Each Emirate controls its own oil production and resource development. Abu Dhabi holds 94% of the UAE’s oil resources, or about 92.2 billion barrels. Dubai contains an estimated 4 billion barrels, followed by Sharjah and Ras Al Khaimah, with 1.5 billion and 100 million barrels of oil, respectively.

The UAE exports more than 40% of its crude oil to Japan, making it the UAE’s largest customer. The UAE is a net importer of natural gas, and gas exports are primarily to Japan, the world’s largest buyer of liquefied gas. The Dolphin Project, which began importing natural gas from Qatar to the UAE by pipeline, in 2007, was the first major cross-border energy deal between Gulf countries.

Economic growth across the UAE has led to massive increases in the demand for electricity. Current estimates indicate that the domestic demand for power will more than double by 2020, even given the global economic slowdown. With limitations on how much and how fast conventional energy resources, like natural gas, can be brought to market, as well as concerns about climate change, the UAE government launched various initiatives aimed at identifying alternative means for producing the power needed to fuel its economy.

As a result of this study, the UAE is pursuing a peaceful, civilian nuclear energy program that upholds the highest standards of safety, security, nonproliferation and operational transparency. Government officials, nonproliferation advocates, and energy experts worldwide have called the UAE approach a gold standard for countries interested in exploring nuclear energy for the first time.

In developing its nuclear energy policy, the UAE made its peaceful objectives unambiguous. A policy document titled “Policy of the United Arab Emirates on the Evaluation and Potential Development of Peaceful Nuclear Energy”, released in April 2008, outlined a series of commitments, including the decision to forgo domestic enrichment and reprocessing of nuclear fuels. Throughout the process, the UAE has worked closely with the International Atomic Energy Agency (IAEA).

Climate Change and Energy Policy

The UAE is pursuing groundbreaking renewable energy and energy efficiency programs. In 2005, the UAE ratified the Kyoto Protocol to the UN Convention on Climate Change, becoming one of the first major oil-producing countries to do so. According to the protocol, the UAE, as a non-Annex 1 country, is not obligated to reduce its emissions. However, the UAE is taking a number of steps to respond to this critical issue.

The UAE has started the transition to curb emission of greenhouse gases, focusing on natural gas and developing peaceful civilian nuclear energy to meet significant power generation demands and water desalination requirements.

The UAE’s largest Emirate, Abu Dhabi, has committed more than $15 billion to renewable energy programs. The Masdar Initiative underscores twin commitments to the global environment and diversification of the UAE economy. The Masdar Initiative focuses on the development and commercialization of technologies in renewable energy, energy efficiency, carbon management and monetization, water usage and desalination. It has four key elements:

• An innovation center to support the demonstration, commercialization and adoption of sustainable energy technologies.

• The Masdar Institute of Science and Technology, with graduate programs in renewable energy and sustainability, located in Masdar City, the world’s first carbon-neutral, waste free, car-free city.

• A development company focused on the commercialization of emissions reduction, and Clean Development Mechanism solutions, as provided by the Kyoto Protocol.

• A Special Economic Zone to host institutions investing in renewable energy technologies and products.

The gases that contribute most to the greenhouse effect are carbon dioxide (CO₂), methane (CH₄), nitrous oxide (N₂O) and fluorine compounds. Burning of fossil fuels is the main cause of emissions of greenhouse gases.

The UAE’s CO₂ emissions increased from 60,809,000 tons in 1990 to 94,163,000 tons in 2002. Due to better technology and the transition to more natural gas in power plants, emissions of CO₂ per capita have decreased. In 1990, the UAE emitted 32.6 tons CO₂ per person per year. In 2002, this figure had dropped to 25.1 tons per person per year.

The United Arab Emirates (UAE) has the world’s sixth largest proven oil reserves and the fifth largest natural gas reserves, making the country a critical partner and responsible supplier in global energy markets. Although a mainstay in the economy, oil exports actually account for only about one third of economic activity, as a result of aggressive government policies designed to diversify the UAE economy. However, domestic energy consumption has continued to rise steadily with all electricity production and water desalination being generated by thermal plants, which has resulted in the UAE becoming a net importer of natural gas since 2008.

Table 1: ESTIMATED AVAILABLE ENERGY SOURCES

* Solid, Liquid: Million tons; Gas: Billion m3; Uranium: Metric tons; Hydro, Renewable: TW

Source: ADNOC

Table 2: ENERGY STATISTICS

* Energy values are in Exajoules

Sources: UN Energy Balances & Electricity Profiles, and IEA Energy Database

The electricity sector is controlled by each Emirate rather than at the central federal level (Figure 1).

