Bank report says prospects are going south, but consultant says the real name of the game is managing risk
A new report by Citigroup on the prospects for equity investors in the nuclear energy industry casts doubt on prospects for profits. While the report is focused on Europe, its authors claim their findings have equal weight in the U.S.
Cited in the July 2010 issue of the EEnergy Informer, published by Fereidoon P. Sioshansi, Ph.D., a utility consultant, he writes Citigroup's report "New Nuclear – the Economics and Politics" says that for every step forward there is another that takes a step back.
Separately, a group of analysts at consulting firm Arthur D. Little say the financing isn't so much the problem as managing the risk with the key emphasis on "management." In a June 2010 report titled "Nuclear New Build Unveiled," the firm reports realistic schedules, and managers who understand the complexities of building new nuclear reactors, are the essential elements of managing risk. The report's authors say that failure mode will follow not paying attention to these issues.
Read all about it exclusively at CoolHandNuke, a nuclear energy jobs portal and a whole lot more.
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2 comments:
The ADL document while informative, relies on the lessons of the past, rather than review current options. It fails to mention the small reactor option, and the use of small reactors in risk management tactics. Since there is little doubt that some small reactors will be part of the future nuclear product mix, this omission is at the very least shortsighted. Wall Street is behind the Times as far as thinking about nuclear power is concerned.
Anyone interested in the Arthur D. Little report and these issues generally may want to visit:
Nuclear Construction Contract Risk Management & Prudence
Surety Bonds for Nuclear Energy Facility Construction Cost-Savings
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