Responsibilities of the operating organization during construction and how to discharge them
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- Edmund Lynch
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1 Responsibilities of the operating organization during construction and how to discharge them Importance of an early, defined & strong involvement of the Owner/Operator in a New Build Project IAEA TM on Responsibilities of Owners/Operators in New and Expanding Nuclear Power Programmes Atlanta, 12 th Dec David Tersigni EDF New Nuclear Projects & Engineering 1
2 1- Context In Phase III of a Nuclear Project, key Roles & Capabilities of the operating organisation 2 How to choose between in-house capabilities and outsourcing and When to implement the operating organisation 3 Strategic Partnership with an experienced Ow/Op 2
3 EDF Nuclear Performance Model plaquette (ENPM / EDF SA) is an integrated industrial management model based on EDF's extensive experience as owner-operator that has been building up through its large fleet in France and abroad. ENPM relies on a full scope mapping describing the fundamental areas of an Owner- Operator company during the whole lifecycle (from project development up to decommissioning) in order to achieve the highest standards of safety, reliability and overall performance. ENPM is consistent with IAEA principles and is an evolutive model with a modular structure which is independent of the reactor technology. 3
4 enpm Mapping level 0 PHASE 1 PHASE 2 PHASE 3 M1 Knowledgeable commitment M2 Ready to invite bids / negociate a contract ENPM / EDF SA M3 Ready to commission & operate IAEA Milestones DevCo set-up Pre-feasibility study Pre-project GenCo set-up Ready to choose a technology Project development Siting Final Investment Decision First Concrete Date First Fuel on Site Construction & commissioning Management and leadership Commercial operation Nuclear safety and emergency planning Financing and sales Legal and regulatory framework Design and configuration management Plant construction Vision and strategy Ready for commercial operation Licensing and permitting Electrical grid Human resources development and training Public acceptance and stakeholder involvement Environmental protection Pre-operations and operations Health and safety Fuel cycle Radioactive waste management Supply chain and procurement Radiation protection Business milestones Industrial milestones EDF Milestones Decommissioning Plant deconstruction EDF Confidential EDF SA. All rights reserved. EDF Nuclear Performance Model Analysis, feasibility Development Implementation End-of-life management 4
5 Nuclear New Build: an exceptional endeavour that requires the Ow/Op to develop and implement a nuclear model & manage interfaces with stakeholders Nuclear, environmental, Highest Security Safety and Regulator (s) Security standards & Rigorous licensing process Capital intensive with Large upfront CAPEX Financial institutions Vast quantities of materials and equipments Millions Engineering hours Hundreds contracts Thousands people on construction site Vendor & Contractors Long Average Construction duration => belated Return On Investment National & Local Authorities / Government Significant Impacts and Benefits on Local communities and business Public & Media 5
6 EDF Pierre Merat In-house capabilities to understand actual design & the licensing basis and interface with the regulatory bodies. The Owner /Operator must have the capability to be a knowledgeable customer to manage the interface with stakeholders, execute its responsibilities and keep a strong line on safety & technical subject with a contractor or regulatory & safety authority. As soon as M2 is reached the GenCo must embed the future Ow-Op attributes! to understand the safety requirements of all activities and manage safe construction and then operations, to establish technical and commercial requirements in order to be able to supervise and control the purchased products & services In-house expertise to dialogue with the Nuclear Regulatory Authority, Capability to train the staff to operate A strong safety culture The Ow/Op activities vary according to the industrial scheme but in all cases it takes on all the responsibilities as licensee regardless of the contractual scheme (BOO, EPC, outsourcing to OE Vendor or TSOs..) 6
