PROSPECTS FOR NUCLEAR POWER IN THE MIDDLE EAST: RUSSIA’S INTERESTS Valdai Discussion Club Grantees Report R(cid:266)(cid:280)(cid:266)(cid:262)(cid:279)(cid:264)(cid:269) G(cid:279)(cid:276)(cid:282)(cid:277): Sameh Aboul-Enein, Adjunct Professor, This report has been prepared as part of the American University in Cairo, Egypt. Research Grants Program of the Foundation Tayseer Al-Khunaizi, Chairman, Al-Andalus for Development and Support of the Valdai Group for Economic and Management Con- Discussion Club. sultancy, Dammam, Saudi Arabia. The opinions, assessments and conclusions Valeriya Chekina, Research Associate, Center presented in this report do not represent a for Energy and Security Studies (CENESS), consensus. They primarily reflect the view Moscow, Russia. of the editor-in-chief and do not necessarily Serdar Erdurmaz, Director, WMD and Disar- reflect the positions of all members of the mament Institute, Turkish Centre for Inter- research group, the organizations they rep- national Relations and Strategic Analysis resent, or the Foundation for Development and (TURKSAM), Ankara, Turkey. Support of the Valdai Discussion Club. Ayman Khalil, Director, Arab Institute for Security Studies (ACSIS), Amman, Jordan. This report includes imagery by the TASS news agency. Anton Khlopkov, Director, Center for Ener- gy and Security Studies (CENESS), Moscow, Russia. Dmitry Konukhov, Research Associate, Cen- ter for Energy and Security Studies (CENESS), Moscow, Russia. Editor-in-Chief of the report; Chair of the Research Group: Anton Khlopkov, Director, Center for Ener- gy and Security Studies (CENESS), Moscow, Russia. ISBN 978-5-906757-15-9 PROSPECTS FOR NUCLEAR POWER IN THE MIDDLE EAST: RUSSIA’S INTERESTS Valdai Discussion Club Grantees Report Moscow, 2016 LIST OF ABBREVIATIONS ABWR — Advanced Boiling Water Reactor KNNEC — Kuwait National Nuclear Energy Committee ACSIS — Arab Institute for Security Studies (Jordan) KOICA — Korea International Cooperation Agency AEOI — Atomic Energy Organization of Iran MEPhI — Moscow Engineering and Physics Institute AKP — Justice and Development Party (Turkey) MIT — Massachusetts Institute of Technology APR — Advanced Power Reactor NPPA — Egyptian Nuclear Power Plants Authority AWACS — Airborne Warning and Control System NPP — nuclear power plant BOO — Build-Own-Operate NPPD — Nuclear Power Production & Development BP — British Petroleum Company of Iran CENESS — Center for Energy and Security Studies NPT — Treaty on the Non-Proliferation (Russia) of Nuclear Weapons CNS — Convention on Nuclear Safety NRRA — Nuclear and Radiological Regulatory Comecon — Council for Mutual Economic Assistance Authority (Egypt) EAEA — Egyptian Atomic Energy Authority PBO — Plan and Budget Organization of Iran ENEC — Emirates Nuclear Energy Corporation PDA — Project Development Agreement EPR — Evolutionary Power Reactor SESAME — Synchrotron-Light for Experimental Science and Applications in the Middle East ETRR — Experimental Training Research Reactor TASAM — Turkish Asian Center for Strategic Studies EU — European Union TEPCO — Tokyo Electric Power Company FANR — Federal Authority for Nuclear Regulation (UAE) TURKSAM — Turkish Centre for International Relations and Strategic Analysis GCC — Cooperation Council for the Arab States of the Gulf UAE — United Arab Emirates IAEA — International Atomic Energy Agency UN — United Nations IAF — Islamic Action Front (Jordan) UNESCO — United Nations Educational, Scientific and Cultural Organization JAEC — Jordan Atomic Energy Commission UNIDIR — United Nations Institute for Disarmament JCPOA — Joint Comprehensive Plan of Action Research JNRC — Jordan Nuclear Regulatory Commission VVER — Russian version of Pressurized Water K.A.CARE — King Abdullah City for Atomic and Reactor (PWR) Renewable Energy WANO — World Association of Nuclear Operators KEPCO — Korea Electric Power Corporation WMD — Weapons of Mass Destruction KNF — KEPCO Nuclear Fuels CONTENTS 5 Foreword 7 1. Prospects for nuclear energy development in the Middle East 7 1.1. Growing interest to nuclear energy in the Middle East: 2005–2010 7 Facts and figures 9 Reasons and incentives to pursue nuclear energy 14 1.2. Major factors of influence: 2010–2015 16 Accident at the Fukushima NPP 18 The Arab Spring 19 1.3. Prospects for nuclear energy