Bruce Power launches Saskatchewan 2020 Initiative - Nuclear?
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SASKATOON – JUNE 17, 2008 – Bruce Power will study the potential of bringing nuclear energy to the province as part of a wider look at clean energy technologies. The Saskatchewan 2020 initiative, unveiled today in Saskatoon by Bruce Power President and CEO Duncan Hawthorne, is intended to give provincial leaders detailed information and options as they consider their electricity supply needs for the next generation. Hawthorne was joined by the Honourable Lyle Stewart, Minister of Enterprise and Innovation, and the Honourable Ken Cheveldayoff, Minister of Crown Corporations. "Saskatchewan needs clean, affordable and reliable power to meet the future needs of a growing province. We would like to welcome Bruce Power to our province and look forward to the results of the Saskatchewan 2020 feasibility study, which we hope will lead to the creation of a nuclear option for our province," Stewart said. Bruce Power plans to liaise with SaskPower to evaluate electricity demand projections for the province and examine what transmission upgrades or enhancements would be required to accommodate new nuclear units. “Our government is establishing a climate so companies like Bruce Power can come to our province and compete to provide the next generation of clean electricity,” Cheveldayoff said. Hawthorne praised the government for their support and foresight, saying Saskatchewan has the opportunity to become a leader in developing clean energy options over the next decade and attracting significant private investment to the province. “The reality of climate change is upon us and the government clearly understands the need to consider all options if we are to tackle one of society’s most pressing issues,” Hawthorne said. “I believe nuclear energy, when properly integrated with technologies such as hydrogen, would be a worthy addition to Saskatchewan’s energy mix and look forward to exploring the potential further.” As part of its Saskatchewan 2020 program, Bruce Power will consider: * How best to integrate nuclear energy, which produces no greenhouse gases when it produces electricity, with hydrogen, wind, solar and clean coal technologies to give Saskatchewan a diverse and secure supply of clean energy for 2020 and beyond. * The economic impacts, public attitudes and level of support for adding nuclear energy to the province’s current electricity supply mix. * Potential locations that would be suitable to host a new generating station and the provincial transmission requirements needed for new nuclear and other clean energy sources. Bruce Power intends to begin its analysis this summer and issue a report by the end of the year. The Saskatchewan 2020 program aligns with work Bruce Power is already conducting in Alberta and Ontario as it considers building new reactors in the Peace Country north of Edmonton and at its current Ontario location approximately 250 kilometres northwest of Toronto. Canada’s only private nuclear generating company, Bruce Power operates six reactor units and is in the process of restarting two more at its Bruce A generating station. Earlier this year, Bruce Power Alberta filed an application with the Canadian Nuclear Safety Commission for approval to prepare a site that could generate 4,000 megawatts of electricity from two to four reactors near Peace River, Alta. About Bruce Power Bruce Power is a partnership among Cameco Corporation, TransCanada Corporation, BPC Generation Infrastructure Trust, a trust established by the Ontario Municipal Employees Retirement System, the Power Workers’ Union and The Society of Energy Professionals. For further information, please contact: Steve Cannon 519-361-6559 steve.cannon@brucepower.com 24-hour Duty Media Officer 519-361-6161 Bruce Power launches Saskatchewan 2020 initiative Source |
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I for one find this to be the most rediculous possibility for alternative energy. Nuclear power is not a proven safe power and the long term environmental consequences are outrageous! Here's a quick list of some of the issues regarding nuclear power; mines created to extract uranium, uranium refinement plants, transportation pollution from the uranium, nuclear waste from the plant, possible meltdown and the list could go on! We have access to basically every form of renewable resource there is and we are still wanting to use some finite alternative. If this goes through I may end up leaving to a province that realizes the truths of nuclear power and would never consider it as a viable alternative.