7 TYPICAL PROJECT s SCOPE : HUGE But ACHIEVABLE!!! Scope boundaries always needs to be clarified, especially for interface management Normally always in Owner s Scope In Architect Engineer s Scope (Owner or EPC) Site data and definition of physical protection requirements Application for Licensing and Permitting Operation of the plant after Fuel Loading Interfaces with external stakeholders (national and local Politics, Safety Authority, Government, Grid operator, ) Offsite activities (Grid connection, access roads,..) Access to the site (road, rail, harbor facilities); Connection of the site to the electric grid, Switchyard; Communications (telephone, data connections) Site Specific tasks Site characterization and Site selection Development of the site (cleaning, leveling, draining, fencing) Delivery of electricity, drinking water and process water during construction and commissioning; Non process related buildings (Public information center, Training center, Administration buildings, canteen, Sanitary services; Recreational installations and services. Site security installations and services Project management, including Project control, Performance and Schedule of its scope Quality Management Engineering including basic and detailed Engineering of the complete NPP and associated documentation Licensing support and Licensing documentation Procurement of all the components of the NPP (including qualification of the equipment and subsuppliers surveillance) Construction of the NPP buildings including Marine works and related Earth work (excavation of the foundation) Commissioning including handling and loading of the first core, subcritical and zero power tests, part-load tests and the performance tests Normal and Emergency Operating procedures Full scope training simulator Design procurement and Construction of Interim storages for low and intermediate level waste Interim storage for spent fuel Spare parts, consumables and special tools needed for the NPP 7 Temporary site infrastructures
8 Key Responsibilities of Nuclear Owner/Operator The Ow/Op as Licensee is responsible for Safety (and cost!) of the Plant : To be Responsible for the Safety demonstration of the plant and design changes during construction. To fully understand the design to ensure that the it meets all Safety requirements throughout the lifetime of the plant (modification process based on experience feedback, lessons learned from national and global events, R&D..) = To Ensure the Design Authority role, to review of the plant conformity to the current regulations and safety requirements To incorporate into the design the feedback of operating experience and specific utility requirements at the design stage / bidding stage and then throughout the lifetime of the plant. The Ow/Op may be its own Architect-Engineer or contract it with an EPC, the Vendor or be supported by an OE or TSO : To Specify overall technical requirements (safety, functional, performance, manufacturing, ) and cascade them through adequate contractual allotment to be the overall Responsible Designer (integration, review of studies, surveillance) even relying on some Responsible Designers for the NSSS, CI, I&C, 8
9 Key Architect-Engineer activities to be performed (even partly) or supervised / controlled by the operating organisation Managing the Project (cost, schedule, risks, interfaces) Defines the contractual scheme and and procurement plan Managing the contracts Liaising with the Safety Authority Defining the technical references and specifications Surveillance of the engineering studies performed by the suppliers Surveillance of the manufacturing Managing the construction on site and the commissioning. 9
10 Key roles of a Design Authority Sets / Accepts codes/standards/methods underpinning safety case. Manages development of the safety case & Liaise with the Regulator(s) Maintains technical understanding of the design and ensure design is compliant with safety case Reviews design according to nuclear safety significance Ensures that the design details and design substantiation are documented Provides advice on Operating Guidelines and any operational / maintenance issues linked with design assumptions Is accountable for design changes and configuration management and ensures conformance to safety issue 10
11 Relationship between the Design Authorithy and others entities GenCo / future Ow/Op Regulatory Authorities Knowledegeable Customer role Design Authority Operation Overall Responsible Designer Responsible Designer of the NSSS Other Responsible Designer Designer Designer 11
12 Operating Organisation s Main Capabilities during phase III Corporate Level : Finance HR (including Human capacity Building) Communication (mainly for public acceptance) Legal / Local and National Authorities Business modeling & Economics Project Management : Project Control Integrated Management System Scheduling and Progress Reporting Cost Control Risk management Documentation management Procurement preparation (supply-chain screening, pre-qualification, lead-time scheduling...) Technical : Engineering (incl. Grid) Site Development (incl. Environmental) until complete characterisation Licensing and Permitting Technical specifications preparation for main contracts (EPC, etc.) Construction Oversight Preparation of Operation 12 12
