Sunday, 4 March 2007

Regulatory needs

As reported in the Sydney Morning Herald:

Fitch's associate director of Asia-Pacific Energy and Utilities, Gavin Madson, said nuclear-powered economies generally have a regulatory body dedicated to dealing with nuclear power issues.

"We currently do not have such a regime in place," he said. "The development of such a watchdog in Australia will alleviate some of the problems potential investors currently face, and will prove to be a prerequisite for any investment in domestic nuclear generation."

The major issue curtailing any serious consideration of investment in nuclear generation was regulatory uncertainty.

"The current uncertainty surrounding the treatment of greenhouse gas obligations has hindered investment in any base-load generation, let alone nuclear power," Mr Madson said.

He said the considerable up-front cost and lengthy construction times for nuclear power generation meant there was the need for regulatory clearance before investment.

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