With that said, I really feel the answer to sustaining our energy source is through innovative construction technology using renewable resources, example; building wind turbines on the sides of buildings or between floors, substituting some glass windows for solar panels. Finally why not put in a biomass productino area in the basement to harness any waste. This is the answer, NOT NUCLEAR POWER!!!!:yuck: :yuck: :yuck: :yuck: :hell: |
i completely agree with you Kgc087, there are also much better alternatives than nuclear, i think the government should look into other power sources that nuclear, mabey solar or wind, if saskatchewan wants to be a progressive province we have to look for a renewable yet environmently friendly source of power. I like the Maglev idea which would fit perfectly on diephenbaker which is one of canadas windier spots.
http://img501.imageshack.us/img501/1995/maglevbx3.jpg http://img501.imageshack.us/img501/1...0e0ccb656f.jpg here is a little article on it MagLev’s wind turbine concept, is no longer just that. It has entered production, possibly being the most revolutionary for wind energy. Currently the largest wind turbines in the world only produce 5 megawatts of power, but this massive wind turbine is expected to generate one full gigawatt of clean power - enough energy to supply to 750,000 homes. MagLev Wind Turbine Technologies, an Arizona-based company, claims that it will deliver clean power for less than one cent per kilowatt hour and create energy even at low speeds of 3mph. Amazingly, this wind technology boosts generation capacity by as much as 20% over traditional wind turbines and decreasing operational costs by 50%. It’s estimated the colossal structure would occupy 100 acres and be several hundred meters high. Although the building will be expensive to build ($53 million), the cost savings of building one huge turbine reduces the cost of construction and maintenance for investors to recoup loses within a year. we may be the uranium capital but it doesn't mean we have to use it |
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I don't think that "possible meltdowns" is really a valid argument at this point either. There has been 1 occurance of a major meltdown causing serious, long lasting deaths that occurred occurred over 20 years ago in Soviet Russia where proper (well, lets say more current) safety/backup measures weren't in place. There have been other "close calls" (i.e. Three Mile Island where no one actually died and safety measures kicked in to prevent another Chernobyl), but in reality there are a lot more things in life that have a MUCH greater chance of killing or harming you than a possible nuclear reactor meltdown. Granted, solar and wind power provide pretty much 0 chance of death, unless a giant turbine were to fall on a person admiring how massive it was below :haha: The issue that I always hear come up when talking about using solar and wind power as our main power source is that we always need to have a backup system to supply the same amount of power incase they go down (wind stops blowing, sun doesn't shine?), but that seems to be the case with the reactors as well when maintenance and whatnot needs to be done, as stated in one of the articles above. Anyone have more info on this? I'm assuming our current system can handle dropouts of one or more section of the grid? |
Alternative energy has not been ruled out, I suspect much of the nuclear discussion has more to do with powering the oil sands development; expecting electricity demand growth for several decades.
Solar and wind are both becoming cheaper and more reliable technology for power production, however, I'm not convinced Saskatchewan can rely on renewable sources alone, especially solar during our winter months. The power of wind is already being harnessed in the southern regions of our province... http://img178.imageshack.us/img178/6...indfarmyd2.jpg Source Quote:
A new and informative paper on how energy efficiency and renewables can provide baseload without the climate change emissions of coal. - The Base Load Fallacy - Page 4 However, I'm not certain nor am I confident of reliance on wind power alone; intermittent power source...leads to importing of power if we don't have enough generating capacity in the province. Solar has some potential, if only during the summer months and most likely based on a decentralized power grid (e.g. roof top solar panels and battery systems for individual homes and businesses). For our immediate future, both non-renewable (nuclear/natural gas turbine/clean coal with carbon sequestration) and renewable (wind/solar/geothermal?) energy sources are available, capable of supplying electricity for our growing province. It will be interesting to see how Bruce Power sets up the process and how the government and public receive it...our options may work out better than expected. A side comment: Saskatchewan already mines uranium for much of the world, and for positive perceptions of leadership, we should look to expand our influence in the world with processing and waste storage facilities. If any country/province should carry the burden it should be those who developed uranium mining...a little money, international influence and growth in our knowledge economy doesn't hurt either ;) |
I like wind power and biomass as replacement supplies but I also am not that confident of running a province on this alone at this point in time. Has anyone looked up if there are any health issues caused by the noise generated by wind turbines.
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I haven't heard of any human health issues related to the noise caused by the turbines, but I have heard that cattle tend not to like them (if placed in grazing land and whatnot).
