MINISTRY OF ECONOMY

NUCLEAR POWER PROGRAMME FOR POLAND

Objectives, Assumptions and Basic Infrastructure

MINISTRY OF ECONOMY

International Atomic Energy Agency TM/WS on Topical Issues on Infrastructure Development:

Managing the Development of a National Infrastructure for Nuclear Power

09.-12.02.2010 Vienna

MINISTRY OF ECONOMY

Ambitious Objective

• Nuclear Power Plants in line with all international safety requirements

• Modern nuclear power law and other legal acts enabling efficient and effective development of investments regarding construction of subsequent nuclear installations

• Investment process carried out in an optimal way to boost Polish economy and bring additional benefits

• Power plants generating clean energy on rational costs versus other technologies; stable operating base load power plants with 60-year lifetime

Construction of Nuclear Power Plants in Poland. First unit commissioning in 2020

• Project of a strategic importance for domestic economy

• Project requiring work coordination of a number of entities and institutions, representing various interests and expectations

• Ambitious schedule for the project, extorting fast and efficient actions

The greatest challenge in the history of Polish energy market and post war economy

MINISTRY OF ECONOMY

MINISTRY OF ECONOMY

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1. Security of electricity supplyDiversification of fuel mixDevelopment of interconnections and

transmission grid2. Restrictions on SO2, NOx, CO2 emissions

3. Development of new generation sources4. Increase in electricity generation efficiency

Challenges for the Polish Power Sector

MINISTRY OF ECONOMY

MINISTRY OF ECONOMY

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1. New Emission Trade Scheme (ETS) – linear decrease of available CO2 allowances

2. Full auctioning within ETS for electricity sector since 2020

3. 15% share of RES in final energy consumption in 2020 – target for Poland

4. Implementation of CCS technology – participation in the EU Flagship Programme

EU Climate Energy Package –

Additional Challenges

MINISTRY OF ECONOMY

MINISTRY OF ECONOMY

1.7%

0.3%

58.7%

0.1%

2.0%

2.2%

35.0%

Hard coal power stations and CHPs

Lignite power stations

Gas power stations Hydro power stations (included pumped-storage)

Wind power stations Biogas and biomass power stations

Other fuels

Fuel Structure of Electricity Generation in Poland

5

MINISTRY OF ECONOMY

MINISTRY OF ECONOMY

Age Structure of the Existing Power Plants in Poland

6% 7% 5%5%

16%

17%

44%

to 5 years 5-10 years 10-15 years 15-20 years

20-25 years 25-30 years over 30 years

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MINISTRY OF ECONOMY

MINISTRY OF ECONOMY

Poland’s ”Energy Policy until 2030” – priorities

(document approved 10.11.2009 by the Council of Ministers)

Energy efficiency improvement

Increasing security of fuel and energy supplies

Diversification of power generation sources through implementation of nuclear power

Increasing use of renewable energy sources, including bio fuels

Development of competitive fuel and energy markets

Limitation of energy sector’s impact on environment

MINISTRY OF ECONOMY

MINISTRY OF ECONOMY

Net electricity generation by fuel type in 2030

Natural gas6.6%

RES18.8%

Lignite21.0%Other fuels

0.5%

Hard coal36.0%

Nuclear fuel15.7%

Oil products1.5%

MINISTRY OF ECONOMY

Nuclear Power Plants in Polish power system

• stable and reliable electricity generation sources with 60-year lifetime

• new capacities to replace old public power plants; limiting import of coal

• predictable and stable in long time period electricity generation costs,

• possibility of fuel storage for many years ahead• known spent fuel and radioactive waste management

technologies; • possibility of uranium suppliers selection from

various regions and stability of fuel supply• internalization of numerous external costs• CO2 and other emission free

MINISTRY OF ECONOMY

MINISTRY OF ECONOMY

Advantages for the Polish Economy

• CO2 and other emission free

• saving organic fossil fuels for future generations

• economic revival of the regions

• possibility of boosting national industry

• development of Polish R&D resources

• development of new faculties at universities

• economy innovations development

MINISTRY OF ECONOMY

MINISTRY OF ECONOMYMINISTRY OF ECONOMY

Poland’s committment for nuclear power - documents

• Resolution no. 4/2009 of the Council of the Ministers of 13 January 2009 on nuclear power development activities

• Ordinance of the Council of Ministers of 12 May 2009 on establishing Government Commissioner for Nuclear Power in Poland

• „Framework time schedule for nuclear power activities” acknowledged by the Council of Ministers on 11 August 2009

MINISTRY OF ECONOMY

13 January 2009 –Resolution of the Council of Ministers on Nuclear Power Development Activities

• Nuclear Power Programme for Poland will be prepared and implemented (after public discussion and government’s approval)

• Government Commissioner for Nuclear Power in Poland will prepare the Programme

• PGE Polska Grupa Energetyczna SA (Polish EnergyGroup) will play a leading role in the implementation of the Programme

• At least 2 nuclear power plants will be built, first NPP will be commissioned in 2020

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„Framework time schedule for nuclear power activities”- stages

