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The Prospects for Nuclear New Build Chris Savage Nuclear Industry Association CIC Economic and Policy Forum 24th June 2011 About the NIA • The voice of the UK civil nuclear Industry • 250 members across whole nuclear sector • Members range from utilities to small enterprises NIA with DECC Secretary of State Chris Huhne at the Lib Dem Party Conference (2010) NIA – membership diversity • • • • • • Utilities, Contractors and vendors Fuel cycle and decommissioning Civil, process, design and multidiscipline engineering Project management, engineering, safety case and consultancy Equipment and component manufacturers Legal, financial, insurance, training and agency services Supply Chain Development SC@nuclear The Essential Guide to the new build nuclear supply chain Stage One February 2011 UK Nuclear Industry • • • • Pioneer in nuclear generation Full fuel cycle capability Highly skilled workforce Mature and flexible supply chain The UK electricity mix •Coal - 28% •Oil - 1% Coal •Nuclear – 18.5% Oil Gas •Gas – 44.5% Nuclear Renewable •Renewable – 3.5% Hydro Other •Hydro - 1% •Other – 3.5% Source: DECC, 2009 Digest of UK Energy Statistics Nuclear’s global contribution • • • • • • • 14% world electricity 32% EU electricity 436 plants operating 63 plants under construction 13 plants started in 2010 156 ordered or planned 332 proposed Sizewell B, PWR Suffolk Nuclear New Build Projections About 230* new nuclear power plants will be ordered by 2020 Market research • North America - EPRI reported that 64 GWe of new nuclear capacity in the USA by 2030 - Government R&D funding for nuclear is being revived. New plants order projections by 2020 (44) N. America (40) China • China - Increase in nuclear capacity to 40GWe by 2020 and its target for nuclear capacity in 2030 is 160GWe. India • India - India expects to have 20GWe(30 units) nuclear capacity on line by 2020 Russia France (10) • Asia - Japan : 12 units of new plant will be on line by 2020 - Korea : 10 units will be placed order by 2020 - Thailand : planning to 4 GWe nuclear capacity by 2020 - Vietnam and Indonesia are planning to adopt nuclear options by early 2010s (7 units) U.K. (10) • South Africa - South Africa expects nuclear capacity to increase to about 11 GWe by 2020 Japan E. Europe (30) (12) (40) (11) Asia (11) Africa (11) Korea (10) Total (229) * WNA reports and DOOSAN’s analysis UK Nuclear Renaissance • Three new build consortia • Plans for 16GW of new plant • Typical plant £8bn capital spend • Multi-unit sites • 5000 construction jobs per site at peak • First commissioning in 2018 Interim report on Fukushima by the Chief Nuclear Inspector Secretary of State for Energy and Climate Change, Rt. Hon Chris Huhne MP: “Safety is and will continue to be our number one priority. I am pleased that today’s report confirms that the UK’s current safety arrangements are working.” Chief Nuclear Inspector, Dr. Mike Weightman: “The extreme natural events that preceded the accident at Fukushima – the magnitude 9 earthquake and subsequent huge tsunami – are not credible in the UK…But we are not complacent. No matter what the differences are, and how high the standard of design and subsequent operation of the nuclear facilities here in the UK, the quest for improvement must never stop.” Closure dates for AGR and PWR fleet Hartlepool Heysham 1 Hinkley Point B Hunterston B Dungeness B Heysham 2 Torness 2014 2014 2016 2016 2018 2023 2023 Sizewell B 2035 Next Generation Capacity Profile Nuclear is low carbon lea r Nu c Wi nd Hy dro Ma rin e ic vo lta Ph oto CC S Co al + Ga s Co al Grams per kWhr 1000 900 800 700 600 500 400 300 200 100 0 Nuclear is affordable Review of the costs of generation Cost breakdown Cost (p/kWh) 25.00 Carbon emissions Standby energy 20.00 General overhead Operation & maintenance Fuel 15.00 Capital expenditure 10.00 Nuclear 5.00 Wave Tidal Wind Turbine (Offshore) BFBC OCGT IGCC Technology Wind Turbine (Onshore) CFBC CCGT Coal Plant Nuclear Parsons Brinkerhoff, May 2008 Where are we now… •Justification: Completed October 2010 2008 W&D FUNDING •GDA: Conclusions, September 2011 2011 2012 2013 2014 2015 2016 2017 2018 INDICATIVE TIMELINE FOR FIRST NEW NUCLEAR POWER STATIONS FIRST FDPs Generic activity Project-specific activity GDA Nuclear NPS FIRST SITE LICENSING REGULATORY HOLD POINTS AND PERMISSIONS SSA COMMERCIAL OPERATION FIRST PLANNING •Electricity Market Reform: White Paper expected July 2011 IPC ready CONSTRUCTION 2008 •Investment approval for first plant: 2012 2010 JUSTIFICATION WHITE PAPER, JAN. 2008 •National Policy Statements: Approval expected Summer 2011 2009 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Nominated and approved sites 1. Bradwell, Essex, NDA 2. Hartlepool, Durham, EDF Energy 3. Heysham, Lancashire, EDF Energy 4. Hinkley Point, Somerset, EDF Energy 5. Oldbury, Gloucestershire, the NDA and Eon 6. Sellafield, Cumbria, NDA 7. Sizewell, Suffolk, EDF Energy 8. Wylfa, Anglesey, RWE npower and the NDA New Build Plans for UK EDF Energy UK (EDF Energy/Centrica Joint Venture) 2 x 1600 MW EPRs for Hinkley 2 x 1600 MW EPRs for Sizewell 1st operating 2018, 4 by 2025 second tranche to follow Horizon Nuclear Power Ltd (RWE/EoN Joint Venture) 6000 MW operating by 2025 Technology to be decided in 2011 NuGeneration Ltd (Iberdrola/GDF Suez/SSE Joint Venture) Up to 3600MW operating by 2025 Technology to be decided New build locations AREVA EPR • PWR - 1650 Mwe • Being built in Finland and France • 2 being built in China • Traditional layout & improved safety & design • Seeking UK localisation AP1000® • Based on principles of simplicity and standardisation • Modular approach to construction • 10 units under contract around the world • Of these, four are currently under construction in China - first unit will be on line in late 2013 Supply Chain Hierarchy Schematic Order Timeline for UK Nuclear New Build Programme Next Generation 16GWe Scenario Next Generation Workforce for 16GWe New Build www.nuclearsupplychain.com www.niauk.org