ROSATOM Nuclear Power Development in Europe: Rosatom perspective Alexey Kalinin Head, International Business, Rosatom CEO, Rusatom Overseas Platts 7 th Annual European Nuclear Conference June 25-26, 2012 London
Despite the tragic Fukushima accident nuclear energy is expected to grow further Installed capacity GWt, reference scenario World -6% 515 484 USA and Canada 652 598 150 120 118 113 113-8% 137 Latin America 12 13 6 6 4 4 Western Europe 123 123 114 114 106 94 25 25 Central Europe 38 36 32 33 2010 2020 0 0 2030 Middle East and North Africa 18 16 13 11 South Africa 9,6 9,6 4 4 23 23 Russia 34 34 47 47 India 19 17 26 25 9 9 30 30 China 19 19 120 120 74 74 South-East Asia 17 15 5 5 Korea 10 10 38 38 47 47 Japan 66 62 45 51 2 2 2 2 374 374 2010 2020 2030 Rosatom s scenario before Fukushima Rosatom s scenario after Fukushima Source: Rosatom 2
Existing capacities Stress-tests worldwide, mainly positive All Russian designed reactors, including 37 VVER units operating outside Russia, successfully went through stress-tests Among those - 18 VVER units in EU Rosatom active support and confidence in the results VVER Global Fleet Finland Country Operating Russia Armenia 1 China 2 Ukraine Iran 1 Bulgaria Armenia Iran China Russia 17 Ukraine 15 Bulgaria 2 Czech Republic Czech Republic 6 Slovakia Finland 2 Hungary Hungary 4 - VVER units Slovakia 4 - VVER units in EU TOTAL 54 No dramatic consequences for existing fleet 3
Ongoing NPP construction projects More than 60 units construction still. 4 units under construction in EU (2 VVER). 10 units (all VVER) in neighboring countries are successfully on implementation track. Olkiluoto 3 NPP (EPR) Baltic 1-2 NPP (VVER-1200) Flamanville 3 NPP (EPR) Belorussian 1-2 NPP (VVER-1200) Khmelnitsk 3-4 NPP (VVER-1000) Mohovce 3-4 NPP (VVER-440) Akkuyu 1-4 NPP (VVER-1200) No significant impact on ongoing NPP construction projects implementation 4
Planned new build projects Netherlands United Kingdom Germany Switzerland France Sweden Poland Czech R. Slovakia Italy Slovenia Hungary Finland Lithuania Romania Bulgaria Russia Country Plans for new build Czech Republic 2 units of Temelin NPP. Bid process is underway. + 1 unit of Dukovany NPP Finland Bid process for 2 units is underway +1 unit under consideration Hungary 2 units of Paks NPP. Tender to be announced in 2012 United Kingdom 15-20 GW France 1 unit of Penly NPP. Poland 6GW. First tender to be announced in 2012 Lithuania Sweden 1 unit of Visaginas NPP New units construction replacing the old ones - Planning new build - Open tender - Ban on new build Slovakia Bulgaria Romania Slovenia Netherlands 1-2 units of Bohunice NPP 1 unit of Kozloduy NPP 2 units of Cernavoda NPP 1 unit Krsko NPP under consideration 1-2 units under consideration Countries previously committed to nuclear new build remain optimistic on its development. More than 50 GW new NPPs envisaged 5
Financial crisis hits nuclear new build 1 2 Hungary November 2011: Moody s downgraded Hungary (national debt raised up to 80% of GDP) UK March 2012: RWE and E.On to sell its stakes in Horizon CdF mechanism unclearness (EU regulation?) 3 4 Czech Republic May 2012: CEZ intends to bring strategic investor to Temelin 3-4 NPP completion project France May 2012: AREVA and EdF salaries cut 5 May 2012: Market info that rating agencies intend to downgrade any company confirming commitment to NPP new build investments 6 June 2012: Moody s downgraded major global banks 6
Financial crisis is a fundamental challenge And the industry should make itself ready to meet it Implications for all: 7
Fully Integrated Nuclear Technology Company Anniversary of Russian Nuclear Industry 2010 Uranium production Uranium enrichment Fuel fabrication Power equipment manufacturing NPP Design, Engineering and Construction Electricity generation Services and modernization 8
Rosatom Global Operations leader in key segments 5 continents. More than 40 countries. Europe Finland, Sweden, the Netherlands, Belgium, Germany, France, Spain, GB, Switzerland, Czech Republic, Slovakia, Hungary, Lithuania, Bulgaria, Slovenia CIS Russia, Ukraine, Kazakhstan, Belorussia, Armenia in uranium enrichment in new NPPs construction North America USA, Canada, Mexico Asia China, Japan, South Korea, Vietnam, India, Bangladesh, Mongolia nuclear fleet globally, 25,2 GWe installed capacity in uranium deposits Latin America Venezuela, Argentina, Brazil MENA Turkey, Libya, Morocco, Algeria, Egypt, Iran, Jordan Africa Namibia, South Africa, Tanzania Australia 9
Key figures - 2011 30 nuclear units Simultaneous implementation Revenue 275 000 people Number of employees Net income 10
