Nuclear Security of Supply and the role of ESA

Transcription

1 Nuclear Security of Supply and the role of ESA Mrs Ute BLOHM-HIEBER ESA - Head of Unit Nuclear Fuel Market Operations May 2016

2 Contents EU Policy & Role of Nuclear Euratom Treaty & Role of ESA Nuclear Fuel Market & Security of Supply Medical Radioisotopes Outlook May

3 Treaties Policy 1957 EURATOM Treaty first Treaty addressing nuclear supply security 2010 LISBON Treaty (TFEU Art. 194): In the context of the functioning of the internal market 2014 EUROPEAN ENERGY SECURITY STRATEGY (EESS) and ENERGY UNION May

4 EU Policy Lisbon Treaty Article 194 : 1. In the context of the functionning of the internal market, Union policy on energy shall aim, in a spirit of solidarity between Member States, to a. Ensure the functioning of the energy market b. Ensure the security of energy supply in the Union c. d. 2. European Parliament and the Council, shall establish the measures necessary to achieve the objective Such measures shall not affect a Member State's choice between different energy sources and the general structure of its energy supply May

5 Union 2015 Secure supplies Increasing transparency on gas supply; diversifying sources, supplies and routes; developing a stronger European Internal energy market Connecting markets efficiency Buildings and transport Emissions reduction Enforcing the 2030 energy and climate framework Research & Innovation Developing EU technological leadership May

6 EESS (May 2014) Nuclear as important contribution to Security of Supply EESS recognises: Electricity produced from nuclear energy constitutes: reliable base-load source emission free source important role for energy security 50% of EU electricity emission free <=> 23% RES + 27% NE May

7 Nuclear in the EU 18 nuclear utilities 14 EU Members States 128 EU-based nuclear reactors 4 NPP under construction (FIN, FR, SK) Policy priorities: Safety, security (safeguards), supplies May

8 2014 EESS policy EESS Communication 28 May 2014 on nuclear energy Commission will systematically take into consideration diversification of fuel supplies in its assessment of new nuclear investment projects and new draft agreements of contracts with third countries. New NPPs to be built in the EU using non-eu technology The possibility of fuel supply diversification needs to be a condition for any new investment, to be ensured by the Euratom Supply Agency, which acts under the supervision of the Commission All NPP operators need diversified portfolio of fuel supply May

9 ESA legal base Euratom Treaty Chapter 6 Art 52: establishes the Agency Euratom Supply Agency (ESA) Art 53: Supervision by the Commission (Collège) Issues directives Right of veto over ESA decisions Appoints Director-General Art 54: - ESA has legal personality & financial autonomy - ESA Statutes => Advisory Committee (AC) established by Council Decision (revised 2008) May

10 ESA legal base In a nutshell "The Agency shall have the exclusive right to conclude contracts relating to supply of ores, source materials and special fissile materials coming from inside the Community or from outside". The Agency may also impose conditions or refuse to sign a draft contract on the basis of a motivated decision. The Agency's decision may be challenged at the European Commission and the European Court of Justice. May

11 Mission of ESA 1. Euratom Treaty, Chapter 6 to ensure that all users in the Community receive regular and equitable supply of ores and nuclear fuels. to establish a common supply policy for the nuclear fuel, based on principle of equal access to sources of supply. including HEU/LEU for Research Reactors (medical application). 2. Enhanced role by revised Statutes in 2008: Strengthened market observation and monitoring. May

12 Tools of ESA Regarding the commercial supply contract conclusion, ESA has particularly far-reaching competences which do not exist in any other sector of the EU energy policy. ESA acts as a third party to the contracts and one original of the concluded contracts remains in ESA (substantial archives stored). The European Court of Justice held that ESA has a large margin of appreciation in deciding what is necessary for the security of supply. For example, ESA has a right to limit purchases from a third-country supplier if the dependence is considered too high. May

13 Supply contracts buys sells Producers users May

14 Supply contracts buys sells Producers users Main criteria Compliance with EU legal requirements Allowing for alternatives (e.g. testing/lisencing of new fuel) Long-term [diversified] contracts May

15 Nuclear Observatory Nuclear Fuel Market Observatory Market Monitoring Reporting Economic Analysis of the EU Market European Observatory on the Supply of Medical Radioisotopes May

