Energy, Utilities & Mining Focus
Jonathan ReardonSenior Counsel,Corporate Commercial
Saudi Arabia has been working on the path to developing a peaceful nuclear power capability for many years, spurred on by the existence of the Kingdom’s vast unutilised reserves of uranium. The pace of growth rapidly increased after the introduction of the Saudi Vision 2030 National Transformation Program in 2017. Nuclear power will be vital to the Kingdom. According to King Abdullah Centre for Atomic and Renewable Energy (K.A.CARE), at the current rate of growth peak energy demand in Saudi Arabia is expected to exceed 120 gigawatts by 2030.
This development has included establishing a regulatory body for the nuclear energy sector and a comprehensive legal and regulatory and licensing framework, which we outline below. In tangible project terms, a bid process for construction and operation of 2 identical large nuclear power plant units is currently underway.
In 2010, K.A.CARE was established in Riyadh to develop the Kingdom’s nuclear sector, in close collaboration with international institutions. This included the International Atomic Energy Agency (IAEA), the World’s centre for cooperation in the nuclear sector and promotion of the safe, secure and peaceful use of nuclear technology, which the Kingdom joined in 1962.
A commitment to the development of nuclear power was included in the Saudi Vision 2030 National Transformation Program in 2017 and shortly after the Government approved the Saudi National Atomic Energy Project for the development of small modular reactors, large nuclear fuel plants, self-sufficiency in nuclear fuel and the establishment of a regulatory body. In March 2018 the Nuclear and Radiological Regulatory Commission (NRRC) was established as regulator pursuant to the Statute of the Nuclear and Radiological Control Commission (Ministerial Resolution No 334 of 13 March 2018).
Following these structural steps, in July 2018 an Integrated Nuclear Infrastructure Review was carried out by IAEA experts on the status of Saudi’s nuclear infrastructure development.
The resulting report confirmed that “Saudi Arabia has made significant progress in the development of its nuclear power infrastructure. It has established a legislative framework and is carrying out comprehensive studies to support the next steps of the programme.”
In 2020, the Saudi Nuclear Energy Holding Company was established as an independent legal entity to achieve the commercial interests of the National Atomic Energy Project in the Kingdom by participating and investing in nuclear power projects and assets.
The two principal laws governing the nuclear sector in Saudi Arabia are:
The Law of Civil Liability for Nuclear Damage (Royal Decree No. M81 of 11 April 2018) which governs compensation for nuclear damage resulting from a nuclear incident occurring in the Kingdom as well as incidents occurring outside the Kingdom during transportation for which the operator is liable.
The Law of Nuclear and Radiation Control (Royal Decree No 82 of 11 April 2018), (the ‘LNRC’), which is the primary piece of nuclear legislation in the KSA and amongst other things introduces a licensing regime for the nuclear sector.
The LNRC aims to:
Achieve the highest standards of security, safety and nuclear safeguards for activities and facilities;
Provide for adequate protection for human beings and the environment against the harmful effects of ionizing radiation;
Meet the commitments of Saudi Arabia under relevant international treaties and conventions.
The LNRC applies to:
All activities and facilities involved in peaceful uses of nuclear power,
Actual or potential exposures to radiation, both with respect to people and the environment,
The transport (including import and export) of radioactive materials and nuclear-related items.
The LNRC requires the NRRC to regulate and impose requirements in relation to Licenses, Safety, Security, Nuclear Safeguards’, Transport, Emergency Preparedness and Response’, Radioactive Waste and Spent Fuel, Inspection, and Violations and Penalties’.
In addition, the NRRC has approved the following Technical Regulations which set out detailed requirements for the design, construction, licensing, operation and decommissioning of nuclear power facilities including the licensing process, security and decommissioning of these facilities. Each Technical Regulation follows a standard format, identifying its scope, providing cross-references to other regulations and also sets out relevant definitions. The Technical Regulations are reflective of International standards and protocols.
No.
Regulation Name
NRRC-R-01
Radiation Safety
NRRC-R-02
Notification on and Authorization of Facilities and Activities with Radiation
NRRC-R-03
Licensing and Regulatory Oversight of Nuclear Facilities
NRRC-R-04
Leadership and Management for Safety
NRRC-R-05
Site Evaluation of Nuclear Facilities
NRRC-R-06
Design of Nuclear Facilities
NRRC-R-07
Safety Assessment of Nuclear Facilities
NRRC-R-08
Construction and Commissioning of Nuclear Facilities
NRRC-R-09
Operations of Nuclear Facilities
NRRC-R-10
Decommissioning of Nuclear Facilities
NRRC-R-11
Nuclear Security
NRRC-R-12
Nuclear Material Accountancy and Control
NRRC-R-14
Nuclear Facilities Emergency Preparedness and Response
NRRC-R-15
Safe Transport of Radioactive Materials
NRRC-R-16
Management of Radioactive Waste
NRRC-R-17
Security of Radioactive Materials
NRRC-R-18
Authorization and Regulatory Control of Nuclear-Related Items
NRRC-R-19
Recognition Requirement for building Competence, Qualification, and Training for Radiation Protection and Safety
NRRC-R-20
Information Protection and Cybersecurity
The main licensing steps consist of site license, construction license, operating license, de-commissioning license and closure license.
In respect of licensing requirements, Technical Regulation NRRC-R-03 is the key document. It defines the general requirements and process for any nuclear facility licensing, including the responsibilities of the licensee for applying for, amending, suspending or revoking a license. No person may carry out an activity without a licence or an exemption from the NRRC. A licensee must have the means, capabilities and financial resources needed to carry out the licensed activity, taking into consideration fulfilment of the requirements of nuclear safety, security and safeguards.
The Kingdom is also a party to numerous international treaties and protocols in the nuclear sector. In particular it acceded to both the 1963 Vienna Convention on Civil Liability for Nuclear Damage, and the 1997 Protocol to Amend the 1963 Vienna Convention, on 17 March 2011.
In the years up to 2017, Saudi Arabia also acceded to various other international treaties and protocols relating to nuclear energy including the Treaty on the Non-Proliferation of Nuclear Weapons, the Convention on the Physical Protection of Nuclear Material, the Convention on Nuclear Safety, the Comprehensive Safeguards Agreement, Convention on Early Notification of a Nuclear Accident and the Joint Convention on the Safety of Spent Fuel Management and on the Safety of Radioactive Waste Management.
The LNRC and the NRCC Technical Regulations introduce a Saudi regulatory framework which is based on international best practice and understandably contains a strict and onerous compliance regime.
The penalties for non-compliance under the LNRC and Technical Regulations include suspension or loss of licence(s), closure of business premises, liquidation of business, very significant fines and criminal liability including imprisonment for companies and their directors, managers and officers. This is in addition to civil liability for damages.
The opportunities in the Saudi nuclear energy sector are huge with the Kingdom aiming according to K.A.CARE to source 50 percent of its electricity from renewable sources, by 2030 and actively having commenced the large nuclear project programme.
However, the Saudi nuclear regulatory regime and the NRRC as a regulatory body are new and regulation and local practice is still developing and may change. Interested parties must stay alert for such changes and adapt accordingly.
For further information, please contact Jonathan Reardon.
Published in November 2022
