KEPCO seeks nuclear expansion in Middle East
Construction is underway at a nuclear power plant in Barakah, the United Arab Emirates. The Korea Electric Power Corp. (KEPCO) has been undertaking the $20 billion project since December 2009 to build four nuclear reactors in the Middle Eastern nation, in cooperation with local builders and other contractors. / Courtesy of KEPCO
By Lee Hyo-sik
ABU DHABI ― Korea Electric Power Corp. (KEPCO) is looking to win more orders for building nuclear power plants in the Middle East to facilitate its goal of becoming one of the world’s top nuclear power operators.
Using its current $20 billion project to build four reactors in the United Arab Emirates (UAE) as a springboard, the state-run utility company will secure additional deals in the UAE, Saudi Arabia, Egypt, Iran and other countries in the region, who seek to generate electricity in an environmentally sustainable and cost-effective manner in the post-oil era.
The UAE plans to build four more nuclear reactors as its power demand continue to increase in line with its robust economic growth. Saudi Arabia is also considering constructing 16 reactors, while Egypt looks to build about 10 to solve its chronic electricity shortage.
“It will be much easier for us to win more contracts after we successfully complete the Barakah Nuclear Power Plant (BNPP),” KEPCO executive vice president Lee Hee-yong said. “While actively pursuing additional deals in the Middle East and elsewhere, our top priority for now is to complete the BNPP project as scheduled. If we can do so, this would provide a huge boost to our export drive.”
However, it will likely take some time for KEPCO to secure new contracts, Lee said, citing the sluggish global nuclear plant market.
“The worldwide economic downturn, coupled with falling oil prices, has dampened the international nuclear plant industry. So many countries that had once considered building nuclear plants have postponed the plans,” he said. “So for the time being, we will focus on finishing the BNPP project. When the global economy picks up, we will aggressively seek additional deals.”
In December 2009, KEPCO signed the $20 billion contract with the Emirates Nuclear Energy Corp. (ENEC) to build four nuclear reactors in Barakah, 270 kilometers west of Abu Dhabi, by May 2020. Once completed on a 12.5 square-kilometer site, the plant, which will generate 5,600 megawatts of electricity, will be the first nuclear power plant in the Middle East.
KEPCO, in cooperation with Korea Hydro & Nuclear Power Corp. (KHNP), is expected to sign a contract to operate the BNPP for next 60 years, worth $20 billion.
BNPP’s No. 1 reactor will be operational by May 2017, Lee said, adding that the remaining three will go into operation by May 2020. The reactors are the model 1400, which is the same as at Shin-Gori reactors 3 and 4 in Korea.
“BNPP will account for 25 percent of the UAE’s power demand. With the nation’s electricity use growing at an annual rate of 7 percent, it is considering four new additional reactors,” the executive vice president said. “When the UAE chooses a contractor, we will do everything we can to secure the deal. We came out as the winner seven years ago ahead of the GE-Hitachi and Areva consortiums. We can beat them again.”
Two local builders ― Hyundai Engineering & Construction and Samsung Construction & Trade ― have been constructing the reactors and other facilities, employing more than 17,000 laborers from the Philippines, Bangladesh, Pakistan, India and other developing countries.
Including 520 from KEPCO and KHNP, more than 3,000 Koreans have been dispatched to the plant site, located in the desert.