The Abu Dhabi Water and Electricity Authority (ADWEA) is responsible for Abu Dhabi city, Al Ain and the western region. The Dubai Electricity and Water Authority (DEWA) is responsible for Dubai, with the Sharjah Electricity and Water Authority (SEWA) and the Federal Electricity and Water Authority (FEWA) providing power to Sharjah, Umm Al Quwain, Fujairah, Ajman, and Ra’s Al Khaimah. ADWEA accounts for 53% of the federation’s total capacity, followed by DEWA, with 29%. SEWA and FEWA own 11% and 7%, respectively.

The grids of Abu Dhabi and Dubai have been connected, marking the first step towards the creation of the Emirates National Grid (ENG), which will amalgamate the power generation, transmission and distribution networks of the seven Emirates into a single national grid. The ENG is expected to be connected the Gulf Cooperation Council (GCC) grid, linking the UAE with Qatar, Bahrain, Saudi Arabia, Kuwait, and Oman.

FIGURE 1: UAE ELECTRICITY GRID

Source: Abu Dhabi Water and Electric Company (ADWEC)

Table 3: ELECTRICITY PRODUCTION, CONSUMPTION AND CAPACITY

Sources: UN Energy Balances & Electricity Profiles, and IEA Energy Database

Table 4: ENERGY RELATED RATIOS

(1) Net import / Total energy consumption.

Source: World Bank

The development of a peaceful, civilian nuclear energy program was based on an in-depth evaluation of the UAE’s future energy needs. An initial study determined that national annual peak demand for electricity is likely to rise to more than 40,000 megawatts by 2020, reflecting a cumulative annual growth rate of about 9% from 2007. Even with adjustments to account for the worldwide economic slowdown, the projected demand is well beyond current capacity.

The UAE then studied options to meet this demand. This evaluation was wide-ranging and determined that:

• Natural gas that could be made available to the nation's electricity sector would be insufficient to meet future demand. 

• The burning of liquids (crude oil and/or diesel) would be logistically viable but costly and environmentally harmful.

• Coal-fired power generation, while potentially cheaper, would be environmentally unacceptable, and potentially vulnerable from a security of supply standpoint.

• And finally, deployment of renewable and other alternative energy supplies, while desirable, would be able to supply only 6 to 7% of the required electricity generation capacity by 2020.

As previously highlighted, in developing its nuclear energy policy, the UAE government made its peaceful objectives unambiguous. A policy document entitled “Policy of the United Arab Emirates on the Evaluation and Potential Development of Peaceful Nuclear Energy, released in April 2008, outlined a series of strategies and commitments:

• The UAE is committed to complete operational transparency.

• The UAE is committed to pursuing the highest standards of non-proliferation.

• The UAE is committed to the highest standards of safety and security.

• The UAE will work directly with the IAEA and conform to its standards in evaluating and potentially establishing a peaceful nuclear energy program.

• The UAE hopes to develop any peaceful domestic nuclear power capability in partnership with the governments and firms of responsible nations, as well as with the assistance of appropriate expert organizations.

• The UAE will approach any peaceful domestic nuclear power program in a manner that best ensures long-term sustainability.

These policies are enshrined in a number of mechanisms, including the UAE Federal Nuclear Law signed in October 2009.

The UAE Nuclear Law takes into account all obligations and commitments that stem from the international instruments and obligations. The UAE views the application of a comprehensive safeguards agreement, bolstered by the IAEA Additional Protocol, as an important component of its model for the adoption of peaceful nuclear energy, and as being consistent with its commitment to complete operational transparency and the highest standards of non-proliferation.

The UAE signed a number of agreements for co-operation in the field of peaceful nuclear energy with numerous countries, including France, Republic of Korea, the United States of America, and UK. More recent cooperation agreements were concluded with Canada, Australia, Argentina, Japan and Russian Federation.

The key entities implementing the UAE’s nuclear energy program are the:

• Federal Authority for Nuclear Regulation (FANR). An independent federal regulatory authority charged with the regulation and licensing of all nuclear related activities in the UAE, with public safety as its primary objective.



FIGURE 2: ORGANIZATION OF THE FEDERAL AUTHORITY FOR NUCLEAR REGULATION

• Emirates Nuclear Energy Corporation (ENEC). A corporation, wholly-owned by the Abu Dhabi government, charged with developing nuclear power plants within the UAE. One of ENEC’s responsibilities – among others – is to contract with a primary contractor for the construction of UAE nuclear power plants. For this purpose, KEPCO has already been appointed as a Prime Contractor.

FIGURE 3: ORGANIZATION OF THE EMIRATES NUCLEAR ENERGY CORPORATION

Note: The Quality Assurance Director does not report to CEO.

