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DECOMMISSIONING INCLUDING FINANCIAL PRECAUTION Joint Convention on the Safety of Spent Fuel Management and on the Safety of Radioactive Waste Management Second Review Meeting May 17 th, 2006 Dr. Michael Paul Dr. Karl-Heinz Kölschbach Federal Ministry for the Environment, Nature Conservation and Nuclear Safety Bonn, Germany Dr. Jörg Kaulard Sven Dokter Gesellschaft für Anlagen- und Reaktorsicherheit (GRS) mbh Cologne, Germany 1 Contents Overview of decommissioning in Germany Legislative framework of decommissioning Financing of decommissioning of nuclear installations 2 1

Overview of Decommissioning in Germany (1 / 5) Prototype Power Reactors and Nuclear Power Plants shut down, under or yet removed Prototype Power Reactors (total of 7 units) - removed: 2 - safe enclosure: 1 - : 4 Nuclear Power Plants (total of 12 units) - removed: none - safe enclosure: 1 - : 10 - final shut down / application for license: 1 3 Overview of Decommissioning in Germany (2 / 5) Research Reactors (total: 33 facilities) Removed: 21 - Critical assembly: 8 - Argonaut type: 4 - Liquid homogeneous reactor: 3 - Propulsion reactor: 1 - Educational reactor: 5 Safe enclosure: 2 Partially removed: 1 Dismantling: 7 Shut down / application for license: 2 4 2

Overview of Decommissioning in Germany (3 / 5) Nuclear Fuel Cycle Facilities Prototype Facilities (total of 3 units) - Completely dismantled and released: 3 Commercial Facilities (total of 6 units) - Completely dismantled and released: 2 - Completely dismantled but not yet released: 2 - Dismantling: 2 5 Overview of Decommissioning in Germany (4 / 5) Kernkraftwerk Stade Recent decommissioning project decommissioning of Stade NPP Basis features on Stade NPP - Reactor type: PWR - Electrical power: 662 MWe - Operation: 1972 2003 - Operator: Kernkraftwerk Stade GmbH & Co. ohg Decommissioning - Decision on decommissioning based on economic reasons - Decommissioning option: immediate with green field condition - Release from regulatory control expected for early 2015 - In parallel: construction and operation of interim storage facility for radioactive waste from decommissioning 6 3

Overview of Decommissioning in Germany (5 / 5) A Four Phases Approach for Stade NPP 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 operational phase post - op. phase residual operations and calendar year licensing of and supervision on the decommissioning phase 1 phase 2 phase 3 of non-nuclear facilities phase 4 release from regulatory control conventional licensing of and supervision on the interim storage facility for radioactive waste (LarA) -5-4 -3 23.07.2001: Application for decommissioning (phase 1) and LarA -2-1 0 1 2 3 4 5 year of decommissioning 07.09.2005: License on decommissioning (phase 1) and on LarA 15.02.2006: License on decommissioning (phase 2) 14.11.2003: Final shut down 6 7 8 9 10 11 12 7 Legislative Framework of Decommissioning German Constitution (GG) Atomic Energy Act (AtG) Other acts, e.g. UVPG (Environmental Impact Assessment Act), BauGB Ordinance on Radiation Protection (StrlSchV) Ordinance on the Nuclear Licensing Procedure (AtVfV) Other ordinances, e.g. EndlagerVlV 8 4

Decommissioning - relevant installations All nuclear installations require a license for operation according to Section 7 para. 1 Atomic Energy Act (AtG) and after final shut down a license for decommissioning and or safe enclosure according Section 7 para. 3 Atomic Energy Act (AtG) Nuclear installations are: Prototype power reactors Nuclear power plants Research reactors Nuclear fuel cycle facilities 9 Prerequisites for a Decommissioning License Reliability and knowledge of the applicant and other persons involved Precautions in the light of the state of the art in science and technology to prevent damage Financial security to pay compensation for damage Protection against disruptive action or other interference by third parties 10 5

Financing of Decommissioning - Responsibilities Polluter-Pays-Principle Privately owned facilities, particularly NPPs: Decommissioning is financed by the operating companies Estimated costs for decommissioning of NPPs: 0.5 to 1 Billion Euro per nuclear power plant totally: approx. 25 Billion Euro needed Publicly owned facilities, particularly research installations: Decommissioning is financed by annual budget of the State 11 Financing of Decommissioning of Privately Owned Nuclear Installations Necessary financial means are provided in the form of provisions Provisions are built up during the operational phase in accordance with commercial law 12 6

Building up of Provisions (1/2) Provisions are intended to cover costs for: Decommissioning and including the management of waste from Management of radioactive waste from operation Management of spent fuel Total amount: > 32 Billion Euro 13 Building up of Provisions (2/2) Sec. 249 HGB: provisions have to be built up to cover liabilities that are unsure concerning the amount, the time of occurrence or the asset but that can be expected to a sufficient degree of certainty Provisions are reported in the operator s balance sheets No specific rules for the nuclear branch 14 7

