Will the Japanese Disaster Threatens Nuclear Industry

Written By Unknown on Sabtu, 23 Juli 2011 | 08.29

The explosion at the reactor first, second, and third at the Fukushima Daiichi nuclear complex, Japan, has brought back attention to the viability of nuclear power. The explosion that triggered the failure of the cooling system caused by the earthquake and tsunami, has raised concerns the actors and the nuclear industry investors. No exception, countries that are planning development.

The Japanese government has assured its people that the health hazard posed by the release of radioactive steam was very low. Thick retaining wall reactor seems to be in good condition, so it is not clear impact on health, environment, and the future of the industry.

For decades, Japan's nuclear power safety notes no doubt. In fact, nuclear power proponents often refer to Japan - which is located in the Pacific ring of fire, where earthquakes frequently occur.

Japan considered to have been able to develop a series of good strong nuclear utilization of designing, manufacturing, construction, operation, to maintenance.

Impact on the Nuclear Industry
Concerns over global warming and energy demand in recent years has brought the nuclear revival. A total of 56 nuclear reactors built in 2010, where the Asia Pacific region including China, India, Korea, and Taiwan has more than half of these projects.

Several other countries in the Middle East oil-rich, developing countries in the Region of South Asia and Asia Pacific, as well as developed countries in North America and Europe have developed a serious plan of building nuclear plants.

This shows the future of some players such as nuclear giant Areva, GE-Hitachi, and Toshiba-Westinghouse looks very bright. Other global players including Doosan of Korea, Russia's Rosatom hopes to reach an agreement with local authorities.

However, whether Fukushima disaster threatens global nuclear power plant? Very difficult to assess the impact on the ongoing events. However, some short-term effects may occur, such as:

Review of the safety of all Nuclear Power Plant (NPP) operating, whether they are in an earthquake prone zone or not, tend to be reviewed comprehensively. More risk scenarios, the more the better. International Atomic Energy Agency (IAEA) will likely play a major role in this salvation.

The next impact is the cost of insurance. Insurance costs of all matters relating to nuclear power would increase. Consequently increase the cost of electricity.

Plans to build nuclear states, the possibility of much opposition. Germany has announced a delay of three months over his plans. Some countries are also likely to announce nuclear policy review, particularly if the crisis in Japan last long.

The stock market of nuclear technologies and supporting companies also tend to hit big. Shares of General Electric, the supplier of the reactor in Fukushima has decreased significantly.

Another impact is the public perception. Public perception of nuclear power will likely be marred, at least in the short term. This means that governments around the world will suspend nuclear several important decisions, until the news subsided.

Disasters in Japan will encourage the shift of attention to alternative technologies, like hydropower and clean coal. More specifically, the development of clean coal technologies such as Carbon Capture and sequestration (CCS) and Integrated Gasification Combined Cycle (IGCC) would be an advantage.

We have seen the return of the nuclear power industry after Three Mile disaster in the United States and Chrenobyl in Ukraine, although it must go through the long road to recovery phase.

If the Japanese government managed to anticipate the damage and maintain the public trust, it is possible Fukushima nuclear power and global nuclear industry will be able to get through the worst crisis in history.

Conversely, if the situation uncontrollable Fukushima, most likely nuclear industry will experience a shock, at least for the short and medium term.

This crisis will bring some important lessons for the nuclear industry, among which should improve security in the design, operation, and maintenance. The cost of building and operating nuclear plants can be increased significantly, but the industry did not disappear from the market.

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