I'm not sure if this is the case anymore, but when the group of wind turbines by Gull Lake were first installed the company installing them had a contract with SaskPower to sell X number of MW of power per year generated by them. They met this target in around 6 months I believe it was and instead of continuing to generate power, they were turned off. :rolleyes: Hopefully these new initiatives and ideas that come into place actually lead to a reduction in our dependance on the coal-fired plants rather than just bumping up extra power when we need it. |
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The complexity of energy supply and demand and associated agreements between jurisdictions/industries within a specific network may be just as critical, if not more critical to power supply and distribution than the construction and placement of power plants within a specific network. For Saskatchewan, SaskPower manages distribution and owns/operates much of our power supply (as well, I've read we sometimes import power from neighboring provinces and states during peak demand...standard practice some might say). If the government approves of a Bruce Power proposal for a nuclear plant(s) which the government has no ownership in (except maybe transmission lines?), SaskPower would then be buying power from Bruce Power for X amount of dollars instead of importing the power from other provinces/states...do some fact checking, you might be surprised how the provincial power grid operates. |
I feel that Saskatchewan could definatley rely on wind, solar and biomass power as its main source or base power source. I feel that small amounts of energy from natural gas, coal and possible even a VERY VERY mini nuclear plant could supply for those times of extra need. We have the wind, we have the solar ability and anywhere can produce biomass since we all produce the necessary products to make it happen. As well that article regarding the "super" wind turbine just shows how there are economical alternative AND renewable energy sources. 5 of those turbines would probably more then enough to power all of Saskatchewan at a cost which would be cheaper then a nuclear power plant in the long run. I feel the population is really ignorant on these alternatives and feel that nuclear is the only viable alternative b/c it SEEMS secure.
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I would just also like to point out that the construction costs for a nuclear power plant are well into the billions while that "super" wind turbine prices out at 53 million and produces 1/4 of the energy you could still build 94 super turbines at the price of one nuclear power plant (approx 5 billion) which would produce 94 gigawatts of power! Imagine selling that to North America, clean, renewable wind energy:banana:
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As with everything, MagLev Wind turbines also have shortcomings...
joelpiecowye, for future posts, please quote your source (e.g. hyperlink the article homepage).
I assume you found the article from here: MagLev’s Wind Turbine Is Real Quote:
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You can't justifiably say 94 gigawatts with 94 super turbines...a very ridiculous claim. Wind power based on a traditional design or a 'new' turbine design are not the end all, be all...a mix of energy is vital for security, predictability, and efficiency (e.g. Wind/Solar/Nuclear/Gas Turbine/Clean Coal/Geothermal/Biomass/Other). |
A little competition eh...
AECL eyes reactor build
Bruce Johnstone and Angela Hall, Saskatchewan News Network Published: Wednesday, June 18, 2008 REGINA - The day after Bruce Power LP announced plans to study the potential for nuclear power in Saskatchewan, "Canada's nuclear energy company" made a pitch to build the province's first reactor. "If Saskatchewan decides to adopt nuclear, it is very well-positioned and it has choices," said Hugh MacDiarmid, president and CEO of Atomic Energy of Canada Ltd. (AECL). "It has both public and private options for development. "AECL is pleased to work with either," MacDiarmid told a Regina & District Chamber of Commerce luncheon Wednesday. "We want to be part of Saskatchewan's nuclear future." The fallout from Bruce Power's announcement of a feasibility study to be completed by the end of the year also reached the premier's office on Wednesday. Premier Brad Wall says the government would be "foolish" not to explore the possibility of a privately operated nuclear power plant here. But the premier pledged all public opinion on the issue will be heard and that the government would be more of regulator than an advocate in the debate. "We're not going to proceed with this unless we can demonstrate, obviously, environmental sustainability, unless we can demonstrate public safety, and it has to be cost effective in terms of a power source," Wall said. "When that feasibility study is complete, if the conclusion . . . is that this might make sense, then we can certainly continue to engage Saskatchewan people," Wall said, though he stopped short of saying there would be a referendum on the matter. MacDiarmid, who joined the federal government-owned AECL in January after