Plans to build a nuclear plant by 2020 under the Economic Transformation Programme (ETP) will not be viable for in terms of cost, according to a reseacher under the Brain Gain Malaysia Programme.
“With past trends as indications, the total investment cost needed to build a nuclear plant would be twice the cost allocated initially,” said David Jacobs, an independent energy policy consultant and researcher at the Environmental Policy Research Centre of Freie Universitat, Berlin.
“Previously, there was a nuclear power plant which was planned in Finland with an expected cost of 2.5 billion euros, but the final cost escalated to 5.0 billion euros,” he said at the third Malakoff Community Partnerships Energy Expert Series here Wednesday.
He added that it took a couple of years more to actually bring the plant on line.
According to the ETP handbook, the cost of building the twin-unit nuclear plant will require an investment of RM21.3 billion by 2020.
Under the Brain Gain Malaysia programme, Jacobs was attached with Universiti Tenaga Nasional’s Institute of Energy Policy and Research for six weeks.
“While the cost of building a nuclear plant is on the rise, the cost for renewable energy is going down at the same time,” Jacobs said.
“Authorities should conduct more economic viability analysis before starting the nuclear plant project. It would make much more sense to extend the renewable energy fund for development in that sector,” he said.
According to Jacobs, Malaysia should set much more ambitious goals on its long-term renewable energy plans.
“With Malaysia targeting to achieve 25 per cent of total usage of renewable energy by 2050, other countries would be in the 60 to 70 per cent range by that time,” he said.
Jacobs said the 5.5 per cent target Malaysia has set by 2015 could definitely be achieved and the country should set higher targets.
“The one per cent Feed in Tariffs (FiT) for development of renewable energy should be higher in the region of two to five per cent,” he said.
“Authorities should educate and gain the society’s support for the development of renewable energy as it does not only involve cost but also more intrinsic benefits along the way.”
He added that plans to increase electricity tariffs by one per cent for FiT should be implemented by January next year so that it would be effective by July 2011.
