Energy and Environment

Nuclear Energy

  • India
    Joining the Club: India and the Nuclear Suppliers Group
    Last week the forty-eight “participating governments” of the Nuclear Suppliers Group (NSG) met in a plenary session in Seoul. Among the subjects of discussion: how to consider for membership countries that have not signed the Nuclear Non-Proliferation Treaty (NPT). Discussion of membership for non-NPT signatories was the result of India’s application for membership, an application the United States has vocally supported. Some high-profile voices have weighed in against the idea of India’s membership, including eighteen senior nonproliferation experts, who viewed the idea of an exception for India as a step that would weaken global nonproliferation efforts. (I disagree with this view, and believe the legal changes India has made to become part of the global nonproliferation regime marks a net positive for nonproliferation concerns.) Pakistan decided to apply for membership as well, despite its past with the A.Q. Khan network. China pressed for NPT adherence as a requirement for entry. India’s status as a non-NPT signatory meant that this application was never going to be easy. The Seoul plenary ended without a decision on the membership discussion. Specifically, as the plenary public statement from Seoul put it, The NSG had discussions on the issue of “Technical, Legal and Political Aspects of the Participation of non-NPT States in the NSG” and decided to continue its discussion. Since the plenary produced no outcome on the question of India’s membership other than a deferral, Indian public debate has begun over matters like whether it was a good idea to pursue membership in the first place; whether the diplomatic strategy was appropriate; and even whether Prime Minister Narendra Modi’s visible push for support around the world cast India in the proper light. People have also focused on the Seoul outcome as a “failure.” My own view, which appears in today’s Indian Express, is that India has done the right thing to be out there trying, that it has the support of forty-plus NSG members which is a significant accomplishment, and that it should keep trying. Read the entire opinion piece here. Follow me on Twitter @AyresAlyssa or like me on Facebook: fb.me/ayresalyssa
  • Climate Change
    Liberal Bias and Climate Science
    Eduardo Porter has a column in the New York Times today arguing that “Liberal Biases, Too, May Block Progress on Climate Change”. (Yes, that’s a headline that he didn’t write, but it’s a good summary of the column’s message.) I’m on board with that bottom line. But his central example of liberal hostility to the “the scientific consensus” unintentionally highlights a different problem: conflation of science with values and judgment. Porter begins his column by rightly bemoaning hostility to the basics of climate science on the right. Then he turns to nuclear power for contrast. “Only 35 percent of Democrats, compared with 60 percent of Republicans, favor building more nuclear power plants,” he writes. And yet: “It is the G.O.P. that is closer to the scientific consensus. According to a Pew poll of members of the American Association for the Advancement of Science, 65 percent of scientists want more nuclear power too.” In two words: Who cares? Scientists, by and large, know more than the general public about the public risks and environmental benefits associated with nuclear power. But the typical scientist probably doesn’t know much (if anything) more about the economics of nuclear power. And he or she has a set of values – about risk, technological progress, the environment, economic prosperity, and so on – that almost certainly differs from the average person. The fact that “65 percent of scientists want more nuclear power” tells us not only about scientists’ scientific judgment but about their economic beliefs and values too. No one, liberal or conservative, should be considered “biased” for failing to share those. The scientists who took the AAAS poll aren’t to blame for this. But journalists and others who pass off value judgments as science are. Later in the piece, Porter writes that “when assessing the risks of different technological options, the left finds the risk of nuclear energy looming the highest, regardless of contrary evidence.” He links to a new paper by Jim Hansen as the evidence in question. That paper is about prevented mortality and emissions from nuclear power. It’s fine if Porter (and Hansen) think that prevented mortality and emissions are what matter most about nuclear power. But someone who has other priorities isn’t necessarily biased or anti-scientific – they just care about other things. To be fair to Porter, most of his piece is a smart exploration of how political biases shape how we all gather and filter facts; it’s well worth a read. Perhaps another column could wisely drill down on why so many people want to rely on “science” for answers to tough social questions when only their best judgment will do.
  • Japan
    Anti-Nuclear Sentiment and Japan’s Energy Choices
    Daniel P. Aldrich is professor of political science and public policy and co-director of Northeastern University’s Security and Resilience Studies Program. After the Fukushima nuclear disaster on March 11, 2011, many believed that Japan would use the incident to rethink its energy plans, particularly nuclear energy policies. For more than four decades Japan has sought to create one of the world’s most advanced commercial nuclear industries, complete with fuel recycling and mixed oxide fuel use. Yet, since retaking power in 2012, the ruling Liberal Democratic Party (LDP) remains strongly committed to nuclear power after the nuclear meltdowns. Why has Japan stayed the course while other nations have abandoned nuclear power? The LDP’s energy policy released in June last year called for nuclear power to supply about 20 percent of Japan’s electricity by 2030, and Minister of Economy, Trade, and Industry Motoo Hayashi confirmed that Japan will continue with its closed fuel cycle policy based on reprocessing. Prior to Fukushima, about 30 percent of Japan’s electricity was generated by nuclear power, and Japan’s 2010 Basic Energy Plan called for nuclear power’s share to increase to 50 percent by 2030. To accomplish this modernization, Japan pursued a closed nuclear fuel cycle, including fast breeder reactors (FBRs), mixed oxide fuel (MOX), and spent fuel reprocessing. It also created large subsidies for rural communities willing to host the plants. Today, except for the downsizing of the relative share of nuclear in Japan’s overall energy mix, little has changed in government thinking about Japan’s nuclear program since the 3/11 disaster. Japan’s policy continuity in the field of nuclear energy stands in contrast to other countries. For example, Germany and Switzerland both decided to phase out nuclear power after Fukushima, despite having relatively high dependence on nuclear energy. Well before Fukushima, France dropped its Superphenix FBR program, and the United States stopped fast reactor and fuel reprocessing development efforts due to technical challenges, high costs, and concerns about safety. Despite suffering the second worst commercial nuclear accident in history, only behind Chernobyl, Tokyo policymakers are working hard to keep Japan’s nuclear sector on track. Three factors keep the Japanese administration intent on restarting nuclear power: a media which fails to function as a watchdog, strong pressure from the nuclear industry and the business community, and a lack of sustained opposition from civil society and elected officials. Where media organizations in Europe covered nuclear accidents like Chernobyl and Fukushima and pushed their decision makers to think through potential accidents at home, Japanese news agencies rarely questioned their country’s ability to prevent accidents. Instead, leading newspapers beginning in the 1950s advocated for nuclear power and ran op-eds written by pro-nuclear officials as news stories. Post-Fukushima, only anti-nuclear groups such as the Citizens’ Nuclear Information Center (CNIC) and occasional op-eds in the Asahi and Yomiuri Shimbun pushed Tokyo Electric Power Company (TEPCO) and the Japanese government to explain Fukushima’s failure. Furthermore, the media did not question the government on the slow release of critical information about radioactive contamination in the days and weeks after 3/11. For example, only after foreign media called the Fukushima disaster a fuel meltdown did Japanese newspapers acknowledge a fuel meltdown at Fukushima. Few in Japan’s media saw their role as countering the state’s longstanding position on nuclear safety. Next, Japan’s businesses see the restart of nuclear power plants as critical to their competitiveness and to Japan’s economic success. The Nihon Keizai Shimbun regularly published polls where companies threatened to relocate overseas if cheap and uninterrupted power was not guaranteed. Keidanren, the Japan Business Federation, has openly argued that “...the process for restarting nuclear power plants must thus be accelerated to the maximum extent possible…” and that the “...establishment of a [closed] nuclear fuel cycle is essential.” Abe’s cabinet has similarly supported nuclear power because of claims that it is stable and cost effective. In contrast, German businesses did little to push back against the government’s Energiewende (energy transition) away from nuclear power, and U.S. businesses have kept a low profile on the issue of energy. Finally, the public has yet again voted the LDP into office despite public opinion polls consistently showing that the Japanese public opposes continued use of nuclear power. The LDP handily won in national elections to gain control of both Houses of the Japanese Diet. Shinzo Abe’s party remains a staunch advocate of civilian nuclear power, pushing for reactor restarts and closed fuel cycle development. His government’s coalition partner, Komeito, contrary to campaign pledges to seek “zero nuclear power,” dampened its rhetoric once back in office, and in subsequent elections, voters have not punished the LDP or the Komeito for their energy policy stance. The most visible critics of the government’s nuclear power policies came from outside established political parties.  