June 2014 Petr Kubín ČEZ, a.s.

Transcription

1 Temelín 3&4 - update June 2014 Petr Kubín ČEZ, a.s.

2 CEZ GROUP IS AN INTERNATIONAL UTILITY WITH A STRONG POSITION IN CEE CEZ Group in Poland (100% stake in Skawina, 100% in Elcho) Electricity generation, gross (TWh) 2.3 Market share 1.4% Installed capacity (MW) 730 Market share 2.0% Number of employees 427 Sales (EUR million) 130 CEZ Group in the Czech Republic Electricity generation, gross (TWh) 64 Market share 72% Number of connection points (million) 3.6 Market share 61% Installed capacity (MW) 13.2 Number of employees 20,853 Sales (EUR million) 6,596 CEZ Group in Turkey (50% stake in SEDAS through AkCez, 37.36% stake in Akenerji) El. sales to end customers (TWh) 8.2 Number of connection points (million) 1.4 Market share 6.5% Installed capacity (MW) 738 Market share 1.1% Energy Assets Trading Activities Active subsidiary CEZ Group in Romania (100% stakes in CEZ Distributie, CEZ Vanzare, Tomis Team, Ovidiu Development, TMK Hydroenergy Power) El. sales to end customers (TWh) 3.6 Number of connection points (million) 1.4 Market share 15% Installed capacity 618 MW Number of employees 1,844 Sales (EUR million) 417 CEZ Group in Bulgaria (67% stake in CEZ Razpredelenie Bulgaria, CEZ Electro Bulgaria, 100% in TPP Varna, 100% in Free Energy Project Oreshets ) El. sales to end customers (TWh) 10.1 Number of connection points (million) 2.1 Market share 42% Installed capacity (MW) 1,265 Market share 11.9% Number of employees 3,796 Sales (EUR million) 837 Source: CEZ, national statistics, data for 2012, market shares for 2011, CZK/EUR

3 CEZ GROUP IS RELYING SIGNIFICANTLY ON NUCLEAR AND LIGNITE GENERATION Installed capacity and generation (2013) Black coal (baseload and midmerit) 15,199 MW 66.7 TWh ,3 8% Lignite / Brown coal (baseload and midmerit) ,5 38% Nuclear (baseload) ,7 46% Hydro and others ,2 8% Installed capacity Generation, gross Share on generation 2

4 ONLY SELECTED LIGNITE PLANTS ARE RENEWED, WHICH MATCH OUR COAL SUPPLIES Lignite capacity (MW) Rationale 5500 Finishing lifecycle To be replaced by other fuels Low cost of domestic lignite Thermal power plants next to mines only costs of internal logistics Replacement of old units with more efficient new technology (20% lower CO 2 emissions, from 1t CO 2 /MWh to 0.8 CO 2 /MWh) Prunerov (25 years lifetime) Ledvice (40 years lifetime) Tusimice (25 years lifetime) Secured lignite supplies for the investment lifetime Current lignite capacity Ongoing renewal projects 3

5 ČEZ OPERATES 6 NUCLEAR UNITS ON 2 SITES DUKOVANY NPP 4 x 500 MWe In operation since 1985 Type of reactor: VVER 440 type V 213 Power uprating from 440 MW to 500 MW Dukovany NPP among top NPPs world-wide as per operational and safety performance indicators Safety long time operation program Total electricity production over 300 TWh TEMELÍN NPP 2 x 1000 MWe First connection to the grid 2000 Type of reactor: VVER 1000 type V320 Installed capacity 2 x 1000 MW Temelín NPP is the largest energy source in CR Temelín NPP is built and designed at the highest level of safety Planned power uprating up to 1080 MW (till 2015) Total electricity production over 130 TWh 4

6 TEMELÍN IS A FULLY OPERATIONAL EXISTING SITE ORIGINALY DESINGED FOR 4 UNITS KEY SITE CHARACTERISTICS Prague Temelin Located c.100km south of Prague by the river Site initially designed to accommodate four units Extension of the existing site allows for synergies: site authorisations and security management existing access roads and network connections interactions with local residents fuel cycle management TEMELIN ETE 1&2 KEY DATA HISTORICAL OVERVIEW Data Unit 1 Unit 2 Type PWR PWR 2014 Twelve years of nuclear exploitation Model VVER V-320 VVER V-320 Vendor Skoda Praha Skoda Praha 2002 Unit 2 - Commercial operation (start of trial operation) Owner / Operator CEZ / CEZ CEZ / CEZ 2001 Unit 1 - Commercial operation (start of trial operation) Net / Gross capa. 963MW / 1,013MW 963MW / 1,013MW WASTE MANAGEMENT CEZ in charge of storage and management of used fuel until hand over to the RAWRA (1) Storage pools in operation Formal decision from Czech government to complete construction of units 1 and 2 Construction of reactors 3 and 4 suspended following Velvet revolution of 1989 / Doubt raising on units 1 and 2 Feb. 87 Construction start Jan. 87 Construction start Plan to build 4 units Source: World Nuclear Association, CEZ (1) Radioactive Waste Repository Authority (Správa úložišť radioaktivních odpadů, SÚRAO) established in June 1997 and responsible for the disposal of existing and future radioactive waste 5

