(Repeats to widen distribution)
* Nations to reassess nuclear programmes after Japan
* Renewable energy, LNG likely to benefit
* Existing nuclear plans in Asia unlikely to be scrapped
* Nuclear power related stocks take a beating
* Renewable energy shares gain
By David Fogarty and Leonora Walet
SINGAPORE/HONG KONG - March 14 Switzerland put
on hold some approvals for nuclear power plants and Germany cast
doubts about its industry after the Japanese nuclear crisis,
raising questions over the future of the global sector.
Taiwan's state-run Taipower also said it was studying plans
to cut nuclear power output.
The crisis at the quake-hit Fukushima nuclear power complex
north of Tokyo is likely to increase opposition to major nuclear
expansion in Europe and hurt a renaissance for the sector in the
United States, which already has more than 100 reactors.
Swiss Energy Minister Doris Leuthard suspended the approvals
process for three nuclear power stations so safety standards can
be revisted after the crisis in Japan.
However, the disaster might give renewables and greener
fuels such as LNG sector a boost in the quest for safer energy.
The crippled Japanese plant, near the epicenter of Friday's
8.9 magnitude quake, suffered a second explosion on Monday. Of
Japan's 54 reactors, 11 are shut down because of the quake.
German Foreign Minister Guido Westerwelle said on Monday
that a government decision to extend the life of the country's
nuclear power stations could be suspended following the crisis
Senator Joe Lieberman, who chairs the U.S. Senate's homeland
security panel, said on Sunday the United States should "put the
brakes on" new nuclear power plants until the impact of the
incident in Japan became clear.
Simon Powell, head of sustainable research at CLSA in Hong
Kong said: "I don't think nuclear is going to be done away with
but it is likely that people's nuclear programs will be delayed
as they question whether it is the right thing to," he said.
An executive at state-run utility Korea Electric
Power Corp (KEPCO) said: "The nuclear power industry
is likely to shrink due to Japan's nuclear accident."
"Rising opposition is seen in developed countries, although
developing countries may see less opposition due to their
shortage of power unless they reside in earthquake zones," the
Asia's insatiable appetite for electricity is however
unlikely to derail nuclear programmes but would likely lead to a
reassessment of safety procedures or designs and a further
diversification of energy sources.
Globally, renewable energy such as wind power could benefit
in the medium term.
BOOST FOR GREEN POWER
KGI Asia analyst Jennifer Liang said the nuclear incident
had strengthened the case for safer sources of renewable energy.
But she also pointed to the current limitations of green energy.
"The solar or wind industry is still young and is unlikely
to replace nuclear use in the near or medium term," she said
from Taipei. "How do you replace the base load power from
Nuclear accounts for 30 percent of Japan's electricity.
"While Japan may stick to nuclear, it (nuclear program)
will likely suffer delays and there will be more cost overruns,"
said Thiemo Lang, a Zurich-based senior portfolio manager with
Sustainable Asset Management.
"Going forward, the scenario would be that Japan will
reassess its nuclear program and will tap natural gas to assure
energy supply and increase renewables," Lang added.
The risks associated with nuclear energy could further push
new-build programs to the backburner in Britain and the United
States, global political risk analysts the Eurasia Group said in
China, which has 13 reactors in operation and dozens under
construction or planned, said its plants are safe but that the
government would learn lessons from the Japanese crisis.
"Up to now we are paying attention to the impact of the
earthquake on Japan's nuclear equipment and we are paying
attention to how the situation develops," Zhang Lijun,
vice-minister for environmental protection, told reporters on
But the decision and schedule to develop nuclear power was
unchanged, Zhang said.
China's nuclear firms say the country is capable of building
as much as 100 GW of capacity by 2020, but there have been signs
the government is going for a more cautious target of 70 GW.
The Nuclear Power Corporation of India Ltd. (NPCIL), the
country's monopoly nuclear power producer, said the events in
Japan had prompted a safety review.
NPCIL operates 20 reactors with an installed capacity of
4,780 MW and the sector, estimated at about $150 billion over
the next 15 years, is tightly controlled by the government.
Indian officials and industry said the government could now
face calls to go slow on nuclear power and push renewable
"What could now happen is the government will have to go
slow with focus now more on greater scrutiny, robust safeguards,
site selection. So we are looking at longer gestation periods,"
said Robinder Sachdev, head of strategic think tank ImagIndia
South Korea plans to add 14 nuclear power reactors through to
2024, on top of existing 21 to boost energy security and reduce
planet-warming carbon dioxide emissions.
The economy ministry said in a statement on Monday it would
evaluate the shortcomings of Japan's nuclear power plants, and
implement changes as necessary.
Shares in nuclear power related stocks tumbled on Monday,
with shares in nuclear power plant designer KEPCO Engineering &
Construction plunging 14.7 percent and KR Plant
Service & Engineering , which maintains and operates
nuclear facilities, falling 14.5 percent.
Uranium miners Energy Resources of Australia , a
unit of global miner Rio Tinto fell 12.2
percent and Paladin dived 16.5 percent.
But shares in renewable energy companies rose in Hong Kong,
with GCL Poly Energy , China's top polysilicon maker,
up 4.3 percent, while China Longyuan Power Group , the
nation's No. 1 wind power operator, up 1.7 percent.
South Korean news agency Yonhap quoted representatives of
opposition parties as saying the government should review its
plan to boost nuclear power.
The crisis in Japan would further hurt public sentiment
because it reminded the public of the risks after the Three Mile
Island disaster in the United States in 1979 or Chernobyl in
1986. Nuclear risks are also a potent issue in Japan, the only
nation to have suffered a nuclear attack.
"People are risk averse and, under normal circumstances,
nuclear power is not particularly risky," said Stephen Lincoln,
who teaches nuclear chemistry at the University of Adelaide in
"But people are probably more worried about nuclear power
because it is a rather mysterious thing. Whereas if you can see
a windmill turning or you can see a solar panel, people can
pretty much see what's going on."
(Additional reporting by Katie Reid in Zurich, Thorsten
Severin in Berlin; David Stanway and Jim Bai in Beijing,
Krittivas Mukherjee in New Delhi, Cho Mee-young in Seoul, Faith
Hung in Taipei, Farah Master in Hong Kong and Jim Regan in
Sydney; Editing by Anshuman Daga)