Nuclear Power In The Middle East And North Africa - Oil, Gas & Electricity

Introduction

Nuclear power is increasingly being seen as the energy of the future. Most established nuclear markets have considerable nuclear new build plans. Recent statistics from the International Atomic Energy Agency (IAEA) indicate that 60 states have expressed an interest in or are actively planning to introduce nuclear power.¹ Almost every state in the Middle East and North Africa (MENA) region is included on this list.

This guide provides an update on the status of the most advanced nuclear power programmes in MENA.

Why are the MENA states interested in nuclear power?

Given that the MENA region has a substantial percentage of the world's oil and gas reserves, it is important to examine the key drivers behind this region's interest in developing nuclear power. These drivers give an important context in which to consider each individual programme, bearing in mind that not every MENA state is rich in oil and gas and that motivations differ from state to state.

Factors driving an interest in nuclear power in MENA include:

growing energy demand;
desire to diversify electricity supply;
ability to sell hydrocarbons more profitably in international markets;
demand for desalinated water;
concerns over security of supply (particularly for countries that are not oil and gas rich);
interlinking electricity grids, with subsequent ability to trade electricity;
volatility of fossil fuel prices; and
global climate change issues.

Challenges for nuclear new build in MENA

While all the nuclear power programmes in MENA are at different stages of development, they share the important characteristic that nuclear new build in each state will be nuclear new build for the very first time. Each state must develop the infrastructure needed for a nuclear power programme entirely from scratch. This is a complex task, with significant challenges to be overcome.

Key challenges for MENA states developing a nuclear power programme:

demonstrating that they are responsible 'international nuclear citizens' in a politically sensitive arena;
adopting and complying nationally with international treaty obligations;
developing a comprehensive national legislative and regulatory infrastructure;
developing a nuclear safety culture;
establishing a national nuclear regulatory authority and development corporation;
developing local human resources and attracting scarce internationally experienced human resources;
selecting and procuring the appropriate reactor technology;
attracting and securing the international nuclear supply chain and developing capacity of potential local supply chain members;
developing the physical infrastructure to support the introduction of nuclear power; and
obtaining finance and insurance for the nuclear power project.

United Arab Emirates

Government nuclear power policy

The United Arab Emirates (UAE) regards nuclear power as an energy source that is a 'proven, environmentally promising and commercially competitive option which could make a significant base-load contribution to the UAE's economy and future energy security' (Policy of the UAE on the Evaluation and Potential Development of Peaceful Nuclear Energy, 2008) (the Policy).

With demand for electricity over the next 10 years forecast to grow at a rate of 9 per cent per year, nuclear power has become a key component of the UAE's long-term energy strategy.

Six key principles that underpin the UAE's nuclear development programme (as set out in the Policy):

operational transparency;
non-proliferation;
safety and security;
working directly with the IAEA and conforming to its standards when evaluating and establishing a peaceful nuclear energy programme;
developing its peaceful domestic nuclear power capability in partnership with governments of responsible nations, as well as with the assistance of appropriate expert organisations; and
approaching its peaceful domestic nuclear power programme in a way that best ensures long-term stability.

National nuclear power programme

The UAE's nuclear power programme is developing at an unprecedented pace. The contract to supply and construct the first four reactors (of a planned 14) was awarded to a South Korean consortium, led by KEPCO, in December 2009. The UAE's first commercial nuclear power plant is expected to be operational by 2017.

Law and regulation

On 4 October 2009, UAE Federal Law No. 6 of 2009 concerning Peaceful Uses of Nuclear Energy (the UAE Nuclear Law) was passed. The UAE Nuclear Law provides a framework for developing a civil nuclear power programme in the UAE. Significantly, the UAE Nuclear Law establishes the state's nuclear regulatory authority, the Federal Authority for Nuclear Regulation (FANR), and gives it powers to regulate the nuclear sector in the state. FANR is supported by the Korean Institute for Nuclear Safety and is expected to draw on the experience of the US Nuclear Regulatory Commission.

The UAE Nuclear Law prohibits any enrichment or reprocessing facility from being designed, constructed, developed or operated in the state. This provision gives domestic legal effect to the UAE's Section 123 Agreement with the US, pursuant to which it agreed not to carry out these nuclear fuel cycle activities.

