Subsidies | EnergyNorthwest.com

DOE Considers Subsidies Modeled on Renewables for Small Modular Nuclear Reactors

November 16, 2018

State-imposed standards and financial incentives such as those used to spur widespread adoption of renewables technologies offer a promising model to address challenges to commercialize small modular reactors (SMRs), says a report by the U.S. Department of Energy’s (DOE’s) Office of Nuclear Energy.

But to make a meaningful impact, nearly $ 10 billion in incentives will be needed to deploy 6 GW of SMR capacity by 2025, it acknowledges.

The report, “Examination of Federal Assistance in the Renewable Energy Market,” was prepared by Kutak Rock and Scully Capital under contract with the DOE and made public on November 15. It notes that while uncertainty attached to the rapidly evolving market environment is shadowing long-term investment decisions at electric utilities in the U.S, current trends in the power sector present an opportunity for SMR development “as a flexible, carbon-free baseload generation resource which can be built on a smaller scale than traditional nuclear plants.” However, efforts to commercialize SMR technologies have lagged owing to several challenges.…

Competitive Generators Look to the Supreme Court After Seventh Circuit Declines Rehearing on Nuclear Subsidies

October 12, 2018

| No Comments

| Industry News

The Seventh Circuit Court of Appeals has declined to rehear a case that challenges nuclear subsidies in Illinois, effectively dealing a blow to a group of competitive generators, which have fought the measure for several years.

In an order issued on October 9, the appellate court said its full judicial panel had voted to deny a September 29–filed petition from the Electric Power Supply Association (EPSA), a national trade association representing independent power producers and marketers, that urged it to rehear a case challenging the state’s zero emissions credit (ZEC) program under the Illinois Future Energy Jobs Act. In its petition, the group argued that the court erred or overlooked significant aspects of its case when the court issuedits final judgment on September 13.

The court’s decision, which essentially left the door open for states to subsidize nuclear generation, was hailed as a victory for Exelon Corp., which lobbied for the measure to protect its financially flailing nuclear assets.…

Appeals Court Backs Illinois’ Nuclear Subsidies

September 14, 2018

| No Comments

| Industry News

The U.S. Court of Appeals for the Seventh Circuit on September 13 upheld subsidies offered by Illinois to help struggling nuclear power plants. The court rejected arguments from power producers and some Illinois energy consumers that so-called zero-emission credits (ZEC) are preempted by the Federal Power Act. Opponents argued the program violates the Commerce Clause of the U.S. Constitution, saying it usurps the authority of the Federal Energy Regulatory Commission (FERC) and FERC’s jurisdiction over wholesale electricity markets.

The ruling was in the case Electric Power Supply Association et al. v. Star et al.

The Electric Power Supply Association (EPSA), an advocacy group for the electric power industry, along with other independent generators and some Illinois energy consumers had said the state’s ZEC program and the $ 235 million in yearly subsidies sent to a pair of Exelon Corp. nuclear plants as part of the state’s Future Energy Jobs Act directly impacted wholesale markets.

The latest appeal in Illinois was filed after a judge in July 2017 dismissed an earlier appeal by EPSA and a group of power generators.…