7 THE EXTENSION PROJECT TEMELÍN 3&4 WAS REOPENED IN 2005 INVESTMENT HIGHLIGHTS Prague Temelin Project to add two reactors at Temelin site (ETE 3&4) reopened in 2005 Supported by government to: Ensure energy independence and security of supply Retain and expand the country s nuclear know-how Conforms to EU s emission reduction goals Enables a transition towards low emission generation in the region Consented by the grid s operator (CEPS) and included in the grid development plan Nuclear licensing ongoing Environmental impact assessment issued in January 2013 Temelin ETE 1&2 Temelin ETE 3&4 INDICATIVE TIMELINE TEMELIN ETE 3&4 KEY DATA ? Data 3&4 Units to be built Dec Licence for siting of the NPP to be issued May, 2014 Cancelation of the EPC tender Jan., positive EIA statement issued July 2, 2012 Bid submission Oct Tender specification issued Type Power output Availability Net thermal efficiency PWR of generation III or III+ Up to 3,400MW (>+1,000MW per unit) >90% 37% 2009 Aug Initiation of EPC tender Life time Safety >60 years Low risk of accidents with major damage of the core (below 10-5 / year) 6

8 EPC TENDER ACCORDING TO PUBLIC TENDERING THE WORLD UNIQUE PROCESS Competitive open process Tender procedure compliant with European Union and Czech public tendering Balanced technical and commercial criteria for offer evaluation Specifications selected to favour the standard design option with minimum modification Technical requirements adapted from European Utility Requirements (EUR) as a starting point, modified mainly for: Site conditions Legislation requirements and licensing process in the Czech Republic CEZ operational experience from Dukovany and Temelin (6 units all together) Technical advisor recommendation Emphasis on safety and security following Fukushima incident Selection of EPC contractor independent from partnership process/financing Three nuclear technology leaders retained as bidders Westinghouse Electric Company LLC Westinghouse Electric Czech Republic s.r.o Areva NP SAS SKODA JS a.s ZAO Atomstroyexport OAO OKB Gidropress 7

9 LONG TERM FORWARD PRICES DON T INDICATE THE RECOVERY OF THE INVESTMENT ENVIRONMENT Power price, Germany, EUR/MWh CO2 price, EUR/t In 2008 the market sent the motivation signal for investment - before the crises. The CO2 price was at the level that promoting low-carbon sources. Intermediate oversupply and drop in coal and gas prices decreased the power price. Unpredictable support of renewables threatens the European power and CO2 market that should motivate investment into the power sources Note: baseload forwards (CAL14 CAL19 EEX)

10 CZECH MARKET IS AN INTEGRAL PART OF WIDER EUROPEAN ELECTRICITY MARKET Czech power prices are fully liberalized and are driven by the same fundamentals as German market European electricity market Year ahead baseload ( /MWh) 30 Czech Republic Germany 9

11 POWER PRICES AT THE MARKET ARE FAR BELLOW THE LCOE TO COVER THE INVESTMENT INTO NEW NUCLEAR LCOE of nuclear power plant and market power price EUR/MWh If LCOE are at the current level of market price, the CAPEX should be EUR/kW at moderate or low cost of capital. Power prices on the market 34 EUR/MWh (EEX baseload forwards) OPEX CAPEX Low cost of capital Moderate cost of capital Recalculation of maximum NPP CAPEX to reach market LCOE at moderate or price level low cost of capital and average CAPEX * * CAPEX level based on Synthesis on the Economics of Nuclear Energy, Study for the European comission

12 DUE TO ACTUAL SITUATION ON ENERGY MARKETS THE EPC TENDER HAD TO BE CANCELED April, 2014 The Czech government adopted a resolution saying it was not planning to provide any guarantee or stabilization mechanism for the construction of lowcarbon power plants at the moment. It also declared interest in further development of nuclear energy in the Czech Republic, promising to prepare a comprehensive plan for the nuclear area by the end of April, 2014 CEZ canceled the procurement procedure for construction of two new units in the Temelin location and sent a relevant notice to the participants. At the same time, it confirmed that preparation of the project as such is going forward. 11

13 NUCLEAR ENERGY CAN BE COMPETITIVE WITH OTHER LOW-CARBON SOURCES LCOE EUR/MWh Assumed cost for power storage and additional induced system and grid costs. Range of price due to CO2 and gas fluctuation Range of price according to CAPEX and cost of capital levels Solar Wind Biomass Biogas CCGT Nuclear CO2 emissions t/mwh 0,35 LCOE range according to different type of installations of RES Additional costs for balancing, storage and system integration (OECD study)

14 Thank you