• International Advisory Board (IAB) is a concept developed by the UAE government to augment the transparency of its peaceful nuclear energy program. The board includes world-class expertise in the areas of nuclear safety, security and non-proliferation, as well as regulation, quality assurance, operations, human resource development and waste management associated with the construction, operation and decommissioning of civil nuclear power plants. Led by Dr. Hans Blix, the former Director General of the International Atomic Energy Agency (from 1982-1997), the IAB is charged with conducting semi-annual reviews of the UAE’s entire peaceful nuclear energy program and subsequently preparing a semi-annual report summarizing their observations, findings and recommendations.

• Environmental Agency – Abu Dhabi (EAD) is the environmental regulator for Abu Dhabi. The environmental aspects of the nuclear power plants project are subject to its regulation, in addition to nuclear safety regulation and oversight from FANR.

EAD and FANR have coordinated their work on the non-nuclear Environmental Impact Assessment and FANR’s assessment of ENEC’s application for a license to prepare a site.

Table 5. STATUS AND PERFORMANCE OF NUCLEAR POWER PLANTS

Not applicable.

As the UAE is currently in the initial stages of deployment of a civil nuclear power program, its current focus is on the development and maturity of the necessary infrastructure and on effective management of its prime contractor for delivery of the initial units.

On December 27^th, 2009, the Emirates Nuclear Energy Corporation (ENEC) announced that it had selected a team led by Korea Electric Power Corporation (KEPCO) to design, build and help operate civil nuclear power plants for the United Arab Emirates’ peaceful nuclear energy program.

Pending regulatory approvals, the first of the four units is scheduled to begin providing electricity to the grid in 2017, with the three later units being completed by 2020. 

ENEC has decided to build KEPCO’s APR1400, a Generation III, 1400 Megawatt nuclear power plant with evolutionary improvements in safety, performance, and environmental impact. A certificate for the standard design approval was issued for the APR1400 by the Korean regulatory authority in 2002. The APR1400 is similar to, but represents an improvement over, the System 80+ design, which was previously certified by the Nuclear Regulatory Commission (NRC) in the United States of America.

The first of the APR1400 units, Shin-Kori units 3&4, are now under construction in the Republic of Korea, having obtained a Construction Permit from the Korean regulatory authority, the Korean Institute of Nuclear Safety (KINS). Shin-Kori unit 3 is scheduled to be connected to Korea’s grid by 2013. The first UAE nuclear power plant will be the fifth unit of the APR1400 plants in the world, and the Shin-Kori plants will serve as the “reference plants” for the UAE program.

As a Generation III reactor, the APR1400 has been designed to meet heightened safety goals developed in accordance with the latest international safety standards, which aim to secure an additional margin of safety to protect the public health. The APR1400 design incorporates more than 30 years of operational learning and resulting enhancements in safety, reliability and efficiency.

The contract with KEPCO calls for extensive training, human resource development and education programs, as the UAE builds the capacity to eventually staff the majority of the nuclear energy program with national talent and develops the industrial infrastructure.

Table 6: PLANNED NUCLEAR POWER PLANTS

Source: United Arab Emirates Self-Assessment report: National Infrastructure for the Civil Nuclear Energy Program July 2010

http://world-nuclear.org/info/UAE_nuclear_power_inf123.html

Given the growth in electricity demand projected for the United Arab Emirates, it is possible that additional units beyond the original four will be procured in the future as the UAE expands its fleet of civil nuclear power plants.

Federal Authority for Nuclear Regulation (FANR)

On September 25^th, 2009, the Federal Authority for Nuclear Regulation (FANR) was established, following Federal Law by Decree No. 6 of 2009, concerning the peaceful uses of nuclear energy (the Nuclear Law). It is an independent regulatory authority, responsible for ensuring long-term safety, security and sustainability in the peaceful uses of nuclear energy and ionizing radiation in the UAE by establishing world-class regulations and supervising their implementation.

For that purpose, FANR is responsible for developing and enforcing binding safety standards and regulations, guidelines and safeguards that ensure nuclear safety, nuclear security, non-proliferation and radiation protection by:

1) Reducing any harmful impact of the use of nuclear technology and ionizing radiation on human life, health and living conditions for both present and future generations, the environment and property,

2) Keeping worker and public exposure to ionizing radiation to a level which is as low as reasonably achievable, and

3) Preventing any diversion of nuclear or radioactive materials and nuclear technology for non-peaceful purposes.