a 30-year career mainly in the transportation sector, firmly believes Saskatchewan has a nuclear future. "The economics of nuclear power for this province are unquestionably solid," MacDiarmid said. "You sit on a bonanza of uranium," he said, referring to the 350,000 tonnes of uranium reserves in Saskatchewan - one-quarter of the world's known supplies and equivalent to 18 billion barrels of oil. "You have the potential of upgrading, even enriching, this natural resource," he said in reference to building a uranium refinery or enrichment facility. And Saskatchewan could have a nuclear reactor in its future, depending on the Bruce Power study. MacDiarmid said AECL is well-positioned to be the supplier of any nuclear power plant Bruce Power might want to build. "We have two excellent products: the Enhanced Candu 6 and the new ACR-1000." The Enhanced Candu 6 is a 740-megawatt unit that uses natural uranium fuel and heavy water for moderation and coolant, and is "well-suited to smaller grids, including possibly, Saskatchewan." The ACR-1000 is 1,150-megawatt design that uses slightly enriched uranium and heavy water for moderation and light water for coolant. Moderation is the slowing down of neutrons to cause fission. In MacDiarmid's mind, the case for nuclear is clear. "It's safe. It's environmentally sustainable. It's reliable. It's economical. "Nuclear is the right choice for Saskatchewan." Following his presentation, MacDiarmid said any nuclear power plant would take a minimum of 10 years to build, including five years for construction, and cost $4 billion to $5 billion. During construction, between 3,600 and 4,000 jobs would be created, as well as 500 to 1,000 permanent full-time jobs, depending on the size of the plant. But MacDiarmid said it's too early to say whether AECL would be building any nuclear reactors in the province. "We recognize that it's premature to be talking about who the vendor will be. We recognize we're one candidate of several perhaps," he told reporters. "The reason I wanted to be in the province was to show that AECL is very committed to being Canada's nuclear energy company." John Hopkins, CEO of the Regina chamber, said MacDiarmid's message was well-received by the Regina business community. "I would say (support for a nuclear plant) would be well over the 50 per cent mark. "I think there's a general consensus in the business community that we need to have this discussion in Saskatchewan and move on with it. "We're the Saudi Arabia of uranium, yet we don't do anything to add value to it. There's a huge opportunity to look at that." University of Regina political scientist Ken Rasmussen said public opinion on nuclear power has shifted to be more favourable in North America in recent years. "I think there is an argument that is very convincing to a number of people and that is that this is very common technology in Europe," Rasmussen said. "I think that the safety concerns have been mitigated a bit, and the argument will be as well, for those people that are somewhat soft on it, that it doesn't produce as many CO2 gases." But Rasmussen said there will be "hellish" not-in-my-backyard battles when it comes to discussion about where a plant could be located. © The StarPhoenix 2008 Source |
Areva expresses interest in Sask. nuclear potential
Angela Hall, Saskatchewan News Network; Regina Leader-Post Published: Friday, June 20, 2008 REGINA -- Saskatchewan's recent nuclear buzz has another major industry player signalling its interest in supplying the province with a nuclear reactor. Areva Canada president Armand Laferrere said the company's existing presence in Saskatchewan's uranium industry could make it a "perfect fit" as the province considers going nuclear. "Lots of markets are opening up to nuclear, or thinking about it, and so it's a good time to be in this industry," said Laferrere, who made the comments in the wake of an announcement by Ontario-based Bruce Power LP that it will conduct a feasibility study into the potential for nuclear power in Saskatchewan. Premier Brad Wall has been vocal recently in promoting further development of the province's uranium industry, including refining and nuclear power. Laferrere said his company would be interested in bidding to become the one to build a nuclear power plant should the opportunity arise as a result of the feasibility study. Areva has a number of reactors worldwide but none in Canada. "It's very early days, but as things progress, at one point they will decide who to buy the nuclear plant from, and we're one of the global leaders in that field," Laferrere said. The company conducts uranium mining and exploration in Saskatchewan through Areva Resources Canada. "This is a province we've been working in for about 40 years now. We have 500 employees in the uranium mines, so it's one of Areva's biggest operations. "Clearly it's a province that we know and that we like," Laferrere said. A day earlier, Hugh MacDiarmid, president and CEO of Atomic Energy of Canada Ltd., was in Regina at a local chamber of commerce event, touting the company's interest in supplying a nuclear power plant if plans in Saskatchewan proceed. © The StarPhoenix (Saskatoon) 2008 Source