EU Energy Policy and Energy Security of Central Europe VIII. Panel III. Nuclear energy in the EU and Central Europe Sándor NAGY MVM Ltd

Transcription

1 EU Energy Policy and Energy Security of Central Europe VIII. Panel III. Nuclear energy in the EU and Central Europe Sándor NAGY MVM Ltd 24 th November 2014

2 Topics: 1. Introduction MVM Group 2. National Energy Strategy MVM s Strategy 3. The Hungarian Electrical System 4. Maintaining existing nuclear capacity 4.1 Paks Nuclear Power Plant 4.2 New Nuclear Unit(s) 2 MVM Hungarian Electricity Ltd.

3 3 MVM Hungarian Electricity Ltd.

4 General introduction of MVM Group MVM Ltd. Responsibilities of MVM Hungarian Electricity Private Limited Company (MVM Ltd.) performs strategic management and control activities as a holding company defines business strategies and sets targets in support of the national energy strategy Generation nuclear fossil renewable Transmission/ storage MAVIR Hungarian TSO Company Ltd. (99.99%) Hungarian Gas Transit Ltd. (49,99%) South Stream Hungary Ltd. (50%) Trading and supply MVM Partner Hungarian Natural Gas Trade Ltd. Other engineering and construction T/Accounting services Telecom. service provider (45%) Hungarian Natural Gas Storage Ltd. Majority state ownership (99,9%) exercised by the Hungarian National Asset Management Inc. o 56 companies in total: MVM Ltd. is the parent company o 37 subsidiaries o 2 joint companies 8 associated companies and 8 companies in other forms of participation 4 MVM Hungarian Electricity Ltd.

5 MVM Group s capabilities Generation MVM subsidiaries operate a large power generation portfolio - similar to the SE assets. Construction services MVM subsidiaries provide excellent power plant and network installation and maintenance services. Electricity trading MVM Partner is successfully managing and growing its commercial portfolio. Engineering services MVM subsidiaries are providing excellent business and engineering services to the MVM Group. 5 MVM Hungarian Electricity Ltd.

6 Key financial indicators of MVM Group 2012 (million HUF) 2012 (million EUR) 2013 (million HUF) 2013 (million EUR) Main balance sheet items M EUR Sales revenue , ,39 EBIT , ,13 EBITDA , ,22 Profit before tax , ,20 Main income figures M EUR 2012 (million HUF) 2012 (million EUR) 2013 (million HUF) 2013 (million EUR) Fixed assets , ,42 Current assets , ,77 Total assets , ,19 Short term liability , ,21 Long term liability , ,20 Shareholder s equity Total equity and liabilities , , , ,19 6 MVM Hungarian Electricity Ltd.

7 Key assets of MVM Group Power Plants and the National Grid 1 nuclear power plant (2000 MW) 1 coal-fired power plant (240 MW) 2 cogeneration power plants (114 MW) 4 open cycle gas turbine power plants (526 MW installed capacity) 1 wind farm (23 MW installed capacity) 1 deep coal mine Owner of the Hungarian Transmission System (MAVIR) The grid includes transmission lines of 4855 km and 30 substations Capacity of transformers operating on the transmission network is MVA Total annual electricity consumption: ~42,2 TWh 7 MVM Hungarian Electricity Ltd.

8 Key assets of MVM Group Gas storage sites Two new companies: Hungarian Natural Gas Trade Ltd. and Hungarian Natural Gas Storage Ltd. joined the MVM Group through acquisition in MVM Hungarian Electricity Ltd.

9 Regional Partnership MVM Group has also more than 30 years of experience in nuclear power plant operation. The company is currently managing a lifetime expansion program to extend the operational life of its four nuclear units by twenty years, which are identical with the units in Mochovce and Bohunice in terms of type and combined capacity. The synergies from the similar and complementary power generating portfolio of MVM Group and Slovenské Elektrárne help to increase further the security of supply in the region. With this regional partnership the vertically integrated energy company MVM aims to develop further and expand its business portfolio in the CEE region. 9 MVM Hungarian Electricity Ltd.

