Udvalget for Videnskab og Teknologi 2010-11 (1. samling)
KOM (2011) 0072 Bilag 2
Offentligt
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Fusion blows the budget
An Up-dated note on
International Thermonuclear Experimental Reactor (ITER)
1
3 May 2011
"All the reasons for a reversal are there: The estimated construction costs have
tripled before the main construction has even started and nuclear fusion will not
contribute to the EU's energy supply for decades - if ever. Several studies have come
to the conclusion that renewables will be able to cover the EU's energy supply by
2050. Since fusion will not be commercially available before that, it has become
irrelevant for Europe's energy future."
Rebecca Harms, 7 December 2010
The proposed €5.311 billion budget for research into nuclear energy to 2013 is a
huge increased compared to €1.35 billion for the previous programme. Fusion/ITER
will receive the majority of this budget
2
. This is 4.5 times the amount the EU
allocates to R&D for renewables and energy efficiency during the same period.
The European Parliament and the Council have to stop paying for ITER, which
otherwise will result in cuts in the EU research and agriculture budgets. Two
billions Euros are needed to start the construction of this experimental reactor in
Cadarache (France) in the next two years. Should Europe support the start of the
major construction activities in 2012, it will begin a process that will be difficult to
stop. Public money will be asked -not only for the whole construction phase, i.e. at
least until 2020, but also for the operation and the decommissioning of ITER.
At the end of the day, ITER will not deliver a single kilowatt hour on the electricity
grid.
This project is too risky to be allowed to operate and it must be stopped now.
1
This note is an up-date of the Greens/Efa short backgrounder on ITER dated May 2010 and the
article “Fusion blows the mind, but it also blows the energy budget”, by Rebecca Harms, co-
president of the Greens-EFA group in the European Parliament, and published by Research Europe ,
6
th
August 2009
2
If adopted by the EU Institutions, €4.2 billion out of €5.3 billion (79%) might go to fusion R&D
Euratom during the period of 2007-2013.
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Background
On 20 April 2011, the Commission adopted two important documents on ITER:
1. the draft EU budget for 2012
3
and
2. a proposal to modify the current Financial perspectives in order to allow
increased financing of ITER.
4
Earlier, on 7 March 2011, the Commission launched its proposal for a Council's
Decision concerning the research activities in nuclear energy - the Euratom's
Framework Programme - for the years 2012-2013.
5
In its proposals, the Commission is suggesting to boost the construction of the
ITER
nuclear experimental reactor in Cadarache (South of France) to spend
more than € 2
billion EU public money during the next two years, i.e. 2012-2013.
This is an increase of € 1.3 billion compared to the existing 2007-2013 multi-annual
financial framework (MFF).
Figure 1: Proposed Euratom Framework Programme 2012-2013
Euratom FP 2012-2013 (€ 2560 M)
100%
80%
60%
40%
20%
0%
2012
Year
2013
Nuclear Activities JRC
(direct)
Nuclear Fission & Rad
protection
Other Fusion
ITER
Figure 1 shows that, if adopted, ITER alone will get 78% (€2012 million) of the overall
Euratom research budget for the coming two years, i.e. 2012 and 2013. Including
other fusion projects (€197 million), this percentage increases to 86%.
3
EC 2011: Preparation of the and budget 2012, 20 April 2011, SEC(2011) 498
http://ec.europa.eu/budget/figures/2012/2012_en.cfm
4
EC, 2011: "Decision of the European parliament and of the council amending the Interinstitutional
Agreement of 17 May 2006 on budgetary discipline and sound financial management as regards the
multiannual financial framework, to address additional financing needs of the ITER project", 20 April
2011, COM(2011)226.
5
EC 2011: Proposal for a Council Decision concerning the Framework Programme of the European
Atomic Energy Community for nuclear research and training activities (2012-2013), 07 March 2011,
COM(2011)72 final - 2011/0046 (NLE)
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How ITER is supposed to be financed in 2012-2013?
The Commission has proposed to allocate to ITER nearly € 1107 million in 2012 and €
905 million in 2013
6
.
This is supposed to be financed by
a) cuts of the FP 7 EC Programme of
€ 460 million for the years 2012-2013
(€100
million in 2012 and €360 million in 2013) and
b) cuts of the 2011 MFF ceilings of Heading 2 (Preservation and management of
natural resources, including CAP) by 650 million and of Heading 5 (Administration) by
190 million.
As stated by the Commission
7
:
The proposals for the Euratom Framework Programme 2012-2013 provides a general
framework for research activities in the nuclear field and an appropriate budget.
However, the draft appropriations initially foreseen for the nuclear research in the
Multiannual Financial Framework for 2007-2013 (Mff) are insufficient due to the
substantial cost increase of the ITER project. The Commission proposes that the
legislative process concerning proposals for Euratom FP for 2012-13 will be carried
out in parallel to the on-going discussion on the budget for ITER as well as the new
2012 budgetary procedure. Agreement on additional funding through redeployment
between Headings and within the Heading (in accordance with the table that follows)
will allow for swift adoption of the Euratom research programme in 2011
.
