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ISLAMIC REPUBLIC OF IRAN

(updated on Mar. 2009)

1.  ENERGY, ECONOMIC AND ELECTRICITY INFORMATION

1.1.  General Overview

The Islamic Republic of Iran (Iran) is situated in the Middle East and has an area of 1,648,195 square kilometers with a population of more than 69 million, which has doubled over the last three decades (Table 1). It is bordered by Armenia, Azerbaijan and Turkmenistan  and Caspian Sea in the north, Afghanistan and Pakistan in the east, Turkey and Iraq in the west and Persian Gulf and Sea of Oman in the south. Mountain chains like Albors, Zagros make it a mountainous country. Vast deserts in the center and south east half of the country makes the major natural geographical profile of it.

TABLE 1. POPULATION INFORMATION

From north to the south of the country, climate and temperature change abruptly (-20°C, +50°C). Central and Southern Iran is dry and hot with low precipitation. On the whole, it has four distinct seasons. The southern part, nearby Persian Gulf, where Bushehr Nuclear Power Plant is situated has long, hot and humid summers and moderate winters. The country has a fairly high seismic activity.

It is one of the world's main oil producers. The country holds large oil reserves and has many potential reservoirs. Within the territory of the  Iran there are three geographic areas of oil production (north, central, and southwest) and one region of natural gas (southeast) production but geologically most of the country's vast oil and gas reserves are located along the fold and thrust belt of the Zagros Mountains. These mountains rise in southeast Turkey and run along the entire length of west of Iran and terminate in the southeast at the Sea of Oman at a distance of almost 1,800 km from the starting point. The country has also coal and uranium resources.

1.1.1.  Economic Indicators

Table 2 shows the Gross Domestic Product (GDP) statistic.

TABLE 2. GROSS DOMESTIC PRODUCT (GDP)

1.1.2.  Energy Situation

On the supply side, more than 98.12% of primary energy is derived from oil and gas resources (oil and natural gas account for supplying more than about 98.12% need for primary energy) and only about 1.87% is from hydro, coal and non-commercial energies. Likewise, in electrical sector, more than 83% of the present nominal installed capacity 40,897 MW (e) is based on oil and gas fired turbines.

According to the latest statistics issued by Ministry of Power, the proven and exploitable reserves of oil are about 138.22 milliard barrels. Despite of the rapid expansion of the gas sector, in recent years, oil still plays a very important role in energy system as well as economy of the country. Petroleum products constitute more than 68.5% of the primary energy supply and 47.7% of the final energy consumption. The share of oil sector in GDP(constant 1997 Rials) is more than 10% and more than 80% of the country's foreign exchange earnings come from export of this commodity.

The proven gas reserves of Iran are estimated to be 28.13 trillion cubic meters in 2006. These reserves theoretically give Iran a lead-time of more than 166 years to exploit them at the existing production level.

The proven reserves of coal in Iran are estimated to be approximately 11 milliard tons. But in regard to the existing technologies, only 8.5 percent of these resources are exploitable and at much higher cost than that of the international level. That is why coal plays only a minor role in Iran's energy supply mix and it is not regarded a viable option in foreseeable future.

According to the latest information released by Ministry of Power, the practical hydro potential of the country is projected to be only 35,427 MW(e). Up to now around 6,572 MW(e) has been exploited and another 5,927 MW(e) is in process of execution, about 12,310 MW(e) is under consideration and ready to execute more than 10,618 MW(e) is at the stage of preliminary studies and recognition.

Uranium resources of Iran are not studied completely and precisely yet but it had been considered before in as not rich one. The results of the first attempt of Atomic Energy Organization of Iran (AEOI) exploration activities have shown proven reserves of about 3,000 tons of Uranium so far. According to the discovered indices (more than 350 anomalies) and the results of the field discoveries, the expected resources of Iran could be at the range of 20,000-30,000 tons of U3O8, throughout the country. Therefore Iran's domestic reserves might be sufficient enough to supply the raw material for needed nuclear power plants in future.

According to all the surveys performed in power sector of Iran, nuclear option is the most competitive to fossil alternatives if the existing low domestic fuel prices are gradually increased to its opportunity costs at the level of international prices. There are some local potentials of renewable energies in Iran. The annually average daily solar radiation is about 1,800 kWh per m2.

