Nov 08, 2006 -- STATE DEPARTMENT RELEASE/ContentWorks

Countries should consider building new nuclear power plants to address rising energy demand and climate change challenges, the International Energy Agency (IEA) said in a report issued November 7.

The agency, which endorsed nuclear power for the first time in its annual World Energy Outlook, also urged governments to play a more active role in facilitating and accelerating the expansion of nuclear industries.

The IEA is an international energy policy advisory group that provides research, policy analysis and recommendations to 26 member countries and engages in dialogue with other major producers and consumers of energy like China, India, Russia and members of the Organization of Petroleum Exporting Countries.

The 2006 edition of its report was published November 7 in response to a request by leaders of the Group of Eight countries for a sustainable energy blueprint. For the first time, the report contains a separate chapter on nuclear energy. (See related article.)

"Nuclear power remains a potentially attractive option for enhancing the security of electricity supply and mitigating carbon-dioxide emissions," IEA Executive Director Claude Mandil said in a prepared statement.

Carbon dioxide, methane and, to a lesser extent, other greenhouse gas (GHG) emissions contribute to global warming. Some scientists believe that the warming could get worse, making the climate less human friendly, if emissions are not stabilized.

Sean McCormack, U.S. State Department spokesman, said at a November 7 press briefing that the Bush administration has been a proponent of the development of peaceful nuclear energy "under proper restrictions" as one of the ways to meet increasing demand for energy. He said, however, he has not seen the IEA report yet.

Trish Conrad, a spokeperson for the Nuclear Energy Institute, a nuclear power industry group based in Washington, said the report may not directly make the expansion of the nuclear industry easier. But it further highlights an important role of nuclear power as a reliable source of electricity that does not emit harmful gases, she said in a November 7 interview.

The report projected that global use of fossil fuels will rise by more than 50 percent by 2030, producing more GHG emissions, unless world leaders support more sustainable options such as nuclear and renewable energies in power generation and biofuels in transportation.

According to the baseline scenario, the world faces an energy future that is "dirty, insecure and expensive," Mandil said.

"But it [the IEA report] also shows how new government policies can create an alternative energy future, which is clean, clever and competitive," he said.

According to an alternative policy scenario, improved energy efficiency and conservation, combined with greater use of nuclear power, could reduce energy consumption by 10 percent and GHG emissions by 16 percent by 2030.

The report said that economic and other conditions have shifted in nuclear power's favor. It said uranium burnt in nuclear reactors is abundant and the operation of nuclear plants is not as affected by fuel price changes as are coal- and gas-fired plants.

Global nuclear industry capacity could expand by more than 40 percent by 2030, according to the IEA.

However, the agency cautioned that such a grand plan would require massive investment, as nuclear plant construction costs are much higher than similar costs for coal- and gas-fired power plants.

"Financing the upfront investment cost may remain a challenge," Mandil said.

Accordingly, the IEA called on governments to take a more active role in facilitating private investment for the nuclear expansion.

In 2002, the U.S. government launched Nuclear Power 2010 (NP 2010), a $1.1 billion public-private partnership to identify sites for new nuclear plants, develop advanced nuclear plant technologies and test new regulatory processes.

The U.S. Congress enacted loan guarantees, liability and regulatory insurances and other forms of support for the nuclear industry as part of the broader energy act of 2005. (See related article.)

Conrad said these initiatives will show that government's role can be instrumental in bolstering the energy industry and the expansion of nuclear power.

The IEA report said that the largest increases in nuclear-power-generating capacity are expected in China, the United States, Japan, South Korea, India and Russia.

But other countries also might build new nuclear plants.

Australian Prime Minister John Howard has voiced support for building such plants in the country and the United Kingdom, Italy and Sweden are reviewing their energy options to consider whether to build additional reactors. Even staunchly anti-nuclear Germany has indicated that it may reconsider its plan to phase out existing nuclear plants, according to news reports.

"Clearly some countries that had said nuclear will not happen are now speaking again about nuclear," Mandil said.

An IEA statement on the report is available on the organization's Web site.

For more information on U.S. policies, see Environment.

(The Washington File is a product of the Bureau of International Information Programs, U.S. Department of State.)

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