Appendices
Related Pages
(updated April 2011)
The UAE is taking deliberate steps in close consultation with the International Atomic Energy Agency to embark upon a nuclear power program.
The United Arab Emirates (UAE) was founded in 1971, comprising seven states including Abu Dhabi and Dubai. Abu Dhabi city is the federal capital of UAE, and Abu Dhabi emirate accounts for 86% of the land area of UAE, and 95% of its oil. Dubai is the UAE's largest city.
Background: Gulf Cooperation
Since commencing studies in collaboration with other members of the Gulf Cooperation Council (GCC), the UAE has proceeded with plans to set up on its own an ambitious nuclear power program with significant capacity being on line by 2020.
In December 2006 the six member states of the Gulf Cooperation Council (GCC) - Kuwait, Saudi Arabia, Bahrain, the UAE, Qatar and Oman - announced that the Council was commissioning a study on the peaceful use of nuclear energy. France agreed to work with them on this, and Iran pledged assistance with nuclear technology.
Together they produce 273 billion kWh per year, all from fossil fuels (2003) and 5-7% annual demand growth. They have total installed capacity of about 80 GWe, with a common grid. There is also a large demand for desalination, currently fuelled by oil and gas. A 2009 report projects GCC electricity demand increasing 10% annually to 2015, and desalination demand growing at 8%, implying the need for 60 GWe of new capacity by 2015.
In February 2007 the six states agreed with the IAEA to cooperate on a feasibility study for a regional nuclear power and desalination program. Saudi Arabia was leading the investigation and thought that a program might emerge about 2009.
The six nations are all signatories of the NPT and the UAE ratified a safeguards agreement with IAEA in 2003. In mid 2008 it appointed an ambassador to IAEA.
Nuclear power program in UAE
In 2009 the UAE produced 90.6 billion kWh gross, 98% of it from gas, for which it relies on some imports. It has about 18 GWe capacity. Electricity demand is growing by 9% per year and is expected to require 40 GWe of capacity by 2020. It relies entirely on electricity to provide its potable water, by desalination.
In April 2008 the UAE independently published a comprehensive policy on nuclear energy. This projected escalating electricity demand from 15.5 GWe in 2008 to over 40 GWe in 2020, with natural gas supplies sufficient for only half of this. Imported coal was dismissed as an option due to environmental and energy security implications. Renewables would be able to supply only 6-7% of the needed power by 2020.
Nuclear power "emerged as 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." Hence 20 GWe nuclear was envisaged from about 14 plants, with nearly one quarter of this operating by 2020. Two reactors were envisaged for a site between Abu Dhabi city and Ruwais, and a third possibly at Al Fujayrah on the Indian Ocean coast. Another site mentioned is As Sila, in the far west of UAE close to the Saudi border, where it could readily supply Qatar and Bahrain.
Accordingly, and as recommended by the IAEA, the UAE established a Nuclear Energy Program Implementation Organization which set up the Emirates Nuclear Energy Corporation (ENEC) as an Abu Dhabi public entity, initially funded with $100 million, to evaluate and implement nuclear power plans within UAE (or specifically in Abu Dhabi emirate, which comprises 86% of the land area of UAE).
The UAE announced that it would "offer joint-venture arrangements to foreign investors for the construction and operation of future nuclear power plants" similar to existing Independent Water and Power Producer structures which have 60% owned by the government and 40% by the JV partner(s). The UAE set up a model of managing its nuclear power program based on contractor services rather than more slowly establishing indigenous expertise.
The UAE also resolved to forgo domestic enrichment and reprocessing, and "to conclude long-term arrangements …. for the secure supply of nuclear fuel, as well as the safe and secure transportation and, if available, the disposal of spent fuel via fuel leasing or other emerging fuel supply arrangements."
The UAE invited expressions of interest from nine companies for construction of its first nuclear power plant. ENEC reduced this to a short list of three and sought bids by mid 2009. The three bidders on the short list comprised Areva, with Suez and Total, proposing its EPR, GE-Hitachi proposing its ABWR, and the Korean consortium proposing the APR-1400 PWR technology. The last group is led by Korea Electric Power Co. (KEPCO), and involves Samsung, Hyundai and Doosan, as well as Westinghouse, whose System 80+ design (certified in the USA) has been developed into the APR-1400. The UAE expressed an intention to standardize on one technology.
ENEC appointed the global full-service program management, engineering, construction and operations firm CH2M Hill to manage the UAE's plans for bringing nuclear power to the country.
Planned UAE nuclear power reactors
In December 2009 ENEC announced that it had selected a bid from the KEPCO-led consortium* for four APR-1400 reactors, to be built at one site. The value of the contract for the construction, commissioning and fuel loads for four units is about US$20.4 billion, with a high percentage of the contract being offered under a fixed-price arrangement. The consortium also expects to earn another $20 billion by jointly operating the reactors for 60 years. In March 2010 KEPCO awarded a $5.59 billion construction contract to Hyundai and Samsung for the first plants.
* The consortium involves Hyundai Engineering & Construction, Samsung, Doosan Heavy Industries and Westinghouse, as well as KEPCO subsidiaries: Korea Hydro and Nuclear Power Co. Ltd. (KHNP), which will play a key role as the Engineering, Procurement and Construction (EPC) contractor and as operator; Korea Power Engineering Co. Inc. (KOPEC), which will provide the nuclear power plant design and engineering service; Korea Nuclear Fuel Co. Ltd. (KNF), which will provide the fuel; and Korea Plant Service and Engineering Co. Ltd. (KPS), which will be involved in plant maintenance.
