UPDATE ON TAIWAN'S NUCLEAR SECTOR

C O N F I D E N T I A L TAIPEI 001757

SIPDIS

SIPDIS

NP/NE FOR ALEX BURKART

E.O. 12958: DECL: 08/06/2012
TAGS: KNNP TRGY ENRG ECON PGOV TW
SUBJECT: UPDATE ON TAIWAN'S NUCLEAR SECTOR

REF: A. TAIPEI 01499


B. TAIPEI 01121

Classified By: Economic Section Chief Hanscom Smith for reasons 1.4 b/d


NUCLEAR SECTOR UPDATE
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1. (U) AIT Econoffs met with newly appointed Atomic
Energy Council (AEC) Chairman Su Shian-jang August 2 for an
update on the nuclear energy situation in Taiwan. AIT
thanked the AEC for its close cooperation going back to the
mid-eighties, and looked forward to continued bilateral
exchanges. Su was upbeat about nuclear energy, citing the
ever-increasing prices of fossil fuels. However, he said
that although 20 percent of Taiwan's power needs are from
nuclear sources, that figure is decreasing because it cannot
keep pace with growing energy demand. He said the 4th
nuclear power plant (NPP) is about 65 percent complete, with
a scheduled completion date of July 2009. He added that
Taipower Company (TPC),which will be operating the plant,
will submit a final safety report on the power plant to the
AEC in the next two weeks.


2. (C) Su reiterated that Taiwan has no plans for new
nuclear power plants beyond the 4th NPP, but instead will
focus on power plant upgrades and re-licensing to boost power
and extend the life of the existing power plants. On the
subject of re-licensing, Su said a normal procedure would
take up to 18 months to complete, and Taipower will wait
until after the presidential elections in March 2008 to
initiate the application with the authorities so that it
doesn't become an election issue. A strong anti-nuclear
movement drove the Chen Shui-bian administration to halt
construction of the 4th NPP project in October 2000
(subsequently re-started in January 2001).

EARTHQUAKE PREPAREDNESS
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3. (SBU) Econoffs also asked Su about nuclear safety in
light of the recent strong earthquake which affected the
nuclear power plant in Niigata Japan. Su said Taiwan has
incorporated earthquake design parameters in all of its
nuclear plants and that during the December 2006 earthquake
in Hengchun, southern Taiwan, the local power plant was
manually shut down. Asked about plans for an automatic
shutdown system to be installed, Su said TPC is testing a
system acquired from Japan. The Institute of Nuclear Energy
Research (INER) is modifying the system for use in Taiwan by
November, he added.

RADIOACTIVE WASTE DISPOSAL
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4. (C) On the subject of low-level radiation waste (LLRW)
disposal, Su said there is no timetable for when the first
disposal site might become operational. Four sites have been
identified, but none have been given the green light to begin
construction. According to Su, the residents of one locality
where the LLRW repositories are to be located heartily
approve of the project, but when the whole county is polled
the results are different. To sweeten the deal, the
authorities will provide financial incentives of up to NT $5
billion (US$150 million) to the localities where waste sites
are planned. The first local referendum on siting of a LLRW
disposal site will take place in 2008 and the estimated time
frame to begin operation of the LLRW disposal sites is 2016.
Su said it takes 3 years to obtain approval and another 5
years to complete construction.

OCTOBER BILATERAL MEETING
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5. (U) AEC officials said they are looking forward to the
next bilateral nuclear meeting with US counterparts scheduled
for late October and are in the process of reviewing the
agenda. They have also selected a site in Ilan on the east
coast for an offsite, and said they plan to include a tour of
the unfinished 4th NPP at Lungmen.


YOUNG