The key tasks of the Authority are:

1. Issue regulations

2. Issue licenses to conduct regulated activities

3. Carry out safety assessments

4. Establish and maintain SSAC (state system of accounting for and control of nuclear material)

5. Establish frameworks for physical protection, emergency preparedness and response for nuclear facilities and activities

6. Determine civil and criminal penalties for any violations of the Nuclear Law

7. Capacity-building strategies to ensure sustainability

8. Appropriate oversight of the obligations under the international treaties, conventions and agreements in the nuclear sector entered into by the UAE

9. Administrative standards which support excellence in regulation

Under the UAE Nuclear Law, the Authority is the body in charge of the issuance, revocation and suspension of licenses for regulated nuclear activities in the UAE. However, each licensee is accountable for taking all steps necessary to reduce the risk of an accident to a level that is as low as reasonably possible.

The Authority is also responsible for inspection and control, investigating any breaches of the Nuclear Law of the UAE and imposing penalties in such cases. It also abides with high standards of transparency and facilitates public access to information pertaining to its activities.

To achieve its goals for safety and security, FANR also co-operates with relevant government bodies as well as international organizations in areas of: environmental protection, public and occupational health, emergency planning and preparedness, radioactive wastes, public liability, physical protection and safeguards, water and food consumption, land use and planning and safety in the transport of dangerous goods.

FANR is managed by a board comprised of nine members. It is chaired by H.E. Dr. Ahmed Mubarak Al Mazrouei, with H.E. Abdulla Nasser Al Suwaidi as Deputy Chairman.

Emirates Nuclear Energy Corporation (ENEC)

On December 23^rd, 2009, Emirates Nuclear Energy Corporation (ENEC) was established by Abu Dhabi decree as the owner and operator organization in charge of implementing the UAE nuclear energy program.

ENEC’s main responsibilities are:

1. Contracting, constructing and operation of nuclear power plants.

2. Working with Abu Dhabi and the Federal Government to ensure that the civil nuclear power program is aligned with industrial and infrastructure plans for the UAE (community development, roads, utility, telecommunication projects etc.).

3. Building human resources capacity for the nuclear energy program in parallel with the educational sector in UAE (co-operation with other stakeholders including Khalifa University, Institute of Applied Technology).

4. Developing public communications and education programs to ensure that UAE residents understand the civil nuclear energy program.

ENEC work and activities are subject to the oversight and regulation of FANR. Both FANR and ENEC have distinct roles, with FANR being an independent nuclear regulator and ENEC being the implementer of the project.

ENEC top management consists of a board of Directors chaired by H.E. Khaldoon Khalifa Al Mubarak. Other members of the board are: Deputy Chairman H.E. Shaikha Lubna al Qasimi, Jasem Mohamad Al Za’abi, Mohamad Sahu Al Suwaidi and David V. Scott.

The contract calls for the KEPCO team to design, build and help operate four 1,400-MW civil nuclear power units. The value of the contract for the construction, commissioning and initial fuel loads for four units equaled approximately US$20 billion.

In addition to the delivery of the four plants, ENEC and KEPCO have also agreed to key terms under which Korean investors will have an equity interest in the project. This arrangement will further strengthen the business relationship and powerfully incentivize the partners to ensure that the necessary experience, technology and skills are available to achieve on-time and on-budget delivery and safe and reliable operation of the plants.

Currently, according to the recent UAE self-assessment report which was finalized in July 2010, the following key accomplishments have been completed with regard to the electric grid:

• A grid study was completed by KEMA, and provided recommendations as well as indicating the initial acceptability of adding a nuclear power plant to the grid.

• A national interagency working group on energy, which will ensure coordination of the grid and support infrastructure for the civil nuclear power program, was developed.

• The requirements for power during construction and commissioning as well as supporting infrastructure (operators’ village, visitors centre, etc.) have been defined and provided to the electricity transmission company.

• Work has started on generation planning to formally include the expected NPP generation schedules into the generation requirement outlook and to optimize power and water production plans for the required work for the initially planned NPP fleet.

• Coordination has begun with several Government departments and companies to ensure that all necessary supporting infrastructures and utilities required for early stages of the NPP program are in place and will be executed by the required time, including all local permits, approvals and budgets.⁽¹⁾

FANR has issued a number of licenses to the Emirates Nuclear Energy Corporation (ENEC):

• Site Selection License – Approved 28 February 2010

• Site Preparation License – Approved 8 July 2010

• Limited Construction License (LCL) for Manufacturing – Approved 8 July 2010

• LCL Phase 1 issued 6^th March 2012 to allow safety related work to begin on rock mapping and inspection

• Construction license on July 17^th 2012, for Units 1 and 2 of Barakah

Central to the UAE’s approach to developing a nuclear energy program has been the importance of building a qualified workforce in the short and long term. ENEC has joined with the Khalifa University of Science, Technology and Research, the Institute of Applied Technology, the Federal Authority for Nuclear Regulation and other parts of the UAE educational system, as well as with universities internationally, in order to ensure that there will be a reservoir of talent, both Emirati and expatriate, well into the future.

