Iran's nuclear programme

07 August 2014

Iran wants to generate 20GW of energy via nuclear power by 2020

Programme

Still shrouded in secrecy, Iran’s controversial nuclear programme has resulted in heavy economic and political sanctions on Tehran since the mid-1990s.

The beginning of Iran’s nuclear programme can be traced back to 1957, when it signed a civil nuclear cooperation agreement with the US as part of the Atoms for Peace programme. In 1974, Tehran announced plans to develop nuclear energy and began construction on the first nuclear project at Bushehr in 1975. However, work on its nuclear programme was abandoned in 1979 following the Islamic revolution.

After a number of failed attempts, Iran’s nuclear programme was revived in 1992 when Tehran signed an agreement with Moscow to build a two-unit Nuclear Power Plant at Bushehr. In 1995, Russia signed an agreement to complete the first unit.

In 2005, Iran announced it had resumed uranium conversion, having agreed to suspend all of its uranium enrichment activity in 2004 as part of a deal with the EU3 (France, Germany and the UK).

From December 2011 to June 2013, the US and EU step up sanctions on Iran due to lack of cooperation with its nuclear enrichment programme.

After delays, the first 1,000MW nuclear plant at Bushehr was commissioned in September 2013.

Status

Due to the lack of transparency, it is unclear what the status of Iran’s future nuclear projects are following the commissioning of its first nuclear plant at Bushehr in 2013.

In early 2014, senior officials were quoted in local press talking of a target of 20GW of nuclear power by 2020. In February 2013, it was reported that 16 sites had been selected for new nuclear power plants to be built over the next 15 years. Most of these are planned to be developed on the southern coast and on the northern coast on the Caspian Sea.

In May 2014, it was reported that Russia was planning to sign a contract with Iran before the end of the year to build two more 1,000MW nuclear reactors at Bushehr, which would form part of a wider deal to build eight reactors across the country.

In November 2013, Iran agreed a six-month interim deal with the P5+1 countries – China, France, Russia, the UK, the US and Germany to suspend uranium enrichment in exchange for sanctions relief. In July, Iran and the P5+1 agreed to a four-month extension to the deadline for negotiating a permanent deal on Iran’s nuclear programme.

Entities

Atomic Energy Organisation of Iran (AEOI): Established in 1974, AEOI is the organisation in charge of implementing nuclear programmes and operating nuclear facilities in Iran.

Nuclear Power Production & Development Company of Iran (NPPD): Established in 2004 to oversee nuclear facilities, NPPD is responsible for the operations of the Bushehr plant

Iran Nuclear Regulatory Authority (INRA): Under the umbrella of AEOI, INRA is the regulator for Iran’s nuclear power programme.

Nuclear Science & Technology Research Institute (NSTRI): NSTRI was established in 2002 to take over research activities from AEOI.

Challenges

Finance: The heavy international sanctions that have been placed on Tehran by the US and EU in recent years have had a significant impact on its economic growth. Although Iran has been able to commission its first nuclear power plant, whether it can complete the rest of its nuclear programme depends on whether it can attract financing. The success of its future nuclear programme may well be dependent on its ability to come to a permanent deal with the P5+1.

Technology: While Iran successfully managed to commission its first nuclear plant in 2013, the construction was a protracted process. Construction was restarted in 1995, but took almost 20 years to complete due to lack of access to certain technologies and expertise. A permanent agreement with the P5+1 and removal of sanctions will be critical if Iran is to achieve nuclear targets.

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