Saturday March 19, 2011By Jeeva Arulapalam,
TWENTY-FIVE years after the Chernobyl nuclear disaster in Ukraine, fears that Japan's nuclear crisis may trigger similar ramifications have caused governments worldwide to review their adoption of nuclear energy.
Japan, hit with a 9.0 magnitude earthquake and tsunami last Friday, is now coping with its own nuclear crisis after the tsunami caused Fukushima Daiichi power station's reactor to start overheating, causing radiation.
This nuclear scare has caused many nations to exercise stress tests on exiting nuclear reactors, with some even shutting down older nuclear power plants.
But an industry observer highlights that for every action, there is an equal and opposite reaction. The shutting of nuclear power plants globally will result in higher utilisation of gas and coal (commodities that will not last forever), which will drive commodity prices up further. A London Commodity Brokers report issued on Thursday said that European coal futures for 2012 have added
9% to US$ 134/tonnes since Friday's close after the earthquake and resulting tsunami shut some Japanese nuclear power plants, potentially forcing the country to burn more coal.
Malaysia, which has expressed interests in developing nuclear energy for future usage, currently relies heavily on coal and gas for electricity supply, with coal almost entirely imported and gas supply from Peninsular Malaysia fast diminishing.
The import of gas needs to commence within the next few years, Performance Management and Delivery Unit director for oil, gas and energy under the New Key Economic Areas Dr Emir Mavani told StarBizWeek.
The total potential of green energy is limited to around 4,000 MW, based on the assessment by the Green Technology Corp of Malaysia.
Coal, oil, gas, hydropower and nuclear energy are widely considered as commercial energy sources, with established economic competitiveness and supply chains globally.
“In contrast, renewable energy sources, including solar power, are considered alternative energy sources and not expected to be capable of substituting commercial energy sources. Nevertheless, renewable energy sources are expected to play an important role in reducing commercial energy demand, by augmenting overall energy supply,” said Dr Emir.
Globally
In the wake of Japan's nuclear crisis, governments globally are re-looking at safety aspects of their current operating nuclear power plants and have also started to question the wisdom in relying on civil nuclear energy as part of an energy mix given the potential safety hazards in the eventuality of a nuclear power plant meltdown.
China, the world's second-biggest energy user, has taken pro-active measures by suspending approvals for new plants and those in the pre-development plans until nuclear safety regulations are approved. With some 13 reactors in operation now, the country is currently building roughly 27 new reactors as part of its proposed plan to have over 100 nuclear power plants in the coming years.
European Union (EU) energy ministers have collectively agreed to carry out stress tests on the 143 nuclear power plants spread across 14 EU countries, following the recent nuclear crisis in Japan.
The stress tests will include risk assessments of possible damage by earthquakes, terrorist attacks, power fallouts and tsunamis among others.
The EU Energy Commissioner Guenther Oettinger had also the raised the prospects of a nuclear-free future for Europe in a meeting held last Tuesday among EU nations to discuss the nuclear crisis and safety measures.
Germany, which has 17 nuclear reactors operating currently, has decided to shutdown seven of its oldest reactors for a three-month duration to conduct safety probes.
French President Nicholas Sarkozy said that the recent nuclear crisis has given rise to questions on safety of nuclear power stations and its importance in energy mix.
However, France, the second-largest producer of nuclear power worldwide after the US with some 58 reactors operating now, will continue relying on nuclear energy given that it is an essential element of the country's energy independence.
US President Barack Obama, who is a proponent of nuclear energy development, is still keen on pursuing nuclear power as the country's overall energy plan. He said the country would take lessons learnt from Japan and continuously update how the US approached nuclear safety, and has asked the US Nuclear Regulatory Commission to conduct a “comprehensive review” of the safety of all US nuclear plants.
The US has some 104 nuclear reactors providing 20% of the nation's electricity. It was reported by various news agencies that no new nuclear power plant has been built in the country since it experienced its own nuclear disaster in 1979, when a reactor at the Third Mile Island power plant, Pennsylvania, overheated causing radioactive gases to be released.
