http://www.theglobeandmail.com/servlet/story/LAC.20080213.RCANDU13/TPStory/BusinessOTTAWA -- Global makers of nuclear reactors are looking to add some high-octane fuel to the much-touted nuclear renaissance by tapping private capital pools to finance their multibillion-dollar projects.
But it's not yet clear that hedge funds and investment banks are willing to take on the financial risks long associated with the capital-intensive projects that are prone to cost overruns.
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In Canada and the United States, private companies are proposing to finance and own nuclear power plants, and sell the power to utilities. To do the deals, they need utilities to sign long-term power purchase agreements that essentially shift much of the risk from the firms themselves to ratepayers.
But Mark Winfield, a York University environmental studies professor, said private sector players will only finance nuclear projects if they can shift the risk to the public. He said the power purchase agreements provide the developer with an assured market on an uncompetitive basis.
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