LONDON/PARIS - The International Energy Agency urged governments on Tuesday to build more nuclear plants to slow climate change and increase energy security, throwing its weight behind the push for atomic power.In its annual World Energy Outlook, a 596-page response to a G8 call for a sustainable energy blueprint, the agency said unless leaders took action world demand for fossil fuels would rise by more than 50 percent, along with carbon emissions.

Energy conservation and investment in nuclear power could cut consumption by 10 percent by 2030, the IEA said, equivalent to China`s energy use today. Carbon emissions would drop by 16 percent, what the United States and Canada emit between them. "We are on course for an energy system that will evolve from crisis to crisis," Claude Mandil, executive director of the adviser to 26 industrialised nations, told a news conference. "That may mean skyrocketing prices, or more frequent blackouts."

By 2030, oil could soar to US$130.30 a barrel if energy investment and government policies fall short, the IEA warned. A jump to a record near US$80 in July left consumer governments worried about their economies.

The report drove home the nuclear message. "The economics have moved in nuclear power`s favour," it said. "Nuclear power offers considerable advantages in terms of avoiding greenhouse-gas emissions and of energy security."

It is the first time the IEA, set up after the 1973-74 Arab oil embargo, has backed nuclear power in such strong terms. This year`s report devotes a whole chapter to nuclear energy. The Paris-based agency said more than US$20 trillion must be invested in new energy supplies by 2030 to meet demand, up US$3 trillion from a year ago mainly due to cost inflation. There remains a strong risk investment will fall short and rising expenditure might not be all it seems. The IEA said a jump in energy spending was largely illusory because of the rising cost of drilling, materials and wages.

REVIVAL
Nuclear power is on an international growth path despite concerns over safety and the risk of radioactive material falling into the hands of al Qaeda or other similar groups. At a G8 meeting in March, US Energy Secretary Sam Bodman said he hoped for "a rebirth of the global nuclear industry".

Last week a British report by former World Bank chief economist Nicholas Stern called for urgent action on climate change. Supporters of nuclear power seized on the report, which warned of huge economic and environmental damage.

Even anti-nuclear Germany has suggested it may look again at its plan to phase out nuclear plants. "Clearly some countries that had said nuclear will not happen are now speaking again about nuclear," Mandil said.

The World Nuclear Association welcomed the IEA report. "We are glad the IEA has given such a clear indication of nuclear power`s ability to meet today`s needs," a spokesman for the London-based organization said. "Nuclear is a proven, effective technology for providing stable electricity supplies on a large scale.

But Greenpeace took issue with the IEA`s argument. "Investing in nuclear power is a sure way to lose the battle against climate change," Greenpeace campaigner Sarah North said."It costs up to 10 times as much as energy efficiency measures to get the same carbon savings and creates huge security and environmental threats that will last for tens of thousands of years."

SECURITY AND PRICE INCENTIVE
US oil hit a record US$78.40 a barrel in July, threatening world economic growth. Oil or gas supply disruptions in Russia, Nigeria and Iraq have added to consumer nations` unease. Barring tough measures to tackle oil demand, consumption -- led by China and India -- would surge nearly 40 percent to 116 million barrels per day by 2030, leaving consumers more dependent on OPEC as other reserves run out, the IEA said.

The IEA said more spending was needed to lift nuclear capacity by more than 40 percent to 519 gigawatts by 2030. Nuclear plants provided just 15 percent of the world`s electricity last year. Coal, a major source of greenhouse gases, and gas generate the vast bulk of the world`s electricity. The IEA called for more efficient use of energy, in light bulbs and cars, for instance. Consumers will have to pay up initially, but those costs will be far exceeded by the savings. For a full list of policies, see www.worldenergyoutlook.org.
By Alex Lawler, Muriel Boselli, Stuart Penson, Peg Mackey and Janet McBride
(Planet Ark, 08/11/2006)
http://www.planetark.com/dailynewsstory.cfm/newsid/38866/story.htm