Opinion of the Advisory Committee of the Euratom Supply Agency on the Commission Green Paper "Towards a European strategy for the security of energy supply"
Date: 2001-11-24
Institutions: Advisory Committee on Concentrations
Subjects: EU publication, Euratom Supply Agency, electrical energy, nuclear energy, security of supply, single market

24.11.2001

EN

Official Journal of the European Communities

C 330/15

Opinion of the Advisory Committee of the Euratom Supply Agency (1) on the Commission Green
Paper (cid:145)Towards a European strategy for the security of energy supply(cid:146)

(2001/C 330/05)

COM(2000) 769

The Committee welcomes in general
the adoption by the
Commission of its Green Paper on security of energy supply.
It creates an opportunity to have a large and open debate on all
sources of energy, including nuclear energy, and the Committee
has therefore taken the opportunity to adopt an opinion on the
issue.

The enlarged bureau of the Committee met on 16 February
2001 and the Committee was convened on 28 March 2001.

On 28 March 2001 the Committee adopted this opinion by a
large majority.

1. ROLE OF NUCLEAR ENERGY

Role of nuclear energy as a sustainable source of elec-
tricity

(1) Together with environmental protection and economic
efficiency, security of supply is one of the three funda-
mental objectives of energy policy. The Committee shares
the Commission’s concerns with regard to increased
external dependence over the next few decades.

(2) The Committee is of

the opinion that nuclear energy
presently plays and can continue to play a vital role in
the sustainable production of electricity. It has negligible
emissions of greenhouse gases and so contributes to the
achievement of the objectives set by the (cid:145)Kyoto Protocol(cid:146)
of the United Nations Framework Convention on climate
change (UNFCCC). Nuclear energy is the only industrially
mature energy source with negligible greenhouse gas
It should therefore
emissions, which can be expanded.
be recognised as
such and not excluded from the
different
(cid:145)flexibility mechanisms(cid:146) as discussed in the
Kyoto Protocol.

least

(3) The Committee recalls that at

two energy mix
scenarios used by the Commission demonstrate that the
most effective way of achieving the greenhouse gas
include, amongst
emission limits of the Kyoto Protocol
other measures, the construction of several new nuclear
power plants. The (cid:145)Dilemma Study(cid:146) (2) concluded that to

(1) Members of this Committee act as expert advisors to the Supply
the

Agency and do not
Member States or organisations from where they come.

formally represent or legally commit

(2) ERM Energy, Dilemma Study: Study of the contribution of nuclear
power to the reduction of carbon dioxide emissions from electricity
generation,
http://europa.eu.int/en/comm/
dg17/dilemma.pdf

pages,

1999,

157

maintain the share of nuclear capacity in the total
installed capacity at 22 %, 100 GWe of new nuclear
capacity are to be constructed by 2025 to replace
existing reactors and cover new demand. In the (cid:145)Nuclear
Renaissance(cid:146) sensitivity scenario of the (cid:145)European Union
energy outlook to 2020(cid:146) (3) the lowest carbon cost (which
means the lowest cost to society)
is achieved with an
installed nuclear capacity of 212 GWe and a production
of approximately 1 500 TWh in 2030.

(4) Beyond electricity production for today’s application, the
Committee further recalls that there are other potential
peaceful uses for nuclear that could help to further reduce
greenhouse gas emissions in the longer term, and reduce
external dependence on fossil
fuels. They concern
hydrogen production, desalination and process heat
(with new high-temperature reactors).

(5) In view of the delicate balancing of the three main energy
policy objectives, the Committee believes that, without
prejudice
for
energy choices, all energy options must remain open.
Nuclear energy should not be classified with fossil fuels
as a less (cid:145)desirable(cid:146) source.