Retired former prime ministers such as Junichiro Koizumi and Morihiro Hosokawa have tried to rally anti-nuclear sentiment, but have not been able to move the debate on energy.  Moreover, opposition parties have failed to weaken the LDP’s grip on power regardless of their stance on nuclear power. The only political party that has regularly and openly criticized Japan’s nuclear power program – the Japanese Communist Party –has little chance of winning general elections. Residents of municipalities close to nuclear power plants have filed class action lawsuits to move the needle on the nuclear issue, but the response of Japan’s courts has been mixed. The Otsu District Court, for example, shut down Takahama reactors 3 and 4 in early March 2016 citing insufficient information on the government’s safety precautions in the wake of the Fukushima meltdowns. This follows the earlier Fukui Court injunction in April 2015 that briefly prevented Kansai Electric Power Company from restarting the units, arguing that the new safety regulations were inadequate. Not all courts have been sympathetic to antinuclear activists, however.  In early April 2016, the Fukuoka High Court rejected a lawsuit that would have suspended operation of the Sendai plants, and the Fukui court later lifted its own injunction. These mixed rulings from the regional courts reveal how divided Japan remains on the nuclear issue. Strong and rising support for Prime Minister Abe suggests little incentive for the current government to revisit Japan’s energy choices. This summer’s elections may yet again prove that voters continue to prioritize other issues, especially the economy, over nuclear energy at the ballot box. The government may have cooled some opposition by creating a new nuclear regulator, the Nuclear Regulation Authority (NRA), which has carried out thorough restart inspections and has exercised discretion over the licensing of reactors. Meanwhile, cleanup and decontamination of Fukushima continues. Restoring Japan’s nuclear power capacity will take several years, perhaps even decades, giving the government and civil society time to debate and explore other energy policy options. Regular polls since the disaster show that the majority of Japanese oppose nuclear restarts and sympathetic court rulings indicate that some judges are siding with the populace. The Japanese government and media should explore the public’s anti-nuclear sentiment more fully as it considers its nuclear future. The environmental and social costs of the Fukushima meltdowns, an event which displaced tens of thousands from towns like Futaba and Tomioka and affected the livelihoods and mental health of many more, suggest the need for altering Japan’s basic energy approach. Looking solely at the management of Japan’s nuclear reactors, continued attention to public concerns is needed. In towns and villages that host nuclear reactors, residents’ opposition might decrease if they were given an actual voice during the restart processes, rather than merely a pro forma chance to write down their concerns. Additionally, the government must consider a more practical fuel cycle policy if it is to ease concerns within Japan as well as abroad. This would involve pausing attempts at reprocessing and speeding up the deployment of dry cask storage for spent nuclear fuel, either at reactor sites or in consolidated facilities, to reduce proliferation and terrorism risks. Traumatic events like Fukushima provide policy makers with the chance to reexamine fundamentally choices made far in the past, and we can only hope that Japan’s policymakers will take full advantage of this moment.
  • Renewable Energy
    Japan Should Increase Its Target for Renewable Energy, In Case Nuclear Restarts Stall
    I’ve been traveling in Japan, meeting with government officials, power sector executives, and energy policy scholars. I thank CFR life member Bill Martin, Washington Policy and Analysis, and the Japanese Federation of Electric Power Companies for generously hosting me. TOKYO—Last month, Japan commemorated the five-year anniversary of the great earthquake and tsunami that caused the Fukushima Daiichi nuclear disaster. The disaster—three nuclear reactor meltdowns and the release of some radioactive material—forced 164,000 residents to evacuate and deeply traumatized the country.[1] So when Japan shut down its entire fleet of nuclear reactors, it was unclear whether they would ever restart. Five years later, the outlook for nuclear power in Japan is better, as are prospects for a cheaper, cleaner, and more secure energy mix. In 2015, Prime Minister Shinzo Abe’s administration completed a four-year-long process to set targets for Japan’s energy mix in 2030. Those targets include restarting Japan’s nuclear fleet as quickly as possible, though only after reactors pass stringent safety assessments. The administration has also committed to ramp up renewable energy, aiming to combine it with nuclear power to generate nearly half of Japan’s electricity—or a quarter of its primary energy—from “self-sufficient sources” by 2030. And Japan is finally moving ahead with long-overdue electricity system reform to introduce more competition and keep costs down. The targets represent an admirably rational response to the Fukushima disaster. As I’ve written before, Japan should treat renewable energy and nuclear power as complements, not substitutes, which the Abe administration recognizes.  Yet even though administration officials talk about their 2030 vision as a major accomplishment—requiring years of careful analysis and negotiation—setting targets was the easy part. Now Japan needs to execute toward those targets, and an obstacle course of regulatory, legal, and political hurdles stands in the way. If things don’t go according to plan, the government needs to be prepared to adapt its targets, remembering that they are merely instruments to achieve Japan’s overarching energy goals. Japan Will Struggle to Meet Its 2030 Target for Nuclear Energy Restarting Japan’s nuclear reactors could reverse alarming trends that followed Fukushima. After Japan shut down its nuclear reactors, the price of retail electricity rose by two thirds, and the share of imported fossil fuels in the power mix rose from roughly 60 percent to nearly 90 percent (Figure 1). At the moment, low prices for oil and liquefied natural gas (LNG) have reduced Japan’s import bill. But the resource-poor island nation is still at the mercy of commodity market volatility and would suffer if prices increased again. For this reason, Japanese officials care deeply about energy self-sufficiency. If Japan can achieve its nuclear target for 2030, then nuclear will reemerge as its largest source of self-sufficient power. But the nuclear target is easier set than accomplished. Recently, a district court ordered that Takahama Units 3 and 4 stay closed, siding with some residents unhappy about plans to restart the reactors. Whether or not the court’s decision was right (it is puzzling how a local court could overrule the safety assessment of Japan’s nuclear regulator), it certainly appears that the road to restarting Japan’s 42 reactors—of which only two are currently running—will be bumpy. And that’s not all. After Fukushima, the previous government passed legislation making it harder to extend a nuclear reactor’s lifetime beyond 40 years—consistent with its plan to completely phase out nuclear energy. By 2030, one third of existing reactors will hit the 40-year age threshold for decommissioning. Even if utilities manage to finish construction on three new reactors, nuclear energy will still only account for 15 percent of Japan’s electricity. This implies that achieving the government’s 20–22 percent target by 2030 is improbable at best. Uncertainty over nuclear reactor restarts also complicates Japan’s plans to reprocess spent nuclear fuel. When the Rokkasho Reprocessing Plant (RRP) starts up in the near future, it will begin to separate plutonium from the spent fuel that has been accumulating at the facility and at reactor sites around Japan. If enough reactors don’t start up that can burn the reprocessed fuel (in a form called “MOX” fuel) from RRP, then Japan will begin to accumulate reserves of MOX fuel that some experts consider a proliferation risk. After touring RRP, I was left with little concern over the risk that Japan could divert nuclear material to a weapons program or leave it vulnerable to theft or sabotage (Japan’s safeguards at RRP are state-of-the-art, including 140 neutron detectors throughout the facility, multiple cameras recording each step, and automated reporting to the International Atomic Energy Agency). Nevertheless, the government knows that accumulating reprocessed fuel brings risks, including inflamed tensions with China, which has repeatedly voiced concerns over the issue.