Transcript Document

NUCLEAR ENERGY IN ROMANIA – A ROAD TO
ENERGY SECURITY
Teodor CHIRICA – Senior Adviser, Nuclearelectrica
Vice President, ROMATOM
Gheorghe Lucaciu – Deputy General Director ONET
TECHNOLOGIES ROMANIA
- Secretary General, ROMATOM
Varna, 27-29 May 2009
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CONTENTS
1. The Role of Nuclear Power in Europe
2. Romania – Nuclear Energy Structure
3. Nuclearelectrica - Cernavoda NPP Units 1 and 2
and the Nuclear Fuel Plant
4. Waste Management
5. EnergoNuclear: Cernavoda NPP Units 3 & 4
6. Financing crisis and nuclear energy revival
7. Second Romanian NPP
8. Conclusions
THE ROLE OF NUCLEAR POWER
IN EUROPE
Europe’s heavy dependency on external energy
supplies (50% today and more than 70% in 2030);
The European energy sector currently faces three
major challenges:
– Ensuring security of energy supply – “Moscow”;
– Sustainable development – “Kyoto”, and
– Competitiveness – “Lisbon”
Nuclear Energy represents part of the answer to the
above challenges, considering that:
– Nuclear safety is no more a major issue to the general
public;
– Nuclear Waste Management issues have to be better
addressed to the general public and decidents.
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NUCLEAR ENERGY’S POTENTIAL ROLE
…1400 reactors
in 2050
600 to…
439 reactors
In June 2008
Nuclear could expand by a factor of nearly 4
OECD NEA: Nuclear Energy Outlook '08
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ROMANIA 2008
ELECTRICAL ENERGY STRUCTURE
17.33%
42.50%
0.02%
Nuclear
13.74%
Hydro
Gas&Oil
26.41%
Wind
Coal
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SOCIETATEA NATIONALA
NUCLEARELECTRICA (SNN) SA
Shareholders Romanian State – 90.28% & Property Fund – 9.72%;
Main Activity: Electrical Power and Heat Production, NPP
Construction and Commissioning and Nuclear Fuel Fabrication
SNN SA
CNE (NPP) CERNAVODA
Cernavoda – Units # 1 & 2
SAFE & EFFICIENT OPERATION OF
UNITS 1 & 2 – CANDU-6: 700 MWe
Nuclear Fuel Plant
Pitesti
NUCLEAR FUEL FABRICATION
FOR TWO UNITS
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NUCLEARELECTRICA: CERNAVODA NPP
UNITS 1 & 2
Cernavoda 1 & 2 operational data: 2007 – 2008
Unit
MWe
Energy Production
(MWh brut)
Capacity Factor
[%]
2007
2008
C# 1
706.5 5,518,346
5,222,976
97.62
84.83
88.16
C# 2
706.5
5,997,832
93.23
96.92
96.40
961,986
2007
Lifetime
CF [%]
2008
706.5 MW(e)
UNIT
UNIT##11
UNIT # 2
UNIT # 2
CERNAVODA NPP – UNIT 1
IMPACT OVER THE PUBLIC AND ENVIRONMENT

CUMMULATED RELEASES OF
RADIOACTIVE EFFLUENTS (µSv)
14
12
10
8
13,27
6
4
2
5,51
5,68
7,22
4,49
7,27
10,45
9,94
8,3
8,18
6,11
0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

COLLECTIVE RADIATION
EXPOSURE (man x Sv)
0,9
0,8
0,7
0,6
0,5
0,4
0,3
0,2
0,1 0,24 0,25
0
0,81
0,45
0,46
0,57
0,55
0,73
0,54
0,56
0,27
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
LEGAL DOSE FOR PUBLIC: 1000 Sv
AVERAGE YEARLY DOSE FOR 10 YEARS
OF OPERATION: < 1,0% FROM LEGAL
DOSE
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CUTTING CO2 EMMISSION
TWO CERNAVODA UNITS CONTRIBUTION TO THE REDUCTION OF
THE ANNUAL EMISSIONS OF CO2 - ABOUT 5 MILLION TONS.
The production of one kWh of electricity
generates:
CO2
1200
1000
800
600
400
200
0
818 g
955 g
446 g
0
nuclearelectrica
pe gaze
Tip Centrală
pe pacura
pe carbune
CERNAVODA NPP – UNIT #2
IMPACT OVER ELECTRICITY PRICE
STABILITY!
Excellent commissioning experience
achieved by SNN staff:
Unit 1: criticality to commercial – 229 days
Unit 2: criticality to commercial – 145 days
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NUCLEARELECTRICA ON
THE ELECTRICITY MARKET

