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Sunday, 22 November 2009 19:22 UAE time

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A nuclear future

by ArabianBusiness.com staff writer  on Sunday, 27 April 2008

Even using a base cost of US$3000 per kilowatt, the cost of delivering nuclear power in the UAE might appear prohibitive.

But the cost comparison between a gas and nuclear-fuelled future is far from straightforward and depends on many factors, including what emerges from future gas exploration in the region.

"Questions about the region's future gas reserves are undoubtedly weighing heavily in the push towards nuclear power," says PFC Energy analyst Raja Kiwan, who cites the unsuccessful gas exploration in Saudi Arabia's Rub Al Khali desert, as well as Qatar's moratorium on additional gas projects pending the completion of the North Field reservoir study.

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Such questions may be studied by the new Emirates Nuclear Energy Corporation, which will recruit experts in nuclear regulation, safety, security and non-proliferation according to the newly released policy white paper.

The publication of the paper follows a series of studies into the use of other energy sources including oil, coal, solar and wind power.

Despite the promotion of alternative energy through initiatives like 'Masdar', launched in 2006 to promote sustainable energy technologies, the UAE government white paper says that such energy sources could only supply 6-7% of the power needed in the country by 2020 - even if they were to be used "aggressively".

"Stacked against these options, nuclear power generation emerged as a proven, environmentally promising and commercially competitive option," says the report.

The UAE is under pressure to deliver new power generating capacity amid soaring demand from a construction boom and a rapidly expanding population.

Power demand is likely to rise at an annual growth rate of 9% to reach 40,000 megawatts by 2020, compared to about 15,500 megawatts in 2008.

Known natural gas reserves could only deliver about 25,000 megawatts of power by 2020, according to government studies.


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