[2] All of this means that Japan needs to seriously plan for the contingency in which the target nuclear capacity does not materialize. It will need to carefully synchronize operations at RRP with reactor restarts, and it will also need to explore other ways of achieving zero-carbon, self-sufficient energy. Higher Targets for Renewables Could Compensate for a Nuclear Shortfall Although Japan is likely to miss its nuclear target, it has other zero-carbon options to meet its larger goal of 25 percent self-sufficiency in its primary energy mix. Renewable energy, comprising hydro, solar, wind, and geothermal energy, could compensate for a nuclear shortfall. Already, Japan has made substantial progress in ramping up renewables. Following Fukushima, Japan unveiled a generous feed-in tariff incentive scheme to support renewable energy. The market responded enthusiastically, especially in solar power. By 2014, Japan was second in the world to China in annual solar installations, having installed 9.7 GW of capacity. Recognizing that it could not continue funding solar power at such generous levels forever, the government lowered the rate of incentive payments by 16 percent in 2015 and a further 11 percent last month. Nevertheless, its target of 22–24 percent renewable energy by 2030, driven largely by projected growth in solar power, is still well within range. The government set this target by calculating the level of renewable energy that would not cost Japan more in incentive payments than it would save from displaced fossil fuel imports. But in its calculations, the government assumes that solar will cost about six cents per kWh in 2030, a very conservative projection; for reference, unsubsidized solar power in the United States should meet that cost target a full decade earlier, by 2020. Given that solar is likely to be much cheaper than the Japanese government has anticipated, it should not be difficult to support the target share of renewable energy in 2030 without breaking the bank. In fact, Japan should look to support even higher levels of renewable energy. Over the past year, the government has made regulatory changes in this direction. First, it limited the number of days that utilities could "curtail,” or switch off, renewable energy supply to the grid without compensation for the foregone power. Second, Japan has streamlined regulations to drive down the costs of installing rooftop solar—as a result, the price of residential solar in Japan (which composes the large majority of Japanese installed capacity) is lower than that in the United States and closer to leaders Germany and Australia (Figure 2). Finally, Japan is now rolling out a reverse auction system to buy power from utility-scale solar installations. Since large-scale solar is cheaper than rooftop solar and reverse auctions tend to secure lower prices than a feed-in tariff, the shift from decentralized to centralized solar in Japan should further drive down costs and fuel capacity expansion. But intermittent renewable sources, such as solar and wind, have limited potential so long as Japan’s electricity grid remains fragmented. Each of Japan’s ten regional utilities exercises a monopoly in its service territory, and electricity trade among regions is comparatively low. Moreover, the entire power grid is split into two halves operating at different frequencies, limiting power flows between east and west. With better transmission links between regions, the Japanese grid could accommodate more renewable energy, making it easier for resources in one region to compensate for unpredictable renewable energy in another region. Therefore, to make it possible to raise its renewable energy target—important for reducing emissions and increasing energy security—Japan should invest substantially in a more interconnected national grid. Though Overdue, Power Sector Reform Should Not Pit Nuclear Against Renewables On April 1, Japan took an important step toward breaking up its vertically integrated utilities, when it fully deregulated the electricity retail market. Many jurisdictions in the developed world have had deregulated markets—which in several cases has lowered electricity rates by introducing competition into the sector—for decades, but Japan’s path to deregulation has been sluggish. Still, the government has justified its caution by pointing to missteps elsewhere in the world and tailoring its own policies to avoid them. For example, though it now allows customers to choose their retail electricity provider, customers will still be able to stay on a regulated rate from the local utility, and the government will carefully monitor how the market evolves. In doing so, the government hopes to avoid market abuses that plagued deregulation in the United Kingdom and California. But the one aspect of deregulation about which I did not hear a satisfactory answer from Japanese officials was how to avoid the conflict between renewable and nuclear energy that is playing out in other deregulated markets. For example, in many parts of Europe, nuclear power is increasingly unprofitable as a result of the rise of renewable energy. The way deregulated power markets are set up, renewable energy reduces power prices, making it difficult for existing nuclear plants to cover operating costs and virtually impossible for new nuclear plants to raise enough revenue to amortize capital costs. Today, there is a lower risk of this happening in Japan, because only about 2 percent of power is traded on a wholesale power market. But the Japanese government plans to increase that proportion, which could expose nuclear reactors to wholesale price deflation from renewable energy. Japan is considering implementing a “capacity mechanism” that ensures that reliable power from sources like nuclear reactors—which generate consistently around the clock—are compensated enough to keep them open. But capacity markets around the world have had their own problems, and in general they have not solved this problem of renewable energy crowding out nuclear energy. Some have proposed alternative market designs that have not yet been tested but are theoretically promising. For example, splitting the retail market for electricity into two markets—one for reliable, 24/7 power and another for power whose availability fluctuates—could insulate nuclear power from unhealthy competition with renewable energy. Japan should explore this and other proposals. At the end of the day, it is crucial that zero-carbon, secure sources of energy coexist in the Japanese power landscape. As Japan continues to deregulate its power sector, it should ensure that the right economic incentives are in place for nuclear and renewable energy to both flourish. [1] There is increasing evidence that the release of radioactive material from Fukushima has not posed substantial short or long-term risks to human health. [2] For readers wondering why Japan doesn’t just abandon reprocessing, James Acton of the Carnegie Endowment explains, “Japan is entrapped in reprocessing. Commitments made by the national government to local communities to facilitate the development of Japan’s nuclear industry and, in particular, its industrial-scale reprocessing facility make RRP’s operation effectively inevitable.” The full report is essential reading to understand Japan’s convoluted nuclear fuel cycle policies.
  • Japan
    Far from Finished, Five Years After Fukushima
    Five years after a devastating meltdown at the Fukushima Daiichi Nuclear Power Plant, the debate on nuclear safety remains heated in Japan, writes CFR’s Sheila A. Smith.
  • Iran
    Assessing the Iran Nuclear Accord
    Play
    John F. Kerry discusses the Iran nuclear deal.
  • Iran
    Deadline for the Deal: Opportunities and Pitfalls for U.S.-Iran Relations
    Play
    Experts analyze the components of a final agreement on Iran's nuclear program.
  • Iran
    Framework Agreement to Limit Iran's Nuclear Program
    Podcast
    CFR experts discuss the framework agreement to limit Iran's nuclear program.