to the Member States’

responsibilities

(6) Several

for

exist

viable

technical

solutions

the
management of spent fuel. Facilities exist that allow repro-
cessing or safe storage of spent fuel for tens of years.
Other facilities for processing and disposal of low level
and intermediate level radioactive waste are already in
operation in the European Union. Disposal facilities for
high-level waste and conditioned spent
fuel are under
development in all countries that have nuclear power.
They generally have reached a stage of advancement
where the scientific and technical experts feel confident
of
feasibility and ultimate safety. When their
implementation time will come, the precise site selection
and authorisation of these disposal facilities will be made
with the assent of the public authorities of the respective
Member States, and will involve public consultation in the
decision-making process. This very diversity of processes
demonstrates the existence of safe and reliable tech-
nology (4).

their

(3) Energy in Europe, special issue November 1999, pp. 87-88, 173,

http://www.shared-analysis.fhg.de/Pub-fr.htm

(4) Facilities in Member States are regularly reported upon in the
Euratom Supply Agency’s Annual Reports, Chapter III (cid:151) Nuclear
energy developments in the European Union Member States.

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Nuclear energy as a competitive source of electricity
which internalises all its cost components

total nuclear

(7) Nuclear energy is a competitive source of energy in a
deregulated market. Only a very small portion of
the
total production cost of nuclear energy depends on the
uranium price (5 to 7 % of the levelised forward cost) (5).
including
The
the
is estimated to
management of spent
(20 to
account
25 % of the levelised forward cost) (6). As a consequence
the nuclear
and
competitive in comparison to fossil energy sources
which depend more on the volatile oil and gas markets.

cycle
cost,
fuel and waste,

energy production cost

for a modest share of

the total cost

stable

fuel

is

(8) Nuclear energy generation, including building plant and
fuel supply operations, provides for a very high domestic
European added value both in terms of sophisticated
technical and intellectual
input and in terms of highly
qualified jobs.

(9) The figures given in footnote 61 on page 67 of the Green
Paper (footnote 60 in the French version) are just one of
several cost estimates and could be misleading. Compared
to other electricity production sources, existing nuclear
energy is without question generally the most competitive
source, because the capital
is most often
future capacity, according to
largely amortised. For
studies
fuel cost
observed before recent increases, nuclear energy is the
most competitive in several countries and almost
the
countries (7). As
most

taking into account

in several other

the low fossil

competitive

investment

(5) Illustrative Nuclear

Programme

for

the Community

(PINC),

COM(97) 401 final, p. 11 and table p. 41.

(6) Illustrative Nuclear

Programme

for

the Community

(PINC),

COM(97) 401 final, p. 11.

(DIGEC),

(7) OECD Nuclear Energy Agency (NEA) and International Energy
Agency (IEA),
(cid:145)Projected costs of generating electricity (cid:151) update
1998(cid:146), OECD, Paris 1998 (nuclear between USD 2,5 and 4,1 cents
per KWh and most competitive in seven countries on 18, of which
seven did not report nuclear cost projections, with a 5 % discount
and in two countries with a 10 % discount);
French Ministry of Economy, Finance and Industry, Directorate Gas
Electricity and Coal
(cid:145)Les coßts de rØfØrence de la
production Ølectrique(cid:146), 1997, p. 50 (nuclear between FRF 20,7 and
21,2 cents per KWh, or approximately 3,16 to 3,23 eurocents per
KWh, and most competitive at 5 % and 8 % discount except with
low US dollar exchange rate and low gas prices); an overview of the
DIGEC reports is given in the Report to the Prime Minister by
Charpin, Dessus and Pellat,
the
nuclear power option(cid:146), annex I, fiche 9;
Belgian independent Commission on energy choices ((cid:145)AmpŁre(cid:146),
l’analyse des
(cid:145)Rapport de la Commission pour
Commission),
modes de production de l’ØlectricitØ et
le redØploiement des
Energies (AmpŁre) au secrØtaire d’(cid:201)tat (cid:224) l’Ønergie et au dØvelop-
pement durable(cid:146), conclusions and recommendations p. 16 (nuclear
between BEF 1,22 and 1,70 per KWh, or approximately 3,02 to
4,21 eurocents/KWh, and most competitive with and without inter-
nalisation of greenhouse gas cost).
The US Nuclear Energy Institute has indicated that the real costs of
nuclear electricity production are below coal and gas even in areas
where these fossil sources are abundantly available like the USA (see
(cid:145)Production costs made nuclear cheapest fuel in 1999, NEI says(cid:146), in
Nucleonics Week, Volume 42, issue 2, p. 3).