Financing of Decommissioning - Conclusions The German system of financing the decommissioning process has proved to be successful The changing conditions in the nuclear power scene, such as Nuclear phase-out Competition in the electricity market Privatization of power utilities may require reconsideration of the existing funding system General requirements concerning the financing of decommissioning: Adequacy Availability Transparency 15 Thank you for your attention! Backcock Noell GmbH 8

Appendix - Auxiliary Slides Prototype Power Reactors removed, shut down or under decommissioning Facility Final Shut Down Current Status AVR Atomversuchskraftwerk - 15 MWe HTGR - HDR Heißdampfreaktor - 25 MWe BWR - KKN Niederaichbach - 106 MWe HWGCR - KNK-II Kompakte Natriumgekühlte Reaktoranlage - 21 MWe FBR - MZFR Mehrzweckforschungsreaktor - 57 MWe PWR with D 2 O THTR-300 Thorium-Hochtemperaturreaktor - 308 MWe HTGR - VAK Versuchsatomkraftwerk Kahl - 16 MWe BWR - 1988 1971 1974 1991 1984 1988 1985 removed removed safe enclosure 18 9

Nuclear Power Plants shut down or under decommissioning KKS Stade - 662 MWe PWR - KMK Mülheim-Kärlich - 1302 MWe PWR - KRB A Gundremmingen - 250 MWe BWR - KWL Lingen - 252 MWe BWR - KWO Obrigheim - 357 MWe PWR - Facility KGR Greifswald - 5 units, each 440 MWe PWR (WWER 440) - KKR Rheinsberg - 70 MWe PWR (WWER 70) - KWW Kernkraftwerk Würgassen - 670 MWe BWR - Final Shut Down 1990 (unit 5: 1989) 1990 2003 1988 1977 1977 2005 1994 Current Status safe enclosure final shut down application for decommissioning 19 Removed Research Reactors R eacto r C on cept R eactor F in al S hu t D ow n A rgonaut type C ritical assem bly Educational reactor Liquid hom ogenous reactor PR-10, A EG Prüfreak tor RR R SAR ST AR K AEG N ullen ergie-r eak tor ANEX KAH T ER KEIT ER RAK E SNE AK SUA SUA K SUR Brem en SUR D arm stadt SUR H am bu rg SUR Karlsruh e SUR M ünch en ADIBK A BER -I FRF-1 1976 1991 1968 1976 1973 1975 1984 1982 1991 1985 1968 1978 1993 1985 1992 1996 1981 1972 1972 1968 Propulsion reactor Nuk learschiff O tto Hahn 1979 20 10

Research Reactors shut down or under Facility FMRB Braunschweig FRF-2 Frankfurt FR-2 Karlsruhe FRG-2 Geesthacht FRH Hannover FRJ-1 MERLIN Jülich FRM München FRN Neuherberg RFR Rossendorf HD I Heidelberg HD II Heidelberg ZLFR Zittau Final Shut Down 1995 never operated 1981 1993 1997 1985 2000 1982 1991 1977 1999 2005 Current Status safe enclosure shut down partially removed application for decommissioning final shut down safe enclosure 21 Nuclear Fuel Cycle Facilities removed or under Facility HOBEG Brennelementwerk Hanau JUPITER Testanlage Wiederaufarbeitung Jülich MILLI Laborextraktionsanlage Karlsruhe NUKEM-A Brennelementwerk Hanau PUTE Plutoniumextraktionsanlage Karlsruhe Siemens Brennelementwerk Betriebsteil MOX Hanau Siemens Brennelementwerk Betriebsteil Uran Hanau Siemens Brennelementwerk Betriebsteil Karlstein WAK Wiederaufbereitungsanlage Karlsruhe Final Shut Down 1988 1987 1989 1988 1991 1991 1995 1993 1990 Current Status released released released dismantled, not yet released released dismantled, not yet released released for conventional use 22 11

Prototype Power Reactor THTR-300 Hochtemperatur-Kernkraftwerk GmbH (HKG) View of the THTR-300, which currently is in safe enclosure 23 Nuclear Power Plant Würgassen View of the NPP Würgassen during operation Kernkraftwerk Würgassen Artists view after completion of the Kernkraftwerk Würgassen 24 12

Research Reactor FMRB View of the experimental hall during operation Physikalisch-Technische Bundesanstalt Braunschweig View of the experimental hall after clearance Physikalisch-Technische Bundesanstalt Braunschweig 25 Nuclear Fuel Cycle Facility WAK Wiederaufbereitungsanlage Betriebsgesellschaft Karlsruhe GmbH Processing cell No. 1 before and after Wiederaufbereitungsanlage Betriebsgesellschaft Karlsruhe GmbH Aerial view on the WAK reprocessing plant Wiederaufbereitungsanlage Betriebsgesellschaft Karlsruhe GmbH 26 13

Nuclear Fuel Cycle Facility NUKEM-A NUKEM Hanau GmbH Aerial view on the fuel element facility NUKEM-A before and after RWE NUKEM GmbH NUKEM Hanau GmbH 27 14