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Thursday, March 29, 2012

Nuke Makes No Economic Sense

Nuke makes no sense from an economic viewpoint.

It costs around $15B to build a modern nuke plant, and takes about 10 years.

Investors want a 10% or even 20% annual rate of return in general, maybe on something super safe and reliable they would be willing to receive 7%.

But with nuke, picture that at year 5 you have the heavy infrastructure in place, much of the big money spent, say $10B,   

At that point investors would want at least $1B minimum a year, and yet you have to wait 5 more years to get anything.

Typical nuke plants generate around $250M per year in profits.

At completion----if they are not shut down by protests and shoddy workmanship-----the investors money has been tied up for ten years and with $15B invested

So now they can make $250M per year if all goes well.

$250M / 15B = 1.66% Annual Rate of Return ---which is a total joke, no investor would want this deal, so why are nuke plants being built?

The military /industrial nuke cartel doesn't go down easily, they keep chasing after their cheese in the same old places they always found it, even though it makes no sense.


I can easily get 25% annual rate of return on a solar electric investment.    That means that solar is a 15 times better investment, and no evacuation zone and no eternal vigilance over the waste products.

Shut Them All Down!

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