Nuclearelectrica sells almost 70% of the energy
produced by Cernavoda NPP Units 1 and 2 on the
regulated electricity market, where the price is
established by ANRE (Romanian Energy Regulatory
Authority)


30% is sold on the free electricity market and on the Next
Day Market
In 2008, Nuclearelectrica sold to the Customers
about 10,700,000 MWh

delivered to the Grid by Cernavoda NPP: 10,335,000 MWh
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NUCLEAR FUEL PLANT
Present & Future

In this moment, Nuclear Fuel Plant
(FCN) is producing nuclear fuel for
two units (approx. 10.000 fuel
bundles / year / 2 Units) using
Romanian uranium;

Plans
to
double
capacity
for
Cernavoda NPP Units 3 and 4 future
operation;

The projected growth of production,
requires actions to prepare the
security of uranium supply.
Therefore Nuclearelectrica started the qualification
process of some UO2 suppliers (others than National
Uranium Company)
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WASTE MANAGEMENT
INTERIM DRY SPENT FUEL STORAGE FACILITY AT
CERNAVODA SITE
MACSTORE Type (AECL Canada) – first module operational
from 2003; second – 2006; third – February 2007;
Final profile: 27 modules – 50-80 years of storage for 2
Units;
DECOMMISSIONING – a new challenge!
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WASTE MANAGEMENT
ANDRAD- The National Agency for Radioactive Waste
was established in 2004 as the authority responsible for the
management of the radioactive waste in Romania.
Its main goals are:
–
elaborating the legal and operational frame for
management and the disposal of radioactive waste
the
–
Upgrading the final repository of existing Baita-Bihor
dedicated to the radioactive waste of low and intermediary
activity resulting from the institutional, industrial, medicinal
and research activities
–
Finalizing the DFDSMA- Saligny for radioactive waste
resulting from the activities of Cernavoda NPP before 2014
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WASTE MANAGEMENT
There are two PHARE projects for the final repository in
Saligny on the role:
-
Support to ANDRAD to get the siting license for Saligny
LILW near surface repository PHARE RO 2006/018147.05.01 and
-
Design and safety assessment for licensing the
construction of Saligny L/ILW National repository PHARE
RO 2006 / 018-411.03.03
The economic operator is: ONET TECHNOLOGIES GRANDS
PROJETS, member of the ONET group
UNITS 3 & 4 CERNAVODA
IN A NUTSHELL
 MAIN CHARACTERISTICS:
Reactor Type:
Installed Output:
Delivered Power:
Completion Cost:
Schedule:
Unit Life:
Electricity Price:
IRR:
CANDU 6
2 x 720 MWe
2 x 5,239 TWh/an
aprox. 4 bl. Euro
64 months per unit
30 years, possible 50
28,2 - 32,5 Euro/MWh
9 -11%
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NUCLEARELECTRICA - CERNAVODA 3 & 4
MAIN PROMOTER AND FOUNDING INVESTOR
• The project is in accordance with the Romania’s
newest energy strategy;
• Romania had a well developed nuclear infrastructure:
– Heavy Water Plant;
– Fuel Fabrication Facility;
– Proven experience in construction, commissioning
operation of NPPs
– Technically Qualified CANDU Experienced Staff;
– Nuclear R&D Program
and
• Negotiation Team mandate - Government Decree Nos.
643/2007 & 691/2008 referring to the Investors’
selection strategy, considering Nuclearelectrica’s
stake of 51% in the Project;
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NUCLEARELECTRICA and
CERNAVODA NPP: UNITS 3 & 4
INVESTORS – 49%
NUCLEARELECTRICA SA
ENERGONUCLEAR
51%
100%
UNITS 3 & 4
CERNAVODA NPP
UNITS 1 & 2
NUCLEARELECTRICA:
OPERATION & MAINTENANCE
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ENERGONUCLEAR: CERNAVODA NPP 3 & 4
PROJECT MODEL
• Approval of the negotiations by Government Decree
No. 1565/2008
• SN Nuclearelectrica SA jointly with six selected
investors (Arcelor-Mittal, CEZ, GDF-Suez, Enel,
Iberdrola and RWE) registered EnergoNuclear (EN) for
the purpose of developing, constructing and
operating Unit 3 and Unit 4 of the Cernavoda NPP;
• All seven investors will contribute with equity,
assuming the market risk at the completion of the
investment and in return will receive all the power
produced from Units 3 and 4, proportionally with their
investment in the EN;
• In return, for receiving the power from EN the
investors/off-takers will undertake to fund the costs
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incurred by EN.
ENERGONUCLEAR - CERNAVODA 3 & 4
PROJECT ESTIMATED COST
Cernavoda 3 & 4 PROJECT ESTIMATED COST
Unit
Installed
capacity
(MWe)
Technology Estimated
Budget
C# 3
720
CANDU-6
C# 4
720
CANDU-6
EUR about
4.0 Billion
Expected
Commissioning
Date
2015
2016
• Total estimated cost considers the rapidly rising cost of metals,
forgings, other materials and labor needed to build a new nuclear
unit, during the last two years;
• Coal, gas and other fossil-fueled power technologies all use the
same raw materials that are escalating in price;
• Risks to be considered: cost escalation, congestion on
fabrication cycle and limited human expertise, and recently the
financial crisis.
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NUCLEARELECTRICA - CERNAVODA 3 & 4
TWO STEPS APPROACH
• Initial Share Subscription: setting EnergoNuclear having
a limited capital, and a duration of 18 months:
– Main activities: reviewing the Feasibility Study, definition
of the Commercial Contract Type, negotiation and
conclusion of main contracts: construction, finance,
electricity off-take, operation and maintenance etc.);
– Pre-Project Works.
• Second Share Subscription: following the decision of the
Investors to continue:
– EnergoNuclear capital increasing to the final level;
– EPC and Financing in force;
– Contract effective date and starting site activities
– Commissioning and commercial operation;
• Project Completion: within 64 - 68 months for Unit 3, from
the Contract Effective Date, with a delay of 6 to 12 months for
Unit 4.
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NUCLEAR ENERGY VULNERABILITIES:
COSTS AND PUBLIC OPINION
Capital construction for Power Projects
increased by 100% between 2004 and 2007:

–
–


costs
Falling commodity prices due to an anticipated economic
slowdown, may reverse the trend of quickly rising nuclear
power plant construction costs;
A slowdown in the global economy or a recession could
reduce the labor costs as well.
Public opinion is veering in favor of nuclear power
even in countries with moratorium or phase-out
laws due to safe operation record and better
communications efforts;
If the public is not convinced, national and local
opposition could deteriorate the economics of
nuclear energy.
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IMPACT OF THE ECONOMICAL CRISIS
Impact on capital spending, financing harder to
obtain, and financing costs would be higher, but:

–
–

Companies’ plans for new nuclear construction not
affected, but some delays are to be expected;
Main Projects are at an early stage and by the time of
financial close, two or three years away, is expected the
markets to recover;
The fundamentals of energy demand will support
the nuclear revival - the “structural trends” of
demography, growth in emerging countries, energy
supply security and greenhouse gas emissions
reductions will support nuclear power expansion
despite the financial crisis.
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IMPACT OF THE ECONOMICAL CRISIS
(cont’d)

Promoters of two new nuclear projects in Europe
have abandoned attempts at pure project financing:
–
Bulgaria - the government has recombined the
state owned utility NEK with its former
subsidiary (Kozloduy NPP), allowing cash flows
from operation to support debt service for the
new VVERs to be build at Belene;
–
Romania - the original standalone project to build
Cernavoda 3 & 4 has been converted into one
where the government will take 51%, increasing
the project’s financeability;

Compliance
with
EU
competition
directives
demonstrated (the market economy operator test);
to
be
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SECOND ROMANIAN NPP
• Romanian Government is considering a second NPP
to be commissioned after 2020, as far as the
nuclear energy represents the main contributor to
security of supply strategy and CO2 reduction:
– 2 to 4 units, up to an overall site capacity of about 2,400
MW;
– Transparent site selection process up to 60 months (from
candidate to preferred and selected sites), including
public consultations and site authorization by relevant
authorities (Regulatory Body, Ministry of the Environment
etc.);
– Sites on the internal rivers from energy deficit regions, as
well as Danube River could be considered;
– Reactor Type – Third Generation (750 – 1,200 MWe/unit):
EPR, AP1000, OPR 1000+, APR1400, ACR 1000, (Enhanced
CANDU-6) etc.
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CONCLUSIONS
 The Nuclear Program in Romania, part of the national
and
European
energy
policy:
sustainable
development, security of energy supply and
competitiveness;
 Romania has a proven experience in construction,
commissioning and operation of NPPs, as well as the
necessary support infrastructure:
 Unit 2 completion represents the major project
Nuclearelectrica during its first decade of existence;
of
 Innovative approach of Nuclearelectrica related to
Cernavoda NPP Units 3 and 4 completion:
 Major project for the second decade of company life;
 Risks management and allocation – major tool for project
management and financing closure;
 Support from the political class is crucial,
considering that the completion of such projects are
covering more than one elections cycle;
 Importance of the International Cooperation.
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Thank you !
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