development in the Middle East in the 2030 horizon 22 2. Distinctive features and potential for nuclear energy development in Middle Eastern countries 22 2.1. Egypt 27 2.2. Jordan 33 2.3. Iran 39 2.4. Saudi Arabia 43 2.5. United Arab Emirates 46 2.6. Turkey 51 3. Russia’s role on the world market for nuclear technologies and potential for cooperation with Middle Eastern countries 51 3.1. Russian plans for building NPPs abroad 52 3.2. Place of the Middle East in the Russian nuclear industry’s export plans 54 3.3. Legal framework for peaceful nuclear energy cooperation between Russia and Middle Eastern countries 55 3.4. Outlook for Russian nuclear exports to the Middle East in the 2030 timeframe 62 Conclusion 66 Notes Wadi Rum Desert, Jordan 4 FOREWORD Of all the nuclear energy newcomers, i.e. The goal of this study was to analyze the countries that have only just started to de- impact of the developments and transfor- velop nuclear energy, Middle Eastern states mations in the Middle East that began in are making the most dynamic progress. late 2010 — early 2011 (i.e. the events that In September 2011 Iran became the first are often referred to as the Arab Spring) and of country in the world in past 15 years to have the Fukushima nuclear accident on plans and connected its first nuclear power reactor prospects for nuclear energy development to the national grid.1 In July 2012 the UAE in the region, as well as Russia’s potential became the first country in past 27 years role in implementing those plans.2 to start building its first-ever NPP. Extensive United Nations documents and UN General preparations have already been made to start Assembly resolutions do not contain an building Turkey’s first nuclear power plant official definition of the Middle East. IAEA as part of the Akkuyu project. The proce- reports define the Middle East as the terri- dure of choosing the technology supplier for tory that stretches from Libya in the West to the first NPP in Jordan has been completed. Iran in the East, and from Syria in the North A project development agreement to imple- to Yemen in the South; it does not include ment the first part of the project to build Turkey.3 a two-unit NPP in Jordan’s central Zarqa There is no common definition of the Middle East in the ex- Among all the nuclear newcomer countries, the Middle pert community, either. Aca- Eastern nations have some of the most ambitious demician Evgeny Primakov, nuclear energy plans a renowned Russian expert on the Middle East, opines in his book “Confidential: Middle East on the Province was signed in September 2014. In Stage and Behind the Curtains” that the re- Saudi Arabia, work has begun to develop gion comprises all the Arab states (including a national nuclear infrastructure required those in North Africa) plus Israel and Iran.4 for effective and safe peaceful use of nu- clear energy. Despite several recent changes Some experts in the region believe that in of government and ongoing security prob- view of the latest trend for the blurring of lems in the country, Egypt remains commit- national boundaries, the appearance of new ted to nuclear energy development. states, and the growing influence of non- state actors, the term “Middle East” in its Of all the nuclear newcomer countries, Mid- traditional sense is becoming irrelevant. dle Eastern states also tend to be the most ambitious (although whether some of the For the purposes of this study, we have announced plans and deadlines are realistic defined the Middle East as all the Persian is another matter). Iran, Saudi Arabia and Gulf states (Bahrain, Iran, Iraq, Kuwait, Oman, Turkey have announced they will build from Qatar, Saudi Arabia, and the UAE), plus Egypt, 16 to 23 nuclear power reactors apiece in Israel, Jordan, Lebanon, Palestinian National less than 20 years. Authority, Syria, Turkey, and Yemen. 