http://www.meed.com/nav?page=meed.backgrounder.news.detail&fixture_story=5919711&title=News+%26+Analysis

Arab states consider nuclear power
POWER REGIONAL
3 Nov 2006
Rising energy demand behind plans from several regional countries to 
develop nuclear power

At least six Arab countries are developing domestic nuclear power 
programmes in order to diversify energy sources over the medium-to-long 
term and to combat a growing shortage of natural gas.

"Some Middle East states, including Egypt, Morocco, Algeria and Saudi 
Arabia, have shown initial interests to use nuclear power primarily for 
[water] desalination purposes," Tomihiro Taniguchi, deputy 
director-general of the Vienna-based International Atomic Energy Agency 
(IAEA), told MEED on 31 October. "This [the interest] is at a tertiary 
stage and the main driver is the use of a more efficient energy system. 
We have held preliminary discussions with these governments. We will 
offer them help under our technical advisory programme to conduct a 
study for the [proposed] power plants."

Industry sources say that two more Middle East states -- the UAE and 
Tunisia -- have also shown interest in pursuing similar plans. However, 
interest from these countries is said to be still at a "rather infant" 
stage.

According to Taniguchi, the Arab governments may opt to build atomic 
power plants with capacity of 100-300 MW. "This seems to be the 
intention. We do not know if it will be cost-effective, given that the 
economies of scale favour the construction of larger capacity," 
Taniguchi said. "It takes about six-to-seven years to install new 
capacity on a fast-track lump-sum turnkey basis." The lead time to build 
a nuclear power plant with capacity of 500-1,000 MW, including reactors, 
is about 10 years.

Egypt is more advanced than Algeria, Morocco and Saudi Arabia in its 
plans to build atomic power capacity. In late September, Energy Minister 
Hassan Younes said that approval had been granted for an estimated 
$1,500 million project to build a 1,000-MW power plant at Dabaa by 2015. 
The announcement signalled Cairo's plans to restart its nuclear energy 
programme, 20 years after it was suspended. About three locations have 
been identified, with help from the US, as possible sites. Concerns have 
been increasing about Cairo's ability to meet rising demand for 
electricity, which is growing at 7-8 per cent a year (MEED 29:9:06).

Algeria is expected to be the next Arab state to establish nuclear power 
generation capacity. In the early 1980s, the then US' Parsons E&C, now 
part of Australia's WorleyParsons, carried out an initial study for a 
pilot plant.

Political wranglings and stiff opposition from the US have come in the 
way of Iran's plan to complete the construction of a nuclear reactor at 
Bushehr, at an investment of $800 million. The aim now is to complete 
construction by late 2008.

However, Middle East governments have to set their houses in order 
before they can further pursue plans to build nuclear power capacity.

"There is a need for a mature electricity grid including uniformity in 
demand load, a legal and regulatory infrastructure, means to transport 
fuel and waste disposal and human resources, education and training," 
Taniguchi said.

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