There are also some potentials of wind and geothermal energies in some parts of the country, which may be considered for handling some locally needs. However, because of the limitation of the existing technologies for steady and reliable supply of energy and much higher unit cost of electricity generated by these resources, it is not expected that renewable play a major role in Iran's electricity system in near future.

In the last two decades, the size of population has been raised about 1.7 times, the final energy consumption more than 6 times and electricity production about 5. These figures show a very high level of consumption and an incremental trend of energy intensity. Historical energy statistics are shown in Table 3.

TABLE 3. ENERGY STATISTICS

1.2. Energy Policy

Iran's government has given priority to hydropower in the first and second 5 years development plans. This policy will continue in future development programs. But due to the limitations of hydro potential and the rapid growth of electricity demand, other options are also need to be considered for diversification purpose. The other policy of the government is to use different energy potentials for conservation measures at present time. Moreover, some conservation and energy consumption control and management measures have been implemented to control growth of demand in recent years. In supply side, the government has launched a serious program for substitution of oil by gas as well as more exploitation of hydro power in electricity system of the country. Completion of Bushehr nuclear power project and implementation of a project to install 100 MW(e) from wind turbine is regarded to be a part of this diversification program.

1.3.  The Electricity System

1.3.1.  Structure of the Electricity Sector

The main producer of electricity in Iran is the Ministry of Power. The electricity system of Iran (production, transmission and distribution) is centralized and owned by the government. Recently, the government has started to study about the privatization in small-scale to assess its benefits and outcomes for future programs.

1.3.2.  Decision-making process

The Ministry of Power is responsible for the development of power sector based on the energy programmes, and concepts, which are approved by the Government in its 5 years development programmes.

1.3.3.  Main Indicators

In 2005, the maximum exploitable power was 41,020 MW(e) with 37.9% share of steam power plants, 46% share of gas and combined cycle power plants, 14.7% share of hydro power plants, 1.3% share of diesel, Solar & Wind power plants. Table 4 shows the historical electricity production and installed capacity and Table 5 the energy related ratios.

TABLE 4. ELECTRICITY PRODUCTION AND INSTALLED CAPACITY

TABLE 5. ENERGY RELATED RATIOS

2.  NUCLEAR POWER SITUATION

2.1.  Historical Development and current nuclear power organizational structure

2.1.1.  Overview

In the mid 1970s, a major nuclear power program was planned and construction of two nuclear power plants, two 1,294 MW(e) PWR units started at Bushehr. Bushehr Nuclear Power Plant (BNPP) is situated on the northern part of the Persian Gulf, near the city of Bushehr. In 1979 this nuclear power plant construction program, first started with the KWU as the vendor, was suspended and construction activities halted, at a fairly advanced stage of the civil work for the two units.

Iran resumed the nuclear power program in 1991 with a bilateral agreement with China for the supply of two 300 MW(e) PWR units of Chinese design, similar to the Qinshan power plant. The agreement was confirmed in 1993 (but never realized).

In 1992, the governments of Iran and of the Russian Federation signed a bilateral agreement on the peaceful uses of atomic energy. As a follow-up, the Atomic Energy Organization of Iran (AEOI) and the Ministry of Atomic Energy (MINATOM) of the Russian Federation reached an agreement for the completion of the Bushehr NPP Unit 1 with a WWER-1000 type reactor. The decision to resume the Bushehr project with a new design has placed a heavy responsibility on the Atomic Energy Organization of Iran (AEOI), Responsible for the national program of nuclear power and nuclear applications in particular on its Nuclear Power Plant Department (NPPD), which serves as the owner organization, and the National Regulatory Authority of Iran (INRA). In 1998, the AEOI and MINATOM agreed to change the supply agreement for the BNPP Unit 1 to a turnkey contract.

The ongoing and planned developmental activities of the NPPD in compliance with the country's Fourth FYP(Five-Year Plan) are:

1)     Completion of construction, installation and putting in operation of the BNPP Unit 1 within the Fourth FYP period.

2)     There is a task given by the government to develop a strategic plan for development of nuclear generation capacities for the next 20 years. A feasibility study indicating different alternative options has been performed for the next NPP unit and is provided to the relevant authorities for final decision. It is expected to be finalized within the next 2 or 3 months.