(cid:145)Economic forecast

study of

nuclear energy is less sensitive to fuel cost than fossil
energy, the recent price increase of fossil fuel improves
even more the competitiveness of future nuclear energy
capacity. Furthermore nuclear energy is much less subject
to economic risks to security of supply as caused by the
(cid:145)erratic fluctuations(cid:146) of
fuel prices. Finally the
fossil
decision of a power company in Finland to seek author-
isation for a new nuclear power plant and studies demon-
strate
are
competitive in comparison to other options (8).

electricity production costs

that nuclear

investment

including decommissioning,

(10) Unlike most other energy sources, all cost components
fuel
(capital
including waste management, operation and maintenance
including radiological protection) are included in the
nuclear energy cost. Therefore a comparison of
total
cost should include all cost components, including those
which are so far not internalised in fossil energy sources,
as greenhouse gas emissions.

Taxation

(11) The Committee believes

that additional

taxation on
renewable energy would
nuclear energy to support
disregard a basic reason why renewable energy sources
are supported, namely the avoidance of greenhouse gas
In order to maximise the effect of avoiding
emissions.
greenhouse
environmental
emissions
to any
damage, nuclear energy should not be subject
additional burden that is not related to the environmental
characteristics of nuclear power.

other

gas

or

Leading role of Community industry

(12) The Community industry has played a leading role in the
global development of nuclear energy in the past, and is
capable, if public acceptance improves and new nuclear
capacity is required, of being part of future efforts. In the
meantime expertise should be preserved in order to keep
open the option of developing new nuclear generation
capacity.

(13) The Community industry, with the active involvement of
Member States and Community institutions is also active
in the development of advanced nuclear reactor types (e.g.
the (cid:145)European pressurised water reactor(cid:146) EPR or high-
temperature reactors), advanced nuclear
fission tech-
the Myhrra project) and, much further
nologies (e.g.
into the future, the development of nuclear fusion tech-
nology (e.g. the ITER programme), which could pave the
way for a better acceptance of nuclear energy in the
future.

(8) Risto Tarjanne & Sauli Rissanen:

(cid:145)Least-cost option for baseload
electricity in Finland(cid:146), The Uranium Institute 25th Annual
International
1.9.2000;
http://www.uilondon.org/uilondon/sym/2000/sym00prg.htm

Symposium

London

2000,

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(14) With over 3 500 reactor

years of

safe operation
experience in the EU and with an advanced regulatory
system,
it has been demonstrated that nuclear energy
production in the EU is a safe and reliable process.
Presently the IAEA has an established set of adequate
safety standards for all relevant areas of
the nuclear
power cycle and EU Member States who have concluded
the IAEA Convention on nuclear safety, have opened up
to international scrutiny and peer review. This is a good
basis for continuing to operate a safe nuclear industry in
Europe.

Role of the European institutions

(15) The Euratom Treaty recognised the need to promote the
to improve
development of nuclear energy in order
security of energy supply. The Green Paper demonstrates
that there are still concerns with security of supply. The
EU institutions should play a constructive role and should
therefore not enact legislation which would impede the
choice of existing or future Member States to opt for
nuclear, as such obstacles would be contrary to the
desired security of supply of the Union.

(16) Following open debate, European institutions

should,
without prejudice to the choice of Member States to use
nuclear energy, play a more active role in fostering public
acceptance. They should explain to the public the role of
the EU energy policy, including the use of nuclear energy,
in the avoidance of greenhouse gas emissions. The Green
Paper can be a part of such an effort.

(17) The Euratom Treaty

the

at Community

constitutes
level,

legal
framework
and within this
framework the Commission and the Euratom Supply
Agency ensure a more structured situation with respect
to nuclear fuel supply security than is the case with other
energy sources.

relevant

2. SUPPLY OF NUCLEAR FUEL

Availability of sustainable uranium resources

(18) Uranium resources are available in sufficient amounts to
continue for an extremely long time and at a stable cost,
the production of nuclear energy. This could save for
future generations valuable but limited fossil resources.
To assess the long-term resources not only the known
conventional resources at a low production cost have to
be taken into account, but also possible conventional
resources at a somewhat higher cost and unconventional
resources, some of which have been exploited in the past,
as well as alternative reactor types (fast breeder reactors)
which could use more intensively the energy potential of
uranium.