  • Iran
    Five Thoughts on the Iran Nuclear Framework Agreement
    The P5+1 and Iran have announced a framework for negotiating a final agreement to limit the Iranian nuclear program by the end of June. Here are five quick thoughts on the nuclear and sanctions elements: The nuclear limits – particularly those on the Iranian supply chain – are surprisingly strong and significant. The rough scale of Iranian enrichment activities and low-enriched uranium stockpiling that the United States could tolerate has long been pretty clear. (I laid out the basic logic for the sorts of limits that would allow the United States to respond effectively to Iranian breakout in a technical paper a few years ago, and many others have made similar arguments.) The announced framework tracks those understandings. What I’m struck by, though, is the extent of the monitoring provisions, particularly as they apply to the Iranian supply chain. U.S. policymakers have long feared that so long as Iran could conduct some legal nuclear commerce, it would be easier to hide illegal activities, making a secret parallel nuclear program more feasible. The framework includes some pretty strong steps to address this, including a “dedicated procurement channel” for the nuclear program. These may seem like footnotes compared to the rule for centrifuges and uranium stocks, but they’re central. The time it takes Iran to comply with the agreement will depend on its final details. Take one example: Iran is required “to reduce its current stockpile of about 10,000 kg of low-enriched uranium (LEU) to 300 kg of 3.67 percent LEU”. How will this be done? Will Iran ship the material out of country? Will it blend it down to LEU that’s enriched to less than 3.67 percent? Will it convert the LEU into fuel? (Which of these will the final deal allow?) The path it takes will determine how long compliance takes, which will affect the pace of sanctions removal. Similar questions surround many other provisions. It is unclear how sanctions relief will be phased in. If compliance occurs gradually over an extended period, sanctions relief will presumably be drawn out too. Iran faces a host of sanctions on oil sales, financial transactions, travel by senior officials, and other activities. Which sanctions will be pared back first? What milestones will they be connected to? Much of this presumably remains to be negotiated, but the details will be critical to determining the pace with which sanctions are removed – and, in particular, the speed at which full-scale Iranian oil exports come back online. Removing sanctions won’t necessarily lead to a rush back into Iran. The framework notes that sanction could be “snapped back” on Iranian noncompliance. Energy (and other) companies will presumably be slow to invest in Iran given the risk that they could easily find themselves faced with sanctions once again. Financial players may decide that the complexity and risks of dealing with Iran outweigh the limited commercial benefits. Oil traders, though, are more short term in nature, and will presumably reengage quickly. This experience is going to make U.S. policymakers even more sanctions-happy than before. An easy lesson of the Iran experience (presuming that the framework actually leads to a final deal) will be that sanctions, when combined with diplomacy, can yield meaningful results. Political scientists and policy analysts will doubtless debate this until eternity: one can’t say definitively what role sanctions played in bringing about the agreement, nor is there an objective way to know whether the framework deal is better than whatever else might have happened. The reality, though, is that many policymakers will take today’s news as a straightforward affirmation that sanctions work.
  • South Korea
    Breaking the Stalemate in U.S.-ROK Nuclear Cooperation Negotiations
    A dispute over whether South Korea (ROK) should have the right to enrich and reprocess U.S.-origin nuclear fuels has led to a deadlock in talks on a new bilateral nuclear cooperation agreement. Failure to break that impasse would threaten mutually beneficial nuclear cooperation and could disrupt a critical bilateral relationship at a time when regional tensions are rising and North Korea's nuclear program continues to develop. To avoid disruption, Washington should extend the current agreement and pledge to make a follow-on agreement contingent on the results of an ongoing study that will determine the feasibility and proliferation risks of South Korea's proposed solution to the stalemate. These steps would give Washington time to address Seoul's main objective: that it be held to the same nuclear cooperation standards as other states with advanced civilian nuclear energy sectors, most notably Japan. U.S. Law and South Korea's Nuclear Industry The United States and South Korea have a long history of nuclear cooperation. Under the countries' first nuclear agreement signed in the 1950s, U.S. specialists supplied South Korea with an experimental reactor. A U.S. company subsequently built the first full-scale nuclear power plant in South Korea and trained ROK nuclear specialists to operate it under a renewal agreement that came into force in 1974. Four years later, the U.S. Congress passed the Nuclear Nonproliferation Act as an amendment to the Atomic Energy Act, which among other things further restricted the use of U.S. nuclear material or technology by foreign governments or entities in enrichment and reprocessing without U.S. "advanced consent." Accordingly, such agreements as the U.S.-ROK Nuclear Cooperation Agreement made prior to the 1978 amendment need to be renegotiated before expiration and upgraded to meet 1978 standards. South Korea now wants such advanced consent to enrich and reprocess U.S.-origin nuclear fuel. South Korean firms have emerged as major participants in the global nuclear energy industry. They now operate twenty-three nuclear plants that generate almost one-third of the country's electricity, and they began exporting nuclear plants in 2010. The 1974 agreement, however, bars South Korean companies from enriching and reprocessing U.S.-origin fuel. As a result, the ROK government argues that its firms operate at a competitive disadvantage in the global market against foreign plant operators that can provide fuel enrichment and reprocessing services through company affiliates Urenco and Tenex. Despite fuel supply assurances and assessments that the uranium supplies available to operate power plants will keep fuel prices low, the ROK government worries that fuel-enrichment service providers might someday become a cartel or charge South Korean firms a premium for services. Moreover, South Korea is seeking U.S. permission to reprocess nuclear fuel through an experimental method called pyroprocessing, which was originally developed at national laboratories in the United States. Many South Korean policymakers and scientists believe this process would shrink South Korea's growing volume of nuclear waste and avoid the proliferation concerns of existing reprocessing methods, with the added benefit of creating fuel usable in next-generation nuclear reactors. A further complication arises from South Korean public sensitivity to the fact that the United States has granted Japan advanced consent for U.S.-origin fuel enrichment and reprocessing that it is denying to South Korea. Stalemate at the Negotiating Table The United States and South Korea began negotiations to renew the existing U.S.-ROK nuclear cooperation agreement in 2010. They quickly came to understanding on most elements of a renewal agreement, but the negotiation process also revealed fundamental differences over granting South Korea advanced consent to conduct enrichment and reprocessing. In a bid to address South Korean concerns about spent fuel management, the two sides agreed in 2011 to launch a ten-year U.S.-ROK joint study involving specialists from the Korea Atomic Energy Research Institute at Idaho's Argonne National Laboratory-West. The study is examining methods such as pyroprocessing for safely managing spent nuclear fuel. South Korea is expected to reach its spent-fuel storage capacity in 2024, creating domestic demand for an alternative waste-management method to accompany—if not substitute—the politically sensitive expansion of storage facilities. The Obama administration is likely to resist providing advanced consent unless the study satisfactorily shows that pyroprocessing will be proliferation resistant and commercially viable. One alternative to pyroprocessing would be to remove the waste from pools to store in dry casks, also enabling South Korea to extend its storage capacity, though only for up to fifty years. An additional U.S. concern is that the ROK pursuit of fuel enrichment and pyroprocessing capabilities sends the wrong signals to North Korea. Pyongyang and Seoul pledged in the February 1992 Joint Denuclearization Agreement to not pursue enrichment and reprocessing. North Korea has abandoned its denuclearization pledges and it looks to be pursuing a uranium-enrichment program for weapons purposes outside the Nuclear Nonproliferation Treaty (NPT). South Korea has made efforts to learn lessons from its own recent procurement scandals and to foster nuclear safety and nonproliferation in third countries, along with exporting nuclear equipment and know-how. Given that South Korea's continued adherance to the NPT and to responsible development of nuclear power stands in stark contrast to North Korea's violation of its nuclear commitments, Seoul argues that it should not be required to adhere to obligations that Pyongyang has cast off or have its development as a producer of nuclear power in compliance with International Atomic Energy Agency safeguards be restricted due to North Korea's behavior. In April 2013, the United States and South Korea decided to pursue a two-year extension of the existing U.S.