Politicians must join nuclear debate Murray Mandryk, Saskatchewan News Network; Regina Leader-Post Published: Friday, June 20, 2008 If ever Saskatchewan needed an unbiased, third-party commission to help us sort through a divisive issue of major importance, it's on the adoption of nuclear power. Here's why. On one side, you see the emergence of a pro-nuclear lobby, which sees a reactor as the best opportunity to take this province from its historic status as a social democratic, agrarian breadbasket that's barely capable of supporting a million people to something closer to the grand vision predicted for it 103 years ago. On the other side, you see the well-established anti-nuclear lobby, which fears the extremely remote chance of a cataclysmic nuclear disaster as a risk not worth taking in a responsible, caring jurisdiction whose long-term energy needs can be satisfied with more gentle forms of energy, such as wind and solar power. This is highly problematic for the vast majority of us in Saskatchewan, who already haven't adamantly expressed our firm views in a letter to the editor, a blog or a private or public radio talk show. Actually, the best thing that could happen in this debate would be for those who've made up their minds to take a long, hard deep breath. That generally causes people to close their mouths for a moment, which might accidentally afford them a rare opportunity to hear what the other side has to say. Obviously, we need a good debate on this issue. Alas, early indications in the wake of both the Bruce Power announcement and the AECL comments to the Regina Chamber of Commerce this week suggest that we aren't going to get it. In fact, we don't even have a forum at the moment to get this debate right. Normally, such passion and divergence of opinion on an issue have made for great political debates in our legislature. Consider the medicare debate 45 years ago or the privatization debate 20 years ago. But already signs are emerging that suggest the debate on whether to go down the nuclear path won't be happening in the legislature. In fact, all signs point to the likelihood that it won't be the politicians who will be driving this issue at all. First, so politically explosive is the issue that both the Saskatchewan Party and the NDP seem to feel the need to step back. The governing Saskatchewan Party isn't merely a quiet advocate of nuclear power but sees the development of a nuclear power plant as a huge component in its long-term growth agenda for Saskatchewan -- perhaps even Premier Brad Wall's legacy. However, beside the fact that the government will have to be the regulator and would be perceived to be in a conflict of interest if it were an aggressive advocate for the plant, the Saskatchewan Party's braintrust is politically savvy enough to see the danger of being branded as the proponent. No doubt, Saskatchewan Party officials will let their friends in such places as the oil sector, the chambers of commerce or the North Saskatoon Business Association (whose members would benefit from the boom in economic activity that a reactor would create) do their bidding. But don't expect the NDP caucus to lead the charge against the reactor, either. Despite their natural penchant to oppose all things nuclear, the rudderless NDP fears being branded as another version of the Green Party that's perceived as opposing any growth initiative. The NDP instead will oppose a reactor on the bases of NIMBY, ultimately concluding that nobody's backyard in Saskatchewan is a good place for a reactor. And while one usually might think it would be a good thing to exclude politicians from a debate, what it will do in this case instead is create a huge void -- a vacuum that will be filled by those with extreme views who don't have to subject themselves to the discipline of trying to get re-elected. There's an inherent value in having a formal body that acts as an honest broker in this debate. We need an unbiased analysis of such issues as how a nuclear plant might actually reduce the need to burn dirty coal, how concerned we should be about reports of higher leukemia rates near German nuclear power plants or whether adding 1,500 megawatts of generating capacity in Saskatchewan is needed or even smart. The nuclear debate is too important to be left to those whose minds are made up already. © The StarPhoenix (Saskatoon) 2008 Source SaskPower must own nuclear reactor David McGrane, The StarPhoenix Published: Friday, June 20, 2008 Following is the viewpoint of the writer, assistant professor of political studies at St. Thomas More College at the University of Saskatchewan. We are about to embark on an important debate about whether a nuclear power plant makes environmental and economic sense for Saskatchewan. If we decide on nuclear power, it should be SaskPower that owns and operates the plant, not a private company from Central Canada. Saskatchewan has a long history of publicly owned utilities that dates back to the creation of a long-distance telephone service in 1908. It's disturbing that, on the 100th anniversary of public enterprise in Saskatchewan, the government seems to be turning its back on our tradition of public utilities by supporting