Transfer between
Headings € Million
650
190
840
Redeployment within heading 1A €
Million
100
360
460
Total
750
550
1300
2012
2013
Total
6
The anticipated ITER expenditure from the existing 2007-2013 multi-annual financial framework was
roughly €700 million for 2012-2013 in current value. Therefore EURATOM is facing an estimated
financial gap of about €1.3 billion (in current value) for the years 2012-2013. This means additional
funds up to 750 million € in 2012 and 550 million € in 2013).
7
EC 2011: Proposal for a Council Decision concerning the Framework Programme of the European
Atomic Energy Community for nuclear research and training activities (2012-2013), 07 March 2011,
COM(2011)72 final - 2011/0046 (NLE)
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Will these 2 billions Euros be enough to build ITER?
The 2001 cost estimates for the total ITER construction was € 5.9 billion (€ 5.896
billion in 2008 value). The construction time was reported to be around 10 years.
However, by early 2010, the cost estimate has nearly tripled and is about € 16 billion
(2008 value). Of the seven partners the EU (plus Switzerland) has the largest financial
share, providing 45% of the total construction budget. On 12 July 2010, the Council
agreed on a
6.6 billion € (in 2008 value) limit of the European contribution to the
construction phase of ITER until 2020.
Lock-in effect
Should Europe support the start of the major construction activities in 2012, this
will start a process that will be extremely difficult, if not impossible, to stop.
As
shown by the Commission, in this case, the resources needed for the construction
will peak during the years 2012 to 2015 at about €4 billion, which basically means
EUR 1 billion per year (see figure 2).
Figure 2: EU Budget Schedule for the ITER
1400
1200
Updated Estimate Total
(Euratom & France)
1000
Original* Estimate Total
(Euratom & France)
800
600
Updated Estimate
Euratom contribution
(without France)
400
200
M€ -->
Original* Estimate
Euratom contribution
(without France)
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
0
Year -->
2007
*The original estimate in this graph includes the Euratom contribution to ITER construction based on 2001 assessment and the
resources projected for the running cost of F4E and other activities as included in the 2007 Council decision establishing F4E
Source: EC 2010
8
In 2008, even before the new constructions costs were estimated, an independent
analysis of EU research funding into fusion undertaken for the European Parliament
concluded that “organisational and management arrangements appear insufficient
to tackle the extreme riskiness of the project”. Furthermore, the assessment found
8
EC 2010: Commission Staff Working Document "Status of the ITER project" - Accompanying
Document to the Communication of the Commission to the European Parliament and the Council on
"ITER status and possible way forward", May 2010, SEC(2010)571
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that the “excessive focus on ITER” might “jeopardise the attainment of important EU
goals” such as the development of a sustainable energy mix
9
.
These budgets do not include possible additional costs following the Fukushima
catastrophe (like those related to stress tests or higher accident prevention
standards), financing for the operation and decommissioning of the facilities.
At
the time of the agreement of financing the project the annual costs of operating ITER
were estimated to be, on average, on the order of $188 M (54% of the 1998 ITER
design operating costs). This was to be shared among the participating Parties, and
totalling $3760 M over 20 years. These estimated costs include personnel costs
(~32%), energy and tritium fuel costs (~20%), and capital improvements, spare parts
and materials, and waste management operations (48%).
However, given the rise in construction costs, it is expected that these estimates are
likely to rise.
How has the budget evolved compared to renewables and energy efficiency?
Figure 3 highlights the nuclear budget and how it compares to the rest of the EU’s
energy research and development. As can be seen the current research programme
proposals,
the EU nuclear research budget during the period 2007-2013 is roughly
4.5 times that allocated to renewables and energy efficiency under FP7
during the
same period
10
.
Figure 3: EU Framework Programme Non-Nuclear Energy and Nuclear Budgets
(million €)
Comparison R&D Budget - Nuclear vs RES+EE
6000
5000
4000
3000
2000
1000
0
FP5
FP6
FP 7
Nuclear Energy
RES &
En.Efficiency
RES & En.Efficiency
Other Non-Nuclear
Energy
Unknown
Nuclear Energy
9
European Parliament 2008, Evaluation Of EU Funding Of Research In The Fields Of Nuclear Fusion
And Aeronautics/Aerospace, European Parliament, Policy Department of Budgetary Affairs, July 2008.
http://www.pedz.uni-mannheim.de/daten/edz-ma/ep/08/EST22651.pdf
10
Should the Euratom FP 2012-2013 being adopted as suggested by the Commission on 21 April
2011, EU money allocated to nuclear research will amount to €5311 million, which is about 2.4 times
the amount earmarked for non-nuclear energy (€2350 million) under FP7 or, taking as assumption
that renewables and energy efficiency will get half of this budget, 4.5 times the amount for this type
of research and development.
