The United Arab Emirates, the second-largest Arab economy, is one step closer to implementing a peaceful nuclear energy programme that will meet its soaring electricity needs.
The nation, which will need an extra 4,000 megawatts of power generation capacity by 2020, yesterday passed a federal law to establish a nuclear regulatory body and prohibit the enrichment of uranium on UAE soil.
The Federal Law Regarding the Peaceful Uses of Nuclear Energy provides the UAE, the fourth biggest OPEC producer, with a robust framework for the licensing and control of nuclear material.
Under the law, a Federal Authority of Nuclear Regulation has been set up to promote safety, security and radiological protection.
William Travers, a former technical advisor to the International Atomic Energy Agency, will serve as the authorityÔÇÖs first director general. A management board was also appointed.
The law also makes it illegal to develop, construct or operate uranium enrichment facilities on UAE soil. The country has committed to purchasing all the fuel it needs for the nuclear plants to avoid carrying out its own enrichment of uranium.
The UAE has already pledged to meet all international requirements for a peaceful nuclear energy programme. An agreement for peaceful nuclear co-operation between the UAE and the United States, called the 123 Agreement, is likely to come into force at the end of October this year.
The law is based on a policy paper outlined by the UAE in April 2008, which covers operational transparency, commitment to non-proliferation, safety and security standards, co-operation with the IAEA, co-operation with international governments and organisations, and long-term sustainability.
The country is currently accepting bids for contracts to build two nuclear reactors by 2017, which together could be worth around $40 billion. Areva, Total, GDF Suez and Electricit├® de France are all competing together, against groups led by General Electric and Korea Electric Power Corp.
The selection of contractors could be made before the end of the year.
It is hoped that the reactors will provide around 3 per cent of domestic power by 2020, rising to around 15 per cent by 2025.
Oil revenues have driven an economic boom in the UAE, which has put a strain on domestic power grids. From 2007 onwards, electricity demand in the country has grown and will continue to grow by nine per cent each year.
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