Bruce Power's feasibility study that could result in a privately owned nuclear plant in this province. AECL president Hugh MacDiarmid made a welcome contribution Wednesday to the debate in Saskatchewan over developing nuclear power when he noted there are "both public and private options." I believe any nuclear reactor built in Saskatchewan should be bought by SaskPower, either from a private sector company or a publicly owned company such as AECL, and then operated by the public utility. The Saskatchewan government in 1945 justified the establishment of SGI by arguing that, "90 per cent of insurance in the province is being written in Eastern Canada, so the profits are going back East." The situation is no different now. Under the proposal Bruce Power made this week, it would own the nuclear reactor and any profits generated by sales of electricity would go directly to its owners based in Toronto or Calgary and to shareholders around the globe. Cameco does own 31.6 per cent of four reactors operated by Bruce Power, but the Saskatoon-based uranium company is publicly traded and its profits are distributed to shareholders around the world. If SaskPower eventually begins to buy electricity from a Bruce Power-owned nuclear plant, most of the money paid by Saskatchewan consumers will be exported outside the province. The vast majority of the profits that Bruce Power will make from selling electricity to Alberta or the United States from its Saskatchewan plant will leave the province, too. However, if SaskPower were to own the plant, the profits it makes from selling its electricity to Saskatchewan residents would be transferred to the provincial government to fund better social programs or reduce the price we pay for electricity. It should be remembered that the provincial government took in $587 million (about 6.7 per cent of its revenue) from Crown corporations in fiscal 2006-07 and that our Crowns have used their robust finances in recent years to cut rates or give rebates to consumers. Manitoba Hydro and Quebec Hydro are good examples of provincial governments earning significant amounts by selling electricity to other jurisdictions. A publicly owned power plant could be an opportunity for our government to sell (debatably) green energy to the larger North American market and use the profits to improve the quality of life in Saskatchewan through better infrastructure, health care, education and economic development. Public ownership of nuclear power presents a number of social and economic advantages over private ownership. A plant owned by SaskPower would add jobs to its head office in Regina instead Bruce Power's headquarters in Ontario. These new SaskPower jobs would provide well-paying managerial positions to retain the brightest Saskatchewan youth in the province. SaskPower could also be relied upon to purchase local supplies and construction materials. The utility also has an innovative program to hire underrepresented groups such as aboriginals, people with disabilities, visible minorities and women in non-traditional occupations. Further, unlike private sector companies, SaskPower falls under the government's pay equity framework. Bruce Power's website makes no mention of employment equity or pay equity programs. Nuclear power generation is associated with certain environmental dangers. As a publicly owned utility, SaskPower can be more closely monitored and regulated by the province to ensure that the highest environmental and safety standards are met. Since it controls the entire electrical grid in the province, SaskPower can be trusted to accurately discern how nuclear fits with an environmentally friendly mix of energy conservation and wind, solar, natural gas, hydro-electric, and clean coal electrical generation. Indeed, it is SaskPower that should be doing the feasibility study on whether Saskatchewan needs nuclear power. As a private company, Bruce Power's feasibility study will be to examine if it can make a return on its investment. As a Crown Corporation, SaskPower could be mandated by the government to examine if nuclear power is the best environmental choice and if it would bring about the lowest electricity rates for consumers. © The StarPhoenix (Saskatoon) 2008 Source |
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I think that last article makes a lot of sense. I guess the only thing I'd be worried about is the upfront cost of building a reactor and that we would have to pay for it if it were SaskPower building it.
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Our increasing resource revenues may allow us to pay cash upfront for a plant, not sure if that is a smart move though. On the bright side, we have Bruce Power, AECL, and AREVA all vying for market share in the west, stiff competition for big dollars :tup: I am clueless when it comes to private-public ownership of utility companies. I'll try to find some time to read up on the topic and post up some of my thoughts. |
Nukes in Saskatchewan.....Right On! Hopefully SaskPower will be the owner/developer even if the upfront cost are high, it will be worth it in the long run. Keep the benefits of Saskatchwan's resources in the hand's of it's people.