-ROK nuclear cooperation agreement until March 2016, but this extension still may not buy enough time to solve the impasse in negotiations. The alternatives to an extension—discontinuing cooperation or forcing a new deal—would be economically and politically costly for both the United States and Korea. In partnership with the U.S. company Westinghouse, the Korea Electric Power Corporation (KEPCO) signed a $20 billion contract in 2009 to build four nuclear plants in the United Arab Emirates (UAE). Given the integrated nature of the U.S. and ROK nuclear industries, the U.S. Ex-Im Bank claims that South Korea's deal with the UAE will bring approximately $2 billion and five thousand jobs to the United States. Based on these figures and South Korea's plans, the Heritage Foundation reports that continued cooperation, which requires a valid agreement, could amount to $80 billion in U.S. exports. Recommendations The impasse over a new U.S.-South Korean nuclear cooperation agreement is straining Washington's relations with Seoul just as rising regional tensions make close cooperation between the two capitals essential. The Obama administration should address the deadlock by proposing to South Korea another extension of the current U.S.-ROK nuclear cooperation agreement until the conclusion of the joint study in 2021. Congress should pass such an extension. That would give the United States time to develop what South Korea is looking for: a consistent framework for nuclear cooperation with states that have advanced nuclear power industries and are committed to nonproliferation. To that end, the United States should take the following steps: Make the results of the U.S.-ROK joint study on spent fuel methods, including the viability of pyroprocessing, the basis for determining whether or not the United States will provide advanced consent to alter U.S.-origin nuclear fuel in a new agreement. U.S. willingness to offer advanced consent to South Korea should be based on whether the joint study is able to address existing concerns about proliferation, scalability, and the establishment of adequate safeguards for pyroprocessing. Make negotiations on the renewal of the U.S.-Japan nuclear cooperation agreement in 2018 the benchmark for cooperation between the United States and countries with advanced nuclear power industries. Negotiations to renew the current U.S.-Japan nuclear cooperation agreement should be held with the understanding that the provisions of this deal will also be granted to South Korea if Seoul can adequately address proliferation and safeguards issues as part of the U.S.-ROK joint research study. This approach would give Washington additional leverage to strengthen nonproliferation safeguards with Tokyo, demonstrate U.S. sensitivity to South Korea's concerns about fairness, and bring consistency to U.S. policy. Encourage South Korea to purchase an investment stake in a fuel-enrichment service provider, such as the new Urenco enrichment plant currently being built in the United States. A South Korean ownership stake in enrichment services would still require U.S. approval for export of fuel to South Korea, but it might alleviate Seoul's concerns that its inability to independently manufacture nuclear fuel or offer fuel-enrichment services would leave South Korean–made reactors vulnerable to price fluctuations in the event that there is a limited supply of uranium on the international market. These recommendations would forestall a potential disruption of the alliance over nuclear cooperation and buy time for a less politically volatile approach by establishing a common standard for cooperation with both South Korea and Japan. But they do not immediately address Seoul's spent fuel problem. South Korea would have to place its nuclear waste in dry-cask storage, which could spark public protest in the local communities of these storage sites. However, the ROK government could provide tax and subsidy incentives to the local governments that host these facilities. The costs for these subsidies may be covered by reduced costs of dry-cask storage, which are only 5 percent of the estimated cost of reprocessing. Furthermore, despite recent nuclear-safety oversight scandals in South Korea, the energy shortages of summer 2013 are likely to help the government garner public support for nuclear energy and expansion of nuclear waste storage facilities. The feasibility of revising the provisions granted to Japan, cost overruns and technical failures in developing a plutonium reprocessing plant at Rokkasho, and heightened domestic scrutiny of nuclear energy following the Fukushima disaster all suggest that the United States and Japan should agree to stricter conditions on nuclear enrichment and reprocessing. Conclusion The current U.S.-ROK nuclear cooperation agreement has enabled South Korea to produce a significant portion of its energy needs with nuclear power while also creating a highly successful commercial industry that benefits both South Korean and U.S. companies. The two countries should sustain this cooperation by extending the agreement in the short term and continuing to work on a new framework designed to harness the full potential of the relationship while undergirding their commitments to nonproliferation. The United States will also benefit from developing a consistent standard for cooperation with advanced nuclear countries.
  • Iran
    Clock Ticking on Iran Nuclear Deal
    Without diplomatic progress over the next several weeks, world powers and Iran may squander their best opportunity for a comprehensive nuclear agreement, says expert Daryl G. Kimball.
  • Global
    Summit Aims to Reduce the Risk of Nuclear Terrorism
    Play
    Elizabeth Sherwood-Randall, a top advisor to President Obama on defense and nuclear issues, joins Robert L. Gallucci of the John D. and Catherine T. MacArthur Foundation to discuss the upcoming third Nuclear Security Summit, to be held in The Hague.
  • Global
    Summit Aims to Reduce the Risk of Nuclear Terrorism
    Play
    Elizabeth Sherwood-Randall, a top adviser to President Obama on defense and nuclear issues, joins Robert Gallucci of the John D. and Catherine T. MacArthur Foundation to discuss the upcoming third Nuclear Security Summit, to be held in The Hague.
  • South Korea
    Nuclear Power in South Korea’s Green Growth Strategy
    Introduction Nuclear power has been an important, if understated, aspect of South Korea's National Strategy for Green Growth, a set of policies reflecting the idea that economic growth and environmental protection can be compatible activities rather than conflicting. Former president Lee Myung-bak did not mention nuclear power when he announced his administration's national vision for green growth in a 2008 speech, although nuclear power later made an appearance as one of ten major green growth policy objectives.[1] Arguing that nuclear energy use improves energy independence while mitigating carbon emissions, Lee championed a green growth framework that provided a new justification for South Korea to expand nuclear power at home and promote it abroad.[2] Plans are under way to increase nuclear power's share of the country's electricity generation from 33 percent to 59 percent by 2030.[3] In addition to the twenty-three reactors currently operating, five new reactors are under construction and eight more are planned.[4] However, recent reports of safety and quality-control problems at nuclear power plants in South Korea have undermined public trust in the safety and reliability of the country's cheapest source of electricity.[5] Although South Korea has experienced no major nuclear accidents since its first reactor began commercial operations in 1978, the nuclear power rethink in many countries resulting from the March 2011 nuclear accident in Fukushima, Japan, has created an atmosphere that only heightens these concerns.[6] At the same time, the government must also secure public acceptance of new storage sites for radioactive waste from spent nuclear fuel—an issue that highlights how doubts about nuclear power's green credentials can clash with the desire to meet rising electricity demand with low-carbon sources. Complicating this situation is the new South Korean president Park Geun-hye, who must decide how to put her stamp on green growth. Linking Nuclear Power and Green Growth South Korea's 1970s-era decision to adopt and expand nuclear power long predates the green growth initiative, although the two efforts share a common motivator: the quest for energy security in a country that is poor in energy resources and relies on imports to meet almost all its high energy demand. Currently, South Korea consumes more energy than all but ten other countries.