European Nuclear Market, Frost & Sullivan Foresees Substantial Increase in Orders

LONDON - The number of aging power plants in Europe has given rise to an
increasing need for the construction of new plants. An estimated 300GW of
capacity needs to be added in Europe by 2020. Additionally, the EU Emissions
Trading Scheme (EU ETS), emissions regulations will tighten in 2013 as it
enters Phase III. Facing these circumstances, nuclear power surfaces as an
attractive option in carbon-constrained Europe, and it is expected that
nuclear energy will be back on the agenda for many countries which have been
quite reluctant to this generating option.

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“The nuclear sector in Europe is definitely undergoing a revival and all
the indicators are that the next few years will be a strong time for orders,
despite the financial crisis,” says Maciej Jeziorski, Research Analyst,
Energy & Power Systems, Frost & Sullivan. “The result is that many of the
projects currently planned, proposed or at the pre-proposal stage are likely
to be developed further. There are still challenges to overcome such as huge
initial costs, getting the planning permission and long lead time for
critical components, but overall the prospects for nuclear in the longer-term
look good.”

Nuclear power plants require huge upfront costs, but have not been
significantly affected by the financial crisis as these are very long-term
investments (plants take on an average 8-10 years to be constructed in
Europe), and, most importantly, these facilities receive high political
support. Moreover, the recent Russia and Ukraine gas dispute has further
strengthened the prospects for nuclear, especially in Eastern Europe.

Benefits of nuclear power include the potential to reduce carbon dioxide
emissions, cost-effectiveness, increased energy independence and security,
and the ability to make a significant contribution to the ever-increasing
demand for energy. However, lack of political support and issues surrounding
the storage and disposal of nuclear waste are seen as major constraints. The
planning and construction of a nuclear power plant is extremely
time-consuming and is significantly longer than any single government party
rule in a country. Lack of public awareness related to waste management
contributes to the issue of spent fuel storage and disposal.

The number of nuclear reactors in the EU has been decreasing since its
peak of 177 in 1989. In 2008, there were 145 nuclear reactors in operation
and nuclear power constituted around 30% of the total electricity generation
mix for Europe. However, due to increasing political support and a number of
planned and expected projects, this number is expected to increase
significantly, as nuclear energy enters a period of renaissance.

After years of stagnation, Finland got the ball rolling in 2005 when the
construction of its third unit at Olkiluoto site began. It was the first new
facility in Western Europe after a 15 year hiatus. Likewise, France is
constructing its new Flamanville 3 reactor and is planning to add new units.
In December 2008, Slovak authorities resumed construction of two units at
Mochovce site and Bulgaria has started constructing at the Belene site.
Sweden is overturning a 30 year ban on the construction of new nuclear power
plants. Italy has decided to reintroduce nuclear power into its energy mix
after its complete phase-out of nuclear energy resulting from a 1987
referendum. The country hopes to begin construction of its first nuclear
plant by 2013. Moreover, the United Kingdom, Romania, Hungary, the Czech
Republic, Poland and Latvia, have all announced nuclear construction plans.

“Despite having high CAPEX, it does not seem that the nuclear industry
has been significantly affected by the current downturn,” continues
Jeziorski. “Consequently, future developments in nuclear energy mainly depend
on fossil fuel prices, including emission trading costs and advancement of
new nuclear technologies. Overall, the picture for nuclear power in Europe is
rosy and nuclear power generation will gain importance in the future and
will, undoubtedly, present a number of opportunities over the medium to long
term.”

If you are interested in receiving more information on the
nuclear energy market in Europe, then send an e-mail to Chiara Carella,
Corporate Communications, at chiara.carella@frost.com, with your full name,
company name, title, telephone number, company e-mail address, company
website, city, state and country. Upon receipt of the above information, a
brochure will be sent to you by e-mail.

GIL 2009: Europe

Frost & Sullivan has expanded its flagship Global Congress on Corporate
Growth - GIL Global - into several major cities around the world including
London. For the first time ever in Europe, Frost & Sullivan will be hosting
the Growth, Innovation and Leadership Congress ‘GIL 2009: Europe’ on 19-20
May, at the Sofitel St James in London. GIL Global is the industry’s only
event designed to support senior executives in their efforts to achieve
sustainable, top-line growth. To register, obtain a programme agenda, explore
sponsorship opportunities, or attend as a member of the media for ‘GIL 2009:
Europe’, please contact Chiara Carella, Head of Corporate Communications for
Frost & Sullivan in Europe, at chiara.carella@frost.com. One-on-One
interviews with Frost & Sullivan senior growth consultants are also being
scheduled. For more information you can also visit www.frost.com/giluk

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Contact:
Chiara Carella
Corporate Communications - Europe
P: +44-(0)-20-7343-8314
M: +44-(0)-753-3017689
E: chiara.carella@frost.com

Source: Frost & Sullivan

Chiara Carella, Corporate Communications - Europe of Frost & Sullivan, +44-(0)-20-7343-8314, cell, +44-(0)-753-3017689, chiara.carella at frost.com. Photo: https://www.newscom.com/cgi-bin/prnh/20081117/FSLOGO