Although the UAE anticipates future co-operation to develop advanced nuclear generation systems, no specific programs are underway.

As a member of the International Atomic Energy Agency (IAEA), the UAE has committed itself to various IAEA strategies on operational transparency, non-proliferation and safety. UAE seeks IAEA technical assistance in the areas of safeguards, physical protection, safety and liability, as well as in the assessment of potential technology options and appropriate managerial approaches.

In August 2008, the UAE pledged US$10 million to support an IAEA-administered international uranium fuel-bank initiative. The IAEA fuel-bank is designed to provide assurances against supply disruptions, while strengthening the nuclear non-proliferation regime. On December 3^rd, 2010, the IAEA Board of Governors approved the establishment of IAEA LEU fuel-bank.

The UAE has concluded multiple bilateral agreements with other governments for co-operation in the peaceful nuclear field, including agreements with France, the USA, the Republic of Korea, the UK, and Australia. Others agreements are underway.

The UAE is working through multiple initiatives, such as the US Department of Energy Megaports Initiative, aimed at deterring terrorists from using the world’s seaports to ship illicit materials, detecting nuclear or radioactive materials if shipped via sea cargo, and interdicting harmful shipments. Furthermore, the UAE is a member of the Proliferation Security Initiative (PSI), which is aimed at stopping shipments of weapons of mass destruction, their delivery systems and related materials worldwide. The UAE is also a member of the International Framework for Nuclear Energy Cooperation (IFNEC) as well as the Global Initiative to Combat Nuclear Terrorism

In addition to several agreements signed with the US Nuclear Regulatory Commission (NRC), the Korea Institute of Nuclear Safety (KINS) and the Korea Institute of Nuclear Non-proliferation and Control (KINAC), FANR has broadened its co-operation with international regulators in other countries in nuclear safety, nuclear security, and safeguards-related matters.

In December 2011, FANR and the Korea Nuclear Safety and Security Commission (NSSC) signed a framework agreement that would allow co-operation in the areas of nuclear safety, security and safeguards through the exchange of information, experience, staff and technology. This was a reinforcement of the similar earlier agreement between FANR and the previous Korean regulator, the Ministry of Education, Science and Technology (MEST).

FANR and Finland’s Radiation and Nuclear Safety Authority (STUK), the French Authority for Nuclear Safety (ASN), the French Institute for Radiological Protection and nuclear Safety (IRSN) have entered into a similar cooperation arrangement in the fields of nuclear and radiation safety, security and safeguards.

In September 2009, the UAE President, H.H. Sheikh Khalifa bin Zayed Al Nahyan, approved Federal Law by Decree No 6 of 2009, Regarding the Peaceful Uses of Nuclear Energy. This establishes the Federal Authority for Nuclear Regulation (FANR) as the UAE’s nuclear regulatory body.  

As previously mentioned, the Federal Authority for Nuclear Regulation (FANR) is the independent government body charged with regulating and licensing nuclear activities in the UAE, which, in addition to the nuclear power program, includes radioactive material and radiation sources used in medicine, research, oil exploration and other industries. The Authority determines all matters relating to the control and supervision of the nuclear sector in the UAE, in particular nuclear safety and security, radiation protection and safeguards. All obligations under the relevant international treaties, conventions or agreements entered into by the UAE are carried out by FANR.

The FANR Board of Management (BoM) is composed of nine members, including a Chairman and Deputy Chairman. All members are appointed by Minister’s Cabinet Resolution and must be citizens of the United Arab Emirates. The Board of Management appoints the Director General and is responsible for managing the Authority.

The National Law provides requirements for the granting, revocation, and suspension of licenses. The law prohibits any person from conducting any ‘Regulated Activity’ in the UAE unless licensed to do so by FANR. “Regulated Activity” includes the siting, construction, operation and decommissioning of nuclear facilities.

The law provides requirements for inspection and control of licensee activities, requiring FANR to establish a planned and systematic inspection program and to conduct inspections covering all areas of regulatory responsibility to ensure that the operator is in compliance with the law, regulations and license conditions. In undertaking inspections, FANR has the power to undertake enforcement actions, which are defined by the law as including corrective actions, written warnings, revocation of a license, and administrative penalties and fines. The law includes provisions for civil liabilities and criminal penalties for various offences related to the requirements of the Nuclear Law.