[7] Added to the country's long struggle with energy security are the global economic slowdown of 2008–2009, a growing consensus about the need to tackle climate change, and the concomitant inability of global climate talks to achieve meaningful action on emissions reduction. These dynamics have recently given rise to the concept of green growth, which, under Lee's rubric, aims to curb carbon emissions while improving energy independence, create new engines of economic growth, and enhance South Korea's international standing. Although nuclear power—already firmly entrenched in South Korea's energy mix—seems tailor-made for achieving all three of these overarching goals, its broader impact on South Korea's energy landscape renders its use much more complex. In an era of widespread concern about climate change, the emissions mitigation potential of nuclear power generation, which emits no carbon, provides a new leg on which South Korea's nuclear expansion ambitions can stand. According to a recent report by the International Energy Agency (IEA), South Korea's per capita CO2 emissions increased 115.4 percent between 1990 and 2010.[8] The same report noted that electricity demand from all sectors "has grown significantly since 2000," while "production of nuclear electricity increased by almost 50 percent over the same period.[9] In 2009, the government of South Korea announced a voluntary target to reduce greenhouse gas emissions by 30 percent below the expected level by 2020.[10] The challenge of following through on this commitment while meeting increasing electricity demand provides double justification for South Korea's plans to expand nuclear power. Expanding nuclear power is not the only way South Korea is attempting to reign in its carbon emissions. There is already a program in place that requires the country's top emitters to meet designated emissions reduction targets or face a financial penalty. An emissions trading scheme (ETS) is expected to take effect in 2015 and the government is aggressively pursuing a smart-grid strategy aimed at reducing demand by providing real-time consumption and pricing information to consumers. But these efforts remain works in progress, whereas nuclear power is longstanding and proven. Determining the relationship between improved energy independence and nuclear power in South Korea requires an assessment of the country's electricity sources. Together, coal and natural gas account for two-thirds of electricity production in South Korea and nuclear energy accounts for most of the remaining third.[11] Coal—the majority of which is imported—is the largest single source of electricity, making up 45 percent of total electricity production.[12] Nuclear power expansion can offset the need for additional imports of coal and natural gas, diversifying the energy mix and improving energy independence. Moreover, indigenous technology is now used in critical systems in new reactors; at a groundbreaking ceremony for two new reactors last year, President Lee noted that South Korea had "achieved the dream of independent nuclear technology."[13] However, South Korea is wholly reliant on imported uranium and uranium conversion services to fuel its reactors.[14] This means nuclear energy is not entirely an autonomous power source for the country. There is evidence that nuclear power expansion can create new engines of economic growth. A 2009 paper published by the Korea Atomic Energy Research Institute found that "the total net contribution of nuclear technologies as a percentage share of GDP amounted to 2.38 percent in 2005."[15] This amount includes economic activity generated from the construction and operation of nuclear power plants as well as industrial output stimulated by the electricity produced from nuclear power. Furthermore, South Korea's aggressive pursuit of new export opportunities for its nuclear expertise has already boosted economic growth. In 2009, a South Korean consortium won a bid to build four nuclear reactors in the United Arab Emirates (UAE), prevailing over competitors from Japan and France. According to projections by the International Atomic Energy Agency (IAEA), global demand growth for nuclear power is expected to continue, although at rates lower than predicted prior to the Fukushima accident.[16] Strategic marketing of nuclear power as a zero-carbon alternative to fossil fuels may enhance the country's efforts to capture more of this market. In 2010, President Lee wrote in the journal Global Asia, "Nuclear is one of the most efficient power generation methods that will lead us to a low-carbon society, and I intend to make sure that [South] Korea keeps up with its role as one of the major suppliers of these zero-carbon power plants."[17] He went on to say the nuclear reactors South Korea is building in the UAE would equal "40 million tons of carbon mitigation."[18] This UAE deal was a critical initial win in the country's quest to export eighty nuclear reactors by 2030, which could reportedly total $300 billion in sales for South Korea.[19] However, experts question the feasibility of this goal, noting it would require a significant uptick in production of nuclear reactors at a time of diminishing human resource capacity in South Korea's nuclear industry.[20] Therefore, nuclear power's future contribution as a green growth export engine is questionable. Finally, nuclear power can serve the third pillar of the green growth strategy—enhancing international standing—in three ways. First, South Korea's contract to build four nuclear reactors in the UAE is a major opportunity for South Korea to show it can deliver a nuclear power plant export on time and on budget while building safety credentials. One executive who was involved in the UAE contract decision cited "world-class safety performance" of South Korean plants as one reason for the win.[21] Other sources have emphasized the South Korean project's smaller budget relative to those of other proposals.[22] Second, whereas some countries, such as Germany, responded to the Fukushima accident by retreating from nuclear power production, South Korea is taking the opportunity to promote nuclear safety, beginning at home. Following Fukushima, President Lee emphasized, "We must learn from the Fukushima accident and redouble our efforts to enhance nuclear safety in keeping up with new technology and demands of the times, and to restore public confidence."[23] South Korea already houses the world's first International Nuclear Safety School to train safety experts from other countries. This can be a basis for bolstering international collaborative efforts on nuclear safety. Finally, nuclear power could also strengthen South Korea's international standing in an indirect fashion by serving as an important means for the country to deliver on its voluntary emissions reduction target. A report released by South Korea's Ministry of Knowledge Economy projecting electricity supply and demand indicates the country may overshoot the target by 10 percent in 2020.[24] In any case, if South Korea can meet its target, or make significant emissions reductions in later years, nuclear power will surely have played a role. Nuclear power has an important role to play in South Korean green growth, especially as a near-term tactic for meeting rising electricity demand without increasing emissions. Its future as a green growth engine is buttressed by the cost advantage it enjoys over other forms of electricity generation. However, this potential is complicated by the task of regaining public trust in the safety of nuclear power and the debate over nuclear power's green credentials at a time when the government must secure public acquiescence to new storage sites for nuclear waste. Bolstering Public Trust in Nuclear Safety Public confidence in the safety of nuclear power plummeted in South Korea after the March 2011 nuclear accident at Fukushima, Japan.[25] The monumental accident ultimately resulted in the idling of almost all of Japan's nuclear power plants. Promoting the expansion of nuclear power in South Korea might have been difficult enough in such an environment, but domestic safety problems and a quality control scandal that unfolded during the closing months of 2012 have further hampered these efforts. In February 2012, a power loss at a South Korean nuclear plant went unreported until authorities discovered it.[26] The revelation that falsified quality-control documents had been used to certify more than seven-thousand reactor parts led to the temporary closure of two reactors in November of that year, sparking fears of power shortages at a time of unusually cold temperature forecasts and record-high levels of electricity consumption.[27] One month later, hundreds of falsely certified parts were discovered in two other reactors, as well as in their water-cooling systems.[28] These reactors have remained online during replacement work. Discerning the implications of these events on public opinion was made more difficult after Fukushima, when the Korean Nuclear Energy Promotion Agency (KONEPA) declined to publish its regular polls on the public opinion of nuclear safety in South Korea.