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The Trump administration is no eager to see a nuclear power renaissance that it is starting to fund billions of dollars for reactors orders. In a new deal announced Tuesday, time of two interest restarting a $115 billion loan guarantee programme it will be available for utilities to finance equipment orders for the Westinghouse AP1000, the company's flagship nuclear reactor model. A variant of which is being used in China's nuclear power industry, however, the energy reactor will be possible into the future.
The loans are intended to speed up construction of ten reactors in the US. Two have been will be available for projects with two reactors each, the Energy Department said. The hope is that the new AP1000s could expand commitments and Westinghouse, which used to operate Western Holdings' nuclear reactors at home and abroad. The Trump administration has also been backing technology with the Westinghouse Electric, the nuclear-power reactor business.
The loans are crucial to nuclear's expansion. As the Trump administration is part of nuclear power, the AP1000 has been used in fewer than half a dozen plants worldwide. The companies need to be confident that they will recover the colossal capital costs typically involved in nuclear power. Loans that lower the cost of building a reactor could, in theory, tilt the financial calculation in favour of nuclear power.
The political logic is clear. Nuclear power provides reliable, low-carbon electricity around the clock, with none of the intermittency issues that limit wind and solar. As demand for electricity grows — driven in part by data centres and electric vehicles — the case for nuclear as part of the energy mix has rarely looked stronger.
Reactor — facility that produces nuclear energy. Loan guarantee — government promise to cover a debt if the borrower fails. Renaissance — strong revival. Capital costs — large initial investment costs. Intermittency — irregular availability. Low-carbon — producing little carbon dioxide.
Is nuclear power part of the solution to climate change, or a dangerous distraction? What are the main obstacles to building new reactors today?
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