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SE Asia Grapples With Nuclear Power Safety, Costs
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SINGAPORE: August 22, 2007


SINGAPORE - A drive by some Southeast Asian countries to join the global revival in nuclear power may be running into new obstacles as costs expand and neighbours grow anxious over their safety in a region exposed to earthquakes.


Thailand, Indonesia and Vietnam -- all of which have said they hope to develop atomic power by around 2020 -- will have the chance this week to allay concerns arising after a July 16 quake in Japan caused a small water leak at the world's biggest nuclear plant, forcing its indefinite closure.

Energy ministers of the Association of South East Asian Nations (ASEAN), who will meet in Singapore on August 22-24, are already taking note of the nuclear vogue, fuelled by a need to meet rapidly rising power demand with minimum pollution.

"For the first time, Singapore will propose the establishment of the ASEAN nuclear energy safety subsector network", to explore the issue of nuclear power plant safety, said Weerawat Chantanakome, head of the ASEAN Centre for Energy.

For countries like Indonesia, located like Japan on the "Ring of Fire" that causes frequent earthquakes and volcanic eruptions, the possibility of a natural disaster looms large. For others like Thailand, environmental opposition is a major issue, while Vietnam has struggled in the past to fund major energy projects.

Malaysia, ASEAN's biggest net oil exporter and No. 2 natural gas producer, has also voiced an interest in nuclear power, as has the military junta running Myanmar.

The energy officials from Japan, which draws a third of its power from nuclear plants but has a history of safety scandals, as well as China will be on hand to lend advice.

Led by China and India, Asia is already the driving force behind a worldwide renaissance in nuclear power, as energy supply concerns and the urgency to fight climate change help overcome years of opposition after the 1986 Chernobyl disaster.

There are currently 109 nuclear power reactors operating in six Asian countries. Of 29 reactors under construction worldwide, 18 are in Asian nations, which face the pressures of economic growth, scarce natural resources and booming populations, the International Atomic Energy Agency (IAEA) said.

By year-end, 26 of the last 36 reactors to have been linked to the grid will be in Asia. Singapore is the only Asia-Pacific country other than New Zealand without a research test reactor, according to the Australian Uranium Association.


COSTS AND SAFEGUARDS

With power demand projected to double to 233,000 megawatts by 2020 and most countries already heavily reliant on imported oil and natural gas, some analysts say southeast Asia has little alternative to nuclear power.

"It's going to be vital for ASEAN nations to have a significant amount of nuclear in their energy mix because of high fossil fuel prices," said John Price, a nuclear power expert at Australia's Monash University.

But it will come at a price. The IAEA estimates that building a nuclear power plan can be up to three times more costly than a fossil-fuelled plant and take at least two more years to build.

Demand for tighter safety norms in the wake of recent incidents, regular maintenance checks and the disposal of nuclear waste add to the financial costs.

While analysts say the ultimate decision on whether to build the plants will rest with national governments, a pan-ASEAN pact governing nuclear fuel import, use and disposal could go a long way toward easing any regional anxieties.

But even that could be problematic.

"Can ASEAN ensure that member states implement the measures, and if they don't, what sanctions can there be?" Andrew Symon managing director of consultancy Menas Asia Pte. Ltd. said.


Story by Ramthan Hussain


REUTERS NEWS SERVICE



© 2008 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters.
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