VZCZCXYZ0011
RR RUEHWEB

DE RUEHIN #2084/01 1670943
ZNR UUUUU ZZH
R 160943Z JUN 06
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 0736
INFO RUEHBJ/AMEMBASSY BEIJING 5325
RUEHUL/AMEMBASSY SEOUL 7889
RUEHKO/AMEMBASSY TOKYO 7780
RHMFIUU/DEPT OF ENERGY WASHINGTON DC

UNCLAS AIT TAIPEI 002084 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE PASS EAP/TC; NP/NE FOR ALEX BURKHART 
 
 
 
E.O. 12958: N/A 
TAGS: KNNP SENV ECON PGOV TW
SUBJECT: NUCLEAR ENERGY BECOMING ACCEPTABLE IN TAIWAN? 
 
REF: A. A. 05 TAIPEI 04246 
 
     ¶B. B. 05 TAIPEI 02601 C. 05 TAIPEI 00846 
 
¶1. (SBU) SUMMARY.  In the wake of gasoline and utility 
price hikes, nuclear energy has enjoyed rising support in 
Taiwan. Following this trend, some anti-nuclear proponents 
have spoken out in favor of continued nuclear energy use. 
Sustainable development has become the rallying point for 
those who insist that nuclear is not the only option. 
Pro-nuclear experts believe that an energetic campaign to 
convince the public of the safety of nuclear plants is all 
that stands in the way of a nuclear energy renaissance.  END 
SUMMARY. 
 
TAIWAN AND NUCLEAR POWER: AT A CROSSROADS 
------------------------------------------ 
 
¶2. (U) Taiwan's three operating nuclear power plants (NPPs) 
supply 20 percent of the power needs of Taiwan. The fourth 
NPP is slated to come online in 2009-10, increasing Taiwan's 
power generation capacity by about five percent.  However, 
the ruling Democratic Progress Party has long advocated a 
"non-nuclear homeland"  and they have called for the early 
decommissioning of all four plants.  They have claimed that 
nuclear power is inherently unsafe.  They have long argued 
that nuclear power plants are subject to disastrous accidents 
(a la Three Mile Island or Chernobyl) especially in an 
earthquake prone Taiwan. They have also contended that Taiwan 
did not have a means of safely disposing of the low level 
radio-active waste material (LLRW) and high level radioactive 
waste (spent fuel) they generate.  That argument has lost 
steam due to the good safety record of the NPPs and efforts 
underway to build 
safe long-term repositories for its LLRW (spent fuel 
continues to be stored on site at the NPPs).  Moreover, 
increasing gas prices and utility costs are forcing 
policy makers to rethink the non-nuclear strategy, 
as evidenced by the public statements of prominent 
scientists and politicians. 
 
DPP - RETHINKING NUCLEAR POWER? 
------------------------------- 
 
¶3. (U) Coming on the heels of a NT$ 3.00 gas price increase 
in the last two months, past anti-nuclear supporters, such 
as Academia Sinica President Lee Yuan-tseh, called for 
completion of the 4th nuclear power plant and continued 
use of nuclear power in Taiwan for at least 50 years. 
At an environmental conference held in April, Lee said 
Taiwan will have to rely on nuclear power if clean air 
and sustainable development issues are important concerns 
of economic policy.  Press reports that during a DPP internal 
meeting Vice-President Annette Lu also commented that nuclear 
energy was being viewed as an environmentally-friendly energy 
source and asked that experts examine the possibilities of 
nuclear energy in order to meet the challenges posed by the 
global energy crisis.  Her comments were in response to Lee's 
earlier statement on nuclear energy. 
 
REDUCING NUCLEAR DEPENDENCE THROUGH SUSTAINABLE DEVELOPMENT 
--------------------------------------------- -------------- 
 
¶4. (SBU)  The anti-nuclear camp is no longer focusing only on 
safety issues as before but has turned its attention to 
sustainable development.  AIT spoke with Yeh Junn-Rong, 
a long time anti-nuclear activist and former minister 
without portfolio, who is now a professor of environmental 
law at National Taiwan University.  Yeh said that nuclear 
power is not only a technical issue (of nuclear safety) but 
has become a political issue (involving energy policy) in 
Taiwan.  The anti-nuclear forces in Taiwan were no longer 
focusing on the technicalities of waste disposal but on 
sustainable development.  They viewed continued reliance on 
nuclear power as indefinitely postponing their ultimate goal 
of turning Taiwan into a sustainable economy by practicing 
energy efficiency, conservation, reducing wasteful practices 
and educating the public.  As long as nuclear power remains 
viable (and cheap), there would be no incentives to encourage 
Taiwan firms to invest in and develop sustainable 
technologies such as wind, solar and geothermal power.  Yeh 
said that rising utility costs could force the public and 
government to look at alternative energy and conservation. 
Yeh remains committed to the "non-nuclear homeland" concept. 
(Note. Taiwan, while not a signatory to the Kyoto Protocol 
has undertaken steps to reduce C02 emissions by requiring 
industries to use the least polluting equipment available. 
It is also looking at supplementing its fossil fuel needs 
through biomass  fuels production--not a practical pursuit 
given Taiwan's limited agricultural land and resources.  End 
note.) 
 
