How to fast track nuclear new build projects through strategic partnership and localization

Transcription

1 How to fast track nuclear new build projects through strategic partnership and localization African Utility Week Cape Town, 13 May 2015 Mr Jean-Paul Chatry Nuclear Project Development Director Dr Fawzi Issa Managing Director EDF South Africa 1

2 Content COMPLEXITY OF NNB IMPACT STRATEGIC OF LOCALIZATION PARTNERSHIP BENEFIT 2

3 Very long lead times and very specific technical issues are typical in nuclear new build projects PHASE 1 PHASE 2 PHASE 3 M1 Knowledgeable commitment M2 Ready to invite bids M3 Ready to commission & operate IAEA Milestones DevCo set-up Feasibility study Pre-project GenCo setup Ready to choose a technology Project development Siting Final Investment Decision First concrete Date First fuel on Site Construction & commissioning Vision and strategy Management and leadership Commercial operation Nuclear safety, radiation protection, and emergency planning Financing and sales Ready for commercial operation Legal and regulatory framework Design and configuration management Licensing and permitting Civilworks and plant construction Electrical grid Human resources development and training Public acceptance and stakeholder involvement Environmental protection Pre-operations and operations Industrial risks Fuel cycle Radioactive waste management Supply chain and procurement Analysis, feasibility Development Implementation Business milestones Industrial milestones EDF Milestones Decommissioning Civil works and plant deconstruction End-of-life management 3

4 Strategic decisions of the Owner/Operator will have a deep impact on all aspects of the project. Development / Construction Process Example of commissioning tasks identification Set commissioning procedures Establish and review the procedures for test / maintenance / control room operation Outage management organization and procedures Operation management organization and procedures Etc. implies Process Competencies Identification (examples) Project Management Quality Assurance Quality Control Etc. leads to allows program implementation HR development and training plan structures Owner/operator's decision on in house versus subcontracted competencies allocation 4

5 During operation and maintenance, EDF has developed a 1/3-1/3-1/3 maintenance strategy between in house, OEM and SMEs 5

6 IMPACT STRATEGIC OF LOCALIZATION PARTNERSHIP BENEFIT 6

7 Developing, contracting, building and operating a nuclear power plant is a challenging undertaking with commitment to excellence The added value of the strategic partner encompasses the whole value chain 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: The support of an experienced operator will: Shorten the learning curve Reduce first-time errors Facilitate financing Create experience sharing and synergies Deliver training and organize transfer of know-how Lenders expect track record in nuclear project delivery 7

8 Development phase: "helping the NPP project to be on the right track" IAEA Phase 1 phas e 1 Teaming with an experienced owner/operator paves the path to future success and limits first-time mistakes Support to perform a comprehensive feasibility study to identify issues to be dealt with Set up the adequate organization (Dev. Co set up) and mobilization of initial human resources team IAEA Phase 2 phas e 2 Early partnership ensures that key decisions are taken for the benefit of an accelerated project implementation Preliminary Management System Road Map definition. Dialog with the Regulator and other authorities to build a straight forward approval process for licensing and permitting, etc. Suppliers' selection and localization of supply chain, etc. Financing dialogue with lenders and investors on Business Model and risks allocation scheme Optimization of development costs financed at risk through equity up to FID. 8

9 Construction phase: "bringing NPP project to completion on time, on budget and quality" IAEA Phase 3 Strategic Partner proposes adequate support for: Project Management (construction) O&M experience Training Public acceptance Start-up and Commissioning Control of overall schedule Contract management Licensing management Manufacture inspection Reference plant O&M know-how Operation management system and safety standards Fuel front-end and back-end strategy Fleet organization preparation Emergency preparedness organization Supply chain Owner/Operator ensures: Development of construction and operation competencies Initial training of operators and of operators' instructors Transfer of operating documents Initial training for 1 st Unit care positions needed for authorizations before fuel loading; fuel handling training Temporary assignment of owner/operator selected staff in strategic partner's NPPs, etc. Management of cost, schedule and quality of NPP construction 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 Project management team ramp up for efficient management further training of staff (fuel, operators, etc.) Continuous and constructive dialogue with regulator Safe and efficient commissioning and preparation of the Operation Phase Transparent and fair information / dialogue with public opinion stakeholders (local and national) 9

10 Operation phase: "safe and competitive operation in the long run" Strategic Partner proposes adequate support, ranging from short-term initial on-site support to innovative long-term cooperation: Operations emergency and normal procedures Assistance for strategic spare parts Maintenance programs Expert services support Experience feedback, technical support and assistance Training Fuel Availability of SP updated procedures Hot line support for emergency Access to strategic spare parts available in SP stocks Owner/Operator ensures: Exchange on maintenance programs benefiting from the SP fleet cumulated experience Outsourcing strategy Reaching progressive self reliance status Appointment of expert to partner utility to solve a specific problem Exchange of experience: reciprocal access to Strategic' Partners nuclear fleet operating experience data base, etc. Safe and competitive management of its NPPs over the entire project cycle Development of a strong safety culture & management from the very beginning Preparation of teaching materials Training of operators, instructors, etc. Design of workshops Synergies on fuel procurement Synergies on fuel security of supply Fuel tools for inspection or repairs Incore fuel management Sharing permanent improvements through best practices and technical feed back on a day to day basis with Strategic Partner Synergies implementation with Strategic Partner's fleet (fuel procurement, strategic spare parts management, hot line, twinning, etc.) 10

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12 IMPACT ON LOCALIZATION A right localization strategy through know-how transfer is a triple win solution for the Owner/Operator, the Industry and the Government Embark local industry familiar with local requirements (legislation, procurement rules, education system, etc) to bridge the nuclear gap Give the Owner/Operator the choice among several suppliers capable to deliver top level maintenance Make full use of nuclear experience of SMEs keen to transfer their know how through local partnership Local jobs creation not only for the NNB project but also for other industry where the nuclear quality is suitable 12

13 IMPACT ON LOCALIZATION EDF experience with China and other countries PFCE (French China Electricity Association, 1997) chaired by EDF: build partnerships between French SMEs and Chinese manufacturers to support localization PFME (French Worldwide Electricity Association, 2012) chaired by EDF: 72 French SMEs all qualified by EDF to work on EDF nuke fleet and keen to expand their activities abroad. They practically cover the entire scope of nuclear activities. KNOW HOW TRANSFER 13

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15 China - Daya Bay and Ling Ao to now A strategic partner must be a catalyst for the skills development of the owner/operator Not only for operation but also for project development, construction, local chain of supply, financing, etc Can pave the way to further cooperation in the country, Taishan1&2, and On international projects, Hinkley Point C in the UK A strategic partner is much more than a simply owner s engineer 15

16 ROLE OF THE OWNER/OPERATOR A STRATEGIC PARTNER: WHY? BENEFITS 16

17 A nuclear program lifetime spans 100 years. Robust and long term cooperation between the local owner/operator and an experienced nuclear utility is essential. A strong strategic partnership must bring: Lower industrial risks borne by the owner/operator Better project financing conditions by providing comfort to lenders and investors due to a trustful owner/operator. Competitiveness of the project is therefore strengthened. Positive impact on public opinion thus giving credibility to the project Higher safety and operational performance level Cooperation of owner/operator and strategic partner on other nuclear projects along with a strong local supply chain developed through know how transfer mechanisms Long term and mutual support to operation and maintenance including strategic spare parts, specific engineering studies, etc 17