Rosatom is the responsible vendor ready to meet the challenges of the evolving market Regulation, Infrastructure and Public acceptance Creation and development of regulatory base NFC facilities construction, SNF & RW management, Social-political programmes support Knowledge, skills, human capital Personnel education & training (incl. traineeship on NPP sites), R&D base development, NPP operation experience exchange Energy Solution Rosatom Integrated Solution Modern NPP design (Gen III+) NPP construction and life cycle management support (fuel, services, modernization) Operation & maintenance Industrial Solution NPP equipment manufacturing, service & works localization, Technology transfer, Certification of local suppliers, participation in Rosatom third countries projects Financial Solution BOO projects implementation; State credits, Partnership projects - basic principle 11
Rosatom financial solution Equity financing Loan guarantees Competences in NPP construction and operation Project financing of up to 85% of Russian supply State guarantees Interest rate subsidies Significant project share credit upon availability of state guarantees or suppliers guarantee Interstate Financing Russian State Banks Strategic Investors Customized solutions for clients individual needs Export Credit Agencies Institutional Investors Market Financing Equity financing Low-risk equity financing after NPP launch Dividend oriented portfolio investors 10-15% of the project debt financing Financial credit instruments, securities Project surety bonds, risk sharing mechanisms Large debt financing related to the delivery amount Guarantees for commercial credits for equipment supply 12
Akkuyu NPP project profile Key parameters Akkuyu is the first Rosatom foreign NPP project configured on BOO principles Project value $ 20 bn. Implementation period 2011-2021 Legal basis Intergovernmental Agreement of May 12, 2010 Reactor design NPP-2006 (VVER-1200) Total capacity 4 800 MW (4 units) PPA period 15 years, fixed price terms Project highlights Turkey Site Akkuyu, province Mersin, Turkey First NPP project in Turkey Sound Russian and Turkish State encouragement Strong support to Turkey with regulatory system establishment and personnel training The project is implemented in close cooperation with Turkish partners, involvement of Turkish suppliers mainly in civil construction International investors are welcome to join the project with up to 49% Akkuyu SPV stake 13
Thank You for Attention! Alexey Kalinin Head, International Business, Rosatom CEO, Rusatom Overseas E-mail: AAKalinin@rosatom.ru Phone: +7 (499) 949-25-37 14
Back-up 15
Rosatom Generation III+ NPP Design What is VVER? (Water-Water Power Reactor) Protection from outer impacts Forefront of nuclear technology Generation 3+ reactor Hurricanes, tornadoes Proven and mature solutions 1400 reactor years of total operating time A high level of internal safety gained through evolution of design Most demanded capacity suitable for various grid conditions 1000-1200 MWe Long run facility design lifetime of the main equipment: 60 years Airplane crash Outside explosions Snow load Tsunamis, floods Earthquakes High performing source of supply availability factor 92 % Meets all current Russian and international safety standards and the IAEA requirements Widely referenced by utilities EUR certified 16
Nuclear Innovation Variety of Applications Nuclear Icebreaker Fleet - #1 nuclear fleet in the world - Assures stable functioning of Northern Sea Route Fast Reactors (Gen IV) - #1 fast neutron reactor in the world - #1 operating fast neutron reactor in the world - Broad development programme Small and Medium Size Reactors - Variety of different designs with referent parameters - #1 floating NPP in the world is being built - #1 successful public-private partnership for developing SMR Radiation Technologies - Isotope production - Nuclear medicine - Irradiation facilities 17
Rosatom in 2020 2020 Targets Rosatom is among Top 3 nuclear companies (by revenue in key segments) More than 50% of revenue comes from global operations More than 25% of revenue is generated by overseas assets Key Actions Localize all business segments operations in key markets Benefit from global talents and local workforce Establish multiple alliances and partnerships with global and local players Source, develop and transfer technologies to maintain global leadership Take full advantage of global capital market Ensure business transparency as a key operating standard Globalization of operations is the key priority 18
Promotion of Rosatom global development is implemented by Rusatom Overseas Key Activities of Rusatom Overseas Rosatom overseas NPP & RR new build projects development Rosatom global marketing management and marketing offices network development and operation Management of Rosatom Globalization program 19