The nuclear power industry has plunged into crisis as Asian and European governments froze plans for new nuclear power plants.

 

As Japan battles to avoid a catastrophe at the Fukushima Daiichi plant in the wake of last week’s earthquake and tsunami, confidence in the nuclear industry has collapsed.

 

US Energy Secretary Steven Chu has warned that the crisis could be worse than the Three Mile Islandpartial meltdown in 1979. The Three Mile incident, along with the Chernobyl disaster in 1986, led to a halt in new nuclear power plants for nearly two decades.

 

In the fallout from the Fukushima crisis, Simon Powell, head of sustainable research at CLSA in Hong Kong, has predicted a major shift in nuclear policies worldwide. 

 

“I don't think nuclear is going to be done away with, but it is likely that people's nuclear programs will be delayed as they question whether it is the right thing to do,” he told news agency Reuters.

 

China’s State Council announced Wednesday that it had suspended approvals for new nuclear power stations while it reviews safety at its plants.

 

China today has just six nuclear power stations – all on the eastern seaboard – but it is planning the world’s largest buildout. Some 25 plants with a capacity of more than 75GW are scheduled to go on-grid between now and 2020.

 

India and South Korea have also put their nuclear programs on hold, as have Germany and Switzerland.

 

US Senator Joe Lieberman, who heads the homeland security panel, said the US should “put the brakes on” new plants until the impact of the Fukushima incident is clear.

 

Shares in Japanese utility TEPCO, which owns the stricken Fukushima plant, have fallen 71% since the crisis began to unfold. It relies on nuclear energy for more than 30% of its electricity.