UAE Contemplates Second Nuclear Power Plant Amid Rising Electricity Demand

The UAE is considering a second nuclear power plant to meet rising electricity demand. With its first plant operational since 2021, the government is eyeing a substantial increase in power usage. The new contract could attract bids from China, Russia, and the U.S., among other countries.

The United Arab Emirates is eyeing the construction of a second nuclear power plant to address increasing electricity demand in the oil-rich Gulf state, according to a government official speaking to Reuters. The first plant began commercial operations in 2021 as part of the UAE's strategy to diversify its energy resources and attract foreign investment.

Hamad Alkaabi, the UAE's Ambassador to Austria and the Permanent Representative to the UN's nuclear agency, confirmed the government is evaluating the potential for a second plant but has not yet made a final decision on the tender process. With a significant rise in electricity usage anticipated over the next decade, largely driven by population growth and industrial expansion, the government expects to issue a tender later this year.

The proposed power plant would likely feature two to four reactors, and the size would depend on the technology and build. Unlike the first plant, where South Korea's KEPCO was awarded a $20 billion contract in 2009, the new project will be open to bids from various international developers.

(With inputs from agencies.)