VZCZCXYZ0001
RR RUEHWEB

DE RUEHMD #1362/01 3641238
ZNR UUUUU ZZH
R 291238Z DEC 08
FM AMEMBASSY MADRID
TO RUEHC/SECSTATE WASHDC 5826
INFO RHMCSUU/DEPT OF ENERGY WASHINGTON DC
RUEHUNV/USMISSION UNVIE VIENNA 0100
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS MADRID 001362 
 
SENSITIVE 
SIPDIS 
 
STATE/T FOR MARC HUMPHREY, COMMERCE FOR SARAH LOPP 
 
E.O. 12958: N/A 
TAGS: ENRG TRGY BEXP BTIO SP
SUBJECT: SPAIN TO MAINTAIN CIVIL NUCLEAR ENERGY, NO FURTHER 
EXPANSION PLANNED 
 
REF: SECSTATE 127468 
 
  ¶1. (SBU) Summary.  Civil nuclear power in Spain is being 
phased out.  Nuclear power provides approximately 20 percent 
of Spain's electricity, and has remained relatively constant 
in recent years.  Spain operates 8 nuclear reactors at 6 
plants, as well as other nuclear facilities including a waste 
repository, and the industry employs an estimated 30,000 
people.  GOS policy toward the use of nuclear power shifted 
after the current ruling Socialist party (PSOE) was elected 
in 2004.  Current President Zapatero has staunchly maintained 
an anti-nuclear stance, calling for the closure of Spain's 
nuclear plants as early as his election campaign in 2003. 
Yet the realities of steady increases in demand for 
electricity in what had been one of Europe's fastest growing 
economies have forced the GOS to maintain its existing 
nuclear power capacity.  The result has been a GOS policy of 
prohibiting expansion of nuclear energy, and decommissioning 
existing plants as they reach the end of their useful lives. 
The GOS is following its plan, with the most recent 
decommissioning in 2006 of its Jose Cabrera plant. 
Politically, support for nuclear energy has traditionally 
fallen along party lines -- the Socialist PSOE opposes it, 
the conservative Partido Popular (PP) supports it.  However, 
Zapatero and PSOE have recently signaled that their 
opposition to nuclear energy may be easing due to several 
factors, including the need to meet growing demand, reduce 
emissions and fund renewable energy subsidies.  Additionally, 
accidents at three different nuclear reactors this year have 
fueled the national debate about nuclear power.  Public 
support for nuclear energy is split, with slightly more 
people opposing its expansion than supporting it.  End 
Summary. 
 
---------------------------- 
Civil Nuclear Power Industry 
---------------------------- 
 
¶2. (U) Today, there are no nuclear power plants under 
construction.  Spanish architectural and engineering 
companies in the sector now concentrate on operational 
support, shutdown and decommissioning of nuclear power 
plants, limited research and development, and radioactive 
waste engineering.  The lack of business opportunities in the 
Spanish civil nuclear market has also forced them to expand 
into other markets.  Three of the largest Spanish nuclear 
companies, ENUSA Industrias Avanzadas, ENSA Equipos Nucleares 
and Tecnatom, have recently begun competing for new nuclear 
projects in China, primarily against the French company Areva 
and U.S. firm Westinghouse.  In March 2008, an alliance of 
Spanish nuclear companies signed contracts with Chinese firms 
worth 20 million euros (28 million dollars).  These companies 
- Equipos Nucleares SA (ENSA), Tecnatom and ENUSA - will 
provide equipment, steam generators, fuel control mechanisms, 
supervision of construction, and control and inspection 
technology. 
 
--------------------------------------------- --- 
GOS Mindset: 20 Percent Nuclear a Necessary Evil 
--------------------------------------------- --- 
 
¶3. (U) Politically, support for nuclear power has fallen 
along party lines in Spain in recent years.  The previous 
conservative government, which last ruled in early 2004, 
supported nuclear energy.  The PSOE, however, has opposed the 
expansion of nuclear energy and has long called for the 
shutdown of existing facilities. During his election campaign 
in 2003-2004, current President Zapatero announced his 
intention to close Spain's eight operating nuclear reactors 
as renewable energy sources became viable.  In March 2005, 
Zapatero described himself as "the most anti-nuclear 
component in the Spanish Government."  Public support for 
nuclear energy is split, with 48 percent of the Spanish 
public opposing its expansion and 40 percent supporting it, 
according to an opinion poll earlier this year.  A series of 
accidents at three nuclear plants over the past 12 months has 
helped fuel the debate over nuclear power. 
 
¶4. (U) While Spain has aggressively developed renewable 
energy and is now the world's third largest producer of wind 
energy, the rapid economic growth of the last several years 
has led to a steady increase in Spanish electricity 
consumption.  Despite generating 10 percent of its 
electricity from wind power, and an additional 10 percent 
from other renewable sources like hyrdro and solar, the 
challenge of meeting growing demand for electricity in what 
had been one of Europe's fastest growing economies has 
 
effectively prevented the PSOE government from replacing 
nuclear energy with alternative sources.  As a result, the 
GOS' policy on civil nuclear energy has shifted from 
Zapatero's original call to shutter productive nuclear power 
plants to one of closing them as they reach the end of their 
useful lives. 
 