By the way, what is the proper term for a resident of Saskatchewan anyway (I've had this debate with several ex-pat's here in Alberta and have yet to get a straight answer):shrug: |
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A Gapper?? :shrug: j/k I am sure MB Hydro will be offering to sell additional power to SK Power if the need arises. New hydro dams are being constructed in northern MB over the next decade .. and contracts are being filled to sell that power... mostly to the US. |
Poor policy for gov't to own reactor
David Seymour, Special to The StarPhoenix Published: Tuesday, June 24, 2008 Following is the viewpoint of the writer, Saskatchewan Policy Analyst for the Frontier Centre for Public Policy with offices in Winnipeg, Regina and Calgary. In SaskPower must own nuclear reactor (SP, June 20), David McGrane made the case for the provincial investment in a major facility such as a nuclear reactor. That viewpoint item is a valuable contribution to the debate, because it shows what one needs to believe in order to support government ownership of such an asset. The article argues that provincial ownership of a reactor would ensure that profits would stay in the province and that the facility would provide head office jobs vital for Saskatchewan's development. Further, it assumes that governments are more likely to regulate their own activities in the service of environmental and social goals than they are to regulate private interests. A closer examination of these arguments in favour of a Crown-owned reactor for these reasons implies some interesting beliefs. The "profit remains in the province" argument runs that if the reactor is owned in Saskatchewan, any profits will stay here instead of leaking to outside investors. The important phrase here is "any profit," because in the normal run of things, profits are not guaranteed. A reactor would certainly yield revenue, but it won't necessarily be enough to cover the investment capital that must be sourced and repaid. The capital must be diverted from other uses that also could be expected to generate some return. Therefore, whether the capital comes from taxpayers in Weyburn or traders on Wall Street, the investors will rightfully expect at least an average return. For the plant owner/operator to end up better off, the reactor would have to make a return that is above average, with the difference being their true economic profit. So, the first thing one must believe is that people who work for government organizations generally pick above average investments. Following that logic, government departments should start investing all over the globe and make even more money for the province. Of course, there is no reason to think government agencies can consistently beat the market. With the political constraints they face, they probably are at a disadvantage. However, if for argument's sake we assume they will break even on this investment, there are some other reasons why government ownership might serve the public good. The argument for a Crown reactor also presumes that the presence of Crown head offices is required for the province to succeed economically. This reasoning runs along the lines that local ownership would create high profile executive positions; otherwise we will all be become "hewers of wood and drawers of water." Putting aside the irritating inference for everyone who doesn't toil in a Crown Corporation office tower that they are making an inferior contribution to Saskatchewan's future, growth patterns within the province do not support this argument. As the benefits of having Crown head offices go, Saskatoon and the rest of the province subsidize Regina. They pay Crown fees, but mostly miss out on the benefits of head offices. If this sacrifice to the Queen city were paying off, we might expect to see the best economic growth occurring there. As it happens, all the indicators show that growth is brisker in Saskatoon. Even before the current provincial economic burst, Saskatoon was leading Regina in population and in population growth for some time. We are now left with the "regulation" argument, which says that if the government owns the facility, it will be easier to achieve other goals such as greater use of renewable energy or equal opportunity employment. But regardless of whether the ownership is public or private, the government will have a regulatory role for prices, environmental impacts, labour laws, and anything else for which it can muster votes. Regulation is about government acting on behalf of citizens to make companies do things they would not otherwise do. The regulation argument requires the belief that governments will regulate their own interests more eagerly than those of others. In practice, being the developer and the regulator at the same time creates a conflict of interest. If anything, we would expect the province to be a softer regulator of its own business interests than of private votes. To illustrate, in 2002 a sewer and wastewater plant owned by the City of Winnipeg accidentally released 437 million litres of raw sewage into the Red River. After an awkward legal delay, the courts levied no penalty at all on the city. It's a safe bet there would have been swift and harsh penalties