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ITER - Financial white elephant
After decades of negotiations the
ITER
Agreement was signed in November 2006 by
Ministers from the seven Members (China, EU, India, Japan, Russia, South Korea and
United States), which approved the project’s location in Cadarache, France. The
choice of the Cadarache site for the ITER is contentious, as in 2003 a commercial
plutonium fuel-fabrication plant on the site was shut down because of its
vulnerability to earthquakes. Protection against seismic risk further complicates the
ITER design and increases costs.
The 2001 cost estimates for the total ITER construction was € 5.9 billion (€ 5.896
billion in 2008 value). The construction time was reported to be around 10 years.
However, by early 2010, this has nearly tripled and is estimated to reach about € 16
billion (2008 value).
Of the seven partners the EU (plus Switzerland) has the largest financial share,
providing 45% of the total construction budget, out of which France has committed
to pay 20%. Therefore, in May 2010
11
:
The original EURATOM contribution was expected to be €2.7 billion (€2.680
billion in 2008 value).
This contribution was updated according to the revised schedule (2007-2020)
and presented to the ITER Governing Board in March 2010, and had reached
€7.253 million (in 2008 value).
However, on 12 July 2010, the Council set out a number of guidelines on cost
containment and management and agreed on a 6.6 billion € (in 2008 value) limit of
the European contribution to the construction phase of ITER until 2020. This
included EUR 1.4 billion additionnal during period of 2012-2013.
At the extraordinary ITER Council meeting of 28 July 2010 the Baseline was adopted.
Euratom's support was given
ad referendum.The
European Parliament and the
Council are still to approve the Commission's proposed amendments.
The Council reached an agreement in November 2010 on the use of existing margins
of the 2010 budget and redeployment within the MFF and 7th EU Research
Framework Programme to cover the additional ITER needs at the level of EUR 1.3
billion, i.e. 100 Million € short of the needs of 1.4 Billion € acknowledged by the
Council conclusions of 12 July 2010. According to the Commission,
"[t]he reduction
of 100 Million € for the period 2012-2013 does not contradict, nor cancel, the
Council's commitment to an overall the Council's commitment to an overall European
contribution to the ITER construction costs at the level of 6.6 Billion €."
12
11
European Commission 2010: Communication From The Commission To The European Parliament
And The Council ITER status and possible way forward, SEC(2010) 4th May 2010, COM(2010) 226 final
12
EC 2011: Proposal for a Council Decision concerning the Framework Programme of the European
Atomic Energy Community for nuclear research and training activities (2012-2013), 07 March 2011,
COM(2011)72 final - 2011/0046 (NLE)
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In the framework of the conciliation procedure for the 2011 budget and the linked
discussion on the MFF flexibility, the budgetary authority did not conclude an
agreement on additional European funding for ITER. Therefore, a decision on that
matter, based on the Commission's proposal
13
will have to be taken in 2011.
In these circumstances, the Commission proposed parallel legislative processes:
On 7 March 2011, the Commission launched its proposal for a Council's
Decision concerning the research activities in nuclear energy - the Euratom's
Framework Programme - for the years 2012-2013
14
, on which the EP is only
consulted.
On 20 April 2011, the Commission adopted two important documents on
ITER a) the draft EU budget for 2012
15
and b) a proposal to modify the
current financial perspectives in order to allow increased financing of ITER.
16
Clearly, there is little change in the Commission policy regarding nuclear as one can
read from one support document on the proposed 2012 budget
17
, which was
published after the Fukushima catastrophe: 'In
a context of increasing interest and
development of nuclear energy in a vast majority of the Member States, the objective
of the European Commission is to carry out independent inspections while
strengthening the EU legal framework to ensure the highest levels of safety and
security, which are absolute priorities for the European Union.'
There is no increase
of the nuclear safety budget but ITER might get 2 billion Euros in the next two years
if we do not stop this project. It seems that the Commission has never heard about
Fukushima.
For more information contact:
Michel Raquet: +32.2.284.23.58
[email protected]
13
Proposal for a decision of the European Parliament and of the Council amending the
Interinstitutional Agreement of 17 May 2006 on budgetary discipline and sound financial
management as regards the multiannual financial framework, to address additional financing needs of
the ITER project, COM(2010) 403
14
EC 2011: Proposal for a Council Decision concerning the Framework Programme of the European
Atomic Energy Community for nuclear research and training activities (2012-2013), 07 March 2011,
COM(2011)72 final - 2011/0046 (NLE)
15
EC 2011: Preparation of the and budget 2012, 20 April 2011, SEC(2011) 498
http://ec.europa.eu/budget/figures/2012/2012_en.cfm
16
EC, 2011: "Decision of the European parliament and of the council amending the Interinstitutional
Agreement of 17 May 2006 on budgetary discipline and sound financial management as regards the
multiannual financial framework, to address additional financing needs of the ITER project", 20 April
2011, COM(2011)226.
17
EC 21 April 2011, Supdoc 29 - 32 - ENER