Three key government entities:

Federal Authority for Nuclear Regulation (FANR): independent federal agency responsible for regulating and licensing nuclear energy activities in the UAE;
Emirates Nuclear Energy Corporation (ENEC): Abu Dhabi government-owned corporate entity responsible for developing nuclear power plants in the UAE; and
Independent Advisory Board: provides independent oversight and assessment of the UAE's nuclear programme.

The table below shows the status of the adoption of international nuclear instruments in the UAE.

Procurement and construction

Prime contractor – the KEPCO-led prime contractor is backed by a consortium of the key nuclear power companies in South Korea. Financing is to be provided by the South Korean Export Credit Agency, KEXIM.

Technology – ENEC has chosen KEPCO's APR1400 as the reactor technology for the first four reactors. Shin Kori 3, under construction in South Korea, is the reference plant.

Site – the preferred site for the first four reactors is at Braka, in the western region of the Emirate of Abu Dhabi, on the Arabian Gulf and approximately 53km west-south-west of the city of Ruwais.

Licences – FANR has approved the following licences:

Site Preparation Licence, UAE Nuclear Power Plants Units 1, 2, 3 and 4 – allowing ENEC to conduct site preparation activities that are not related to nuclear safety; and
Limited Construction Licence to Manufacture and Assemble Nuclear Safety-Related Equipment, UAE Nuclear Power Plants Units 1, 2, 3 and 4 – allowing ENEC to manufacture various parts of the nuclear power plants, including the reactor pressure vessel, steam generators, pressurisers and coolant pumps.

The Construction Licence Application for UAE Nuclear Power Plants Units 1 and 2 was submitted to FANR on 28 December 2010.

Human resource development

The Gulf Nuclear Energy Infrastructure Institute (GNEII) – which will be associated with the Khalifa University of Science, Technology and Research – is an example of Abu Dhabi's early planning to develop human resources. GNEII will be supported by the US Sandia National Laboratories and the Nuclear Security Science and Policy Institute at Texas A&M University, as well as by ENEC and FANR.

Jordan

Government policy

Jordan imports approximately 95 per cent of its energy needs. The state's plan to introduce nuclear power calls for nuclear energy to generate 30 per cent of the country's electricity by 2040. Central to this plan is making use of Jordan's natural uranium assets and using nuclear energy for water desalination.

Nuclear power programme

Jordan has made substantial progress with its nuclear power programme, through both the Jordan Atomic Energy Commission (JAEC) and the Jordan Radiation and Nuclear Regulatory Commission (JNRC). JAEC, the development corporation, expects to start building a 750-1100MW nuclear power plant in 2013, to begin operating in 2018. A second plant is to begin operating in 2025. A further four nuclear power plants are planned.

Nuclear law and regulation

National nuclear legislation in Jordan is contained in two primary laws:

Nuclear Energy Law No. 42 of 2007 relating to the jurisdiction of JAEC; and

Nuclear Safety and Security Radiation Protection Law No. 43 of 2007 establishing JNRC.

These laws set out the respective competencies of JAEC and JNRC. Neither of these laws provides a comprehensive legislative framework for bringing nuclear power into Jordan and it is understood that JNRC is in the final stages of drafting a new law. A series of implementing regulations is also being drafted.

The table below sets out the current status of international instruments in Jordan.

In September 2009, JAEC contracted Tractabel Engineering, a subsidiary of GdF Suez, to undertake a two-year siting study near the Gulf of Aqaba. JAEC recently announced that the site of the first plant may be moved to the centre of the country, approximately 40km north-east of Amman. Water for reactor cooling will reportedly be supplied from the Khirbet Al-Samra waste water treatment plant.

In late 2009, JAEC appointed Worley Parsons as the technical adviser for Jordan's programme, tasked with choosing the technology for the first nuclear plant.

Three reactor vendors and designs were shortlisted in May 2010, as shown in the table below.

A consortium comprising Korea Atomic Energy Research Institute and Daewoo Engineering and Construction will build a 5MW nuclear research reactor at the Jordan University of Science and Technology.