Potential localization strategies and strategic instruments in nuclear power generation

Abstract

Deploying the right strategies is of paramount importance and plays a key role in technology transfer to achieve localization. Today, around 30 countries are considering or embarking on nuclear power programs. What are the potential strategies for nuclear power technology localization? This study attempts to identify localization strategies in nuclear technology and also to unfold tested approaches, business models, strategic legal and technical instruments. The methodology of the study treats the nuclear industry in a state as a “unit” in which a variation of PEST analysis is implemented to reveal macro-environmental factors followed by SWOT analysis to identify strengths, weaknesses, opportunities and threats of available approaches, business models, legal and technical instruments. Four principal strategies emerge: (1) learning by doing; (2) transfer, adopt, assimilate, develop and export; (3) own or operate with limited transfer; and (4) wait and see. The first two strategies are proposed for the countries willing to launch an ambitious nuclear power program. Own or operate with limited transfer strategy can be deployed in those countries prioritizing security of supply, source of reliable base load generation, general economic development, technological and qualified human resources development. Wait and see strategy is convenient for those countries awaiting progress of new technologies or phased out nuclear power but planning to reintroduce it in the future. Regardless of the strategy selected, wise guiding policies and coherent set of actions must be deployed for a successful assimilation and acquisition of the design, manufacturing and construction, project engineering and project management in nuclear technology.