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Global energy mix - nuclear aspects

A presentation to the OECD Forum 2005: Fuelling the future: security, stability, development. Paris, 2 May 2005.

Energy problems are back at the top of the world's agenda. There is a combination of factors. They include rising oil and gas prices and the prospect of diminishing fossil fuel resources; rising atmospheric pollution, caused not only by oil and gas emissions but also by burning of domestic fuels; climate change with evident effects on global warming; and increasing concern about security of supply, thereby underlining the vulnerability of all industrial countries. Yet these factors are accompanied by continuing growth in world population, and rising energy demand.

The issues are bedevilled by the artificiality of current energy prices. There is, in my view, a paramount need to assess true costs of the different forms of energy generation, including the many externalities involved. We have to reckon with a multiplicity of subsidies, some of them perverse (witness the extraordinary energy bill passed recently by the US House of Representatives). There is a general failure to take account of the public interest in assuring secure sources of supply. Even if market forces applied in this case, it is obvious that by themselves they are not enough.

Hence the renewal of interest in the so called nuclear option. We sometimes forget that it is nuclear energy which makes the universe as well as the world go round, and that the sun itself is a continuous hydrogen bomb explosion. Life itself depends upon it. Yet now we have, particularly in the old industrial countries, an ageing nuclear industry run by an ageing population of scientists and engineers, with a poor public reputation. Even so 7.5 percent of the world's commercially sold electricity, and 23 percent of electricity in Britain, come from nuclear sources. At present 439 reactors are operating in some 30 countries.

Let us look briefly at the arguments against further development of nuclear energy. The costs (in particular capital costs) are considered too high.

Altogether it is not surprising that there should be continuing public hostility, encouraged by certain NGOs and other special interest groups, towards any revival of nuclear power.

Now the arguments in favour.

Among such new technologies are pebble-bed reactors (under development in China and South Africa), ADS (Accelerator-Driven Subcritical) reactors (research in Italy), HTGR (High Temperature Gas-cooled) reactors (research at MIT in the United States), and fusion through the ITER (International Thermonuclear Energy) reactors (under consideration for France or Japan). Fusion on a very small scale is also under research elsewhere, and even if the results recorded in Nature of 28 April 2005 do not at present have energy implications, who knows where the technology will lead?

For those in old industrial countries, who were the pioneers in nuclear energy, the development of nuclear technology elsewhere, in particular in China, India, Iran and possibly Brazil must be a source of concern. The Chinese are already building a large pebble-bed reactor and they have 30 other nuclear reactors on order. Given the dangers as well as the opportunities for development of nuclear technology, can the old industrial countries afford to leave the initiative to others?

Finally the need for alternatives to fossil fuel energy is becoming more evident every day. To take Britain alone, there is little prospect of the Government meeting its energy targets between now and the middle of the century without renewed recourse to nuclear energy. The solution of existing problems mentioned above will also be of value in developing new technologies. The public debate is now being renewed, and the British Government has taken care not to rule out the nuclear option.

I think the priorities in the debate should be broadly as follows. We need

The debate is now open. It is vital that it should be conducted in rational terms.

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