IEEJ: January 2011

Special Bulletin
August 19, 2010
A Japanese Perspective on the International Energy Landscape (7)Iran’s Bushehr Nuclear Power Plant to Launch Operations with Russian HelpKen Koyama, PhD
Director
Strategy and Industry Research Unit
Institute of Energy Economics, Japan

On August 13, Russian state-run nuclear company Rosatom issued a statement that Iran’sBushehr nuclear power plant (with capacity at 1 million kW) under construction with Rosatom’s
help would be prepared to launch operations as nuclear fuel is transported to the plant on August 21.
A ceremony to mark this event will be held on that day in the presence of Rosatom President Sergey
Kirienko and Ali Akbar Salehi, president of the Atomic Energy Organization of Iran.
Before the nuclear plant launches actual operations, Iran will have to take some more steps
including the loading of fuel in the nuclear reactor under the supervision of the International Atomic
Energy Agency and operations through stable nuclear fission control. The loading is reportedly
scheduled to start in late September. As nuclear fuel is transported to the plant, however, it will
officially become a nuclear facility, making a key step toward its operations.
The construction and operations of a nuclear power station have been Iran’s national
project amounting to its long-cherished wish. The project goes back to the Shah Era in the 1970s
before the Islamic Revolution. The construction began with help from Germany’s Siemens. But theproject came to a halt on the 1979 Islamic Revolution. After such regional developments as theIran-Iraq War, Russia participated in construction to resume the project in the 1990s. However, Iran’s
nuclear weapon development problem surfaced separately from the civilian nuclear power station
project. As Iran’s tensions with the United States have escalated over the problem, the United States
and the United Nations have imposed sanctions on Iran. The situation surrounding Iran’s nuclear
weapon development problem has basically remained tough. Under such situation, the Bushehr
nuclear plant project has been delayed. At last, the project is making progress, preparing to launchplant operations.
Over the past one or two years, the international situation surrounding Iran’s nuclear
weapon development problem has grown even tougher. Calls grew for tough actions against Iran thatproceeded with its nuclear weapon development (uranium enrichment) even under internationalpressures led by the United States. As a result, the United Nations Security Council adopted
Resolution 1929 in June this year, urging Iran to promptly stop uranium enrichment under threats oftougher financial sanctions, arms embargoes and cargo inspections. In response to the U.N. sanctions,the United States and European countries came up with additional and enhanced sanctions on Iran.

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What has been behind the progress seen toward the operations of the Bushehr nuclear
power station even under such situation? In an interesting development, the United States, which had
a tough stance against the nuclear plant project in connection with the nuclear weapon development
issue, sent messages that could be interpreted as tolerating the nuclear plant project. For example,Assistant Secretary of State Phillip Crowley indicated some understanding about Iran’s operations of
the Bushehr nuclear plant with Russian help by pointing out that it was important that theconstruction and operations of the nuclear plant be put under IAEA supervision. He is believed tohave made a fine-tuned decision to demonstrate some understanding about the nuclear plant
construction in a bid to get the UNSC resolution adopted with support from Russia that had been
negative about sanctions on Iran. Given that Russia has adopted a nuclear fuel leasing scheme toprovide fuel for the Bushehr nuclear plant and to collect spent fuel for transportation out of Iran, asnoted by White House Spokesman Robert Gibbs, the United States could argue that if theconstruction and operations of the nuclear plant are designed only for peaceful purposes as claimedby the Iranians, Iran may not have to build any uranium enriching facility on its own. The U.S.
government could have taken such argument into account. Meanwhile, Russia might have thought itwould be important for Moscow to enhance its presence in nuclear business while securing its
influences on Iran and the United States in international politics.
Under such situation, a simple conclusion is that while the construction and operations of
the nuclear plant might have been approved internationally amid various speculations, the nuclear
weapon development problem has existed as a separate issue. Future developments regarding thenuclear weapon development problem may be tough. In this sense, no optimism can be warranted on
future developments including how the international situation regarding the nuclear weapon
development problem will change and how such change will be linked with the nuclear power plant.
Nuclear energy has attracted global attention again in respect to global warming, theenhancement of energy security, growth strategies and industries policies. At a time when the term
“nuclear renaissance” is frequently used, expectations have grown more and more on nuclear power
generation as an energy option. As indicated by the Iranian case, however, a key point that we should
not forget is that international efforts, frameworks and cooperation for the nonproliferation ofnuclear weapons, in addition to the secured safety, economic efficiency and social acceptability of
nuclear energy, are important for the future expansion of nuclear power generation.
More directly, the Iranian nuclear weapon development problem is an important regional
issue for the Middle East including Iran and of great significance to the political and geopoliticalstability of the Middle East from a broader viewpoint. At a time when international tensions exist
over the Iranian nuclear weapon development problem, there are many points to which we should
pay attention depending on future developments. One of these points is how the internationalsituation involving Iran and the toughened sanctions on Iran could change regional political tensions(a possible tougher Israeli attitude is predicted by some experts). The other points include how anychange in regional political tensions would affect the stability of the international energy situationand how the progress in Iran’s introduction of nuclear power generation would impact efforts thathave begun in the Middle East to introduce nuclear power generation.

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Iran’s nuclear power generation project is closely related to the nonproliferation of nuclear
weapons as a key global challenge and indicates how closely the nuclear power generation
development is linked to international political and geopolitical issues. Now that nuclear power
generation projects have increased in emerging and new nuclear power generation countries in Asiaand the Middle East, Iranian developments are important for anticipating future international energy
situations.
Contact: report@tky.ieej.or.jp

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