Italy to Reintroduce Nuclear Power as European Leaders Back Nuclear Revival

A Landmark Move

In a sign that Italy's new government intends immediately to stamp its mark on the country's energy policy, Economic Development Minister Claudio Scajola has announced that the government will initiate a return to nuclear power generation in the country. Speaking to Italian employers' federation Confindustria yesterday, Scajola said that "during the term of this parliament, we will lay the first stone for the construction in our country of a group of new-generation nuclear power stations."

The announcement confirms a campaign pledge by Prime Minister Silvio Berlusconi, but, nevertheless, represents a controversial and brave move on behalf of the government. Following the Chernobyl nuclear disaster in Ukraine in 1986, Italy held a referendum that led to a decision to abandon the use of nuclear energy. The country's four existing plants were gradually shut down with the last reactor switched off in 1990. The country has remained nuclear free since that time. The adoption of the nuclear ban on the basis of popular opinion has seen successive governments reluctant to touch the policy, no doubt fully aware of the controversy that such a move would cause. However, growing energy security pressures—Italy depends on foreign sources for 87% of its energy needs and imports up to 20% of its power—as well as increasing environmental constraints in the energy sector have seen pressure build on the Italian government to reconsider all options to secure the country's energy future. The announcement by Scajola is confirmation that the government sees that nuclear energy is the answer to these pressures. "We can no longer avoid an action plan for a return to nuclear power," Scajola said, adding that: "Only nuclear power stations can produce energy on a large scale, in a secure way at competitive costs and one that respects the environment."

European Support

At the same time as Scajola was revealing the Italian government's intentions to facilitate new nuclear power plants, a number of European leaders were echoing his statements on the potential benefits that nuclear energy can provide. Speaking at the opening of a two-day meeting of the European Nuclear Energy Forum, European Commission (EC) President José Manuel Barroso emphasised the contribution that nuclear power can make to the battle against climate change, adding that it was also one of the cheapest low-carbon energy sources and was less vulnerable to price changes. Barroso went on to say that nuclear energy helps to enhance the energy supply security of the European Union (EU) by increasing diversification of energy sources and reducing dependence on imported gas. The speech was a further indication of the EC's support of nuclear energy, although Barroso indicated that he recognised ongoing concerns over the use of nuclear power and would continue to respect the position of individual member states on the issue, affirming that each EU nation had the "absolute right" to decide freely among different energy sources. However, the Italian government's announcement on the same day, in addition to a similar decision by the U.K. government in January to build new nuclear power plants, is a strong indication that EU member states are now viewing the benefits of nuclear energy in the same light as the EC.

Outlook and Implications

Scajola's announcement has made the government's intentions clear, although the path ahead for new nuclear construction remains hazy. The government will likely need to work hard to gain public buy-in to its decision, with large segments of the population thought to retain strong anti-nuclear views. Local opposition is also sure to be strong, once decisions are made on exactly where new nuclear plants might be built. In the past, protestors have blocked road and rail links and fought with police to oppose the construction of major infrastructure in their neighbourhood. The government appears to have done some thinking on the challenges ahead, with Scajola indicating that it will move to reduce red tape and bureaucracy for such projects while also looking at incentive schemes to persuade local populations to accept infrastructure development. Even so, the process to establish new nuclear plants—which will require the establishment of new regulatory and oversight bodies given the long absence of nuclear power in Italy—will surely be long and arduous. The government's efforts to see this process move forward are sure to continue for the remainder of its five-year term.

Immediately following the Italian government's announcement, national power incumbent Enel indicated it was "technically ready" to take part in the construction of new nuclear plants. The company had already suggested earlier this year that it could bring a new reactor online within seven-10 years. Enel's domestic rival Edison, however, has indicated that new plants are unlikely to be up and running before 2020. Yesterday's announcement, therefore, represents the very first step in what is sure to be a long process involving the government, energy companies, other interest groups, and the broader public. The details of how this process will run will emerge in the coming weeks and months. Nevertheless, the Italian government's decision to return to nuclear energy after a 20-year hiatus is perhaps the strongest indication yet that European countries are facing a new reality in the energy sector, which is seeing security and environmental concerns held paramount. In such a context, nuclear energy is proving ever more attractive and Italy seems unlikely to be the last country to revise its position to allow new nuclear power plants to be built.

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