Israeli Prime Minister Benjamin Netanyahu said in an interview with CNN that he was reconsidering nuclear energy for the country due to the radiation leaks stemming from Japan's nuclear crisis.
He was reported to have said that the uncertainty over how the crisis will play out has left a cloud' hanging over the world and he was not keen to pursue civil nuclear energy in the coming years.
Malaysia
Malaysia has started to look at the feasibility of utilising nuclear energy as part of the country's energy mix. This is due to the power sector facing a major challenge as declining gas production will have an impact on the power generation industry. Currently, 58% of power generated in Peninsular Malaysia is based on natural gas, with the remainder coming from coal (37%) and hydro (5%).
A foreign research analyst says the country has to look at other renewable energy options, such as nuclear energy, especially since rising coal prices were impacting the bottomline of the country's energy provider, Tenaga Nasional Bhd (TNB).
“It is unfair that TNB has to bear the brunt of rising coal prices without electricity tariffs moving up. What needs to be worked out is a proper cost-pass through mechanism,” she says.
However, she adds that renewable energies such as solar and wind depend very much on nature, which could impact the sustainable production of energy.
Under the Economic Transformation Programme (ETP), Malaysia is exploring the option of deploying nuclear energy to meet future demand and diversify the energy mix for Peninsular Malaysia. A Nuclear Power Development Steering Committee, headed by the Energy, Green Technology and Water Ministry, was set up in June 2009 to plan for the country's potential nuclear energy needs.
The committee will prepare a Nuclear Power Infrastructure Development Plan to be ready by 2013, of which the ETP says that a nuclear power pre-feasibility study and initial site selection study has already been undertaken.
The plan will lay out a development timeframe of 12 years from pre-project to commissioning of a twin-unit nuclear power plant with a total capacity of two gigawatts costing up to RM21.3bil, with the first unit to be operational by 2021.
The rational behind pushing nuclear energy adoption is that it would be cost-competitive, supplying the cheapest source of energy. Aside form this, nuclear power is a cleaner energy than coal and gas (zero grams of carbon dioxide equivalent per kwh vs 800 and 400 grams respectively.)
While these details have been made known in the ETP, what many may be interested to note is that a key enabler to the nuclear energy project taking off is public acceptance.
Many quarters have expressed concern over the development of nuclear power plants locally, with political figureheads as well as environmental and consumers groups urging the government to re-consider other renewable energy options instead of adopting nuclear energy.
Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui said that the proposal to construct nuclear power plants for electricity has not been decided yet by the Cabinet.
The Environmental Protection Society Malaysia president Nithi Nesaduraio says that Malaysia does not need nuclear power plants, with such facilities left vulnerable to earthquakes, tsunamis and floods.
However, an industry source familiar with the country's nuclear development plans, says that it is premature to make any call on the impact to Malaysia's nuclear plan.
“Malaysia is not in an earthquake belt and the tsunami risk has been taken into account in the local nuclear power plant siting activity,” says the source.
It is good to point out here that the nuclear reactors at the Fukushima Daiichi power stations had shut off automatically after the earthquake but the emergency cooling systems failed to work after the tsunami damaged the plant's local backups. This has led the Japanese authorities to douse water onto the nuclear reactor from aerial and ground levels to keep it cool.
Back to Malaysia among the renewable energies up for consideration under the energy mix include hydro, solar and biomass. But the drawback of solar and biomass plants is that the energy output would pale in comparison to the output of nuclear power plants.
Dr Emir says a major constraint of renewable energy sources is availability.
For example, solar power supply is dependent on the availability of sunshine, which is constraint by climatic conditions, such as rain or clouds, and unavailable at night.
Hydropower is constraint by the catchment area and the size of the reservoir. The amount of electricity that could be generated by hydropower stations are limited by the volume of water that could be stored in the reservoir.
Dr Emir adds that to compensate for these constraints, redundant back-up electricity generation capacity need to be established, in the event that such renewable energy sources are not available in time of need. This would increase overall investment cost.
“Should Malaysia proceed with nuclear power plants, there needs to be an independent watchdog that is established to oversee the safety requirements on these plants,” says an industry observer.
