Programme

Saudi Arabia has by far the biggest planned nuclear programme in the region, with Riyadh having announced plans to generate 17,600MW of nuclear power by 2032.

Still very much in its infancy, the programme may involve constructing up to 16 reactors across the kingdom.

The kingdom’s nuclear programme is driven by the rising demand for electricity in the kingdom, which is being driven by rapid population and industrial growth. In its 2012 annual report, SEC forecasts that peak demand will rise from the current 51,900MW to 85,000MW in 2020 and 120,000MW by 2030.

Status

Saudi Arabia first seriously announced its intention to develop nuclear power in 2007 when it signed a co-operation agreement with the IAEA for conducting a feasibility study into establishing a Nuclear Power Plant.

In April 2010, the King Abdullah City for Atomic and Renewable Energy (KA-Care) was established to oversee the development of the kingdom’s renewable and nuclear energy activities.

In June 2010, Finland’s Poyry was appointed to prepare a strategy for nuclear and renewable energy developments in Saudi Arabia. The strategy was planned to outline short and long-term priorities and devise an action plan for King Abdullah City for Atomic and Renewable Energy (KA-Care).

In November 2011, US firm WorleyParsons was appointed to conduct site surveys to determine the best sites for developing nuclear power plants.

In September 2012, KA-Care appointed a group of advisers to work on plans to develop the nuclear programme. The group includes US management consultancy Oliver Wyman, France’s BNP Paribas and the local Riyad Bank.

Entities

KA-Care (King Abdullah City for Atomic and Renewable Energy): Established by royal decree in April 2010 to oversee the development of renewable and nuclear energy in the kingdom

Saudi Arabian Regulatory Atomic Authority (Saraa): KA-Care is planning to set up Saraa to be the kingdom’s nuclear regulator

Challenges

Capacity: Riyadh faces a challenge to meet its ambitious 17.9GW nuclear power target by 2032. The body it created in 2010 to lead its renewable and nuclear energy programme, KA-Care, has disappointed companies and financiers interested in both sectors. With it highly likely that state oil major Saudi Aramco will take over control of the renewable energy programme, the future of the nuclear programme is still unclear. While Riyadh remains committed to nuclear power, establishing a client capable of overseeing such an ambitious programme will provide a stern challenge.

Finance: Although Saudi Arabia is the largest producer and exporter of oil in the world, the scale of its nuclear programme will create financial challenges. Riyadh is unlikely to foot the entire cost for a programme that could cost upwards of $80bn, and so attracting finance may prove difficult. While banks and lenders are usually keen to be involved in the kingdom’s development programmes, such a large unprecedented initiative will mean that Riyadh will have to provide firm assurances they can deliver.

Workforce: Finding a skilled workforce for the region’s largest nuclear programme will be one of the key challenges Riyadh will face. The industrial and construction sectors in the kingdom are currently facing problems trying to attract local workforce and fill positions with expatriate labourers. Adding the vast additional workforce requirements for a nuclear programme will require a lot of planning a restructuring of the kingdom’s current employment laws.