Italy Begins Nuclear Renaissance

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The Italian government has begun the process of reintroducing nuclear power into the country, after giving final approval to a decree this week that outlines how sites for the new plants will be chosen.

The Italian government would like to begin construction of a nuclear plant in 2013, hoping to deliver nuclear-powered electricity by 2020. The decree sets out a broad framework of what will be needed to bring nuclear power back into the country and covers topics including siting, radioactive waste management, local consultation, construction, operational procedures and financial compensation for areas that agree to host nuclear facilities. Italy, like many European nations, banned nuclear power in 1987 after the Chernobyl nuclear disaster, but that decision was overturned last July. Italy wants to generate 25% of its electricity from nuclear sources by 2030.

Italian energy company Enel SpA (BIT:ENEL) (Rome) and French electricity generator and distributor Electricite de France SA (EPA:EDF) (EDF) (Paris) announced a 50:50 joint venture last August, with plans to build at least four reactors based on the advanced third-generation European Pressurized Reactors (EPR). Together, the reactors will cost up to 18 billion euros ($24.5 billion), according to Enel. For additional information, see related August 6, 2009, news article - Enel-EDF Joint Venture Sets Foundation for Relaunch of Italian Nuclear Power Program.

A new nuclear safety agency will be formed to establish guidelines for radioactive waste management. The government is expected to launch a nuclear strategy document by May 10, to be followed in July by a report from the new agency.

Announcing the decree, Economic Development Minister Claudio Scajola said: "The decree is characterised by transparency and absolute respect to security of people and environment."

However, the government is facing an uphill struggle to bring nuclear power back in the mix, with 11 out of 20 regional governments in Italy challenging the plans in the constitutional court, which will make a decision in June. Scajola recently confirmed that the government plans to sue three regional governments in the south of Italy for voting against the potential building of nuclear plants in their regions. There are also doubts about the government's construction timeline and the massive amount of funding needed to restart the nuclear industry.

In addition, the International Energy Agency (IEA) is not convinced that Italy can get the new projects built in time to satisfy energy demands and comply with its European emissions targets.

"Italy will face a major challenge in complying with the European Union's new climate and energy package, particularly in relation to renewable energy and emissions targets," said Nobuo Tanaka, executive director of the International Energy Agency (IEA) (Paris). "The country must step up efforts to comply with its new responsibilities, specifically by developing and putting in place a comprehensive climate change strategy for the years until 2020.

"A common theme that emerges in the IEA review is the difficulties faced by energy infrastructure providers in taking projects from the initial planning phase to completion. Under present circumstances, it is likely that the recently adopted nuclear energy proposals may face similar obstacles."

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