5 The study was conducted by a team of tables held in November 2012 — December researchers from Russia and the Middle East 2015, including the workshop hosted by the countries. A significant contribution was also United Nations Institute for Disarmament made by reviewers and consultants from Research (UNIDIR) and the Moscow Non- Russia and other countries who verified the proliferation Conference.5 accuracy of the data used in this paper and The members of the research group would reviewed the drafts. A series of interviews like to thank the Foundation for Develop- conducted by the members of the research ment and Support of the Valdai Discussion group with experts and officials from Bahrain, Club, whose support was instrumental. The opinions, assessments and conclusions presented in In 2005–2010, 13 Middle Eastern states announced this paper do not represent plans to build about 90 nuclear power reactors a consensus. They primarily at 26 different sites by 2030 reflect the view of the editor- in-chief and do not necessarily reflect the positions of all the members of Iraq, Iran, Israel, Jordan, Kuwait, Qatar, Saudi the research group, the organizations they Arabia, the UAE, and other Middle Eastern represent, or the Foundation for Develop- states played an important role in the ment and Support of the Valdai Discussion gathering of primary data. Club. Interim results of this study were unveiled This study was largely completed in for a broad discussion at several internati- September 2015, with the latest edits and onal conferences, workshops, and round minor updates added in January 2016. 6 PROSPECTS FOR NUCLEAR 1. ENERGY DEVELOPMENT IN THE MIDDLE EAST 1.1. GROWING INTEREST TO NUCLEAR nuclear technologies to meet its national ENERGY IN THE MIDDLE EAST: 2005(cid:515)2010. energy needs. The only two exceptions Facts and figures were Lebanon and the Palestinian National According to the International Atomic Energy Authority. Some of the states that unveiled Agency (IAEA), as of September 2010 there nuclear energy plans, such as Egypt and were 441 nuclear power reactors in operati- Turkey, had already had decades of relevant on in 29 countries. The share of nuclear experience and formidable expertise in that energy in the overall electricity generation area. Others, such as Bahrain, Jordan, Kuwait, was the highest in Western Europe (27%) Saudi Arabia, the UAE, and Yemen, had not and the lowest in Southeast Asia and the previously demonstrated any great interest Middle East, where it stood at zero.6 IAEA in peaceful nuclear energy. documents also mentioned, however, that In December 2007 members of the Gulf 65 new countries had expressed interest in Cooperation Council (GCC) held a meeting developing nuclear energy. About a fifth of to discuss plans for joint implementation those countries are Middle Eastern states. of nuclear energy programs. In practice, By late 2010, amid a strong resurgence however, each of these countries has begun of interest in nuc lear energy around the to implement its own national program, world, almost every single country in the without any meaningful coordination with Middle East had announced plans of using the other GCC states. In fact, there is more of competition than cooperation in these countries’ relations as far as nuclear energy The Masjid al-Haram during hajj, programs are concerned. Mecca, Saudi Arabia According to all the statements made by Middle Eastern leaders and senior officials in the first decade of the 21st century (mainly in the late 2000s), there were plans to build approximately 90 nuclear power reactors at 26 sites (NPPs) in 13 states in the region over the following 20 years (i.e. by 2030). Six countries — Bahrain, Egypt, Iran, Jordan, the UAE, and Yemen — were planning 7 to launch their first nuclear power reactors world every year. As many as 34 reactors by 2017. An average of six new power were launched in 1984. As of late 2010 — reactors were to be launched in the Middle i.e. before the Arab Spring and the Fukushi- East every year between 2018 and 2030. ma accident — the Middle Eastern countries For more details, see Fig. 1 ‘Nuclear Energy had very ambitious nuclear energy plans. Development Plans in the Middle East before They accounted for about 20% of the global Fukushima and the Arab Spring’.7 plans for building new nuclear energy reac- tors. These programs jointly were probably When the global nuclear energy sector was as ambitious as the ones pursued by the at its peak in the late 1970s and early 1980s, developed countries during the golden age there was an average of 22 nuclear reactors of nuclear energy in the 1970s and 1980s.8 being launched in countries around the 8
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