The Wall Street Journal reported this afternoon:
The ongoing nuclear crisis in Japan could make it harder and more expensive for U.S. power companies to finance the construction of new nuclear reactors, threatening to further complicate a process that is already challenging.
Nuclear experts are warning of higher financing costs for U.S. nuclear projects and reduced political support for federal loan guarantees that help secure access to cheaper debt.
The Journal cited a recent S&P report:
In a note to investors last week, Standard & Poor’s said the events in Japan “renewed public focus on the inherent risks of nuclear power” and could lead to “deteriorating economics for new plant construction.”
The article mentioned the South Texas Nuclear Project:
Some companies could abandon their projects altogether. NRG Energy Inc., which is seeking a loan guarantee for a project in Texas with partners Toshiba Corp. and Tokyo Electric Power Inc., has said it will scrap the project if it doesn’t receive the federal backstop. The project is “absolutely contingent” on a loan guarantee, NRG Chief Executive David Crane said.
The fate of the NRG project will be thrown into further doubt if Tokyo Electric Power, the owner of the Fukushima plant in Japan, backs out as a partner.