16 Economic Analysis Annual Report Content: Demand of uranium Supply of uranium Prices Enrichment Security of supply AC WG results on SoS Supply of Medical Radioisotopes May

17 Fuel Cycle ESA clients (users/producers): Material: Special fissile materials: enriched uranium (LEU and HEU), plutonium Source materials: natural and depleted uranium, thorium Ores Utilities - all NPP operators RR operators Intermediaries Uranium producers Providers of conversion enrichment, fuel fabrication and reprocessing Storage service providers May

18 Demand of U 2014 Natural uranium deliveries to the EU by origin May

19 Demand of U 2014 Feed needed for fuel loaded in 2014 Source Quantities (tu) Share (%) Uranium originated outside EU "Feed" Uranium originated in EU (approximate annual production) Reprocessed uranium Savings from MOX (U-Pu) Total annual requirements (theoretical) May

20 Demand of U 2014 Future Demand of U EU and worldwide up to 2030 EU U demand is approximately stable around tu/year up from 2015 to 2024 and tu/year from 2025 to 2034 whereas global demand is increasing rapidly EU Share of Global U Demand falls from 26% in 2014 to 15% in EU Demand Global Demand* EU Share% 26% 27% 20% 15% Sources: ESA Annual Report 2014 and (*) WNA Market Report 2013, Demand reference scenario May

21 U Prices May

22 Import and export of services EU know-how in the nuclear fuel cycle EU has enough conversion capacity 2 EU based enrichers deliver about 60% of services to EU utilities (capacity: 150%) Several EU based fuel fabrication facilities with potential to cover EU needs Conversion Enrichment Fuel fabrication May

23 Enrichment services 2014 Percentage share of supply of enrichment services to EU utilities by supplier, May

24 Report on Security of supply May

25 Risks to Security of supply Reduction of production & lack of investment in new mines Overdependence on a single source of supply Transport issues Geopolitical factors Availability of fuel fabrication or conversion Business concentration vs. competition Regulatory regime May

26 Mitigation measures Performing risk analysis Diversifying the supply (supplier country, location, volumes, forms) Maintaining an appropriate level of inventory, specified in level and in form resulting from risk analysis and on-going monitoring Long-term diversified and flexible contracts May

27 Security of supply EU Uranium inventories, Decrease of 3% Cover 3 years of the EU gross reactor requirements May

28 Security of supply Long-term contractual coverage for U & SWU, May

29 Diversification Why is it important? Ensure security of supply (avoiding monopoly) Increase competition in the market Ensure fair market prices May

30 Security of Supply Nuclear power share of total electricity production in the EU in 2014 Netherlands 4% Russian fuel deliveries Germany United Kingdom Romania Spain 16% 17% 18% 20% Bulgaria Finland Czech Republic Slovenia 32% 35% 36% 37% Sweden 41% Belgium 48% Hungary Slovakia 54% 57% France 77% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% May

31 Challenges Security of supply No shortage of uranium (currently) but Over capacity for some services Over dependence of some operators on one external supplier Availability of fuel fabrication or conversion Transport issues Business concentration vs. competition Viability of the EU industry Needed for long-term security of supply Maintaining jobs in the EU Maintaining technological leadership and future growth prospects of the Eu industry May

32 Report on Medical Radioisotopes May

33 Challenge for medical & research application Ageing Research Reactors 4 of 7 in the EU Ensure supply of HEU in the light of HEU minimisation Conversion of fuel & targets (93% ENR => 20%) DoE/ESA Memorandum of Understanding (MoU) Efforts to ensure supply of LEU (< 20%) May

34 Research Reactors not in operation lack of MRI Needs/year=> 30 million exam. of which 7 million in Europe Observatory (ESA chair, other EU services) to support MRI production 4 Topical Workings groups Emergency Response Team to ensure continuity of supply May

35 Outlook In general the security of supply of nuclear fuel in the EU is satisfactory No shortage of uranium in the medium term Nuclear energy in Europe slowly declining but remains important Fast growth in other regions market shifting to Asia Small and medium sized reactors? (SMRs) Generation IV? Fusion ITER? May

36 Thank you for your attention! May