KEPCO claimed later that the reason for their selection in the face of strong competition from France, USA, and Japan was their demonstrable highest capacity factor, lowest construction cost and shortest construction time among the bidders.
The plants will largely be financed by the state, without the need for loans, but with some Korean equity partners. By 2020 UAE hopes to have four of the 1400 MWe nuclear plants running and producing electricity at a quarter the cost of that from gas. (The first APR-1400 units, Shin Kori 3 & 4, are under construction in South Korea.)
ENEC continued negotiations with the losing bidders, Areva* and GE-Hitachi, regarding cooperation in related nuclear areas.
* In January 2008 three French companies Areva, Suez and Total signed a partnership agreement to propose to UAE the construction of two EPR units there. Suez and Total would each invest up to 25% of the project with Abu Dhabi entities providing at least 50%. Suez would be operator, Areva would supply the plant and manage the fuel. Total and Suez are well established in the region and together operate a power and desalination plant for Abu Dhabi, 100 km west of Dubai. The consortium's first EPR would not be operating before about 2017. In May 2009 it was reported that EdF had joined this consortium.
In April 2010 ENEC announced that it had lodged licence applications and an environmental assessment for its preferred site at Braka, on the coast 53 km west of Ruwais, a little closer to Qatar than to Abu Dhabi city. The applications are being assessed by the Federal Authority of Nuclear Regulation (FANR). This assessment, with environmental management plan, is being considered by Abu Dhabi's Environmental Agency. The site evaluation process for the four reactors considered ten potential sites and was based on guidance from FANR as well as the US Electric Power Research Institute, the US Nuclear Regulatory Commission, and the IAEA. The Gulf seawater at Braka is about 35°C, which will give less thermal efficiency than the Shin Kori 3 & 4 reference units, where the sea is about 27°C, so larger heat exchangers and condensers will be required.
In July 2010 ENEC received two licences from FANR: a site preparation licence for Braka and a limited construction licence allowing manufacture of major components for four units. A construction environmental permit from the Environmental Agency-Abu Dhabi followed them and groundbreaking took place in March 2011. ENEC lodged a 9000-page construction licence application for units 1 & 2 in December 2010 to undertake full site works and start construction of unit 1 in mid 2012 and unit 2 a year later. Commercial operation is envisaged in 2017 and 2018 respectively, followed by 2019 and 2020 for units 3 & 4. See statement and schedule.
An IAEA integrated nuclear infrastructure review (INIR) mission to the UAE reported in January 2011 that the UAE had followed its recommended comprehensive 'milestones' approach for such countries. Areas of good practice identified by the mission included "cooperation, without compromising their independence, between the regulatory bodies and utility, human resource development, a well-structured management system, and a strong safety culture." Also ENEC has joined the World Association of Nuclear Operators (WANO) to benefit from its peer review process at the outset, to ensure high standards of safety.
The UAE is committed to a “dual track” radioactive waste management strategy that involves developing a national storage and disposal programme in parallel with exploring regional cooperation options. Sweden’s SKB is studying the prospects of a geological waste repository in UAE, and the Arab Atomic Energy Agency (AAEA), with a widened group of participating Middle East and North Africa (MENA) countries, is discussing regional options along the lines of EU precedents.
The USA signed a bilateral nuclear energy cooperation agreement with the UAE in January 2009 and South Korea signed one in June. The UK and Japan have signed Memoranda of Understanding on nuclear energy cooperation with UAE. France has a nuclear cooperation agreement with UAE.
Organisation
In August 2009 the UAE advised the IAEA that it was ready to join the IAEA Convention on Nuclear Safety, and the Joint Convention on the Safety of Spent Fuel Management and on the Safety of Radioactive Waste Management.
In October 2009 the Federal Law Regarding the Peaceful Uses of Nuclear Energy was signed into effect, providing for development of a system for licensing and control of nuclear material, as well as establishing the independent Federal Authority of Nuclear Regulation (FANR) to oversee the whole UAE's nuclear energy sector, and appointing the regulator's board, headed by a senior US regulator. The law also makes it illegal to develop, construct or operate uranium enrichment or spent fuel processing facilities within the country's borders.
ENEC was formally established as an investment vehicle in November 2009. As well as overseeing development of the nuclear program, it will act as a government investment arm by making strategic investments in the nuclear sector, domestically and internationally. This is likely to include taking a significant stake in the successful bidder, though that is not a condition or criterion in the bidding process.
In mid 2010 ENEC set up a Nuclear Safety Review Board to provide a review of the safety and effectiveness of the construction, startup and operations of the ENEC program, and to contribute to the review of ENEC’s Construction Licenses Application for the proposed Braka Nuclear Power Plants, submitted to FANR. The Board is made up of five members, from Korea, Japan and the USA, with significant experience in all areas of civil nuclear power.
Separate from FANR, ENEC has also set up an International Advisory Board (IAB) of experts, headed by Dr Hans Blix.
Non proliferation
The UAE is a signatory of the NPT and it ratified a safeguards agreement with IAEA in 2003. In 2009 it signed the Additional Protocol.