2016 Top Markets Report: Civil Nuclear
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2016 Top Markets Report Civil Nuclear A Market Assessment Tool for U.S. Exporters May 2016 U.S. Department of Commerce | International Trade Administration | Industry & Analysis (I&A) Industry & Analysis’ (I&A) staff of industry, trade and economic analysts devise and implement international trade, investment, and export promotion strategies that strengthen the global competitiveness of U.S. industries. These initiatives unlock export, and investment opportunities for U.S. businesses by combining in‐depth quantitative and qualitative analysis with ITA’s industry relationships. For more information, visit www.trade.gov/industry I&A is part of the International Trade Administration, whose mission is to create prosperity by strengthening the competitiveness of U.S. industry, promoting trade and investment, and ensuring fair trade and compliance with trade laws and agreements. Jonathan Chesebro served as the lead author of this report. William Lahneman at the U.S. Department of Energy put in significant time to develop the methodology and draft the 2015 report. Special thanks to Kyle Deming for updating the country case studies and helping to finalize the 2016 report, including incorporating input from the interagency. Jason Portner, Devin Horne, Sarah Batiuk and Jessica Huang contributed valuable data, graphics and content for the 2015 Country Cases Studies. Thank you also to David Kincaid for spearheading the development of this report and providing expert advice on the methodology and report template. In addition, several insights were garnered from conversations with, and edits by the U.S. Department of Energy, the National Security Council, the U.S. Department of State, the U.S. Export‐Import Bank, and the U.S. Nuclear Regulatory Commission. Table of Contents Executive Summary ............................................................................................................................... 3 Overview and Key Findings ................................................................................................................ 5 Country Case Study Brazil ......................................................................................................................................................... 11 Bulgaria.................................................................................................................................................... 15 Canada ...................................................................................................................................................... 19 China ......................................................................................................................................................... 23 Czech Republic ...................................................................................................................................... 27 India .......................................................................................................................................................... 31 Japan ......................................................................................................................................................... 34 Malaysia ................................................................................................................................................... 39 Mexico ...................................................................................................................................................... 41 Poland....................................................................................................................................................... 45 Saudi Arabia ........................................................................................................................................... 49 South Korea ............................................................................................................................................ 51 Turkey ...................................................................................................................................................... 55 Ukraine .................................................................................................................................................... 59 United Arab Emirates ......................................................................................................................... 63 United Kingdom.................................................................................................................................... 67 Vietnam .................................................................................................................................................... 71 Addendum: Resources for U.S. Exporters ................................................................................... 75 Appendices Appendix 1: Market Categorization Flow Chart ...................................................................... 77 Appendix 2: Methodology ................................................................................................................ 78 Appendix 3: Top 50 Overall Markets for U.S. Civil Nuclear Exports ................................ 82 Appendix 4: Subsector Definitions ................................................................................................ 83 Appendix 5: Role of U.S. Government Agencies in Civil Nuclear Energy........................ 84 Appendix 6: Key Trade Policy Issues in Civil Nuclear Energy ............................................ 88 2016 ITA Civil Nuclear Top Markets Report 1 This Page Intentionally Left Blank 2016 ITA Civil Nuclear Top Markets Report 2 Executive Summary The U.S. Department of Commerce’s International Trade Administration (ITA), under its Civil Nuclear Trade Initiative (CNTI), is committed to strengthening the competitiveness of the U.S. nuclear industry by identifying the industry’s trade challenges and commercial opportunities and coordinating public and private sector cooperation to address these issues. As part of the CNTI, ITA developed the Civil Nuclear Energy Top Markets Report, a tool for prioritizing U.S. government (USG) export promotion efforts to help target limited resources toward the civil nuclear markets and activities most likely to result in U.S. exports. The report, now in its second year, is designed to inform decision makers, managers and analysts of key trends, areas of opportunity, and important challenges facing U.S. civil nuclear energy exporters through 2030. ITA’s Civil Nuclear Energy Top Markets Report recognizes the growing demand for civil nuclear technologies worldwide and, with it, new export opportunities for U.S. companies. Global energy demand growth has intensified concerns about energy security, fuel price stability and carbon emissions. In response, many national governments are driven to consider building nuclear power plants as a low carbon, domestically produced, base- load solution to their electricity needs. The intention of this report is to identify best prospect markets in the civil nuclear energy sector, including noting where USG activities can most effectively be leveraged to support the success of U.S. companies. It is not intended to be an ordering of priorities for the industry itself nor is it a direct reflection of industry priorities. U.S. civil nuclear companies represent a broad range of industry subsectors, and each has a different set of objectives. Furthermore, it is not the role of the USG to direct industry priorities but rather to identify where resources can be most effectively leveraged within current legal frameworks to support the already existing export promotion efforts of U.S. companies. A number of important developments marked growth in the global nuclear power market in 2015. The Paris Climate Conference recognized the importance of nuclear energy to meet global carbon reduction goals. The Convention for Supplementary Compensation for Nuclear Damage (CSC) nuclear liability regime entered into force. China kept its place as the fastest growing market for nuclear energy. China brought eight reactors online in 2015, bringing its total to 30 operating reactors; China also announced plans to export its reactor technology. Meanwhile, India and the United States achieved a breakthrough in bilateral civil nuclear cooperation, including understandings reached on issues of civil nuclear liability. With an eye on how economic and policy developments have impacted U.S. industry export prospects, ITA has updated its Top Markets rankings for nuclear power. Among other examples, Ukraine rose in the rankings due to the sale of Westinghouse fuel to Ukraine’s Russian-designed reactors and indications that more U.S. industry involvement is desired to support Ukraine’s existing fleet. Turkey rose due to plans at its third nuclear power plant (NPP) site that could involve U.S. reactor technology. Conversely, Saudi Arabia dropped in the rankings due to its nuclear plans not developing as quickly as expected, and Brazil dropped in the rankings due to corruption scandals that discouraged potential export opportunities for U.S. civil nuclear companies. Countries are continuing to evaluate nuclear power as a low-carbon, reliable, high density energy source to meet their energy demands and climate change goals. Key export markets are shifting from the traditional and mature markets of North America and Western Europe to emerging markets in Eastern Europe and Southeast