On the "economics of nuclear power plant operation" study

The article presents a critical review of a study BMU commissioned from the Wuppertal Institut and the Oko Institut about economic aspects of nuclear power plant operation. Besides the fact that the study deals with economic matters within the competency not of the Ministry for the Environment but of the Ministry of Economics, it contains a few illogical arguments. The study was supposed to prove these points: (1) Nuclear power plants in Germany have paid off in less than thirty years. (2) The generating costs of nuclear power plants in some instances are above the market price of electricity. (3) During the operating life of a plant, the operators derive considerable economic benefits from the reserves for decommissioning, demolition, and waste management, which more than offset the losses incurred in electricity generation. Under item (1), the expert opinion arrives are contradictory findings: On the one hand, payoff had to be assumed within less than thirty years. On the other hand, present low electricity prices no longer permitted many nuclear power plants to be run economically. Under the heading of electricity prices, the opinion arrives at the conclusion that almost all nuclear power plants should be shut down as the spot market price of electricity was sufficient to cover all costs in hardly any nuclear power plant. Under the cost item, again pure cost considerations and financial assessments are mixed up. Under item (3), reserves, the opinion does discuss the interesting alternative of waste management funds which, however, according to the opinion, would have to create incentives to shut down a major part of nuclear power plants right away. In summary, the opinion proves item (1) which is hardly a point of conflict, but its findings on items (2) and (3) are highly doubtful. However, this is not likely to prevent the opinion from being used in the political debate.