Download - Nuclear Power in Italy
2
Agenda
1. Importance of nuclear power for Italy
2. Italian nuclear program
3. Enel/EDF agreements
4. Italian industrial involvement
5. The new legal framework
5.1. Some history
5.2. The Framework Law (Law 99/2009)
5.3. Decree n.31/2010: licensing process
6. Conclusion
3
1. Importance of nuclear power for Italy
2. Italian nuclear program
3. Enel/EDF agreements
4. Italian industrial involvement
5. The new legal framework
5.1. Some history
5.2. The Framework Law (Law 99/2009)
5.3. Decree n.31/2010: licensing process
6. Conclusion
4
Economic benefits, security of supplies, climate change
Topics Nuclear benefits
Economic benefits
• The Italian generation mix is skewed towards most expensive source of energy, such as natural gas and oil
Security of supplies
• Italy relies for 78% on imports of electricity• 66% of imported fuels is represented by natural gas
Fight against climate change
• Italy could reduce CO2 emissions of about 35 million tones per year assuming a production of 100 TWh per year with NPPs instead of combined gas cycles plants
Resurgence of Nuclear power will lead to significant socio-economics benefits for the whole Italian economic system
51) Net production – Consumptions (pumps included)
Energy production in ItalyReliance on import
Energy production 1) and import[2008; TWh]
Allocation of imported fuels [2008; %]
2008
350,5
Production from
imported fuels
Import
National Production
230,0(66%)
43,4(12%)
77,1(22%)
78% of Energy
production is covered by import
66%GAS
18%Coal
16%Oil/other
Reference: Enel analysis on data provided by Terna
Energy production depends strongly on imports – Gas has the highest share among imported fuels
6
Germany Spain France EU27
24%
11%
52%
13%
17%
23%
1%13%
46%
25%
18%
6%
35%
16%
14%
75%
1%5%5%
RENEWABLE **18%
28%
3%
23%
28%
NUCLEAR
OIL
GAS
COAL *
Energy generation mixItaly vs Europe, 2009
Generation mix in Italy is skewed towards most expensive source of energy
* Coal, wood coal** Includes hydroelectric production (and pumps) and biomas
source: Enel analysis on data provided by Enerdata; Italian data: preliminary 2009 data by Terna; EU 27 data - year 2008
Italy is the only industrialized country (G8) to have banned nuclear power – about 28% of electric energy produced in
Europe is from nuclear source
Italy
7
10179 68
5483
20
1714
43
32
Electricity bill of neighboring European countries Industrial clients
20.000 -70.000 MWh/year
133122
8274
100
95
42
19
18
21
94
59
9293116
48
158
141
111
77
115
500 – 2.000 MWh/year
120
€/MWh
Prices referred to January – June 2008
Source: Annual Report AEEG 2009
Taxes Price/tariff without taxes EU 27 average
8
1. Importance of nuclear power renaissance for Italy
2. Italian nuclear program
3. Enel/EDF agreements
4. Italian industrial involvement
5. The new legal framework
5.1. Some history
5.2. The Framework Law (Law 99/2009)
5.3. Decree n.31/2010: licensing process
6. Conclusion
9
1) Covered by generation and imports with reduction of import rate for 2020 compared to 20082) CAGR: Compound Annual Growth Rate – Average annual growth rate 3) Situation at full speed by 20254) Assuming a load factor approximately equal to 90%
National Consumptions 1) [TWh/y]
Target for nuclear power [TWh/y; (%)]
Power required 4) [MWe]
CAGR2): +1,6%
100(25%)
300(75%)
Nuclear
Other
13.000 MWe
2008 2020
350
400
3)
Italian Nuclear ProgramGovernment’s objectives
8 units by 1.600 MWe
10
5.5 GW of installed capacity and additional 1 GW under construction Further developments expected in Italy and other countries
Italian Nuclear Program: agreement with EDF for the joint
development of at least 4 EPR units
ENEL nuclear fleet Nuclear assets, new projects and development opportunities
Development of new capacity:
• Russia:
Kaliningrad, 2 X 1117MWe VVER
Agreement with Rosatom
• Romania: participation in the consortium led by Nuclearelectrica for the construction of Cernavoda 3&4 (Candu, 1.500 MW)
Slovakia
Operational: 4 VVER units, 1896 MW
Under construction: 2 VVER units of Mochovce 3&4, 880 MW
Spain
Operational: 7 Units (6 PWR Westinghouse units and 1 BWR GE unit), 3.640 MW
France
Under construction: participation in 1 EPR unit in Flamanville, 1.630 MW
11
The 1987 referendum and the italian phasing out
Questions YES NO
Referendum for the abolition of nuclear power plants siting procedures 81% 19%
Referendum for the abolition of public contribution to regions and towns hosting NPP 80% 20%
Referendum for the abolition of Enel participation in the realization of NPP abroad 72% 28%
Voters: 65,1% Void/blanck: 13%;
12
Consensus and nuclear culture“ I am in favor of nuclear power plant ”
quite agree
agree
disagree
slightly agree
Uncertain61%
Δ 2010-2009: +2%
10%
28%
31%
31%
