TNB TARGETS TO COMMISSION FIRST NUCLEAR POWER PLANT BY 2025

From Christine Lim

TERENGGANU, May 25 (Bernama) -- Malaysia's main power provider Tenaga Nasional Bhd (TNB) targets to commission the first nuclear power plant in Malaysia by 2025.

Head of nuclear energy unit TNB, Dr Mohd Zamzam Jaafar said TNB cannot
ignore nuclear energy amid the uncertain future supply and volatile fossil fuel
prices as well as gas resources.

"In order to ensure reliable and reasonably priced electricity, the proven
base-load nuclear option must not be precluded," he said during a media briefing
on TNB's future energy plans at Pulau Perhentian Besar, a resort island in
Terengganu state.

Dr Mohd Zamzam said by 2019, an alternative energy supply resource will
become critical as current gas resources will be on decline by that time.

Coal price, he said, has also been very volatile.

TNB power generation mix consists of gas (about 50 percent), coal
(35 percent), hydro (14 percent) and oil (more than one percent).

With the establishment of the first nuclear power plant in Malaysia, Dr
Mohd Zamzam said TNB will be joining the list of countries that have already
established nuclear power plants like Canada, France, Germany, South
Korea, US, Japan and China.

In terms of cost of electricity, he said, nuclear power was also more
competitive than other energy resources.

"Based on the selling price at the Korea Power Exchange, the selling price
of nuclear is only 3.9 USsen/kwh compared to 71.1 USsen/kwh for solar (most
expensive), oil 11.7 USsen/kwh, wind 10.7 USsen/kwh, LNG 10.4 USsen/kwh, hydro
9.4 USsen/kwh, soft coal 4.1 USsen/kwh and hard coal 6.5 USsen/kwh," he said.

Nuclear power, according to Dr Mohd Zamzam also addressed issues on land
and resource requirements as it required comparatively less land and capacity
factor compared with other sources of energy such as wind, photovoltaic,
biomass, biooil and bioalcohol.

Nuclear power also has low radioactive exposure.

"Target radiation level around nuclear power stations is 0.05 mSv per year
compared to about 2.4 mSv/year (world average) of natural radiation exposure,
from X-ray chest CT scan, exposure is 6.9 mSv per exam, radiation from ground is
0.48 mSv per year according to recent studies," he said.

Dr Mohd Zamzam said the cost of a nuclear plant according to the Chinese
design for 1,000 MW will cost US$2 billion while a Russian design will cost two
billion euros.

The cost for research and feasibility activitities, he said, could possibly
be from RM2 million.

"We will be working with the Korea Electric Power Corporation on nuclear
pre-feasibility study," he said.

He said with nuclear power, there will be more stable power resource,
resulting in more stable electricity tariff.

Dr Mohd Zamzam stressed that successful nuclear power plant projects
required extensive and well-structured government involvement.

Several initiatives will need to be taken for the successful implementation
of nuclear power in Malaysia including a legal framework policy and licensing
fee.

"In procurement, Malaysia should pay particular attention to emerging
standard reactor designs. Reference will also be made to the International
Atomic Energy Agency (IAEA) guidelines," he said.

IAEA is the world's centre of cooperation in the nuclear field. The agency
works with partners woldwide to provide safe, secure and peaceful nuclear
technologies.

Senior Vice President (Corporate Affairs) TNB, Abdul Razak Abdul Majid said
the government has not made any policy statement on nuclear.

"We have few options and facing constraints with other energy options. In
coal for instance, it is subject to world market prices and geopolitical
decisions," Abdul Razak said during a press conference after the briefing by Dr
Mohd Zamzam. (US$1=RM3.48)
-- BERNAMA