Gediminas Karalius Electricity Sector Division

10 February 2016

MINISTRY OF ENERGY OF THE

REPUBLIC OF LITHUANIA

IAEA Technical Meeting TM-52851 Establishing a Strategic Partnership and Contract Model for Expansion/Introduction of NPP

Hosted by Ministry of Economics of Poland and PGE Warsaw, Poland, 10-12 February 2016

Nuclear Energy Development in Lithuania

1. Existing and planned nuclear installations

2. Legal and Institutional System in Lithuania

3. Legal Reform. Improvements of Regulatory

Framework

4. Legal Reform. Improvements of Investment

Framework

5. Activities in HR development

2

Contents

1. Existing and planned

nuclear installations

3

Nuclear facilities at Ignalina NPP site (existing, planned, or under construction)

New Visaginas NPP

Maišiagala radioactive waste storage

4

Existing and planned nuclear installations Existing Ignalina NPP (under decommissioning):

2 RBMK-1500 units (2x1500MW) 1983-2004 and 1987-2009

Spent nuclear fuel storage facility Liquid radioactive waste management facilities Cementation and interim storage of solidified (cemented) waste Maišiagalal radioactive waste storage facility Under construction or planned New spent nuclear fuel storage facility New solid radioactive waste treatment and storage facilities Storage facility and a repository for very low activity waste Repository for low and intermediate activity radioactive waste Visaginas New Nuclear Power Plant

Largest and most advanced RBMK design (also with later safety upgrading)

Intended to serve NW region of Soviet Union

Supplied 70-88% of LT national demand

Closed at around mid-life (as a condition for LT accession to EU)

Construction Operation Decommissioning 1974-1987 1983-2009 2010-2038

Plant type

Number of units

Power per unit

Staff

Unit 1 Unit 2

First operation Dec 1983 Aug 1987

Final Closure Dec 2004 Dec 2009

Power generation 137 TWh 170 TWh

Op

era

tio

nB

asic

s

RBMK-1500

2 (of 4 planned)

1500 MW

5600 during operation

5

Ignalina NPP

6

Rationale of Visaginas NPP Project

Energy security

Diversification of region’s energy mix and market

competitivenes

“Green Agenda” and region’s environmental goals

Visaginas NPP project development overview

Main pre-development works completed

Hitachi selected as the Strategic Investor with

ABWR 1350 MW reactor (2011);

Favorable opinion by the European Commission

received (2012);

Legal environment for project development

adjusted

Advisory non-binding referendum held (2012)

Sites approved by VATESI (2014)

Post-referendum activities:

Eonomic competitiveness of the

project improved

Principal national agreement to

develop Visaginas NPP project by

main Parliamentary parties is reached

Discussions with the Regional

Partners and Strategic Investor

continued

National energy startegy review in

progress

New Visaginas NPP Visaginas new nuclear power plant is a strategically

important Project for the Baltic region

Operation Pre-construction Preparation

2007-2015 ~ 3 yers 60 years ~ 5 years

Decomm

Project company

Construction

LT Contractor

(Hitachi-GE) Operation and maintenance contractor

10 years

Preparatory activities

Technical preparatory activities including EIAR

Organization for direct negotiations and selection of

strategic investor

Regulations and licensing, appropriate legal and

investment environments

Project notification to EC

Site evaluation

Special planning procedures for main haul road completed

Pre-construction period

! Establishment of the Project company: Shareholders,

Concession, EPC agreements

• Detailed plant design activities

• Preparatory activities for equipment ordering necessary for

reactor construction

• PSAR preparation and coordination;

• License for construction and operation

Construction period

• Main haul road construction and finishing the route

construction

• NPP Construction activities

• Systems’ testing, adjustments, testing, FSAR preparation

and adjustment

NPP operation

• New nuclear power plant operation

• Plant improvements

Decommissioning

• Decommissioning activities

• Utilization of the decommissioning fund

Current

Visaginas NPP project timeline

7

8

2. Legal and Institutional

System in Lithuania

Main legal acts for nuclear

In accordance with fundamentals and requirements set forth in the international

Conventions, EU directives as well as in IAEA Safety Standards, national legal

infrastructure was established and is further enhanced

International conventions: Nuclear Safety Convention (ratified in 1995) and Joint Convention on the Safety of Spent Fuel Management and on the Safety of Radioactive Waste Management (ratified in 2003)

EU legislation: Directive on Nuclear Safety; Directive on Safe management of Spent Fuel and Radioactive Waste; Directive on Basic Safety Standards

Laws, Governmental decisions: Nuclear energy law; Nuclear safety law; Radioactive waste management law; Radiation Protection law; Law on [new] Nuclear Power Plant; Regulations for Licensing of Nuclear Power Related Activities, other

VATESI requirements and rules (more then 50 valid documents)

Standards: ASME, KTA, etc.