** November 2009
2009**
2010*
* May 2010
There is a strong dissent and a limited pool of convinced. A large not fully convinced area (61%) could be switched in in
favor. This is the main target of Enel’s information and communication campaign
13
Nuclear and public opinion in briefA few highlights
• Three Italians out of four think that information on nuclear is either insufficient or inadequate
• Public opinion underestimates the benefits that the re-launch of nuclear energy could give to the development of the Country
• NIMBY is the real problem
Information must be spread at national levelbut it is local consensus that is pivotal
14
Nuclear communication iter
Give a new meaning to nuclear through captivating and clear information
Rebuild a nuclear culture and trust on technical competencies
From risk to safety:To defeat collective ghosts
“Make your
own opinion,
Get informed on facts”
Set up a shared and diversified energy program
• An information and communication campaign is needed to rebuild nuclear culture
• Enel is launching a comprehensive plan to reassure, make nuclear advantages clear, change perception and create consensus
15
Enel approach: an alliance for Country’s development
ENVIRONMENTALISTS
Renewables,
balanced energy mix,
CO2 reduction
ISTITUZIONSStrategic alliance to
support development of energy sector by reducing imports
and improving security of supply
INDUSTRYRe-appropriation of
know-how,engineering, ICT,
safety
RESEARCH/SCIENTIFCCOMMUNITY
Recovering competencesfor the nuclear industry;University: Strengthen
nuclear skills
An alliance constituting a force to foster economic and industrial re-launch of the country and to reduce the impact of climate change,
following recommendations made at European level.
16
1. Importance of nuclear power for Italy
2. Italian nuclear program
3. Enel/EDF agreements
4. Italian industrial involvement
5. The new legal framework
5.1. Some history
5.2. The Framework Law (Law 99/2009)
5.3. Decree n.31/2010: licensing process
6. Conclusion
17
France-Italy agreement on nuclear co-operationStrategic objectives
On 24 February 2009, Prime Minister Berlusconi and President Sarkozy signed an agreement for nuclear co-operation. The agreement covers the following objectives:
1. Political collaboration at European level on security of supplies, fight against climate change and at global level full engagement against nuclear proliferation
2. Co-operation between Nuclear Safety Authorities to harmonize the rules and to promote a common position in Europe
3. Co-operation between Italian and French energy companies
4. Industrial Partnership to realize components for nuclear power plants
5. Partnership in the fields of research & development6. Industrial co-operation in the field of nuclear fuel
cycle7. Industrial co-operation in the field of decommissioning8. Co-operation on crime prevention, promotion of
information, education and training
18
Co-operation Enel–EdFRelationship and partnership developments
Area Description
Relationship before Italian partnership
• On 30 November 2007 Enel and EDF signed agreements on:» Participation of Enel in the construction’s project of one EPR
unit (1600 MWe) at Flamanville where Enel holds 12,5% » Job training of Enel resources by EDF for engineering,
construction and operation in Flamanville 3 project » Options for Enel to co-invest in the construction of the next
5 EPR units that EDF will develop in France » Optional participation of EDF in new projects developed by
Enel and based on EPR technology
Partnership’s developments
• On 24 February 2009 Enel and EDF signed two MoU:» The first one provides the participation of Enel in the
construction of the 2° EPR reactor in France in Penly » The second one provides for the joint development of the
Italian nuclear program
The partnership Enel/EdF is well-established in the field of nuclear power energy
19
Topics Description
Technology • EPR technology, Flamanville 3 model, is the baseline of program
Scope
• Development of 4 nuclear generating units in Italy. The objective is to bring the first unit into operation not later than 2020. 6.400 MWe
• Identification of at least 3 sites suitable for nuclear power plan installation
• Maximize the industrial impact in Italy
Project management
• Enel and EDF will act as Architect-engineers (Project Engineer) for the entire project
• There will be a multi-contract approach without general contractor
Realization of at least 4 nuclear generating units on 3 sites Maximization of industrial impact in Italy
Enel – EdF agreement for ItalyDescription
Exclusive right
• Exclusive right for Enel and EDF to develop projects based on EPR technology in Italy
• Faculty for Enel to develop projects with different partners and technologies in Italy