[29] According to a report by Reuters, South Korean opposition lawmaker Woo Yoon-guen has called on KONEPA to resume publishing the polls and has also revealed some of the agency's data himself.[30] A September 2012 KONEPA poll indicated that public confidence may have begun to regain its footing, showing that 53.3 percent of respondents viewed nuclear power plants as safe compared with 41.5 percent who did not.[31] However, public confidence dipped to 34.8 percent by the end of 2012 as the quality control scandal was unfolding.[32] The Fukushima accident galvanized existing antinuclear movements and gave rise to new ones in South Korea, but these do not appear to have gained widespread traction. The situation in the east-coast town of Samcheok, where there are plans to build a nuclear power plant, may illustrate a measure of ambivalence about nuclear power among some citizens in South Korea. According to a March 2011 survey of residents taken before the Fukushima accident, 75 percent of respondents favored locating the new plant in their town.[33] Seven months later, following the accident, support dropped to 50 percent.[34] A local group tried to recall the pronuclear mayor, though the effort failed.[35] By contrast, some residents seemed to value the need for economic resurgence over safety concerns. According to a report by Reuters, even after the Fukushima accident, local pronuclear activists based their support for building a nuclear plant in their town on the estimation that the construction and operation of the plant would pump 6.2 trillion won ($5.7 billion) into Samcheok's economy.[36] Public opinion of nuclear power expansion seems to result in part from a complicated mix of safety perceptions and self-interest; the citizens were conflicted between concerns about the government response to the recent scandals and the recognition that nuclear power is, for now at least, a low-cost electricity source that can bestow economic benefits on the communities where plants are located. Nuclear power may be the one piece of the green growth strategy most vulnerable to changes in public perception, especially because its expansion requires some level of public acceptance to manage the tangible problem of storing spent nuclear fuel. There was no broad public debate over the ETS, which passed the National Assembly with little fanfare. Investments in smart-grid technology and new forms of renewable energy, including wind and solar power, do not attract as much opposition due to safety concerns as nuclear power does. In January, the government announced new measures responding to the quality control scandal and safety problems. These include new procedures for procuring reactor parts and dealing with mechanical problems.[37] However, any indication that the government is suppressing data that reflects negatively on nuclear power—such as the refusal to publish KONEPA polls—could undermine public trust and ultimately backfire. Cost Advantages of Nuclear Power Nuclear power has one advantage that would make it difficult to dislodge from South Korea's energy mix: it is the cheapest source of electricity in the country.[38] The IEA report notes that "while the Korean consumer price index increased by 254 percent from 1982 to 2011, electricity prices increased by 29.9 percent in the same period."[39] Although the initial investments and operations and maintenance costs are higher for nuclear power plants than coal or gas plants, the cost advantage of generating electricity with nuclear power instead of using imported fossil fuels outweighs the start-up costs of a nuclear power plant in South Korea.[40] When a carbon price is added to the cost of fossil fuel electricity generation, nuclear power's cost advantage becomes even starker.[41] South Korea's ETS may eventually result in a carbon price, making nuclear power even more affordable relative to fossil fuels than it already is. The country also seems to be well positioned to build new nuclear power plants at a lower cost than many other developed countries, due to its recent experience and lower construction costs.[42] Nuclear power's cost advantage is even clearer when compared with renewable forms of energy such as wind, solar, and tidal power. According to one researcher at the Korea Energy Economics Institute, the wholesale cost of power from alternative sources in South Korea is six times higher than that of nuclear power.[43] The green growth strategy sets out a goal of increasing the share of renewables to 11 percent of total primary energy supply by 2030 (though it is unclear how much of that share is intended for the electricity sector versus other sectors, such as transportation).[44] South Korea has a long way to go on this score. Renewable energy sources currently make up a meager 1.5 percent of the country's electricity generation, with the bulk of that supply coming from biofuels and renewable waste.[45] Although solar and wind power are growing in South Korea, they still account for only a tiny share of renewable energy.[46] Moreover, as is widely noted, "their intermittent and variable supply make them poorly suited for large-scale use in the absence of an affordable way to store electricity.[47] In addition, as the IEA has noted, South Korea's climate and geography present a steeper challenge for the development of renewable energy compared with other IEA countries.[48] Nuclear power is the only major energy source that South Korea can rely on for wide-scale, zero-carbon electricity in the near term as more costly renewable energy sources struggle to gain a foothold. Han Seung-soo, former prime minister of South Korea and then chairman of the Seoul-based Global Green Growth Institute, acknowledged this in 2011 when he said, "If we pursue clean energy, we need to accept nuclear power as a reality until we have better options readily available."[49] Is Nuclear Power Really "Green"? Although nuclear power can help meet energy needs without emitting carbon, there is disagreement over whether it truly serves the purpose of green growth. The Lee administration emphasized nuclear power as a "clean" source of energy, focusing on its zero-carbon characteristics, but some environmental groups, such as Green Korea United, reject its no-carbon credentials, arguing that emissions from the mining and refining of the uranium fuel source must be taken into account.[50] In addition, the problem of finding new storage sites for high-level radioactive waste from spent nuclear fuel further tarnishes nuclear power's "green" image and is likely to be a pressing challenge for the government in the coming years as it runs up against storage limits at current sites amid "not in my backyard" opposition to new sites. The three reactor sites where spent nuclear fuel is currently stored in South Korea are projected to reach capacity in 2016.[51] Reprocessing spent fuel is a strategy for managing nuclear waste, but South Korea does not have this option. A longstanding agreement with the United States that was recently extended for two more years prohibits this practice over concerns about nuclear weapons proliferation. Although the South Korean government is pressing for the right to reprocess spent nuclear fuel, in part to help manage the storage problem, the United States remains reluctant to agree to this. Nuclear power expansion will create more nuclear waste that must be handled without reprocessing spent fuel. The real challenge for the near term may be overcoming public opposition to new storage sites for spent nuclear fuel. The government already spent 300 million won ($247 million) in cash and other benefits to tamp down local opposition to a low- and intermediate-level radioactive waste storage site at Gyeongju.[52] Construction of this repository was twice prolonged due to "weak bedrock and groundwater problems," a situation that does not bode well for public acceptance of new storage spaces for high-level radioactive waste.[53] Government-sponsored public discussions to help determine new locations for storing high-level waste from spent nuclear fuel are expected to begin in the coming weeks. If these talks are a true give-and-take between citizens and government, they could help build the "culture of transparency" in the nuclear power industry that President Lee called for.[54] Regardless, the challenge of managing nuclear waste that remains radioactive for centuries is a powerful argument against labeling nuclear power as "green." However, the need for a zero-carbon electricity source to meet rising demand is likely to win out, as long as the government can gain enough public acceptance to new storage sites. Conclusion When it comes to nuclear power in South Korea, green growth is a new banner for an old strategy. South Korea's long experience with nuclear power, its reliance on this form of energy to meet rising demand, and its recognition of nuclear power's carbon mitigation potential together render a natural and convenient relationship between nuclear power and South Korea's green growth strategy. Public trust in nuclear safety has faltered but can recover, as polls have shown. Going forward, President Park is likely to continue the aggressive nuclear agenda she inherited from President Lee. She has indicated that she does not support closing all of the country's aging nuclear plants.