3)     Technical and economic evaluation and comparison of several alternatives for the construction of a second NPP with the capacity of 1000 MWe.

4)     Preparation of tender documents has been started in 2005 and will be ready within the next 4 to 5 months for an internationally distributed bid invitation.

5)     Approved plan for building up a total Nuclear Power generation capacity of 20,000 MWe by 2025.

6)     Feasibility and site selection studies for the construction of new nuclear power plants in order to meet that target.

7)     Review the comparative analysis of available options for construction of new NPP projects.

8)     Contract modeling and provision of measures for maximizing the participation/contribution of indigenous industries, contractors and human resources and also usage of locally available materials.

9)     Preparation of the bids specification and evaluation of the bids.

10) Assessment of NPP projects implementation, human resources development and maintenance.

11) Establishment of technical support infrastructure and radioactive waste management.

Furthermore, the Atomic Energy Organization of Iran has decided to undertake the development of the conceptual, basic and detail and eventually construction of a medium size Pressurized Light Water reactor with an electric output of about 360 MWe (IR-360). The feasibility studies and eventual conceptual design proposal will develop in the near future.

2.2. Nuclear Power Plants: Status and Operations

Completion of Bushehr Nuclear Power Plant is the only on-going nuclear power plant project in Iran, which will provide 1000 MW(e) to the national electrical grid. Currently, Iran has no under exploitation NPP. Work on the completion of the 1000 MWe Bushehr Nuclear Power Plant, Unit (BNPP-1), is at an advance stage. Figures for the FYP (Four Year Plan) envisage the addition of 1000 MWe to the power generation capacity through the completion of BNPP-1. As per the results of one energy planning study carried out by WASP the share of nuclear power plants is estimated to be at least 20,000 MWe till 2025. Hence, in order to prevent power shortage, fulfilling the eco-technical development programs, the country has stated its aim of having 20,000 MW of nuclear power online by 2025, accounting for about 10% of the country's power generation capacity at that point. The Uranium Conversion Facility (UCF) is a complex for production of some stages of nuclear fuel materials, which can be utilized for nuclear power and research reactors. Waste management services are under the responsibility of the AEOI. The international practice is envisaged for supply of such services. Relevant measures for storage of wastes are to be considered in the unit design.

TABLE 6. STATUS OF NUCLEAR POWER PLANTS

2.3.  Research and Development

The AEOI is the main organization in Iran for research and development activities in the field of nuclear technology. The Nuclear Science and Technology Research Institute (NSTRI) dependant to AEOI is responsible for planning and performing the research projects as well as transferring and developing the peaceful nuclear technologies within the country. The approved projects are implemented by the affiliated Research Schools independently. Major Objectives of Nuclear Science and Technology Research Institute(NSTRI) are as follows:

1-     Promotion and Development of research in the field of Nuclear Science and Technology

2-     Laying the groundwork for the promotion of the related research activities.

The affiliated Research Schools belongs to Nuclear Science and Technology Research Institute( NSTRI) are as follows :

- Nuclear fuel cycle Research School

- Nuclear Science Research School

- Material Research School

- Radiation Applications Research School

- Plasma Physics and Nuclear Fusion Research School

- Laser and Optics Research School

- Reactors and Accelerators Research and Development School

- Agricultural, Medical and Industrial Research School.

2.4. Nuclear fuel production

Iran has a wide range program for providing nuclear fuel for its ongoing power plant and programmed power plants in future. Nuclear fuel cycle of Iran includes uranium exploration, mining, U3O8 production, uranium conversion, uranium enrichment and fuel fabrication, which have been started from several years ago, and have been achieved different physical progresses in these years. It is expected to develop the activities specially in the field of exploration, mining, U3O8 production and fuel fabrication to ensure the ability of producing nuclear fuel that is needed for developing programs of the nuclear power plants. In addition to respond the requirements of the radioactive waste management a great project is defined its site is selected and it is in the stage of designing. The nuclear fuel cycle(including waste management) is under the responsibility of Raw Materials and Nuclear Fuel Production Co. and its subsidiaries. The international practice is envisaged for supply of such services. Relevant measures for storage of wastes are to be considered in the unit design.  