20
Sviluppo Nucleare Italia
To perform site screening
To provide feasibility studies for each site
To constitute the Joint SubCo(s)
To manage the licensing processes
Joint Venture on equal basis (50/50)
Sviluppo Nucleare Italia S.r.l. (SNI)
was established on July 31st 2009
Strategic objectives
of SNI
Activities
» To provide the Board of Parent Companies with a detailed feasibility study for the Final Investment Decision
Scope of work
21
The Italian Nuclear Program Timing
The objective is to have the first new NPP in operation by 2020
Timing
• Site selection process should end up in April 2011
• Final investment decision should be taken by mid 2013, after the assignment of the Construction and Operating License (Autorizzazione Unica)
• Qualification activities for engineering, supplies and erection already started, in the next year first Requests for Offer will be issued, in three years first contracts with suppliers will be signed
• 60 years of commercial operation
22
1. Importance of nuclear power for Italy
2. Italian nuclear program
3. Enel/EDF agreements
4. Italian industrial involvement
5. The new legal framework
5.1. Some history
5.2. The Framework Law (Law 99/2009)
5.3. Decree n.31/2010: licensing process
6. Conclusion
23
The Italian Nuclear Program Enel/EDFCosts associated
This infrastructural program represents one of the largest investment ever made in Italy
Details for unit’s costs [Mln EUR]
Unit 1 Unit 2 Unit 3 Unit 4 Total
4.000 4.500
4.000 4.500
4.000 4.500
4.000 4.500
16.000 18.000 • The construction of a EPR unit
requires an investment included between 4 and 4,5 Bln EUR according to site’s characteristics
• The entire Enel/EdF‘s program will require an overall investment included between 16 and 18 Bln EUR
• The EPR units are projected to operate for 60 years
Comments
24
The realization of an EPR plantCosts’ composition for merchant categories [%]
100%6%10%
17%
18%
20%
29%
MechanicsFornitures
Civil Works Assembling Project Mgt. eOwner's Eng.
ElectricFornitures
I&C Fornitures Total
The mechanics supplies represent the largest cost– almost 30% – out of the entire cost for the construction of an EPR unit
Data related to supply include the related engineering and quality control Source: Enel
25
Italian industry at Flamanville 3Regional details
• 45 supplying firms already involved into the Flamanville 3 project (EPR technology – Enel’s participates for the 12,5% of the project)
• Supplying firms especially involved: those which produce nuclear forgings, mechanic equipments and bulk materials
• In most of the cases those supplying firms are sub-supplying firms of enterprises already working with EDF (es. Areva – nuclear island, Alstom – TG turbine generator)
• Moreover, almost 20 Italian enterprises are already involved in building-up the EPR nuclear plant in Olkiluoto, Finland
• Piemonte 2 supplying firms
• Friuli Venezia Giulia 4 supplying firms
• Veneto5 supplying firms
• Emilia Romagna4 supplying firms
• Umbria1 supplying firm
• Lombardia26 supplying firms
• Liguria1 supplying firm
45 supplying firms involved
The EPR projects ongoing in Finland and France have already seen the participation of Italian enterprises
26
The Italian Nuclear Program Involvement of Italian industry
Enel has involved Italian industry till the very early stage of the program, in order to allow to close the gap created in 20 years
of substantial absence from nuclear supplies
Supply Chain meetings Market Survey Qualification
• In October 2009 a joint technical group Enel – Confindustria (Italian Industry Organization) has been started up
• Supply Chain meeting with 400 Italian companies has been held in January 2010, other are planned
• Other meetings with territorial industry organizations are under way
• In January 2010 a market survey activity started
• Information about more than 380 Italian companies has been collected through a RFI1) website
• More than 120 meetings with Italian companies and visits to their facilities has been programmed
1) Request for Information
• Qualification of suppliers has been started before the end of the year, well in advance with respect to the beginning of procurement
• Qualification will highlight gaps and recovery actions
27
The construction of a EPR plantResources required – Construction and Operation
Source: Enel
The carrying out of a EPR unit requires until 2.500 persons per day to which has to be added the human resources necessary
for the extraordinary maintenance
Comments
Construction of units – building phase
Phase
• At the peak level, the realization of an EPR unit requires almost 2.500 persons per day for the realization of the civil works, for assembling activities, etc.
