[There has as yet been no new announcement on the finalisation of the
deal between the NPCIL and Areva since French President François
Hollande's arrival in India.
The Modi-Hollande joint statement (see:
<http://zeenews.india.com/news/india/full-text-pm-modi-french-prez-francois-hollandes-joint-statement-on-bilateral-ties_1849017.html>),
rather blandly, states: "In pursuance of the 2008 Agreement on the
Development of Peaceful Uses of Nuclear Energy between India and
France, ***the two leaders encouraged their industrial companies to
conclude techno-commercial negotiations by the end of 2016 for the
construction of six nuclear power reactor units at Jaitapur***
(emphasis added), with due consideration to cost viability of the
project, economical financing from the French side, collaboration on
transfer of technology and cost-effective localisation of
manufacturing in India for large and critical components in accord
with Government of India’s "Make in India” initiative."]

I/II.
http://www.dianuke.org/jaitapur-nuclear-project-three-reasons-it-must-be-abandoned/

Jaitapur nuclear project: three reasons it must be abandoned

JANUARY 25, 2016

M V Ramana | Courtesy: Ideas For India

When French President Francois Hollande visits Delhi to attend this
year’s Republic Day parade, India and France are expected to announce
that they are going to enter into an agreement to import six nuclear
reactors marketed by the French company Areva. These European
Pressurized Reactors (EPR) are to be constructed in Jaitapur,
Maharashtra on the Arabian sea. The idea of importing EPRs from France
for Jaitapur was initiated during the Manmohan Singh government and
has been pursued by the Narendra Modi government as well. There are at
least three notable things about this project that make it dubious and
not worth pursuing.

Troubled history

First, the EPR has a troubled history. No reactor of this kind is
operational anywhere in the world. There are four under construction —
in Finland, France, and two in China — and all of them are delayed,
including the ones being built in Taishan in China. The first of these
was the project at Olkiluoto, Finland, which was supposed to come
online in 2009, but has been delayed because of innumerable problems.
It is now projected to start operating in 2018 — if all goes well.

The case of the EPR in Flamanville, France is similar, but with a
twist: last year, the French nuclear regulator, the Autorité de Sûreté
Nucléaire (ASN), announced that it had been informed by Areva of an
anomaly in the composition of the steel in certain zones of the
reactor vessel of the Flamanville EPR. The reactor vessel holds the
hot and radioactive fuel during operations and has to withstand high
temperature and pressures. Understandably problem with this reactor
component is, as the president of ASN put it, “serious — even very
serious”. The detection of the problem at this late stage, in the
words of French energy analyst Yves Marignac, “means that either
Électricité de France (EDF) or Areva overlooked the risk of this kind
of problem, which would reflect badly on their competence, or they
were trying to create a fait accompli before it was detected”. In any
case, this discovery has led to widespread concern about the French
nuclear supply system — except, evidently, within the decision-making
circles in the Indian government.

Related to these lengthy delays, there has been a corresponding
escalation in costs, with both Flamanville and Olkiluoto’s current
estimates exceeding initial projection by a factor of three or more,
from €3.2 billion to €10.5 billion in the case of Flamanville. That
translates to roughly €6,500 (or US$7,000) per kilowatt (kW) of
capacity. These cost and time overruns of the EPR have been
attributed, at least in part, to the complexity of the design
according to an official report authored by Francois Roussely,
European vice-president of Credit Suisse and honorary president of
EDF; this complexity, “without doubt hinders its construction and
consequently impacts on its cost” according to the Roussely report.
Since it is essentially the same design that will be exported to
India, there will doubtlessly be problems with construction in
Jaitapur as well.

Expensive electricity

The second problem with the proped project is that, if it is
constructed, electricity from the reactor would be very expensive. In
a paper published in the Economic and Political Weekly in 2013,
physicist Suvrat Raju and I showed that if the unit cost of capacity
for the Jaitapur project was assumed to be US$4,000/kW, then the
initial year’s tariff for electricity from these reactors, without
including transmission and distribution costs, is likely to be around
Rs. 15 per unit (kilowatt hour (kWh)) of power. The methodology we
adopted was exactly the same as had been used by India’s Nuclear Power
Corporation to justify importing nuclear reactors from the United
States although we used cost estimates derived from actual
construction rather than theoretical projections. The key variable is
the cost per unit capacity and our assumption of US$4,000/kW was a
very charitable estimate that allowed for substantial decreases in the
capital expenditures as a result of many components being manufactured
within India and paying labourers and engineers much less than if the
reactor had been constructed in Europe. In fact, it was as optimistic
a cost decrease as the Nuclear Power Corporation of India has
projected as achievable through local construction: its head has been
cited as saying that one could save 25-30%, which he described as a
“huge” advantage.