As the world awaits to assess the potential damage from Japan's nuclear crisis, this may be the right time to reflect on the country's future energy mix and potential dependency on nuclear power.
Japan, hit with a 9.0 magnitude earthquake and tsunami last Friday, is now coping with its own nuclear crisis after the tsunami caused Fukushima Daiichi power station's reactor to start overheating, causing radiation.
This nuclear scare has caused many nations to exercise stress tests on exiting nuclear reactors, with some even shutting down older nuclear power plants.
But an industry observer highlights that for every action, there is an equal and opposite reaction. The shutting of nuclear power plants globally will result in higher utilisation of gas and coal (commodities that will not last forever), which will drive commodity prices up further. A London Commodity Brokers report issued on Thursday said that European coal futures for 2012 have added
9% to US$ 134/tonnes since Friday's close after the earthquake and resulting tsunami shut some Japanese nuclear power plants, potentially forcing the country to burn more coal.
Malaysia, which has expressed interests in developing nuclear energy for future usage, currently relies heavily on coal and gas for electricity supply, with coal almost entirely imported and gas supply from Peninsular Malaysia fast diminishing.
The import of gas needs to commence within the next few years, Performance Management and Delivery Unit director for oil, gas and energy under the New Key Economic Areas Dr Emir Mavani told StarBizWeek.
The total potential of green energy is limited to around 4,000 MW, based on the assessment by the Green Technology Corp of Malaysia.
Coal, oil, gas, hydropower and nuclear energy are widely considered as commercial energy sources, with established economic competitiveness and supply chains globally.
“In contrast, renewable energy sources, including solar power, are considered alternative energy sources and not expected to be capable of substituting commercial energy sources. Nevertheless, renewable energy sources are expected to play an important role in reducing commercial energy demand, by augmenting overall energy supply,” said Dr Emir.
Globally
In the wake of Japan's nuclear crisis, governments globally are re-looking at safety aspects of their current operating nuclear power plants and have also started to question the wisdom in relying on civil nuclear energy as part of an energy mix given the potential safety hazards in the eventuality of a nuclear power plant meltdown.
China, the world's second-biggest energy user, has taken pro-active measures by suspending approvals for new plants and those in the pre-development plans until nuclear safety regulations are approved. With some 13 reactors in operation now, the country is currently building roughly 27 new reactors as part of its proposed plan to have over 100 nuclear power plants in the coming years.
European Union (EU) energy ministers have collectively agreed to carry out stress tests on the 143 nuclear power plants spread across 14 EU countries, following the recent nuclear crisis in Japan.
The stress tests will include risk assessments of possible damage by earthquakes, terrorist attacks, power fallouts and tsunamis among others.
The EU Energy Commissioner Guenther Oettinger had also the raised the prospects of a nuclear-free future for Europe in a meeting held last Tuesday among EU nations to discuss the nuclear crisis and safety measures.
Germany, which has 17 nuclear reactors operating currently, has decided to shutdown seven of its oldest reactors for a three-month duration to conduct safety probes.
French President Nicholas Sarkozy said that the recent nuclear crisis has given rise to questions on safety of nuclear power stations and its importance in energy mix.
However, France, the second-largest producer of nuclear power worldwide after the US with some 58 reactors operating now, will continue relying on nuclear energy given that it is an essential element of the country's energy independence.
US President Barack Obama, who is a proponent of nuclear energy development, is still keen on pursuing nuclear power as the country's overall energy plan. He said the country would take lessons learnt from Japan and continuously update how the US approached nuclear safety, and has asked the US Nuclear Regulatory Commission to conduct a “comprehensive review” of the safety of all US nuclear plants.
The US has some 104 nuclear reactors providing 20% of the nation's electricity. It was reported by various news agencies that no new nuclear power plant has been built in the country since it experienced its own nuclear disaster in 1979, when a reactor at the Third Mile Island power plant, Pennsylvania, overheated causing radioactive gases to be released.
Israeli Prime Minister Benjamin Netanyahu said in an interview with CNN that he was reconsidering nuclear energy for the country due to the radiation leaks stemming from Japan's nuclear crisis.