Operation and units’
maintenance
• The plant’s operation requires until 300 persons highly specialized
• In addition, those persons have to be integrated by the human resources, belonging to external enterprises, who have to carry out the extraordinary maintenance
28
The Italian Nuclear Program How Enel is structuring to cope with the program
1.300
470
200
30
2006 2010 2013 2020
Nuclear skilled resources [n.]
Beginning of the
program
Today Early works at site
Start of operations
Actions
• Strong increase of skilled personnel dedicated to the Nuclear Program
• Participation in Flamanville3 and Mochovce3&4 projects as training experiences (60 resources in France and 400 involved in Slovakia)
• Technical training program dedicated to operations and engineering profiles
• Reinforcement of the network with “nuclear” universities: masters and scholarships
29
1. Importance of nuclear power renaissance for Italy
2. Italian Nuclear Program
3. Enel/EDF agreements
4. Italian industrial involvement
5. The new legal framework
5.1. Some history
5.2. The Framework Law (Law 99/2009)
5.3. Decree n.31/2010: licensing process
6. Conclusion
30
The legislative frameworkSome history…
Law No. 99/2009:New Italian nuclear legal framework
Law No. 99/2009:New Italian nuclear legal framework
2009
Back to nuclear: Nuclear new build as one of the priority targets of the energy
strategy (Law Decree 112/2008)
Back to nuclear: Nuclear new build as one of the priority targets of the energy
strategy (Law Decree 112/2008)
2008
Post Chernobyl:Public referendum banned Nuclear Energy
Post Chernobyl:Public referendum banned Nuclear Energy
1987
31
1. Importance of nuclear power renaissance for Italy
2. Italian Nuclear Program
3. Enel/EDF agreements
4. Italian industrial involvement
5. The new legal framework
5.1. Some history
5.2. The Framework Law (Law 99/2009)
5.3. Decree n.31/2010: licensing process
6. Conclusion
32
The Framework Law: Law n. 99/2009
Article 25: empowers the Government to issue implementing Decree on, inter alia:SitingLicensing processCompensation measures
Article 26 : provides for CIPE resolutions regardingType of power plant technologiesCriteria and measures for the creation of consortia
Article 29: establishes a new regulatory body, the Nuclear Safety Agency.
33
1. Importance of nuclear power renaissance for Italy
2. Italian Nuclear Program
3. Enel/EDF agreements
4. Italian industrial involvement
5. The new legal framework
5.1. Some history
5.2. The Framework Law (Law 99/2009)
5.3. Decree n. 31/2010: licensing process
6. Conclusion
34
Decree n. 31/2010
The implementing Decree entered into force on March 23 2010 and foresees rules for siting and licensing of new NPPs.
Main contents
Nuclear energy strategy
Licensing procedures for siting of NPPs, nuclear fuel fabrication plants, spent fuel and radioactive waste storages, final disposal for radioactive waste
Compensation measures
Decommissioning fund
Information campaign
35
Decree n. 31/2010: a five step process.
Construction & Operation License
Construction & Operation License
DRIVERS:
TRANSPARENCY
PUBLIC PARTICIPATION
ACHIEVMENT OF PUBLIC CONSENSUS
STRONG ROLE OF THE NUCLEAR SAFETY AGENCY
Nuclear Energy Strategy
Technical & environmental criteria for siting
SEA on Nuclear Strategy and criteria
Site certification on operators proposal
36
Licensing process: preliminary steps
The Government will issue a decree with specific requirements for nuclear operators. In general operators should be:
equipped with all necessary technical and professional capabilities in the safety field;
able to ensure human and financial resources Operators that meet all requirements shall submit its nuclear program to the Government and NPPs requirements to the NSA to draft preliminary safety report.