 2.7.  International Co-operation and Initiatives

Iran has been participating in conferences, technical committee meetings, general meetings, advisory group meetings, training and fellowship programs under the sponsorship of the IAEA or in the frame-work of its Technical Cooperation projects.

The IAEA enhances the peaceful applications of nuclear science and technology in Iran by means of the following Technical Cooperation projects; for 2009-2011 cycle:

1-       Regulatory Infrastructure for Licensing and Control of Nuclear and Radiation Facilities in Iran (IRA2007019)

2-       Strengthening Technical Capabilities for Management of NORM and Te-NORM Waste(IRA2007011)

3-       Strengthening Owner's capability for Construction, Commissioning and Licensing Activities of Low and Intermediate Level Waste Disposal Facility (IRA2007006)

4-       Environmental radiological monitoring in Esfahan UCF site surrounding in normal and emergency situation and characterizing the              pathways of exposure to individuals and the public (IRA2007016)

5-       Production of wound dressing hydrogel using electron beam irradiation (IRA2007012)

6-       Upgrading of a gamma irradiation facility in Iran (IRA2007013)

7-       Strengthening Owner's Capabilities For Commissioning And Start-Up Of Bushehr Nuclear Power Plant (Extension of TC Project IRA/4/035) (IRA2007018)

8-       Application of therapeutic radiopharmaceuticals in the nuclear medicine centers and development of QA/Qc and QMS in therapeutic radiopharmaceutical applications ( IRA 2007007)

9-       Design and Construction of a Clinical PET Cyclotron (Baby Cyclotron) ( IRA2007010)

10-   Upgrading  And Strengthening Human Resources(IRA2007004)

11-   Development, preparation and evaluation of new radiopharmaceuticals for cancer diagnosis(IRA2007008)

12-   Development of Radiopharmaceuticals for Diagnosis and Therapy of Cancer and Manufacture of Radioactive Sources for Brachytherapy(IRA2007005)

13-   Isotope Composition Of Precipitation In North Part Of Iran(IRA2007009)

14-   Decommissioning of the Tehran research  reactor(IRA2007015)

15-   Technical Assistance For The Establishment Of Nuclear Technology Center As An Engineering-Scientific Support For Medical, Agricultural And Industrial Purposes (IRA2007014)

16-   Upgrading Owner's Safety And Engineering Infrastructure For Planning And Construction Of Two NPP Unit Pressurized Light Water Reactors (PWR) In Bushehr(IRA2007017)

The Technical Co-operation projects; for 2009-2011 cycle  is going to be finalized.

3.  NATIONAL LAWS AND REGULATIONS

3.1.  Regulatory Authority and the Licensing Process

3.1.1.  The Iranian Nuclear Regulatory Authority

According to The statute of the Atomic Energy Organization of Iran, a License is required for construction, commissioning, operation and decommissioning of nuclear facilities in Iran.

Iran Nuclear Regulatory Authority( INRA) consists of National Nuclear Safety Department (NNSD) ,National Radiation Protection Department (NRPD), National Nuclear Safeguards department (NNSG) and Nuclear and Radiation Support Department  (NRSD). These departments regulate the safety of nuclear facilities and activities, including nuclear material handling, radiation protection, physical protection and emergency preparedness, under light of licensing in Iran. INRA establishes nuclear safety regulations to ensure that nuclear facilities are designed in accordance with the latest state-of-art and technology and there will be no undue risk to the health and safety of their personnel, public, next generations and environment, during construction, commissioning, operation and decommissioning stages of nuclear facilities.

With the conclusion of a turnkey contract between Nuclear Power Plant Department of Atomic Energy Organization of Iran (NPPD-AEOI) and ZAO AtomStroyExport (ASE) of Russian Federation to complete BNPP-1, utilizing the existing structures and equipment at BNPP-1-left by KWU- to the extent feasible and safe, it has become necessary that a specific licensing procedure be developed by the NNSD for Unit completion.

In the licensing procedure, the specific regulatory process is provided for granting license and permits for activities related to the reconstruction of BNPP-1. In preparing this procedure, due account has been given for Iran regulatory requirements, international recommendations such as those issued by the IAEA, and of safety standards prevalent in the Russian Federation. In addition, specific features of the design and operating characteristics, unusual or novel design measures, and principal safety considerations of the BNPP-1 have been considered. In the said document, special attention has been paid to the existing equipment and structures and their associated quality and performance requirements for completion of the BNPP-1.