THE VIEW FROM EPA; NUCLEAR POWER NEEDS REFERENDUM 
--------------------------------------------- ---- 
 
¶5. (SBU) EPA administrator Chang Guo-long, a long-time 
opponent of nuclear power, told AIT/T the public is not 
really concerned where the power comes from as long as 
it was there and affordable (ref B).  However public opinion 
about the future of nuclear power in Taiwan is an issue that 
has become so politicized that he felt only a public 
referendum could move it forward.  Chang pointed out that any 
plans to extend the life of the nuclear plants beyond their 
original operational lifetime would run into the Basic 
Environmental Law section 23 where it is clearly stated 
that Taiwan is to become a nuclear free homeland.  Chang, 
like Yeh also believes in a sustainable Taiwan and thinks 
that keeping electricity and water costs low only prolongs 
the illusion of cheap energy in Taiwan. (Note: electricity 
costs in Taiwan have not been raised for two decades.  This 
has been part of a government policy that favors industry in 
order to promote exports by keeping production costs low. 
The average household consumer has also benefited from this 
system as only heavy users are charged on a sliding scale. 
AIT does not believe this policy approach has encouraged 
conservation or provided incentives to develop alternative 
energy sources. 
End note.) 
 
AEC -- CONFIDENT OF NUCLEAR POWER'S VIABILITY 
--------------------------------------------- 
 
¶6. (SBU)  Contrary to the thinking of anti-nuclear advocates, 
who see Nuclear power as transitory, Minister Ouyang 
Min-sheng of the Atomic Energy Commission (AEC) was supremely 
confident of the future of nuclear power.  At a dinner in 
April for a visiting delegation from the U.S. Nuclear 
Regulatory Commission (NRC), Ouyang told AIT that he was not 
worried about the future of nuclear power and that funding 
for the fourth nuclear power plant was certain.  He said that 
as oil prices rose around the world, the only viable energy 
substitute was nuclear power.  Previously, only U235 material 
could be used for fuel; there is now potential, he said, to 
use spent fuel (U238) as fuel, opening new possibilities for 
growth.  He said that Taiwan's entire nuclear power 
regulatory and research structure (AEC, INER and research 
organizations) would remain intact given the growing 
importance and support for nuclear power in Taiwan (ref B) 
but he acknowledged that much work remained to convince a 
skeptical public about the benefits and safety of nuclear 
energy.  In May, Ouyang reiterated his optimism to AIT Econ 
Chief, assuring us that funding would be available to 
complete 4 NPP and put it into operation.  He was confident 
that Taiwan would also solve its issue of storage for LLRW, 
noting that counties selected as potential sites for the LLRW 
storage facility would be given an incentive package in terms 
of jobs and economic development that would be very 
attractive to county authorities and residents alike.  Ouyang 
assured AIT that the DPP has come to a quiet  internal 
decision to support continued use of nuclear power.  He added 
that he would remain in his position until 2008 when he plans 
to retire. 
 
¶7. (U) COMMENT. The future of nuclear power in Taiwan looks 
more promising than it did a year or two ago. The 4th NPP 
will most likely be completed and the three currently 
operating plants may be re-licensed to extend their operating 
lifetime.  Anti-nuclear groups, however, will continue to 
advocate for sustainable development and use of alternative 
energy sources instead of nuclear power.  Energy analysts in 
Taipei believe that relying on alternative energy sources, 
which now contribute a miniscule two percent of Taiwan's 
energy power generation capacity, is unrealistic.  In order 
for Taiwan to fulfil its commitment to the Kyoto Protocol on 
reduction of CO2 emissions, the authorities appear ready to 
fully exploit the nuclear power currently on tap and hope 
that in the long run alternative energy sources can gradually 
displace nuclear power (ref C). 
END COMMENT. 
 
 
KEEGAN