nuclear production and offshore drilling. He has expressed little confidence or interest in pursuing renewable energy, having said

“When you say wind solar and tide, most every expert that I know says that, if you maximize that in every possible way, the contribution that that would make given the present state of technology is very small, is very small…the truly clean technologies don’t work.”

Democratic presidential candidate Barack Obama has expressed support for nuclear energy, but believes a comprehensive plan including renewable energy and potentially clean coal technology.

“It is unlikely that we can meet our aggressive climate goals if we eliminate nuclear power as an option,” his energy plan states. “However, before an expansion of nuclear power is considered, key issues must be addressed, including security of nuclear fuel and waste, waste storage and proliferation.”

Sources: Bloomberg, ClimateProgress

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