Energy In-depth: EIA says China will account for more than half of global nuclear power through 2040

Editor’s note: Each Friday, Talk Business & Politics provides “Energy In-depth,” a round-up of energy and regulatory news.

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EIA: CHINA WILL ACCOUNT FOR MORE THAN HALF OF GLOBAL NUCLEAR POWER THROUGH 2040
The U.S. Energy Information Administration is projecting in its International Energy Outlook that total global nuclear generation will increase by 73% through 2040, from 2.6 trillion kilowatthours in 2015 to 4.5 trillion kilowatthours in 2040. Countries that are not a part of the Organization for Economic Cooperation and Development (non-OECD countries) account for 86% of this increase, with China alone making up more than 54% of total growth. China’s growing nuclear fleet is expected to produce more than 1.2 trillion kilowatthours of electricity annually by 2040.

As of 2015, China has 34 operating nuclear reactors, with a total capacity of 27 gigawatts (GW). To meet its growing electricity demand and address environmental concerns, China has implemented a long-term strategy for nuclear power development. According to the International Atomic Energy Agency, between 2010 and 2014, China added 10 nuclear reactors, totaling 18 GW of additional capacity. The resulting increase in nuclear generation of 53 billion kilowatthours accounted for 79% of the increase in nuclear generation in all non-OECD countries over that period. China has an additional 20 reactors under construction, which, if completed, will add more than 22 GW to its existing capacity. At China’s current construction rate, one reactor comes online every five months.

SEC CITES OILFIELD FIRM FOR FRAUDULENT ACCOUNTING SCHEME, FINED $140 MILLION
The Securities and Exchange Commission announced on Sept. 27 that oilfield service giant Weatherford International has agreed to pay a $140 million penalty to settle charges that it inflated earnings by using deceptive income tax accounting. Two of the company’s senior accounting executives at the time have agreed to settle charges that they were behind the scheme.

According to the SEC’s order, Weatherford fraudulently lowered its year-end provision for income taxes by $100 million to $154 million each year so the company could better align its earnings results with its earlier-announced projections and analysts’ expectations.

Weatherford regularly touted its favorable effective tax rate (EFT) to analysts and investors as one of its key competitive advantages, and the fraud created the misperception that Weatherford’s designed tax structure was far more successful than reality. Weatherford was consequently forced to restate its financial statements on three occasions in 2011 and 2012.

EPA ACCEPTING APPLICATIONS TO REDUCE DIESEL EMISSIONS IN SCHOOL BUSES
The U.S. Environmental Protection Agency has announced the availability of approximately $7 million in rebates to public school bus fleet owners to help them replace or retrofit older school buses. Upgrading buses with older engines reduces diesel emissions and improves air quality.

EPA standards for new diesel engines make them more than 90% cleaner than older ones, but many older diesel engines still in operation predate these standards. Older diesel engines emit large quantities of pollutants such as particulate matter (PM) and nitrogen oxides (NOx), which have been linked to serious health problems such as aggravated asthma and lung damage.

The EPA will accept applications from September 29 to November 1, 2016. This is the fourth rebate program to fund cleaner school buses offered under the Diesel Emission Reduction Act (DERA) reauthorization. Nearly 25,000 buses across the country have already been made cleaner as a result of DERA funding.