10 Importance of Regional Partnership Participants can complement each other in various ways, and create new market opportunities and market synergies beneficial to both parties. Increasing the scale of operations and best practice sharing, can foster efficiency for all parties and lead to significant cost synergies. Joint approach to key customers and suppliers (e.g. in nuclear power plants) can create a strategic advantage for all parties. Joint strategic management of nuclear projects can mitigate the risk of having temporary excess capacity at a regional level. 10 MVM Hungarian Electricity Ltd.

11 Topics: 1. Introduction MVM Group 2. National Energy Strategy MVM s Strategy 3. The Hungarian Electrical System 4. Maintaining existing nuclear capacity 4.1 Paks Nuclear Power Plant 4.2 New Nuclear Unit(s) 11 MVM Hungarian Electricity Ltd.

12 Future outlook for Hungary National Energy Strategy Expected power generation in Hungary by energy mix scenarios Future power generation mix is mainly influenced by developments on the natural gas market, the CO 2 prices, and the renewable support scheme Nuclear and gas are expected to maintain their dominant role in the generation mix, and renewable energy shall gain share These scenarios count with the high average age (>20 years) of the Hungarian power plants 12 MVM Hungarian Electricity Ltd.

13 Effects on sustainability of technology options Hungary s aim is: Sustain and develop security Decrease total system costs Reduce electricity price Increase availability Contribute to CO 2 reduction targets Impact on other environmental effects Social implications follow the population behaviour linked to energy consumption; 13 MVM Hungarian Electricity Ltd.

14 Main Targets of National Energy Strategy 2030 The Hungarian Parliament approved the National Energy Strategy in its Resolution No. 77/2011. (X.14.) Maintaining the existing nuclear capacities Integrating the Central European grid network and constructing the required cross border capacities necessary to MW export Increasing energy savings, efficiency Increasing the share of renewable energy up to 1350 MW Utilizing the domestic coal and lignite resources in ecofriendly manner (CCS) for power generation MW 14 MVM Hungarian Electricity Ltd.

15 Strategy of MVM Group MVM Group s primary task is to support the goals of National Energy Strategy 15 MVM Hungarian Electricity Ltd.

16 Topics: 1. Introduction MVM Group 2. National Energy Strategy MVM s Strategy 3. The Hungarian Electrical System 4. Maintaining existing nuclear capacity 4.1 Paks Nuclear Power Plant 4.2 New Nuclear Unit(s) 16 MVM Hungarian Electricity Ltd.

17 Development of electricity demand Domestic Electricity Production 410 TWh electric power has been produced by MVM Paks Nuclear Power Plant since the date of the first connection of Unit 1 to the grid 17

18 Electricity demand forecast The domestic power plants are getting obsolete. The current peakload of the Hungarian electrical system is 6300 MW, which will reach MW by Peakload Renewable Oil Gas< 50 MW Gas New capacity By the end of the next decade more than 6000 MW new capacity will be necessary. Coal Nuclear

19 Trend of the electricity import 40% 35% 30% 25% 20% 15% 10% 5% 0% Source: MVM & MAVIR statistics 19 MVM Hungarian Electricity Ltd.

20 Topics: 1. Introduction MVM Group 2. National Energy Strategy MVM s Strategy 3. The Hungarian Electrical System 4. Maintaining existing nuclear capacity 4.1 Paks Nuclear Power Plant 4.2 New Nuclear Unit(s) 20 MVM Hungarian Electricity Ltd.

21 Topics: 1. Introduction MVM Group 2. National Energy Strategy MVM s Strategy 3. The Hungarian Electrical System 4. Maintaining existing nuclear capacity 4.1 Paks Nuclear Power Plant 4.2 New Nuclear Unit(s) 21 MVM Hungarian Electricity Ltd.

22 Main features of Paks Nuclear Power Plant Ltd 4 units - VVER-440 design (PWR 2.(+) generation, safe model) Operation commenced: 1982, 1984, 1986, 1987 Capacity after power upgrading: 4x500 MW Following the lifetime extension, the units are expected to operate until 2032 to 2037 Continuous safety upgrading high safety and technical performance The safety of the nuclear power plant is guaranteed by: highly qualified, safety conscious and greatly committed personnel continued developments, safety enhancement measures and reconstructions intended to replace the obsolescent items of equipment. 22 MVM Hungarian Electricity Ltd.