He was reported to have said that the uncertainty over how the crisis will play out has left a cloud' hanging over the world and he was not keen to pursue civil nuclear energy in the coming years.
Malaysia
Malaysia has started to look at the feasibility of utilising nuclear energy as part of the country's energy mix. This is due to the power sector facing a major challenge as declining gas production will have an impact on the power generation industry. Currently, 58% of power generated in Peninsular Malaysia is based on natural gas, with the remainder coming from coal (37%) and hydro (5%).
A foreign research analyst says the country has to look at other renewable energy options, such as nuclear energy, especially since rising coal prices were impacting the bottomline of the country's energy provider, Tenaga Nasional Bhd (TNB).
“It is unfair that TNB has to bear the brunt of rising coal prices without electricity tariffs moving up. What needs to be worked out is a proper cost-pass through mechanism,” she says.
However, she adds that renewable energies such as solar and wind depend very much on nature, which could impact the sustainable production of energy.
Under the Economic Transformation Programme (ETP), Malaysia is exploring the option of deploying nuclear energy to meet future demand and diversify the energy mix for Peninsular Malaysia. A Nuclear Power Development Steering Committee, headed by the Energy, Green Technology and Water Ministry, was set up in June 2009 to plan for the country's potential nuclear energy needs.
The committee will prepare a Nuclear Power Infrastructure Development Plan to be ready by 2013, of which the ETP says that a nuclear power pre-feasibility study and initial site selection study has already been undertaken.
The plan will lay out a development timeframe of 12 years from pre-project to commissioning of a twin-unit nuclear power plant with a total capacity of two gigawatts costing up to RM21.3bil, with the first unit to be operational by 2021.
The rational behind pushing nuclear energy adoption is that it would be cost-competitive, supplying the cheapest source of energy. Aside form this, nuclear power is a cleaner energy than coal and gas (zero grams of carbon dioxide equivalent per kwh vs 800 and 400 grams respectively.)
While these details have been made known in the ETP, what many may be interested to note is that a key enabler to the nuclear energy project taking off is public acceptance.
Many quarters have expressed concern over the development of nuclear power plants locally, with political figureheads as well as environmental and consumers groups urging the government to re-consider other renewable energy options instead of adopting nuclear energy.
Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui said that the proposal to construct nuclear power plants for electricity has not been decided yet by the Cabinet.
The Environmental Protection Society Malaysia president Nithi Nesaduraio says that Malaysia does not need nuclear power plants, with such facilities left vulnerable to earthquakes, tsunamis and floods.
However, an industry source familiar with the country's nuclear development plans, says that it is premature to make any call on the impact to Malaysia's nuclear plan.
“Malaysia is not in an earthquake belt and the tsunami risk has been taken into account in the local nuclear power plant siting activity,” says the source.
It is good to point out here that the nuclear reactors at the Fukushima Daiichi power stations had shut off automatically after the earthquake but the emergency cooling systems failed to work after the tsunami damaged the plant's local backups. This has led the Japanese authorities to douse water onto the nuclear reactor from aerial and ground levels to keep it cool.
Back to Malaysia among the renewable energies up for consideration under the energy mix include hydro, solar and biomass. But the drawback of solar and biomass plants is that the energy output would pale in comparison to the output of nuclear power plants.
Dr Emir says a major constraint of renewable energy sources is availability.
For example, solar power supply is dependent on the availability of sunshine, which is constraint by climatic conditions, such as rain or clouds, and unavailable at night.
Hydropower is constraint by the catchment area and the size of the reservoir. The amount of electricity that could be generated by hydropower stations are limited by the volume of water that could be stored in the reservoir.
Dr Emir adds that to compensate for these constraints, redundant back-up electricity generation capacity need to be established, in the event that such renewable energy sources are not available in time of need. This would increase overall investment cost.
“Should Malaysia proceed with nuclear power plants, there needs to be an independent watchdog that is established to oversee the safety requirements on these plants,” says an industry observer.
As the world awaits to assess the potential damage from Japan's nuclear crisis, this may be the right time to reflect on the country's future energy mix and potential dependency on nuclear power.
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