Riyadh will push nuclear to diversify energy mix

Subject

Saudi plans to build nuclear power facilities

Significance

Saudi Arabia has made brisk progress with plans to develop nuclear power. Recently published satellite images indicate that an initial small reactor could be complete by late 2019. Nuclear power has long been part of the kingdom’s future energy plans, but concerns have been voiced about the programme’s recent acceleration and about the absence of a high-level inspection accord with the International Atomic Energy Agency (IAEA).

Impacts

• The development of nuclear power would make a major contribution to efforts to reduce heavy reliance on oil for electricity generation.
• The potential scale of the nuclear programme will stimulate intense commercial competition for contracts.
• Washington will exert pressure to ensure US companies are involved, in recognition of political and military ties between the two countries.
• Continued lack of enhanced IAEA inspections will deepen suspicion that Riyadh may be exploring a nuclear weapons option.