23 Capacity upgrade of Paks NPP Start up of the unit Capacity upgrade Unit 1 14/12/ /07/2007 Unit 2 26/8/ /12/2008 Unit 3 15/09/ /11/2009 Unit 4 09/08/ /09/ MVM Hungarian Electricity Ltd.

24 Lifetime extension of Paks NPP 24 MVM Hungarian Electricity Ltd.

25 Safety performance indicators of Paks NPP INES: International Nuclear Event Scale The aim of using the International Nuclear Event Scale is to facilitate the clear communication to the public and the media by indicating the severity of safety related events with the use of a single number from 1 to of 17 events were rated to INES 1 (anomaly) during the period between 2001 and Industrial Accident Indicator The Industrial Accident Indicator of WANO is derived from the number of labour accidents per 200,000 worked hours, which resulted in 1 day or longer incapacity for work. 0,2 25 MVM Hungarian Electricity Ltd.

26 Topics: 1. Introduction MVM Group 2. National Energy Strategy MVM s Strategy 3. The Hungarian Electrical System 4. Maintaining existing nuclear capacity 4.1 Paks Nuclear Power Plant 4.2 New Nuclear Unit(s) 26 MVM Hungarian Electricity Ltd.

27 Project preliminaries National Energy Strategy Parliament s decision on 3 rd October Teller Project Feasibility study Decision in Principle of the Parliament 30 th March yes, 6 no and 10 abstaining Lévai Project Preparation work of the planned project. Background work for successful decision making process. MVM Paks II. Nuclear Power Plant Development Co. Continues the work from 26 th July 2012 as an independent company. 27 MVM Hungarian Electricity Ltd.

28 Technical requirements of new nuclear unit(s) 28 MVM Hungarian Electricity Ltd.

29 Intergovernmental Agreement (IGA) IGA: Treaty between the Government of Hungary and the Government of Russian Federation on cooperation in the field of peaceful use of nuclear energy The IGA is dated on 14 January 2014 between the Parties; in Hungary has been incorporated into the Act II of 2014, which has been entered into force on 12 February MVM Hungarian Electricity Ltd.

30 Intergovernmental Agreement (IGA) Section 1 of Article 1 The Parties cooperate in the maintaining and in the development of Paks Nuclear Power Plant, including inter alia the design, implementation and commissioning of the new 5. and 6. VVER power plant units of at least 1,000 MW installed capacity Section 1 of Article 8 Several provisions (e.g. the details of the new power plant units construction) will be specified later by Implementation Agreements (e.g. by EPC Contract) in order to implement the Treaty 30 MVM Hungarian Electricity Ltd.

31 studies Preconditions, time scale Parliament Government Ministry 7. (2) For the start of preparation of new nuclear unit, or storage facility or extension of the existing NPPs by new unit is necessary to obtain the prior principal agreement of the Parliament. Atomic Law Paks-6 Paks-5 Teller Lévai MVM Paks II. Ltd years licensing contract design construction erection commissioning 31 MVM Hungarian Electricity Ltd.

32 Public acceptance % Do you accept that a nuclear power plant operates in Hungary? 90% 80% 70% 26% 30% 24% 33% 36% 27% 33% 31% 21% 22% 18% 21% 16% 19% 19% 20% 28% 16% 22% 19% 25% 24% 17% No 60% Yes 50% 40% 30% 74% 70% 76% 67% 64% 73% 67% 69% 79% 78% 82% 79% 84% 81% 81% 80% 72% 84% 78% 81% 75% 76% 83% 20% 10% 0% 11-m. 11-j. 11-j. 11-a. 11-s. 11-o. 11-n. 11-d. 12-m. 12-j. 12-j. 12-a. 12-s. 12-o. 12-d. 13-á. 13-m. 13-j. 13-j 13-s. 13-o. 13-n. 14-j. 32 MVM Hungarian Electricity Ltd.

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