What can be done to make the cost of nuclear plants more attractive to investors?
There are several initiatives currently underway. First: a production tax credit of $18/ Mwt-hr for the first 8 yars of production, similar to that given for renewable energy forms (eg wind/biomass) would have a big impact. This is being studied by Congress Second: a 20% investment tax credit for first time plants is also being examined by congress. Third a carbon tax is being considered for fossil fuel power stations, and fourth: a cost share between industry, government and vendors is being considered for first time plants. Additionally, the government is seriously looking at federal loan guarantees to back up corporate bonds. All of these initiatives will substantially offset any investment uncertainty in nuclear power plants.
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