37
1° step: Government nuclear program
Government Nuclear Strategy is a programmatic policy document which will address strategic goals in the nuclear field.
Priority will be given to nuclear safety and protection from ionizing radiation.
Subject to SEA and to a wide public consultation.
38
2° step: Criteria definition
Draft criteria for site selection are proposed by NSA. It takes under consideration the following aspects:
population and socio-economic factors;hydrology and water resources;meteorological factors;biodiversity;geophysics and geology;natural beauty;architectural and historical merit;accessibility;seismic and tectonic characteristics;distance from inhabited areas and from transport infrastructure.
Subject to public consultation and to SEA
39
3° step: SEA on Nuclear Strategy and criteria
Government Nuclear Program
Government Nuclear Program
Definition of parameters for technical - environmental
criteria for sites localization
Definition of parameters for technical - environmental
criteria for sites localization
SEA and public consultationSEA and public consultation
Review of Nuclear Programme and criteria on the basis of SEA resultsReview of Nuclear Programme and criteria on the basis of SEA results
Approval of the Nuclear Programme and criteria by the Council of Ministers and publication on the OJ
Approval of the Nuclear Programme and criteria by the Council of Ministers and publication on the OJ
40
4° step: Site certification
Following technical assessment NSA transmits certification of site to the Government in order to gain
approval by the interested Region
Following technical assessment NSA transmits certification of site to the Government in order to gain
approval by the interested Region
The Agency runs technical preliminary assessment and
issues certification for each of the proposed site
The Agency runs technical preliminary assessment and
issues certification for each of the proposed site
AGENCY’S ASSESSMENT
The operator submits to the Government and the NSA the request for site certification.
The operator submits to the Government and the NSA the request for site certification.
OPERATOR’S REQUEST
41
4° step: Site certification & Regional agreement
MSE submits each of the certified sites to the agreement of interested Region MSE submits each of the certified sites to the agreement of interested Region
POSITIVE OUTCOME
MSE transmits the list of the agreed sites to the Unified Conference.MSE transmits the list of the agreed sites to the Unified Conference.
Institution of Inter-institutional Unified Committee
Institution of Inter-institutional Unified Committee
NEGATIVE OUTCOME
If no agreement, adoption of the Presidential DecreeIf no agreement, adoption of the Presidential Decree
42
4° step: Site certification & Unified Conference Agreement
MSE, MATTM e MIT issue the decree approving the list of certified sitesMSE, MATTM e MIT issue the decree approving the list of certified sites
MSE transmits the list of certified sites with the approval of the Region to the Unified Conference Committee MSE transmits the list of certified sites with the approval of the Region to the Unified Conference Committee
Deliberation of the Council of MinistersDeliberation of the Council of Ministers
Regional Environmental Energy Plan reviewed by the Region on which the nuclear site is located.Regional Environmental Energy Plan reviewed by the Region on which the nuclear site is located.
POSITIVE OUTCOME NEGATIVE OUTCOME
43
5° step: Construction and Operation License & EIA
Adoption of the relevant decree by the Prime Minister Adoption of the relevant decree by the Prime Minister
Operator submits the application for construction and operation licenseOperator submits the application for construction and operation license
MSE, together with MATTM and MIT, releases the license by decree and publishes it on the OJMSE, together with MATTM and MIT, releases the license by decree and publishes it on the OJ
NSA:runs the technical preliminary assessment taking into account
outcomes of EIA & IEA proceduresissues a binding opinion
NSA:runs the technical preliminary assessment taking into account
outcomes of EIA & IEA proceduresissues a binding opinion
POSITIVE OUTCOME Lack of agreement with local authority
44
Operator’s liability
Licensee is responsible for:
plant’s safety plant’s workers training, with regard to the prevention of risks related to
construction and operating activities compliance with the Agency’s prescriptions implementation of appropriate information to the population involved assessment, monitoring and improvement of plant’s safety
Decree provides for administrative and criminal sanctions in case thelicensee fails to comply with the provisions of the decree.
