Greenpeace’s Action Against NEK2: Nuclear Fairy Tale, Expensive Reality

Greenpeace activists from eight countries, including Croatia, today at the international nuclear conference ‘NENE’ in Portorož, Slovenia, proclaimed ‘Nuclear Fairy Tale, Expensive Reality’! During the speech of the state secretary for the national nuclear program, Greenpeace activist Danijela Levičar unfurled a banner with the message ‘Elites fantasize, people pay’, Greenpeace reported.

In the upcoming referendum in November this year, voters in Slovenia will express their opinion on the construction of the second block of the nuclear power plant in Krško (NEK2). Greenpeace Slovenia has been loudly warning in recent months about the importance of resolving all uncertainties before the referendum.

One of the most important questions that should be resolved before the referendum decision is related to the financing of the new nuclear reactor. Who would finance the nuclear reactor, would the state be involved in financing, what consequences would this bring for citizens and the state budget, and is NEK2 planned for export? Nuclear power plant projects, compared to other energy infrastructure, have a very specific investment risk profile due to high initial capital requirements and long construction times.

According to previously published estimates for the investment in NEK2, the total cost of constructing a 1,000 MW reactor would amount to €9.3 billion, and in the case of selecting a larger reactor of 1,650 MW, it could exceed €15 billion. Construction deadlines can extend up to 20 years. However, the true cost will only be known in a few years, as experiences from other countries show that investments in nuclear power plants ultimately always turn out to be more expensive and typically always face delays.

An overview of current and projected financing models for nuclear reactors in Europe shows that in recent decades, the costs of nuclear power plants have been steadily increasing. One of the most glaring examples is Hinkley Point C in the UK, where the initial project estimate was between £18 and £19 billion, which has since risen to an astonishing £46 billion. Similarly, the costs of the Belene nuclear power plant project in Bulgaria, initially estimated at four billion euros, have risen to €10-12 billion, which later led to the cancellation of the project.

Projects for the construction of new nuclear power plants generally imply state participation in reducing investment risks for private investors – either through state guarantees for loans or various forms of state (co)ownership, as noted in the recently published Greenpeace report ‘Fission for Funds’.

Greenpeace Slovenia emphasizes that citizens must be protected from any financial risks related to the potential realization of the project. The scenario of the unviable coal-fired power plant in Šoštanj, which (as Greenpeace previously warned) faced bankruptcy, should serve as a reminder of how thoughtless political moves can end.

Activists have therefore called on the Government of the Republic of Slovenia to specifically clarify the institute of state guarantees in the case of NEK2, regarding possible participation in the investment and risks for the state budget and taxpayers of Slovenia.

– In times of uncertain economic trends and increasing challenges for households, instead of propagandistic promotion of the nuclear project, all efforts and resources should be invested in energy efficiency and renewable sources, which are becoming the cheapest source of energy. Ultimately, they are also the most acceptable for addressing the climate crisis – emphasized at the press conference Sara Kosirnik, campaign leader of Greenpeace Slovenia.

The costs of electricity produced from nuclear power plants continue to rise, while renewable energy sources are experiencing a steady decrease in costs, as seen from the comparison of costs per MWh of produced electricity, known as LCOE, or levelized cost of electricity. This cost from solar power plants is $60 per MWh, and from wind farms, it is $50 per MWh. At the same time, the costs of nuclear energy have risen to $180 per MWh. Nuclear power plants have become the most expensive source of energy.

The high cost of nuclear projects is not the only drawback of nuclear energy. In addition to the fact that building its infrastructure is too expensive and too slow, nuclear energy is neither renewable nor sustainable nor safe, and it raises more questions and problems than it solves.