• I until 31.12.2010 preparation and approval by the

Council of the Ministers of the Polish Nuclear Power Program

• II 2011 – 2013 NPP site selection and conclusion of a contract for construction of

the first NPP

• III 2014 – 2015 preparation of technical design and obtaining all required

decisions and permits

• IV 2016 – 2020 construction of the first NPP

in Poland

MINISTRY OF ECONOMY

MINISTRY OF ECONOMY

Strategy for nuclear power infrastructure – to be defined in the Nuclear Power Program for Poland which should:

– determine the optimum scope and conditions for nuclear power development

– specify the necessary activities and tasks to be fulfilled by the state administration within a proposed time schedule

– estimate the costs of nuclear power development and indicate the source s of its financing

– assess the economic, social and environmental impact of the Nuclear Power Program for Poland

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Financing preparatory works and NPP construction

Role of other entities in the Project (financial institutions, advisors)

Integration of development plans for transmission infrastructure with the NPP construction Project

HR preparation (education, NPP staff, nuclear regulatory and radiological protection body)

Best use of Polish industry capabilities in the Project

Availability of the uranium in Poland and its impact in the fuel supply policy

Transfer of technology and knowledge

Financial engineering of the Project

Status of the NPP Construction Project, shareholders structure, model for nuclear energy sector

Economics of nuclear power, including „externalities” for the first NPP

Legal regulations on nuclear energy (and investment related issues)

Role of public administration in the Project – scope of involvement, split of tasks, responsibilities and competencies

Broad political support for the Project

Selection of the nuclear power installations sites

Technology selection

Nuclear fuel cycle including spent fuel management and radioactive waste storage

NPP decommissioning

Public consultations, information campaigns, PR actions

Preparatory phase – key issues

MINISTRY OF ECONOMY

MINISTRY OF ECONOMYNuclear Power Programme for Poland

Preparatory Team – activity fields

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Government Commissioner for Nuclear Power

(Undersecretary of State in the Ministry of Economy)

Supported by Nuclear Energy Department

Electricity Market Study and Economical

Assessment

Legal Research and Development

Public Consultation

Technology Assessment

Human Resources Development

Electricity market structureElectricity mixBase load/peak load•Infrastructure development cost•Plant cost•Operation cost•Fuel cycle cost•Industrial benefits•Domestic production and services

• Nuclear laws • Energy Law• Construction law• International

agreements• Law establishing

regulatory body and radiological protection

• Environmental laws• Licensing• Commercial laws• Public procurement

law

R&D resources development

National information programme

International communication

Public consultation Transboundry

issues Planning and

consents process Environmental

assessment

NPP site Site, project and

construction of low level radiation waste depository

NPP construction: licensing

Operation Waste

management NPP

decommissioning

Nuclear power education programme for human resources specializing in nuclear power

Staff training International

cooperation Education

programme

NEPIONEPIO

MINISTRY OF ECONOMYNuclear Power Programme for Poland

Other (main) partners involvedREGULATORY AUTHORITY• President of National Atomic Energy Agency• Supported by National Atomic Energy Agency (PAA), activities:–Development of legislation related to nuclear safety and radiological protection

–Licensing

–Safety assessment

–Inspections

–Nuclear materials accountancy

–Radiation Emergency Center

–International and bilateral cooperation

LEADING INVESTOR• PGE SA (Polish Energy Group), biggest power producer&supplier in Poland:-12,4 GW installed capacity

-45,1 million tones annual lignite production

-56.0 TWh net power production

-268 100 km distribution lines

-5 mln customers

-46 thousand employees

MINISTRY OF ECONOMY

Framework time schedule for nuclear power development- tasks

Government administration

• Adaptation of Polish legislation • Cost analyses for electricity generation • NPPs sites analyses• Site analyses and research for low and

medium radioactive waste depository• National Plan for Radioactive Waste and

Spent Fuel Management• Human resources training programme

for nuclear power institutions• Information and education campaign• R&D resources development• Involvement of Polish industry in Nuclear

Power Programme• Searching for uranium sources in Poland• Preparing National Atomic Energy

Agency (PAA) for fulfilling the duty of nuclear and radiological regulator

• Designing and construction of low and medium radioactive waste depository

Investor

• Long term forecast of electricity generation sources development

• Consortium for the first NPP construction

• Feasibility study for the first NPP• Final site selection for the first NPP• Determining financing sources for the

first NPP • A request for proposal documentation

for the first NPP• Bidding process and selection of

technology supplier for the first NPP• Technical design for the first NPP• Obtaining all required decisions and

permits for the first NPP• Construction of the first NPP

MINISTRY OF ECONOMY

Unrealistic expectations from interested parties

No use of former experiences, including international

Organizational issues

Insufficient understanding of business processes

Inadequate knowledge transfer between Project participants

Personal issues of Project Team members

Ineffective PR – lack of public acceptance

Lack of decisions from competent entities

Wrong organization of the Project management, chaos with competencies, absence of a strong Project leader

Underestimated Project budget

Problems with financing

Incorrect time schedule of the Project

Wrongly defined or undefined requirements

Improper plan or no plan of the Project

Lack of effective communications between involved parties

Preparatory phase – main threats and risks

MINISTRY OF ECONOMY

MINISTRY OF ECONOMY

Thank you for your kind attention

N u c l e a r E n e r g y

E v o l u t i o n i n p r o g r e s sCompetition for poster advertising the issue of public acceptance for nuclear power in Poland

(Cracow, 27.04 – 14.05.2006)