(19) At

today’s annual global consumption rate of 60 000
tonnes of natural uranium, the coverage (9) of long term
operation of nuclear power is well assured:

(cid:151) known conventional

resources

at

a

cost below

USD 80: 3 million tU or 50 years,

(cid:151) possible conventional resources at a cost of up to

USD 130: 9 million tU or 150 years,

(cid:151) possible conventional resources without specified cost:

16 million tU or 260 years,

(cid:151) unconventional resources in phosphates: 22 million

tU or 370 years (exploited in the past),

(cid:151) unconventional resources in seawater: 4 000 million

tU or 66 000 years (never exploited).

in most cases

(20) The Committee agrees with the Commission that

the
uranium sources are located in geographically diversified
areas,
in politically stable countries.
Uranium supply to the European Union is supervised by
the Euratom Supply Agency with a policy of stimulating
geographical diversification of supply, a policy which is
generally shared by nuclear power operators.

Nuclear fuel cycle supplies

(21) The Community industry also masters the whole nuclear
fuel cycle and plays a leading role from uranium mining,
conversion, enrichment, fabrication (the (cid:145)front end(cid:146) of the
fuel cycle), to reprocessing,
interim spent fuel or waste
storage and spent fuel or waste conditioning in prep-
aration for final disposal
the fuel
cycle). Nuclear energy can therefore contribute, as an
essentially domestic source, to the long-term security of
energy supply of
less
susceptible to disruption than fossil energy sources
heavily dependent upon fuel imports.

the European Union, and is

(the (cid:145)back end(cid:146) of

(9) Source NEA-IAEA. If the energy content would be more intensively
used by fast breeder reactors, the coverage would be approximately
50 times the present coverage: respectively for known conventional
resources at a cost below USD 80: 3 million tU or 2 500 years,
possible conventional resources at a cost of up to USD 130: 9
million tU or 7 500 years, possible
resources
without specified cost: 16 million tU or 13 000 years, unconven-
tional resources in phosphates: 22 million tU or 18 500 years,
unconventional
in seawater: 4 000 million tU or
330 000 years.

conventional

resources

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Security of nuclear fuel supply

(22) The nuclear

industry in the European Union has
historically been reliably supplied with uranium from
external sources during its entire history. An important
contribution to this stability has come from the Euratom
Treaty (10), which charges the Community with the task of
ensuring that all users receive a regular and equitable
supply. The Euratom Supply Agency plays a central role
in performing this task in cooperation with the industry.

(23) The European Union has available within its borders the
complete strategic technology and capacity to provide for
new nuclear fuel and the processing and disposal of spent
fuel. Most of the uranium mined and imported comes
from sources controlled by EU industry.

fuel

strategic inventory in various

is not only much easier to maintain but

(24) Several countries and nuclear power operators keep
nuclear
to
further enhance security of supply. Inventory of nuclear
fuel
is also
significantly less financially burdensome on society than
keeping inventories of oil or gas. Inventory of nuclear
material may amount
requirements
unlike inventories of oil and gas which are only feasible
for a few months of requirements.

to several years’

forms

3. REPLIES TO THE QUESTIONS OF GREEN PAPER

1.

Can the European Union accept an increase
in its
dependence on external energy sources without compro-
mising its security of supply and European competitiveness?
For which sources of energy would it be appropriate, if this
were the case, to foresee a framework policy for imports? In
this context,
is it appropriate to favour an economic
approach: energy cost; or geopolitical approach: risk of
disruption?

Answer: Without addressing the issue of an increase in the
EU’s external dependence, the Committee points out that, as
far as security of supply is concerned, nuclear energy is
sustainable and is less susceptible to external disruptions
than fossil fuels.

2.