13 Operating Organisation s Main Deliverables to be involved in during phase III (1/2) Corporate Level : Industrial & Contractual Schemes for Construction, then for Operation, HR Development roadmap for Construction, Pre-operations, Operations, Communication & Information plan for upcoming public acceptance process, Integrated Management System Project Management : Level 0, 1 Schedules *, Long Lead Items scheduling Cost Estimate (Capex, Overnight Cost for construction), Risk analysis (for construction, also for operation), Licensing and Permitting Plan (schedule and breakdown of applications), Qualification of Vendors Invitation To Tender(s)Specification, Bids evaluation Project Manual for Construction, Local Supply Chain survey & assessment (and associated development and qualification plan), Procurement Plan 13
14 Operating Organisation s Main Deliverables to be involved in during phase III (2/2) Technical : Site Characterization Report Site Preparation (preparatory works) engineering plan and Plot plan Site Development (infrastructures) plan, Technical chapters of the Bid Invitation Specification Grid Analysis (connection schemes), Grid Code Compliance studies (incl. power system reserves issue), Environmental Impact Assessment Preliminary SAfety Report s (and then SAR) Technical adaptation of the design to site specificities Commissionning Procedures Guidelines for Operating & Maintenance Procedures (including Radioprotection and industrial safety) 14
15 1- Context In Phase III of a Nuclear Project, key Roles & Capabilities of the operating organisation 2 How to choose between in-house capabilities and outsourcing and When to implement the operating organisation. 3 Strategic Partnership with an experienced Ow/Op 15
16 That is having: The important point in outsourcing is to keep assuming the safety responsibility. An qualification system in place. It s possible to have a progressive qualification for new contractors An overview and exchange with subcontractors on their training program. Partnership is a good practice. The in-house capabilities to supervise outsourced activities. This means to do a certain amount of activities to keep a know-how. Some dedicated expertise for surveillance of services and quality control& surveillance of equipments and material. 16
17 Structuring responsibilities of Ow/Op leads to key choices on competencies and a smooth (progressive) implementation of the Operating organization Development / Construction / Pre-Operation / Operation Tasks identification (examples) Site selection and characterization, Project Management, Safety Report and Licences applications, Supply chain qualification, Civil Works and electromechanical erection Setting the commissioning procedures Setting and review the procedures for test / maintenance / control room operation Outage management organization and procedures Operation management organization and procedures allows program implementation implies HR development and training plan Competences Identification (examples) Design / Engineering Project Management Quality Assurance Quality Control (surveillance) Radioprotection, Chemistry. Electrical & mechanical Maintenance Etc structures leads to Owner/operator's decision on in-house versus subcontracted competencies allocation (Ow/Op Partnership, EPC, Vendor, OE, TSO, Contractors ) 17
18 IMPLICATIONS OF THE CHOICES TO BE MADE A1, A2, A3.. An Impact on safety and performance? Necessary to meet Licence requirements? How Often? How long to develop? Availibility from several contractors, consultants? Available in country, easy for rapid response? Number of units planned Ax Do I do it myself? Set of Activities to be performed in line with the Owner/ Operator Scope of Responsibilities NO : SUB-CONTRACT CAPABILITY of OVERSIGHT CONTRACTUAL APROACH EPC, Vendor, OE, TSOs, Supplyers YES TIME, ADAPTATION EXTERNAL EXPERIENCED STAFF RECRUITEMENT RESKILLING (for staff from thermal plants for ex) TRAINING, On the Job TRAINING Shadow TRAINING / TUTORING OWNER /OPERATOR S CORE COMPETENCE TO PERFORM CONTROL / OVERSIGHT OF CONTRACTORS PARTNERING with Ow/Op, Vendor, OE 18
19 Example 1: Schedule Management 0 Level 0 - General Time Schedule Main milestones Major tasks Used as communication tool 1 Level 1 - Main Time Schedule approx. 800 activities Includes main interfaces between Engineering, Procurement and Construction Used as reference for overall project follow-up 2 Level 2 - Overall Time Schedule approx activities Fully linked (77 single schedules) Basis for critical path calculation 3 Level 3 - Detailed Time Schedule Up to activities Basis for progress reports and follow-up All deliverables implemented 19
