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Wednesday
Oct242012

Glut of wind power renders atomic energy too expensive to bother with

The Kewaunee atomic reactor on Wisconsin's Lake Michigan shoreThe New York Times has reported on the economics that have not only led to the Kewaunee atomic reactor's (photo, left) announced closure in Wisconsin, but also other pressures and forces on reactors, from Entergy's Indian Point near New York City to Vermont Yankee, Duke's Crystal River in Florida, Exelon's Oyster Creek in New Jersey, and Southern California Edison's San Onofre. The article speaks of "[t]he industry’s renewed glimpse of its mortality" and states "the nuclear industry may be nearing its first round of retirements since the mid-1990s."  Kewaunee's closure will be the first at an American atomic reactor since several (Yankee Rowe, Massachusetts; Zion 1 & 2, Illinois; Big Rock Point, Michigan; Millstone Unit 1, Connecticut) in the mid to late 1990s. 

The article also reported:

'Christopher Crane, the chief executive of Exelon, the nation’s largest nuclear operator, said his company’s reactors sometimes found themselves selling electricity at hours when the market price was negative, driven below zero by a surplus of wind energy late at night during periods of low demand. In other words, they have to pay when they produce power, instead of being paid. And even during hours of higher demand, prices on the open market are low because of the low price of natural gas. The price of natural gas has to recover for his older nuclear plants to avoid being “challenged,” he said.'