Prince Frederick, Maryland (Platts)--27Jan2012/753 am EST/1253 GMT

US Nuclear Regulatory Commission staff asserted Thursday that renewable electricity generating sources are not a viable alternative to UniStar Nuclear Generating Services' proposed Calvert Cliffs-3 nuclear power plant in Maryland.

Andy Kugler, an NRC staff senior project director, told an Atomic Safety and Licensing Board that an analysis staff did of wind- and solar-generating projects that likely would be built in the state by around mid-decade total about 300 MW.

UniStar has proposed building a 1,600-MW MW unit adjacent to Calvert Cliffs-1 and -2 in Lusby. The company said the plant could be completed by December 2017, if it receives a combined construction and operating license from the NRC.

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Kugler said that even if 1,600 MW of renewable power projects were built in the state, 400 MW would be the maximum average production by these sources, given the variable nature of wind and solar generation.

Consequently, he said an additional 1,200-MW, natural gas-fired generator would have to be built to assure electric grid stability.

The ASLB hearing was held to consider a challenge to an NRC Final Environmental Impact Statement, issued March 20, 2011, that concluded there are no renewable power alternatives to the proposed Calvert Cliffs-3 plant, should it be built. NRC requires applicants to demonstrate that a new nuclear power plant is the best choice for new generation.

The contention was filed by anti-nuclear groups, including the Nuclear Information and Resource Service. It alleges that the agency's staff and UniStar, underestimated likely wind and solar projects that could supply about the same amount of electricity as the proposed nuclear plant.

Anthony Wilson, an NRC staff attorney, told the three-judge ASLB that hearings held in conjunction with issuing a 20-year license renewal to Entergy's Vermont Yankee in March established that the agency consider "remote" speculative renewable electricity generating projects when deciding if a nuclear plant should be built or re-licensed.

The board held over the hearing to Friday in order to hear testimony by a witness for the license challengers, who was delayed in transit from Latin America.

The board is expected this year top rule on this contention, as well another one by anti-nuclear groups and NRC staff, that challenged the granting of a license to UniStar to built the new nuclear reactor on the grounds the company is owned by France's EDF, Neil Sheehan, an agency spokesman, said Thursday.

The Atomic Energy Act of 1954 prohibits the granting of a license to operate a nuclear plant to any entity that is foreign-owned, controlled or dominated.

UniStar last year asked the ASLB to delay ruling on the foreign ownership issue, saying it it seeking a US partner that would own more than 50% of the company. Laura Eifler, a UniStar spokeswoman, said Thursday the company continues to seek a US partner.

--Jim Ostroff, james_ostroff@platts.com

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