Since then, however, cost estimates for EPRs have increased further.
Apart from the cost increases for the reactors in France and Finland,
a good data point is the case of the two EPRs proposed for
construction at Hinkley Point in the United Kingdom. The plant is
estimated to cost up to £18 billion, of which £6 billion are to come
from China General Nuclear Power Corporation and £2 billion pounds as
subsidies from British tax-payers. In addition, the UK government has
promised a guaranteed price of £92 per megawatt-hour that would
increase with inflation and is more than twice the average current
wholesale cost of electricity in the country.

The per unit cost for Hinkley Point is in excess of US$8,000/kW. But
even if one uses the estimate of roughly US$7,000/kW, as is the case
for Flamanville-3, and modify that by a factor of 25-30% to account
for reduction in costs due to manufacture in India, the resulting cost
per unit capacity will come to around US$4,900 to US$5,250/kW. At
US$5,100/kW, the first year tariff for electricity from Jaitapur would
be nearly Rs. 19 per kWh.

To put this in perspective, a recent reverse bidding process for solar
power projects in Rajasthan had a winning bid of Rs. 4.34 per kWh. In
the state of Maharashtra, a solar developer has put in a bid of Rs.
4.41 per kWh. For coal-based power, recent bids have been around Rs.
4.50 per kWh.

In other words, Jaitapur will result in very expensive electricity in
comparison to alternative sources. It is reminiscent of the very
expensive and controversial Naptha-based project that was constructed
by Enron Corporation in Dabhol in Maharashtra in the 1990s.

Seismic risk

Third, the proposed reactor site is in a zone with a relatively high
degree of seismic risk. In November 2011, two renowned seismologists
published a paper in the Indian Science Journal Current Science which
examined the historical record and concluded that a severe earthquake,
such as the ones that struck nearby Latur (100 km from Jaitapur) and
Koyna (400 km) in 1993 and 1967 respectively, “although unlikely . . .
could occur within the lifetime of the nuclear power plant” in the
close vicinity of Jaitapur. In a subsequent paper in the same journal,
these scientists were even more explicit: “Jaitapur lies in a region
where plate tectonic stresses are locally close to critical failure,
and where minor perturbations in stress can trigger earthquakes.
Geologically, the Jaitapur region meets many of the criteria known to
be conducive to intra-plate seismicity. Tectonically, the Jaitapur
region is precisely in the same state of seismic quiescence and
historical ignorance as the regions of Latur or Koyna were, prior to
the damaging earthquakes for which they are now famous”.

Why are earthquakes a special concern? As evidenced by accidents such
as the ones at Three Mile Island (1979) and Chernobyl (1986), nuclear
power plants can undergo severe accidents even when there are no
earthquakes. This potential for severe accidents is amplified during
earthquakes because they simultaneously affect many different
components of nuclear power plants. Simultaneous failures in different
components could lead to what are called common-cause accidents, and
these are very difficult to model in standard risk assessments. In
part, this is because of the many uncertainties involved in a nuclear
reactor’s behaviour during earthquakes. The combination of a nuclear
reactor design that has never been operated before and a site that
could experience earthquakes is a prescription for heightened risk.

In part as a result of these risks, there is significant local
opposition to the project, which has in turn induced the Shiv Sena
party, a key alliance partner of the Bharatiya Janata Party (BJP), to
ask the central government to scrap the project.

One of the lessons from the nuclear reactor accidents at Fukushima and
Chernobyl is that although radioactive fallout from these accidents
spread far and wide, the bulk of the health and environmental
consequences were borne by inhabitants of the areas near these
facilities. Thus, the concerns of inhabitants of the villages near
Jaitapur do deserve special attention.

There are, thus, ample reasons for the Indian government to not enter
into an agreement to purchase EPRs for Jaitapur. It should still be
possible to walk away from the project. Will the government do that or
succumb to geostrategic or ideological interests?