The licensing procedure for BNPP-1 governs licenses and permits for all activities affecting safety including physical protection and nuclear material accountancy in BNPP-1. It is mandatory for all organizations involved in the safety concerned activities in BNPP-1 completion to comply with the relevant provisions of requirements licensing procedure. The INRA will supervise the implementation of the requirements of the said document.

3.2.  Main National Laws and Regulations in Nuclear Power

• Atomic Energy Act of Iran

The Atomic Energy Act of Iran was promulgated in 1974. The Act covers the activities for which the Atomic Energy Organization of Iran was established. These activities included using atomic energy and radiation in industry, agriculture and service industries, setting up atomic power stations and related to it fuel cycle and desalination factories, producing source materials needed in atomic industries, establishing the scientific and technical infrastructure required for carrying out the said projects, as well as coordinating and supervising all matters pertaining to atomic energy in the country.

• Radiation Protection Act of Iran

In view of the ever increasing development of radiation applications in different areas and the necessity of protection of workers, public, future generations, and environment against harmful effects of radiation, the Radiation Protection Act of Iran was ratified in public session of April 9, 1989 by the Parliament and was approved by the Council of Law-Guardians on April 19, 1989.

Provisions of this Act govern all the affairs related to radiation protection in the country including the following:

1- Radiation sources.

2- Working with radiation.

3- Construction, establishment, commissioning, operation, decommissioning and being in charge of any unit in which, work with radiation is carried out.

4- Any activity connected with radiation sources including imports and exports, customs clearance, distribution, procurement, production, manufacturing, possession, acquirement, exploration, mining, transportation, transactions, contracting, transfer, application and /or waste management.

5- Protection of workers, public and future generation in general and the environment against the harmful effects of radiation.

4.  CURRENT ISSUES AND DEVELOPMENTS ON NUCLEAR POWER

4.1.  Energy Policy        

The competent authorities of  Iran have assigned a high priority to the establishment of certain nuclear power generation capacity within the electric energy generation mix of the country as reflected in the Country Program Framework (CPF). Furthermore, based on the law recently (Mid 2005) ratified by the Parliament, the share of nuclear energy in the total electricity generation capacity of the country has been set to 20000 MW in the next decades . The Government provides the required financial and organizational support and technical staff for this National Nuclear Power Program and has recently established Nuclear Power Production and Development Co. of Iran (NPPD), totally state owned, as the owner / operating organization.

·          Completion of construction, installation and putting in operation of the BNPP Unit 1

·         There is a task given by the government to develop a strategic plan for development of nuclear generation capacities. A feasibility study indicating different alternative options has been performed for the next NPP unit and is provided to the relevant authorities for final decision.

·       Technical and economic evaluation and comparison of several alternatives for the construction of a second NPP with the capacity of 1000 MWe.

·       Preparation of tender documents has been started in 2005 and will be ready  for an internationally distributed bid invitation.

·      Approved plan for building up a total Nuclear Power generation capacity of 20,000 MWe in the next decades.

·      Feasibility and Site selection studies for the construction of new nuclear power plants in order to meet that target.

·       Review the comparative analysis of available options for construction of new NPP projects.

·        Contract modeling and provision of measures for maximizing the participation/contribution of indigenous industries, contractors and human recourses and also usage of locally available materials.

·         Preparation of the bids specification and evaluation of the bids.

·        Assessment of NPP projects implementation, human resources development and maintenance.

·        Establishment of technical support infrastructure and radioactive waste management.

4.2. Privatization and deregulation

At the present time, there is privatization in the field of electricity but in nuclear sector yet not decided . The Government of Iran is considering new plans and programs in this respect. In the beginning and as a starting point, the programs will be launched in other industries to assess the results, advantages and disadvantages in the whole economy system of the country. By means of these achievements, the idea of privatization might be expanded to other branches such as electricity and nuclear sector.

REFERENCES

 Appendix 1

INTERNATIONAL (MULTILATERAL AND BILATERAL) AGREEMENTS

Appendix 2

DIRECTORY OF THE MAIN ORGANIZATIONS, INSTITUTIONS AND COMPANIES INVOLVED IN NUCLEAR POWER RELATED ACTIVITIES