Nuclear Climate Solution Is Cheaper Than Coal, IAEA Says
- IAEA says nuclear beats coal thanks to lower interest rates
- Critics say agency's model doesn't reflect market reality
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The potential for nuclear power to play a role in the fight against climate change is growing as low interest rates make capital-intensive investments more attractive, the International Atomic Energy Agency said.
Assuming that investors would demand a return of between 3 percent and 7 percent for financing the construction of reactors, and fossil-fuel generators will have to pay $30 per ton for their carbon emissions, nuclear power is a cheaper option than coal and natural gas, the IAEA said in a report Tuesday. The agency, whose mission is to promote the use of atomic energy, had used discount rates of 5 percent to 10 percent last year for its calculations.