THE US-Israel war on Iran has exposed the fragility of global fossil fuel supply chains, as the crisis at the critical chokepoint is pushing countries to rethink their energy strategies to reduce dependence on costly fossil fuels.
Hence, several Asian countries are turning to nuclear energy generation as a reliable alternative that they have not had before. The war is drastically reshaping energy markets worldwide. Countries relying heavily on oil imports from the Middle East, shipped through the Strait of Hormuz, have been hit hard by supply issues and raising energy prices. The soaring oil prices could lead to inflation and slow economic growth across the region. The shortage has prompted emergency measures in many countries aimed at halting rising costs that have thrown economies into chaos. As a short-term measure, some governments adopted austerity measures and reconsidered coal to prevent power disruptions. However, in the long term, the supply shock may accelerate nuclear restarts faster than ever.
Nuclear energy is a clean and cost-effective source of power that has many benefits over traditional fossil fuels and renewable sources. Nuclear Power Plants (NPPS) are designed to operate continuously for extended periods to provide a steady and cost-efficient source of electricity, thereby limiting fluctuations in energy supply. A new crisis is pressing many countries in Asia to rewire their energy strategies and accelerate nuclear power. Countries, net energy importers, have been hit especially hard by rising energy prices, which are now accelerating plans to drive down energy usage. They are reconsidering their energy strategies and increasing their nuclear energy capacity. On March 23rd, an agreement was signed between Russia and Vietnam to build a nuclear power plant. Similarly, Malaysia, Indonesia, Thailand and the Philippines have also signaled their intention to build nuclear capacity.
Japan has started operations at its Kashiwazaki-Kariwa Nuclear Power Plant after pausing them in the wake of the 2011 Fukushima disaster. The country is now rethinking the future of its energy supplies and is leading the region’s new embrace of nuclear energy. Prime Minister Takaichi Sanae has announced to achieve self-sufficiency, largely through a nuclear comeback eventually. Other Asian states are thinking similarly. Vietnam and the Philippines are stepping up the pace of their nuclear development. China had already planned to build 23 new nuclear reactors in the next decade and is now fast-tracking those plans. Most notable is Taiwan`s nuclear reversal, which announced a “nuclear-free homeland” in 2016, has now announced plans to restart two of the island’s shuttered reactors.
This suggests that some countries are increasing their efforts to expand nuclear energy capacity, while others are dramatically reconsidering their previously low-priority approach to nuclear power. These shifts can be attributed to the significance of nuclear energy, which, unlike weather-dependent renewables like solar and wind, provides continuous, low-carbon electricity and is seen as a vital energy source for maintaining stability. More interestingly, the conflict is gradually shifting public opinion toward greater acceptance of nuclear power in the future. Recently, Pakistan raised fuel prices to an all-time high. This could impact Pakistan’s economy, which is burdened by a huge import bill for imported fuel. This is likely to impact consumers and industries. Pakistan produces electricity mainly from imported fuel, but the huge cost of imported fuel leads to higher electricity prices. Though for short-term policies, austerity measures, and other emergency steps may work, the government should set long-term strategies.
The capacity of nuclear energy can be increased further to absorb fuel supply issues and fluctuations in prices. Pakistan has already commenced construction of Chashma-5 under the China-Pakistan civil nuclear energy cooperation agreement. Once operational, this will further increase Pakistan`s nuclear energy capacity by the year 2030. Nuclear energy has become a fundamental pillar of stability for Pakistan. To address energy insecurity, Pakistan should explore alternative solutions to meet its domestic energy needs and ensure the sustainability of its energy sector in the long term. The Indigenous nuclear energy production has led to significant savings compared to importing non-nuclear energy. Therefore, expanding nuclear energy capacity would greatly help Pakistan save foreign exchange by decreasing reliance on imported fuel and providing cheaper electricity to the national grid.
The recently held Nuclear Energy Summit hosted by France also highlighted the growing importance of nuclear power for many countries. While the summit sought to facilitate dialogue and encourage the development of initiatives and partnerships among countries, international cooperation and promote real-world solutions for the safe and sustainable development of civil nuclear power, it remains a challenge.
—The writer is Associate Director Research BTTN, at BUITEMS, Quetta.