Further Reading

•Autorité de sûreté nucléaire (2015), ‘Flamanville EPR reactor vessel
manufacturing anomalies’, 7 April 2014.

•Bilham, R and VK Gaur (2011), “Historical and future seismicity near
Jaitapur, India”, Current Science, 101(100):1275-1281. Available at:
http://www.greenpeace.org/india/Global/india/Historical%20and%20future%20seismicity%20near%20Jaitapur,%20India.pdf

•Kumar, A and MV Ramana (2007), ‘Nuclear safety lessons from Japan’s
summer earthquake’, Bulletin of the Atomic Scientists, 4 December
2007.

•Ramana, MV (2011), ‘Beyond our imagination: Fukushima and the problem
of assessing risk’, Bulletin of the Atomic Scientists, 20 April 2011.

•Ramana, MV and Suvrat Raju (2013), “Cost of electricity from the
Jitapur Nuclear Power Plant”, Economic and Political Weekly, Vol.
98(26-27), 51-60. Available at:
http://www.princeton.edu/~ramana/SA_XLVIII_26-27_290613_Suvrat%20Raju_M%20V%20Ramana.pdf

•Roussely, F (2010), ‘The Roussely Report: saving the French nuclear
industry with outrageous measures’, Sortir du nucléaire, 27 July 2010.

•Sant, G, S Dixit and S Wagle (1995), ‘The Enron Controversy:
Techno-Economic Analysis and Policy Implications’, Prayas.

•Scientific Correspondence (2012), “Discussion of seismicity near
Jatiapur”, Current Science, 103(11): 1273-1278.

•Thakur, Sudhinder (2008), “Economics of nuclear power in the Indian
context”, Atoms for Peace: An International Journal, 2(1). Available
at: http://www.inderscienceonline.com/doi/abs/10.1504/AFP.2008.019891

•Yeo, S (2015), ‘New Nuclear: Finland’s cautionary tale for the UK’,
CarbonBrief, 20 October 2015.

II.
http://zeenews.india.com/news/india/farmers-fishermen-to-protest-against-jaitapur-nuke-plant-from-today_1849147.html

Farmers, fishermen to protest against Jaitapur nuke plant from today
Last Updated: Tuesday, January 26, 2016 - 03:52

New Delhi: Noting that the project has "serious and insurmountable"
problems, a network of organisations advocating nuclear disarmament on
Monday said that they are opposed to the "unsafe and eco-destructive"
Jaitapur nuclear project and farmers and fishermen of the area will
protest against it from Tuesday.

Coalition for Nuclear Disarmament and Peace (CNDP) said that even
while French President Francois Hollande will be the chief guest at
this Republic Day parade, farmers and fisherfolk in Jaitapur will be
protesting the entire week against his visit as the nuclear reactors
being imported from France for proposed installation in Jaitapur,
Maharashtra, "threaten" their lives.

The statement comes on a day when India and France encouraged their
industrial companies to conclude techno-commercial negotiations by the
end of the year for the construction of six, instead of two, nuclear
power reactor units at Jaitapur.

During the talks with Prime Minister Narendra Modi, Hollande reassured
reliable, uninterrupted and continued access to nuclear fuel supply
throughout the entire lifetime of the plants.

"The French President will be the chief guest at this Republic Day
parade, but 1800 kms from New Delhi, farmers and fisherfolk in
Jaitapur will be protesting this week against Hollande's visit as the
nuclear reactors that India is importing from France threaten their
lives, livelihoods and the local ecology," the coalition said.

Social activist Aruna Roy, Priya Pillai of Greenpeace India and Kumar
Sundaram of Coalition for Nuclear Disarmament and Peace (CNDP) said
this while addressing reporters here.

"The Jaitapur project has serious and insurmountable problems -
large-scale devastation of pristine and fragile ecosystem of Konkan,
destruction of livelihoods for thousands of local farmers, fisherfolk,
alfonso cultivators and traders engaged in agro-business," they said.

Underlining some "crucial risks, they said that there are active
seismic faultlines beneath the proposed site and vulnerabilities of
Areva's reactor design was exposed by the French nuclear regulator
itself. "In the interest of common people of India, we oppose this
unsafe, expensive, eco-destructive and anti-people project. The
government must initiate a democratic dialogue for a sustainable
future for India."

PTI
First Published: Tuesday, January 26, 2016 - 03:52
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Peace Is Doable

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