45
Socio-economics benefits
CONSTRUCTION PHASE
3.000 €/MW (*) X 1630 MW(EPR electric power)
≈ 5 M€ / year
OPERATION PHASE
0,40 €/MWh X12.800.000 MWh
(EPR annual production) ≈ 5 M€ / year
X 60 years EPR life = 300 M€
Local taxes (TBD) 10 M€ / year
(*) increased by 20 % for nominal power exceeding 1600 MW
46
Benefits Local taxes
5 M€
Up to 10 M€
MunicipalityMunicipalities within 20 kmDistrict
10 %
55 %
+
local taxes
35 %
Benefits Local taxes
Socio-economics benefitsRepartition
OPERATION PHASE BENEFITS
~10 M€
CONSTRUCTION PHASE BENEFITS (M€ / year) and TERRITORIAL REPARTITION
Local AdministrationsPublic + local companies
60 %40 %
5 M€
Benefits to be distributed through electrical bill discount to:
• Municipality hosting the plant
• Municipalities within 20 km
• District
(percentages to be defined by Ministry)
47
Waste management and decommissioning
Sogin is the company responsible for:
decommissioning of NPPs at the end of their life- cycle and for the safe storage of waste and spent fuel;
construction and operation of the national repository and the technology park.
The licensing procedure for siting, construction and operation of the national waste repository is similar to the one established for new nuclear power plants.
48
Decommissioning fund(1/3)
Decommissioning fund is established as an external fund, owned by a public body (CCSE), and it is fed by Unique Authorization holder’s annual contribution for each operating year of the facility.
The amount of the contribution is determined by the Independent Authority for Energy and Gas (AEEG), following a proposal by Sogin and the Nuclear Safety Agency’s advice (NSA).
The relevant amount is updated every year according to indexes fixed by AEEG and subject to new evaluation every five years.
49
Decommissioning fund(2/3)
If, at the end of the plant life-cycle, decommissioning fund is not adequate, operator has to integrate it.
Decommissioning of the facilities is carried out by Sogin that, at the end of the plant’s life-cycle:
is in charge of the safety management of the plant
proceeds with the evaluation of costs for decommissioning activities following a cross examination with the operator and if necessary requiring an adequacy opinion to a qualified third party.
50
Decommissioning fund(3/3)
The CCSE (a public entity in charge of financial activities related to the energy sector) manages the decommissioning fund and may carry out profitable investments provided that risk exposure is not above the government bonds.
Distribution of the relevant amounts is made by CCSE on the basis of AEEG guidelines and according to the working progress previous control and validation of projects.
Decommissioning fund covers the following activities:
Costs for decommissioning of nuclear power plantsConditioningTransport and disposal of radioactive waste
51
Opportunities for public and institutional involvement
Environmental - technical criteria: comments and suggestions by Region, local authorities, and stakeholders.
Strategic Environmental Assessment: comments and suggestions plus initiatives to enable a public involvement into the process
Site Certification: agreement between Region and Unified Conference
Environmental Impact Assessment: Involvement of interested administrations
License: Services Conference with the Agency, Ministries, Regions, involved local authorities, and all others involved subjects and administrations
52
Information campaign & trasparency
More transparency and information measures are provided in the Decree:
National information campaign on energy production from nuclear sources;
Transparency Committee in every region where there is a certified site suitable for NPP.
53
1. Importance of nuclear power renaissance for Italy
2. Italian Nuclear Program
3. Enel/EDF agreements
4. Italian industrial involvement
5. The new legal framework
5.1. Some history
5.2. The Framework Law (Law 99/2009)
5.3. Decree n.31/2010: licensing process
6. Conclusion
54
Conclusion
The return of nuclear power in Italy is crucial for country’s development because:
Italy has to fill the gap of competitiveness with other European Countries, becoming more energy-independent
It is the chance for the Italian industry to return to the “nuclear” quality level and to contribute to boost the national economy
Nuclear represents an essential option for Italy to cope with the environmental targets for the reduction of CO2 emissions
To reach this target, essential conditions are:
Rebuild nuclear culture
Build consensus and public acceptance
Have all the key players playing their role in a timely and effective manner (Nuclear Safety Agency, waste & management public company, operators, Government)