(Solyndra) Solar flap misses point on energy and nuclear subsidies [View All]

[kristopher]

This is a comprehensive article that has information critical to understand the role of solar subsidies. It can't be summarized at all in a couple of paragraphs, it requires a full reading. If you're interested in energy and/or climate change you'll be doing yourself a favor by reading it.

Solar flap misses point on energy and nuclear subsidies
By Mark Cooper
Published 12:03 a.m., Thursday, October 20, 2011

The combination of the debt-ceiling debate and the recent bankruptcy of a solar firm with a $535 million loan guarantee is certain to give energy subsidies a leading part in the Washington budget drama this fall.

If, however, the goal is good energy policy — not just deficit reduction — the fact that solar companies are going broke could turn out to be a positive development, if it puts the spotlight on nuclear reactors rather than just solar panels.

Although the solar industry receives significant subsidies — loan guarantees among them — it still is a market-driven industry. It must raise capital in financial markets. It must purchase liability insurance. It must make its sales in competitive markets.

On the other hand, for more than 50 years the construction of nuclear reactors in the United States has been the recipient of an array of massive subsidies and other special arrangements that go way beyond loan guarantees and insulate it from market forces.

For example, the Price-Anderson Act shields firms ...

http://www.mysanantonio.com/community/northeast/news/article/Solar-flap-misses-point-on-energy-and-nuclear-2225015.php

See also Cooper's 2009 (preFukushima) analysis of the economics of nuclear power
http://www.olino.org/us/articles/2009/11/26/the-economics-of-nuclear-reactors-renaissance-or-relapse