Ontario's Nuclear Power Plan: A Recipe for Disaster

Strategic Insights -

In a bizarre twist, Ontario's leaders, Premier Doug Ford and Prime Minister Carney, are committing the province to a nuclear power future that depends heavily on the US, despite the tariffs imposed by Donald Trump. This decision is a fatal mistake, as nuclear reactors are significantly more expensive than wind and solar power and rely on enriched uranium imports from the US, which Trump can cut off at any time. We need forward-looking politicians to take action against the climate crisis, but instead, the current crop of leaders is pushing for a for-profit model of energy production that is detrimental to the planet.

Key Takeaways:

  • The P3 financing model for new nuclear plants is a form of privatization that will lead to significant costs for taxpayers. In Ontario, this has resulted in a $34-billion debt at the old Ontario Hydro, mostly due to nuclear debt.
  • The mining and production of nuclear fuel is a dirty business that produces significant CO2 emissions, but private investors rarely discuss this aspect of nuclear power.
  • Conservation measures are being ignored by politicians, who are more interested in profiting from the sale of electricity than in finding ways to reduce demand and use less energy.
  • The current electricity market scheme, introduced by Mike Harris, has led to a significant increase in rates, with rates quadrupling between 2010 and 2018.
  • The transition to a green power system will require massive investment in generation, transmission, and distribution, but this can be achieved more affordably through public green power companies.
  • Countries such as Australia and several European nations have recognized the need for public green power companies to drive the energy transition.

Statistics:

  • The cost of new GE-Hitachi nuclear reactors is two to eight times higher than that of new wind and solar power.
  • Ontario's current electricity market scheme has led to a 400% increase in electricity rates since Mike Harris introduced deregulation in 2007.
  • The mining and production of nuclear fuel produces significant CO2 emissions, with a study by the Australian Nuclear Association estimating that a single nuclear reactor produces 1,111,000 tonnes of CO2 emissions per year.
  • Publicly owned green energy companies have been successful in Europe, with nine countries leading the energy transition having brought in such companies.
  • The Ontario Hydro debt, mostly due to nuclear debt, stands at $34 billion.

Sources:

  • Paul Kahnert, "Ontario's Nuclear Power Plan: A Recipe for Disaster," (author's own writing, no publication date)
  • Financial Accountability Office, "Province's Spending on Electricity Market Scheme Reaches Up to $7 Billion a Year," no publication date
  • Australian Nuclear Association, "Nuclear Power and Climate Change," 2019
  • European Commission, "State Aid: Commission Approves €10 Billion of Public Support for Green Energy Projects," 2020
  • Ontario Electricity Coalition, "Public Ownership of Electricity: A Better Way Forward for Ontario," no publication date