Uranium Week: No Immediate Need

Weekly Reports | Jun 19 2018

The US regulator has criticised the president’s directive that would see electricity providers forced to buy nuclear power.

-US regulator criticises Trump
-Korean reactor to shut down early
-Spot price wanes as demand subsides

By Greg Peel

The story in the US so far…

US legacy nuclear plants are closing down or threatening to close down as they cannot compete with gas-fired power, even with uranium prices at historical lows. Plans for new reactors are being put on hold or shelved.

US uranium producers have petitioned the government to force US nuclear plants, as a matter of national security, to buy at least 25% of their uranium demand domestically, which would push up the cost of nuclear power that already cannot compete.

Advisors have warned the president that nuclear power needs to remain as part of America’s energy mix, for reasons of national security.

President Trump intends to order US electricity grid operators, as a matter of national security, to buy a percentage of power from nuclear and coal-fired power plants to ensure they remain in operation.

And in this week’s episode…

Members of the US Federal Energy Regulatory Commission have criticised Trump’s directive, warning subsidising nuclear and coal power will unravel wholesale power markets. They do not believe there is a national security emergency in power markets that justifies immediate intervention, and warn a “hard and fast mandate” could force other resources off line.

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