20 Example 2 : Configuration Management (1/2) Definition Master the plant configuration (engineering documentation and physical status) at the different milestones of the project Objectives Technical description of the plant via a set of approved documentation Continuous control and traceability of evolutions of the technical description Identification of the discrepancies between the applicable configuration (engineering studies) and the physical status of the plant Definition of a configuration «freeze» to ensure consistency of the configuration during its life cycle (management of postfreeze modifications) 20
21 Example 2 : Configuration Management (2/2) Definition of a design Modification The modification process applies as soon as an evolution has an impact on the documents and reports issued : Civil work drawings, Layout 3D model, erection procedures Input data to detailed engineering studies System design manuals, Commisionning procedures, Operating procedures Regulatory files Origin of a design Modification Change in the safety regulation or requirements Modification of input data such as design and construction rules Supplier feedback, interfaces Result of studies coming late in the design Feedback from commissioning tests Non conformances 21
22 EXAMPLE 3 : COMMISSIONING (1/2) Multiple successive tasks requiring early involvement of the operator Erection end Blocking Tests Temporary operation Turn Over for Blocking (TOB) Test Permit Turn Over for Temporary Operation (TOTO) System border From other system MO ~ PO To other system EDF Confidential EDF SA. All rights reserved. EDF Nuclear Performance Model 22
23 Example 3 : COMMISSIONNING (2/2) Interfaces Construction- Commissioning- Operation Fuel Loading COD Erection System Tests Overall tests Operation Mechanical:Hydro tests Electrical:Continuity and insulation Construction group Individual system tests Pre core loading tests EPC contract Or Architect Engineer Commissioning group: in charge of tests and reports SYSTEM TURN OVER Power Escalation & performance Operation group: in charge of pre-operation (following start-up program instructions) and operation SAFETY OVERSIGHT Commissioning organization Perform the commissioning tests System test management and performance Technical assistance for system operation Leading performance of tests Technical assistance for plant operation and nuclear safety Operating organization (Owner/Operator) Support to Commissioning organization System operation and monitoring Plant operation and nuclear safety Importance of a smooth transfer to the Owner/Operator 23
24 Example 4: Manufacturing and Site Surveillance (1/2) Objectives Complmiance to international Safety requirement of inspected products and services Compliance with Regulations dealing with suppliers surveillance Proofs that the suppliers implement adequate measures to reach the Ow/Op s or Main contractor s technical and quality requirements. Feedback to update the technical requirements, Provide elements of suppliers evaluation throughout the complete manufacturing process Documentation surveillance : At the Preliminary stage prior to the manufacturing Extensive documentation analysis Non-Conformance Reports for review by the Ow/Op or Main Contractor In-factory inspection : In-factory documentation compliance Operations execution surveillance (welding, Non-Destructive tests, ) Associated records (Reports, NCR, End of Manufacturing Reports, ), On-site (existing NPP) inspection : Inspection of welding, Non-Destructive Tests 24
25 Example 4: Manufacturing and Site Surveillance (2/2) Tender assessment Manufacturing surveillance 25
26 EDF - Laurent Vautrin When to implement the operation organisation? Milestone 1 Milestone 2 Milestone 3 Owner / Operator staffing ramp up 26
27 HR needs for Constructions & Commissionning Example 1: A Knowledgeable Ow/Op starts with the set-up of a strong enough engineering team for construction and commissioning FCD-5 FCD-4 FCD-3 FCD-2 FCD-1 FCD FCD+1 FCD+2 FCD+3 FCD+4 FCD+5 FCD+6 Pre-Project Project Development Construction & commissioning Commercial operation Decommissioning Staff ramp-up for the construction of 2 units Overall staffing ramp-up based on First Concrete Date Factory Surveillance Oversight Owner Site Construction Team Owner Construction Team Procurement & Contract Team Engineering & Technical Team Project Control Project management 72% 8% 20% Top Senior Managers Managers Engineers Breakdown of engineering staff by level at FCD First priorities : - N-4 to N-3 : set-up project organization, define industrial scheme, select the technology, award engineering, long lead-items and site preparation contracts - N-3 to N-2 : licensing, project specific design, preparatory works - N : beginning of construction Recommendation : prepare owner s competencies to be involved from the beginning in the definition of the contract s specification 27