--------------------------------- 
However, Opposition May be Easing 
--------------------------------- 
 
¶5. (SBU) In 2007, the Ministry of Industry, Tourism and Trade 
commissioned a study to forecast Spanish energy demand to the 
year 2030.  The study was created with the assistance of an 
advisory board consisting of experts from the government and 
industry, and analyzed various scenarios using different 
energy production mix ratios.  Notably, most of the various 
scenarios conducted included the assumption of at least 
maintaining the country's currently installed nuclear power 
until 2030.  Upon its completion, however, the study was not 
published due, in part, to the nearing elections in March 
¶2008.  The study, and its delayed publication, contributed to 
calls for a national debate on nuclear energy. 
 
¶6. (SBU) Since his reelection, Zapatero has subtly signaled 
that his opposition to nuclear energy may be easing.  During 
a speech in April 2008, the President said that to solve the 
problem of energy supply, the GOS will need to consider the 
"development of new technologies, the evolution of the fossil 
fuels market, cross border cooperation and the availability 
of water resources.  Along with decisions made by the 
European Union, this will determine the Spanish position on 
nuclear energy."  Presumably, any new EU legislation, such as 
the recent Energy and Climate Package, will require sustained 
reductions in emissions, which could conceivably make nuclear 
energy a more attractive alternative. 
 
¶7. (U) In May 2008, the President and his cabinet released a 
2008-2012 national plan for electricity and gas.  The plan 
called for the continued generation of nuclear electricity at 
current volume levels.  The result will be a gradual 
reduction of nuclear power in the percent of total primary 
energy use as overall electricity demand and development of 
other sources increase.  The GOS reported in the plan that 
nuclear energy as a percentage of electricity generation 
would fall from 24 percent in 2006 to 17 percent in 2016. 
 
¶8. (U) According to recent media reports, the Ministry of 
Industry, Trade and Tourism is considering extending the life 
of nuclear plants from 40 to 60 years.  One motivation for 
doing so would be to help pay the accumulated debt the GOS 
owes to electricity generating companies for charging 
consumers less than the cost of producing electricity. 
Although rates have increased more than inflation in 2008, 
consumers still pay around 20 percent less than cost for 
electricity.  According to some estimates, this debt has now 
reached 16.5 billion euros (23 billion dollars). 
 
¶9. (U) Although the GOS has been a strong supporter of the 
Kyoto Protocol and has introduced a number of alternative 
energy and efficiency measures intended to reduce emissions, 
Spain remains among the top two developed countries furthest 
away from its Kyoto obligations.  Under Kyoto, Spain is 
required to cap its emissions at 15 percent above 1990 levels 
by 2012.  Yet Spain's emissions are estimated to be 50 
percent above 1990 levels, and the country will certainly not 
be able to meet this target.  While Zapatero and the ruling 
Socialist government (PSOE) have publicly defended their 
anti-nuclear energy stance, the GOS certainly recognizes that 
the use of nuclear energy contributes to emissions 
reductions, relative to gas and coal. 
 
¶10. (SBU) Spain is constructing additional transmission lines 
along its border with France that will effectively double the 
capacity to import and export electricity between the two 
countries.  Spain is a net importer of small amounts of 
electricity from France, much of which is likely generated at 
nuclear plants.  To paraphrase a recent statement made by an 
official at the company that operates Spain's national 
electricity transmission network, Spain has a 'don't ask, 
don't tell' policy toward electricity imported from France. 
Officially, Spain has no knowledge of the source of 
electricity imported from France yet certainly understands 
that at least some of the electricity is generated by nuclear 
power. 
 
¶11. (U) As expected, industry and union organizations favor 
 
the use and expansion of nuclear energy, and are increasing 
pressure on the GOS to do so.  CEOE, the largest business 
association in Spain, has called for the government to 
develop a new energy strategy to include nuclear power 
generation.  The energy sector has recommended the expansion 
of nuclear energy as a way to decrease both Spain's 
dependency on foreign oil and CO2 emissions.  And several of 
Spain's large unions have called for increased investment in 
nuclear energy. 
 
----------------------- 
Ongoing Decommissioning 
----------------------- 
 
¶12. (U) The GOS is currently following its plan to 
decommission and dismantle nuclear power plants that have 
reached the end of their useful lives.  In 2006, Spain 
decommissioned the latest nuclear power plant - Jose Cabrera 
- and is planning for its dismantling and decontamination. 
Actual decommissioning work will not begin before 2009 and is 
expected to be completed by 2015.  Spain is also in the 
process of dismantling its Vandellos 1 plant, which shut down 
in 1990.  Phase 2 of the Vandellos plant was completed in 
2003, with more than 80 percent of the site released.  The 
final phase 3 will take place after an estimated waiting 
period of 25-30 years. 
 
¶13. (U) The GOS is also remediating several uranium treatment 
facilities, restoring 19 uranium mines that are no longer 
used, and decommissioning two 'argonaut-type' experimental 
reactors.  The GOS is also decommissioning several nuclear 
research facilities that are currently operated by Ciemat, 
the government's scientific research and development 
organization. 
 
¶14. (U) Decommissioning projects in Spain must include an 
Environmental Impact Assessment (EIA) and must obtain 
approval from the Spanish Nuclear Safety Council (CSN), 
Spain's nuclear regulator, as well as the Ministry of 
Environment, Rural Development and Marine Affairs.  CSN was 
established in 1980 and is solely responsible for nuclear 
safety and radiation protection, and for regulating and 
supervising nuclear installations.  The organization operates 
independently from the Administration and reports directly to 
the Spanish Parliament.  Nuclear power operating licenses, 
which are issued by the Ministry of Industry, Tourism and 
Trade, are subject to approval by CSN. 
AGUIRRE