[55] However, working with the public to find new storage sites for nuclear waste from spent fuel will be an important task during her tenure—one that complicates the challenge of selling nuclear power as "green." In an early signal that she may decouple nuclear power from green growth, her newly appointed environment minister, Yoon Seong-kyu, publicly questioned nuclear power's relevance to green growth in a recent hearing.[56] In any case, Fukushima did not stop South Korea from breaking ground for two new reactors a little more than one year after the accident, a signal of how important nuclear power is to meeting the country's electricity demand. Nuclear power expansion is likely to continue in South Korea. It is less certain whether President Park is as eager as her predecessor to embrace green growth as a justification for it. Endnotes ^ Yonhap News Agency, Text of South Korean president's liberation anniversary address, August 15, 2008. ^ According to Korea's Future in Green Growth, a 2009 report of the Presidential Committee on Green Growth, nuclear power expansion is mentioned as one of ten major policy directions for the purpose of reducing the use of fossil fuels and improving energy independence, p. 10. ^ International Energy Agency, Energy Polices of IEA Countries: The Republic of Korea 2012 Review (Paris: International Energy Agency, 2012), pp. 102–3. ^ Ibid. ^ International Energy Agency, Energy Polices of IEA Countries: The Republic of Korea 2012 Review, OECD/IEA, 2012, p. 109. ^ A report by the UAE Ministry of Culture, Sports and Tourism noted South Korea's nuclear safety record, as cited in Xinhua News, "Will S. Korea's nuclear power ambition make sense?" February 16, 2010. ^ International Energy Agency, Energy Polices of IEA Countries: The Republic of Korea 2012 Review (Paris: International Energy Agency, 2012), p. 9. ^ Ibid, p. 35. ^ Ibid, p. 77–78. ^ Kim Young-won, "S. Korea likely to fall short of emissions reduction target," Korea Herald, February 12, 2013. ^ International Energy Agency, Energy Policies of IEA Countries, p. 77. Oil, hydro, and other sources together make up a small share of electricity production, about 4.4 percent. ^ Ibid. ^ Yonhap, "South Korea starts work on two nuclear reactors," May 4, 2012. ^ International Energy Agency, Energy Policies of IEA Countries, p. 105. ^ Manki Lee, Kee-yung Nam, Kiho Jeong, Byungjoo Min, and Young-eek Jung, "Contribution of Nuclear Power to the National Economic Development in Korea," Nuclear Engineering and Technology, vol. 41, no. 4, May 2009, p. 549. ^ International Atomic Energy Agency, "IAEA Updates Its Projections for Nuclear Power in 2030," September 25, 2012. ^ Lee Myung-bak, "Shifting Paradigms: The Road to Global Green Growth," Global Asia, vol. 4, no. 4, January 2010, p. 11–12. ^ Ibid. ^ Meeyoung Cho, "South Korea urged to restore trust in nuclear power," Reuters, Nov. 22, 2012. ^ Center for Strategic and International Studies and Asan Institute for Policy Studies, Report from a Workshop on South Korea as a Responsible Nuclear Supplier, February 18, 2013. ^ Andrew England, Peggy Hollinger, and Song Jung-a, "S. Koreans win $20bn UAE nuclear power contract," Financial Times, December 28, 2009. ^ Ann McLachlan, "Lauvergeon: French lost UAE bid because of expensive EPR safety features," Nucleonics Week, January 14, 2010. ^ Ministry of Foreign Affairs and Trade, "Address by President Lee Myung-bak at High-Level Meeting on Nuclear Safety and Security," September 22, 2011. ^ Kim Young-won, "S. Korea likely to fall short." ^ Yonhap News Agency, "Seoul to overhaul operator of scandals-hit nuclear power plant," Yonhap, January 8, 2013. ^ Sangim Han and Yuriy Humber, "Nuclear Halt in South Korea Seen Boosting Coal: Energy Markets," Bloomberg Businessweek, April 13, 2012. ^ See "Looming blackout threat," Korea Herald, December 6, 2012, and "Electricity consumption shoots up to record high," Korea Herald, January 3, 2013. ^ Park Si-soo, "More fake certificates for nuclear reactor parts found," Korea Times, December 6, 2012. ^ Jack Kim and David Chance, "Secrecy cloaks South Korea's civil nuclear program," Reuters, Nov. 13, 2012. ^ Ibid. ^ According to an unpublished poll revealed by Woo Yoon-geun, as cited in Kim and Chance, "Secrecy cloaks." ^ According to the Ministry of Knowledge Economy, as reported by Yonhap, "Seoul to overhaul operator." ^ Survey data cited in article by Yoon Ja-young, "Yeongdeok, Samcheok tapped as candidates for nuclear power plants," Korea Times, Dec. 23, 2011. ^ Ibid. ^ Kim and Chance, "Secrecy cloaks." ^ Ibid. ^ Yonhap, "Seoul to overhaul operator." ^ International Energy Agency, Energy Polices of IEA Countries, p. 109. ^ Ibid, p. 99. ^ International Energy Agency and OECD Nuclear Energy Agency, Projected Costs of Generating Electricity: 2010 Edition (Paris: Organization for Economic Cooperation and Development, 2010), p. 75. ^ Ibid. ^ Ibid, p. 50. ^ States News Service, "Reactor Shutdown in South Korea Raises Blackout Fears," July 31, 2012. ^ International Energy Agency, Energy Polices of IEA Countries, p. 98. ^ Ibid, p. 93. ^ Ibid, p. 93. ^ Ernest Moniz, "Why We Still Need Nuclear Power," Foreign Affairs, November/December 2011, p. 84. ^ International Energy Agency, Energy Policies of IEA Countries, p. 98. ^ Cho Jin-seo, "Green growth is second industrial revolution," Korea Times, June 26, 2011. ^ Green Korea United, "Green Growth Policy of the Korean Government and its Critics," http://green-korea.tistory.com/101. ^ Seongho Sheen, "Nuclear Sovereignty versus Nuclear Security: Renewing the ROK-U.S. Atomic Energy Agreement," The Korean Journal of Defense Analysis, Vol. 23, No. 2, June 2011, p. 276. ^ "Nuclear waste a growing headache for S. Korea," Associated Press, March 26, 2013. ^ International Energy Agency, Energy Polices of IEA Countries, p. 106. ^ Ministry of Foreign Affairs, "Address by President." at High-Level Meeting on Nuclear Safety and Security, Sept. 22, 2011. ^ Lee Sun-young, "Major environmental policy change unlikely under Park," Korea Herald, Dec. 27, 2012. ^ Shin Hyon-hee, "Park ditches 'green growth' in environmental policy shift," Korea Herald, March 28, 2013.
  • Technology and Innovation
    Can Innovation Make Nuclear Energy Cheap?
    Nuclear power promises zero-carbon electricity but suffers from serious cost challenges. That makes calls for more research, development, and demonstration (RD&D) efforts to promote innovation natural. But ask sixty experts where nuclear energy is heading, or ask them whether innovation could change that, and you’ll get sixty different answers. Who should you believe? In a paper published last fall in Environmental Science & Technology (that, as best I can tell, has gone unnoticed in policy circles), a team at the Harvard Kennedy School of Government and Venice-based FEEM answers the question in an new and enlightening way. Their bottom line will surprise many people: experts are very pessimistic about the ability of even greatly increased RD&D to bring down nuclear costs over the next twenty years. The researchers develop their results by combining individual surveys of sixty experts (thirty each in the United States and Europe) with an exercise that forces the experts to weigh and incorporate each others’ judgments into their own views of the world. This novel approach yields results that give a great sense of where the overall body of expert opinion points. The paper starts by reporting projections for nuclear costs absent new support for RD&D. The vast majority projects capital costs for Gen III/III+ reactors (basically what’s being deployed today) in 2030 to be the same or higher than what they are today. The most popular forecast is for stable costs; a minority (ten out of sixty) foresee cost reductions. The experts are also near-unanimous in projecting higher costs for large next-generation ("Gen IV") reactors in 2030 than for Gen III/III+ today. Similar trends prevail when it comes to projections for the small modular reactors (SMRs) that get a lot of buzz. What happens when you throw RD&D into the equation? Most of the experts surveyed recommend a large increase in RD&D support. But they still do not anticipate large cost reductions as a result. “The participating experts,” the authors report, “generally agreed that their recommended increases in RD&D would have a relatively limited impact on future costs”. Instead they emphasized potential gains for “safety, waste management, and uranium resource utilization”. One can imagine that these developments might ultimately affect nuclear costs. Better safety could, in principle, reduce regulatory uncertainty and permitting delays, in turn lowering borrowing costs and hence the ultimate cost of nuclear power. Better waste management could similarly reduce long-term risks. And, of course, the many experts could be wrong. If you’re serious about zero-carbon energy, though, that’s probably not a wise bet to rely too heavily on. Bringing down nuclear costs, if that’s possible, will probably require a more fundamental rethinking of how we regulate nuclear power development. (I remain a fan of greater standardization in both technology and permitting.) And maximizing the odds of having cost-effective zero-carbon options will require continued innovation investment along multiple technology fronts.