28 HR needs for Pre Operation Example 2: Ramping up the operations team ; a Knowledgeable Ow/Op recruits and trains massively in phase 3 Pre-Project Project Development Construction & commissioning Commercial operation Decommissioning Final Investment Decision Plant staffing Startup typical ramp up Operation model setup Plant senior management set up Fuel Loading Plant Staffing Commercial Operation Date Implementing operation & maintenance processes Anticipated recruitment Massive recruitment begins: 1/3 per year First priorities: N-4 to N-3 : set-up the organization, recruit key people and second them to power plants for on-the-job training N-3 to N-2 : Recruitment of operation staff and simulators instructors for training From N: in-depth training, drafting procedures, NPP equipment and systems gradually take over Recommendations: Recruit and train senior management from N-4 Involve some key O&M staff in the project management Begin training of first operators and simulators instructors in N-2 28
29 1- Context In Phase III of a Nuclear Project, key Roles & Capabilities of the operating organisation 2 How to choose between in-house capabilities and outsourcing and When to implement the operating organisation; Examples of activities. 3 Strategic Partnership with an experienced Ow/Op 29
30 Developing, contracting, building and operating a NPP is a challenging undertaking with commitment to excellence that may require partnership with an Ow/Op 1) Construction Challenges: Nuclear Design requires highly specialized engineers Construction duration, cost and quality requirements generate construction risks Construction supervision services are unique (qualification, etc.) 2) Legal / Regulatory Challenge: Regulatory / Permitting oversight need to be robust given safety and environmental concerns. 3) HRD Challenge: Mobilization and training of thousands of people 4) Operation Challenge: Nuclear safety and competitiveness are at stake 5) Project bankability Challenge: Lenders expect track record in nuclear project delivery The support of an experienced operator will : Provide experience to shorten the learning curve Reduce first-time errors Facilitate financing Deliver training and organize transfer of know-how Allow experience feedback sharing and synergies 30
31 Partnership with Ow/Op during Construction phase: bringing NPP project to completion on time, on budget and quality" Ow/Op Partner proposes adequate support for : Project Management (construction) O&M experience Training Public acceptance Commissioning Control of overall schedule Contract management Licensing management Manufacture inspection Reference plant O&M know-how Operation & Safety management systems Emergency preparedness Fuel front-end and back-end strategy Supply chain (industrial policy) Development of construction and operation competencies Initial training of operators and of operators' instructors Transfer of operating documents Initial training for positions needed for authorizations before fuel loading; fuel handling training Temporary assignment of selected staff in Partner's NPPs, etc. Communication with local authorities Local infrastructure financing Post Fukushima communication and action plans Assignment of skilled staff from Strategic Partner Safety oversight from beginning of tests Commissioning methods and associated knowledge Robust commissioning organization with early Owner/Operator staff integration for assuming license responsibility 31
32 EDF and its Worldwide Partners: A Long Journey which started in the 1970 s PWR 900 CPO PWR 900 CP1 and 10 CP Koeberg 1& PWR 1300 P4 86 South Africa 12 PWR 1300 P Ulchin 1&2 89 South Korea Owner s assistance for new nuclear build projects in the world 84 4 PWR 1500 N Daya Bay 1&2 94 China PWR: Pressurised Water Reactor CP0, CP1, CP2, P4, P 4, N4, EPR = technological series for French reactors EPR: European Pressurized water Reactor 97 Ling Ao 1& Ling Ao 3&4 11 China 05 China EPR Olkiluoto 3 07 EPR Flamanville Finland (Areva) France Past Projects Current and Future Projects 09 EPR Taishan 1&2 17/18 China France EPR under construction Hinkley Point C 1& /26 UK Abroad EPR Project Sizewell C UK Hualong Project Bradwell B UK 32
33 EXAMPLE of CGNPC/EDF partnership (1/2): from new comer in 1990 s to international player CGNPC nuclear installed power (MW) LING AO: The technical route with its own proprietary brand EDF assistance to Architect Engineer Towards architect engineering self reliance in AE and design self reliance TAISHAN: The construction of the Chinese fleet EDF co investor with CGNPC DAYA BAY: The first commercial NPP in China EDF responsible for the overall coordination, interfaces management, construction follow up and plant commissioning 1 st step to self reliance 33
34 EXAMPLE of CGNPC/EDF partnership (2/2): a successful know-how transfer process 34
35 Thank you 35
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