Does not Europe’s increasingly integrated internal market,
where decisions taken in one country have on an impact on
the others, call for a consistent and coordinated policy at
Community level?

Answer: Beyond the scope of the Committee.

(10) Articles 2 and 52, EA (cid:151) Treaty establishing the European Atomic

Energy Community (Euratom).

3.

4.

5.

6.

7.

Are tax and State aid policies in the energy sector an
obstacle to competitiveness in the European Union or
not? Given the failure of attempts to harmonise indirect
taxation, should not the whole issue of energy taxation
be reexamined taking account of energy and environmental
objectives?

Answer: When energy taxation aims at the environmental
objective of reducing greenhouse gas emissions, it should
not burden electricity from nuclear reactors, because this
energy is almost free of emissions.

In the framework of an ongoing dialogue with producer
countries, what should supply and investment promotion
agreements contain? Given the importance of a partnership
with Russia in particular, how can stable quantities, prices
and investments be guaranteed?

Answer: Beyond the scope of the Committee.

Should more reserves be stockpiled (cid:151) as already done for
oil (cid:151) and should other energy sources be included, such as
gas or coal? Should the Community take on a greater role
in stock management and, if so, what should the objectives
and modalities be? Does the risk of physical disruption to
energy supplies justify more onerous measures for access to
resources?

keep significant

Inventory of nuclear

inventories of nuclear

Answer: The Committee recalls that in the EU operators
already
fuel
materials.
is not only much
easier to maintain but is also significantly less financially
burdensome on society than keeping corresponding inven-
tories of oil, coal or gas. The Euratom Treaty and the
Euratom Supply Agency constitute the legal framework at
Community level. For nuclear
there is no need for
additional regulation.

fuel

How can we develop and ensure better operation of energy
transport networks in the European Union and neigh-
bouring countries so as to enable the internal market to
function properly and guarantee security of supply?

Answer: Beyond the scope of the Committee.

The development of some renewable energy sources calls
for major efforts in terms of research and technological
investment aid and operational aid. Should
development,
this aid include a contribution from
co-financing of
sectors which received substantial
initial development aid
and which are now highly profitable (gas, oil, nuclear)?

Answer: The reason why renewables are to be supported is
their contribution to the reduction of greenhouse gas
emissions.
It would not seem appropriate to impose a
burden on nuclear energy, which is the most developed
virtually emission free technology.

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8.

Seeing that nuclear energy is one of the elements in the
debate on tackling climate change and energy autonomy,
how can the Community find a solution to the problem of
nuclear waste, reinforcing nuclear safety and developing
research into reactors of the future,
in particular fusion
technology?

11.

Should energy saving in buildings
energy
consumption), whether public or private, new or under
renovation, be promoted through incentives such as tax
breaks, or are regulatory measures required along the
lines of those adopted for major industrial installations?

(40 % of

Answer: Beyond the scope of the Committee.

Answer: The Committee refers to its opinion and stresses in
particular some points it has raised, namely:

(cid:151) Spent fuel management is an operational reality in the
EU. Facilities exist for both reprocessing and safe storage
of spent fuel. Technical solutions to the nuclear waste
problem exist in the EU (deep geological repositories in
salt, clay or granite), and plans to build sites are
in Finland and Sweden. The political
underway
selecting sites are still due in several
decisions of
tech-
fuel
spent
Member States. Further
nologies are under consideration.

treatment

12.

depends

Energy saving in the transport sector (32 % of energy
consumption)
growing
on
imbalance
imbalance between road and rail.
inevitable, or could corrective action be taken, however
unpopular, notably to encourage lower use of cars in
urban areas? How can the aims of opening up the sector
to competition,
in infrastructure to remove
investment
bottlenecks and intermodality be reconciled?

redressing
Is

the
this

Answer: Beyond the scope of the Committee.

(cid:151) Nuclear safety is well under control

in the EU and
research into advanced reactors is not limited to the
long-term development of nuclear
fusion, but also
includes advance pressured water reactors (the EPR),
high temperature
fission
processes (accelerators).

and alternative

reactors,

(cid:151) Nuclear energy is not only (cid:145)one of the elements(cid:146), it is a
mature and developed proven technology with a
minimum of greenhouse gas emissions, and hence it
is indispensable if the EU really wants to achieve the
Kyoto Protocol objectives.