had a private wastewater operator been responsible for the disaster. Similarly, there are very real environmental impact issues with waste storage from a nuclear plant. As owner and regulator of nuclear assets, the government would be conflicted in regulating itself. The arguments for a government-owned reactor can be seductive, allowing SaskPower to kill many public policy birds with one big investment stone. Closer examination shows, though, that this proposition runs contrary to what we have observed about government, investment and economics. It may well be SaskPower should build a reactor, but not the reasons examined here. (www.fcpp.org) © The StarPhoenix (Saskatoon) 2008 Source ____________________________________ Nuclear industry spins new mythology Paul Hanley, The StarPhoenix Published: Tuesday, June 24, 2008 The nuclear myth of the 1950s and '60s was atomic power would be "too cheap to meter." That didn't pan out, so the nuclear industry is spinning a new mythology, also designed to win popular support. At a meeting of the Regina Chamber of Commerce last week, Hugh MacDiarmid, president and CEO of Atomic Energy of Canada, described nuclear power as "environmentally sustainable." At the same time, Premier Brad Wall stated that Saskatchewan would not proceed with the nuclear option "unless we can demonstrate, obviously, environmental sustainability." If sustainability is the basis upon which we decide for or against the nuclear option, we can stop the debate right now. The claim of nuclear "sustainability" is perhaps the most egregious case of green washing (i.e. lying about environmental performance) ever. According to the Canadian Oxford Dictionary, "sustainable" refers to a development "that conserves an ecological balance by avoiding depletion of natural resources." The undeniable fact is that nuclear depends on the depletion of a natural resource -- uranium. Uranium, like, oil, coal or natural gas, is not an unlimited resource; it is non-renewable. Therefore, like fossil fuels, nuclear power is not sustainable. A second myth is that nuclear is now gaining worldwide acceptance, that it is experiencing a kind of renaissance. The reality is quite different. Global nuclear capacity stands at 372,000 megawatts, but its growth rate is lower than any other energy source. Growth was just 0.5 per cent in 2007, compared to 27 per cent for wind energy. In total, global nuclear power capacity grew by less than 2,000 megawatts in 2007, a figure equivalent to just one-tenth of the new wind power installed globally that year. By the end of 2007, reports the Worldwatch Institute, 34 nuclear reactors were being built worldwide. Twelve have been under construction for 20 years or more. Meanwhile, more than 124 reactors have been retired by the commercial nuclear industry since 1964, reducing capacity by 36,800 megawatts. A recent Time magazine article, Is Nuclear Viable?, reports that the American nuclear industry is so unattractive that it is unable to attract private investment. While the red-hot renewable industry, including wind and solar, attracted $71 billion in private investment last year, the nuclear industry attracted nothing. "Wall Street has spoken -- nuclear power isn't worth it," said energy analyst Amory Lovins, author of the study The Nuclear Illusion. Even with multibillion-dollar government subsidies, private investors are still not interested. Capital costs are too high. Construction delays and cost overruns continue to be the norm for the nuclear industry. Cost estimates for identical Westinghouse-designed nuclear plants more than doubled in 2007, to $12-$18 billion, raising questions about the plants' economic viability and doubts as to how many electric utilities would be willing to add liabilities of that scale to their balance sheet. The U.S. credit rating agency Moody's has cautioned that many utilities are underestimating the cost of new plants and that nuclear investment could damage their credit ratings. It is no wonder then that the United States saw no nuclear construction starts for the 29th straight year in 2007. Meanwhile in Japan, a 6.8-magnitude earthquake struck the largest nuclear complex in the world in 2007. It shut down the Kashiwazaki-Kariwa nuclear plant's seven reactors, which account for 8,000 megawatts of Japan's nuclear capacity. The quake was 21/2 more powerful than the reactors were designed to withstand, reports Worldwatch, raising questions about whether they should ever be returned to service. According to Amory Lovins, reducing carbon emissions would be cheaper and safer if nuclear was rejected in favour of alternatives that are sustainable. "The bottom line is that nuclear buys two to 10 times less climate protection than its competitors." Investing in the nuclear option in Saskatchewan would suck up all the capital that would be spent more cost-effectively on renewable energy, efficiency and conservation. Nuclear Myth Busting is the topic of a free public lecture, Wednesday at 7:30 p.m. at the public library downtown. The guest speaker is Jim Harding, author of Canada's Deadly Secret: Saskatchewan uranium and the global nuclear system. © The StarPhoenix (Saskatoon) 2008 Source |
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