Nuclear reality and status of plans for new build in Lithuania - Visaginas Nuclear Power Plant

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1 Nuclear reality and status of plans for new build in Lithuania - Visaginas Nuclear Power Plant Rimantas Vaitkus Lietuvos energija, UAB Project Management Office Director, Vilnius

2 LT2009 LT2010 LT2011 LT2012 Lithuania is one of the Most Dependent on Electricity Import in EU 62,1% 65% 64% -30,7% EUROSTAT,

3 Lithuanian Power System Balance Lithuania electricity supply in 2012 TSO Litgrid data, 25 th June, 2013 ~64 % electricity import from 3 rd countries and imported fossil fuel generation 3

4 Rationale of Visaginas NPP Project Energy security Diversification of energy mix EU environmental goals * Visaginas NPP *-Latvia is a part of Nord Pool Spot since 3 June 2013 Nord Pool Spot 4

5 Visaginas NPP Advanced Nuclear Development in Europe Sites are suitable for the construction of new NPP conclusion of IAEA expert mission. Environmental impact assessment is in accordance to international standards conclusion of IAEA expert mission. Other development works are completed: Selection of the Strategic Investor, initiation of the Concession Agreement The European Commission has issued its opinion on the Visaginas NPP in accordance with EURATOM Treaty Article 43 Preparation and approval of 70 legal acts by the Government and Parliament Selection of transportation routes Radioactive waste management preliminary arrangements Territory planning Supply Chain Study Existing infrastructure assessment and other activities 5

6 Visaginas NPP Project Structure Owns Lietuvos energija Hitachi SPV Lietuvos energija (Lithuanian Investor 38%) 6

7 Visaginas NPP Sites and Technology In July of 2011 Hitachi Ltd. together with Hitachi-GE Nuclear Energy Ltd. were selected as the strategic project investor and technology provider. The chosen technology is the III+ generation 1350 MWe general capacity Advanced Boiling Water Reactor ABWR. Additional Post Fukushima safety measures were preliminary discussed with the vendor and they will be implemented during design stage of the project. Ignalina NPP (closed in 2009) Two suggested alternative sites for the Visaginas NPP 7

8 Visaginas NPP Project Timeline Preparatory activities Design, construction, commissioning NPP operation Decommissioning VAE Hitachi- GE Contractor (Hitachi- GE) / years years Project company (PCO) O&M contractor >10 years 1 2 Preparatory activities Technical preparatory activities, regulating and licensing, appropriate legal and investment environments Organization for direct negotiations and selection of Strategic Investor Site evaluation Pre-construction period Establishment of the Project company (PCO) Detailed plant designing activities Preparatory activities for equipment ordering necessary for reactor construction PSAR preparation and coordination Construction Main haul road construction and the end of route construction Construction activities >10 years Commissioning activities: systems testing, FSAR and operational procedures preparation and adjustment, end of recruitment of staff NPP operation New nuclear power plant operation Maintenance, surveillance and other relevant activities Decommissioning Decommissioning activities Utilization of the decommissioning fund

9 HR development, R&D Nuclear Energy Physics Nuclear Energy Engineering Competence building, R&D activities Regional Nuclear Centre of Excellence Programme of Preparation of High Qualification Specialists in Nuclear Energy Active participation in IAEA activities 2 weeks duration Regional IAEA Basic Professional Training Courses in Nuclear Safety held in Vilnius in 2008 and 2009 organized by VATESI and LEI and hosted by VAE (now - Lietuvos Energija, UAB) Regional R&D initiative MoU Regarding cooperation and support in preparation of application for nuclear regional research program was signed among General Electric-Hitachi, Hitachi, universities and research institutions in Poland, Lithuania, Latvia and Estonia in July,

10 Visaginas NPP impact to Lithuania's economics and business environment Increase of Lithuania s GDP in by 27,1 bln. LTL, State budget incomes 5 bln. LTL, Direct foreign investments* bln. LTL, New work places, Conditions for R&D and education programs development Total investment into new NPP 17 bln. LTL Sources: UAB Deloitte Lietuva Evaluation of Baltic Region Supply Chain capabilities, 2010; Ernst&Young, Preliminary macroeconomical evaluation of strategic infrastructure projects, 2011; * Discounted amounts. 10

11 Visaginas NPP Up-to-date The advisory referendum regarding the construction of a new NPP in the Republic of Lithuania took place on 14 th October 2012 Lithuanian Government s conclusions regarding continuity of Visaginas NPP approved (on 30 th April 2013) with following conditions: sharing the project implementation expenses, responsibilities and risks between potential investors, to ensure project financing at the lowest costs from international financial instruments, to ensure public awareness given there is a national political agreement on energy strategy. Joint investors position agreed and Position paper document signed by all parties on 30 th September 2013 Project s competitiveness improvement is to be discussed and considered in the Government and the Parliament of Lithuania: Ruling Coalition s political council agreed to continue discussions with Latvian, Estonian companies and Hitachi on a joint Project on 14 th October, Project was presented to the Government on 16 th October, Project will be discussed among Leaders of Parliament on 23 rd October. It is planned to decide on the continuity of the Project during October 2013 at earliest. 11

12 Lithuania welcomes activities of SNETP members to enhance the safe and competitive use of nuclear fission in a sustainable energy mix to increase security of supply, cost competitiveness, and reduction of greenhouse-gas emissions Thank you! 12