9. Which policies should permit the European Union to fulfil
its obligations under the Kyoto Protocol? What measures
could be taken in order to exploit fully potential energy
savings which would help to reduce both our external
dependence and CO2 emissions?

Answer: If nuclear were to be phased out there is no chance
of achieving these objectives. To achieve the Kyoto Protocol
objectives, any realistic policy would, in conjunction with
least aim to keep, nuclear energy
other measures, at
approximately at
the energy mix (which
share of
means allowing additional new or replacement reactors).

its

10.

Can an ambitious programme to promote biofuels and
other substitute fuels, including hydrogen, geared to 20 %
of total fuel consumption by 2020, continue to be imple-
mented via national initiatives, or are coordinated decisions
required on taxation, distribution and prospects for agri-
cultural production?

Answer: Beyond the scope of the Committee.

13.

How can we develop more collaborative visions and
integrate the long-term dimension into deliberations and
actions undertaken by public
and other
involved parties in order to evolve a sustainable system of
energy supply. How are we to prepare the energy options
for the future?

authorities

The

European

a
Answer:
constructive and more prominent role, in fostering public
acceptance of a new energy policy for a sustainable energy
system, including nuclear energy.

institutions

should

play

14.

Any other questions or proposals:

(cid:151)

4. CONCLUSION

(25) The Committee is of the opinion that nuclear energy is a
that

energy source, and concludes

long-term sustainable
therefore:

(a) From the point of view of security of supply, nuclear
energy has evident advantages in comparison to other
energy sources, particularly at Community level, and
could be considered either as an essentially domestic
source or as a strategic Community reserve of the
European Union.

(cid:151) Uranium resources

sustain
long-term nuclear energy production and thus to
save for future generations valuable limited fossil
resources.

sufficient

are

to

(cid:151) Inventories of uranium are easier and cheaper to
maintain when compared to other energy sources.

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(cid:151) Within the framework of the Euratom Treaty, the
Commission and the Euratom Supply Agency
ensure a more structured situation with respect to
nuclear fuel supply security than is the case with
other energy sources.

(c) From the point of view of economic efficiency, nuclear
energy can be competitive, even in the prevailing
conditions of
a deregulated and liberalised EU
internal
energy market, and particularly existing
nuclear capacity.

(cid:151) European industry has played a leading role in the
development of nuclear energy and is capable of
future efforts.

(cid:151) Nuclear energy can contribute, as an essentially
long-term security of

domestic
energy supply of the European Union.

to the

source,

(b) From the point of view of environmental protection, and
particularly the Kyoto Protocol goal
to reduce
greenhouse gas emissions, nuclear energy is now
and for the foreseeable future, a major large-scale
reliable technology that can help achieve the EU
committed targets.

(cid:151) Nuclear energy can play a crucial role, among
emission

in achieving the

other energy sources,
levels set by the Kyoto Protocol.

(cid:151) For the management of spent fuel and the disposal
of nuclear waste technical solutions exist, but they
need to be complemented by political decisions to
confirm strategic choices and select storage sites,

(cid:151) Long-term production costs of nuclear energy are
and

competitive with

fossil

predictable
renewable energy sources.

and

(cid:151) Nuclear energy should not be made subject

to
additional taxation designed to support renewable
energy sources.

(cid:151) Unlike most other energy sources, nuclear energy

costs include all nuclear cost components.

(d) A Community strategy proposed by the Commission to
integrate these energy policy objectives and to achieve
the Kyoto objectives in the most economic way,
should be realistic and take into account long term
and short
term needs and has to recognise that
nuclear energy can play a crucial role in the EU’s
future energy mix.

The Committee requests the Director-General of the Supply
Agency to transmit this opinion to the Commission of the
European Communities, as a contribution to the debate on
the Commission Green Paper (cid:145)Towards a European strategy
for the security of energy supply(cid:146) COM(2000) 769 final, and
recommends its publication.