Financial crisis and nuclear energy

The impact of the global credit crunch is far reaching, touching everything from manufacturing to retail shopping. Even professional sports has not escaped the harsh realities of a global financial meltdown. But what about the future of energy?

It’s an unfortunate reality, but when times are tough, our focus shifts away from costly sustainable energy initiatives and toward conservation of capital.

And that’s exactly what is happening with nuclear energy. Far from the “nuclear renaissance” of dependable, zero-emissions nuclear plant construction, today’s nuclear energy industry is very much at risk, according to U.S. Energy Secretary Samuel Bodman. 

The shift in focus will be toward short-term gains, not long term sustainability. Energy projects that are proven to be profitable in the short-term will continue to be approved, like oil drilling. But long-term projects, and nuclear plants are very long-term, are going to experience difficulty in obtaining financing.

The economic crisis may also have tangible effects in the near term. There is a very real chance electricity will become pricier. Not five years ago, 50 million North Americans in places like Ontario, Ohio and California endured rolling blackouts. Simply, demand outstripped supply. 

Well, demand hasn’t slowed since then and attempts to increase supply by building new plants and more power lines have been hampered by the crisis.

Utilities are scrambling to appease furious customers. In Montana, a regulatory deadline forced developers to start constructing an $800 million coal plant – with barely enough funds to pour the foundation. Customers will have to pay the rest if the utilities can’t obtain financing. 

Utilities are forced to navigate the tightrope between delivering cheap energy and meeting stricter environmental standards. Forced to install better technology to control carbon dioxide, utilities can’t bank on credit to fund the changeover.

The energy world of tomorrow may look strangely like today – just stretched thin.