nuclear-news

An economic hazard to United Arab Emirates – nuclear power?

Nuclear Power: Boon Or Bane For The GCC?, Gulf Business,  
As the UAE and Saudi race to build nuclear reactors to meet mounting energy needs, the inevitable question arises – is nuclear a viable option?, Gulf business By Aarti Nagra 18 April 14

Fuelled by rising energy demand and depleting oil and gas resources, nuclear energy has gained strong momentum in the GCC, particularly in countries like the UAE. The country has lofty ambitions to generate up to 25 per cent of its electricity needs – or 5.6GW – through nuclear means by 2020.
Abu Dhabi began construction of its first nuclear reactor, Barakah 1, in July 2012, and it is in the process of building three more plants.

Emirates Nuclear Energy Corporation, the body responsible for the project, announced in February that the first two plants are on schedule and are up to 35 per cent complete……..However, nuclear energy may not necessarily be the best option for the GCC region, states Mohammed Atif, area manager, Energy Advisory, Middle East at DNV GL – Energy.

“A reasonable diversification of fuels is always beneficial for a region in order to reduce risks and price volatility,” he says.

“The right composition of a generation portfolio is always a difficult question and has to take political, economic, technical and environmental aspects into consideration.

“We would suggest entering into a roadmap to achieve security of supply at a good price level even without nuclear energy.”……….An Oxford report on nuclear power production in the GCC published in December 2012 also pointed out that nuclear power generation could prove an expensive option for GCC states.

“The substantial initial investment costs, coupled with the high expected level of long run variable costs, is unlikely to render nuclear power cost effective vis-à-vis conventional oil and gas fired power plants in the region,” it says.

“The existing absence of cost-recovering power tariffs throughout the GCC already renders effective cost recovery for nuclear power unlikely, implying a substantial bill in the form of nuclear power subsidies to be picked up by GCC governments.”

There are also other hidden costs, such as national and regional security concerns and the future disposal of nuclear waste.

“And the acquisition of nuclear technology by GCC states, albeit for civilian purposes, provides fuel to those critics of nuclear power in the region who fear a nuclear arms race in the Gulf should Iran pursue a nuclear weapons programme in the future.

“All these concerns make nuclear power a potentially costly option for the GCC,” the report cautions………….http://gulfbusiness.com/2014/04/nuclear-power-boon-bane-gcc/#.U1WPalVdWik

April 21, 2014 - Posted by Christina Macpherson | business and costs, MIDDLE EAST, Saudi Arabia