Special Report: Power & Water - Gulf nuclear plans progress
The oil-rich GCC states should not be short of energy. Yet several have suffered power shortages in recent years. The problem lies with governments opting to sell gas globally at high prices, rather than to local power plants at subsidised rates.
As a result, utility providers are being forced to use other fuels in their plants. Oil and coal-fired power stations are being introduced in Oman and the UAE, but nuclear power is an increasingly attractive solution to the growing need for electricity.
All of the GCC states have at least hinted at plans to set up a nuclear energy programme over the past two years, signing co-operation agreements with countries willing to share their nuclear technologies.
The UAE is furthest down this path. This month, Abu Dhabi is expected to award the contract to build the country’s first nuclear power plant. If all goes to plan, by 2020 Abu Dhabi will have three nuclear reactors.
With no history of a nuclear power industry, the Gulf will rely on imported techno-logy, manpower and uranium.
This presents a major investment opportunity for the world’s nuclear powers, as well as some political challenges while they wrestle with neighbouring Iran’s own, more ambivalent nuclear ambitions.
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