License holder’s technical normative documentation

9

10

Parliament of the Republic of Lithuania

Government of the Republic of Lithuania

Ministry of Environment

Fire and Rescue Department

State

Security

Department

Radiation Protection

Centre

State Border

Guard Service

Ministry of Energy

President of the Republic of

Lithuania

State Territorial Planning and Construction

Inspection

Environment Protection

Agency

Ministry of Finance

Ignalina NPP

Shareholder

“Lietuvos energija”, UAB

UAB “VAE SPB”

Shareholder

Ministry of Social Security and

Labor

Ministry of Interior

Ministry of Health

Ministry of National Defense

Labor Inspection

Vilnius University

Kaunas University of Technology

Vilnius Gediminas Technical University

Lithuanian Energy Institute

Centre for Physical Sciences and Technology

State Nuclear Power Safety Inspectorate

(VATESI)

UTILITY

INVOLVED MINISTRY

INVOLVED REGULATORY INSTITUTION

INVOLVED

INSTITUTION

MAIN R&D INSTITUTIONS

Legend

Visaginas

Municipality

INTERESTED

MUNICIPALIY

Shareholder

Institutional Framework for Nuclear Energy

11

Nuclear regulatory body (VATESI)

State Nuclear Power Safety Inspectorate (VATESI) – from 1991 Mandate of VATESI (the main issues): State regulation and supervision of nuclear safety,

radiation safety, physical protection and safeguards in Nuclear Facilities

State control of safeguards implementation State regulation and supervision of physical protection

nuclear material Performs international cooperation in all of the

competence areas Regulatory duties of VATESI: Preparation of regulations Review and assessment of information relevant to

safety Issuance of licenses and permits, approval of documents

Inspection of facilities and consultation Enforcement Oversight of non-proliferation

State Nuclear Power Safety Inspectorate (VATESI)

was established in 1991 and since then together

with the whole nuclear power infrastructure of

Lithuania has succesfully passed a long way of

development and gaining experience

Structure of VATESI

12

3. Legal Reform.

Improvements of Legal and

Regulatory Framework

Main aims of such reforms were to: Adjust regulation and nuclear safety provisions in line with latest International and EU

requirements and best practices Adjust the existing legal and regulatory regime to the actual needs of the new Visaginas

NPP project and Ignalina NPP decommissioning Establish effective and transparent licensing process Make authorisation, regulation and supervision more flexible, efficient, transparent and

streamlined Enhance the independence of the regulator Specify and clearify the functions of responsible institutions in order to avoid duplication

of functions Set up more effective decision making principles

Result: Set of 12 Laws approved by the Parliament in June 2011 and followd by ammendments and introduction of up tio70 lower level legal acts

Improvements in Legal and Regulatory regime

With regard to the development of new Visaginas NPP project and preparation for its

construction legal and regulatory reform, in line with the International and EU requirements,

was performed through years 209-2011

13

14

Legal framework improvements

Law on Nuclear Energy (ammended): establishes the basis for a stronger and independent nuclear regulatory authority

Law on Nuclear Safety (New ): strengthened regulatory system of nuclear safety more detailed and clear rules of the state regulation and supervision of nuclear safety in nuclear installations explicitly defined system of licensing and forms of authorization, enforcement measures, etc

Law on Radiation Protection (ammended) clear separation of functions of the Radiation Protection Centre and the State Nuclear Power Safety Inspectorate in the field of radiation protection

Law on Radioactive waste management (ammended) change of institutions competences and responsibilities in state regulation of radioactive waste management

Law on Nuclear Energy

Law on

Radiation

Protection

Law on

Radioactive

Waste

Management

Law on Nuclear

Safety

(newly

introduced)

International

conventions

IAEA requirements

Set of Regulatory Requirements

General

requirements

Detailed

requirements

EU legal acts

15

Independence of Nuclear regulatory body (VATESI)

Appropriate Position of VATESI in State’s Governmental Framework VATESI reports to President and Government (Law on Nuclear

Energy, Article 21) Head of VATESI appointed by President in accordance with offer

of Prime Minister

Promotion and regulatory functions separated (Law on Nuclear Energy) Promotion functions – Ministry of Energy Nuclear safety regulation functions – VATESI

Regulatory decisions are based on established nuclear safety requirements or other good practice (IAEA, WENRA etc.) Technically competent staff

Regulatory framework improvements

Nuclear Facilities

State Nuclear Power Safety Inspectorate

(VATESI)

(Nuclear and Radiation Safety)

Radiation Protection Centre (RSC)

(Radiation Safety)

Non-Nuclear Facilities

Redistribution of functions between the regulatory authorities

Regulatory framework improvements (cont.)

Environmental Protection Agency

Environment radiological monitoring functions remain

16

Authorisation process for construction and operation

Commissioning

Operation license. USAR

OPERATION LICENSE

Permit for the first launch of the

reactor. USAR

Construction

Permit for commercial operation.

Final SAR

CONSTRUCTION LICENSE

Approval of Commissioning

Program

COMBINED (CONSTRUCTION AND OPERATION) LICENSE

Permit for the first transportation of the NF into the

site. USAR

Permits to resume

operation after shut

down

Operation

Combined license.

PSAR

Construction license. PSAR

Operation

Regulatory framework improvements (cont.) Tw

o o

pti

on

s

Commissioning Construction

17

18

Licensing Roadmap for new NPP

Government Government Decision on

initiation of construction

PSAR VATESI (taking into account

conclusions of Geological

Survey, Fire Rescue

Department, Ministry of Health,

Hydrometeorological Service

and Civil Aviation

administration)

Preparation of

Design and PSAR

Parliament Law on NPP

June 2007

Nuclear Facility Technical Specification VATESI

Preparation of special conditions for design by authorities to

applicant; agreement by applicant of design with them in

accordance with Construction Law

VATESI

Site evaluation

October 2014

Construction and

Operation

LICENCE

EIA

April 2009

Ministry of the Environment (MoE), VATESI, the local authorities,

authorities responsible for healthcare, fire prevention, protection of cultural

values, economic development, development of agriculture

VATESI, if Permit for Construction by State Territorial Planning and Construction

Inspectorate under MoE is issued and valid

Construction

Regulatory oversight by VATESI and State Territorial Planning and

Construction Inspectorate under MoE – in terms of structures (buildings);

Supervision by VATESI – in terms of systems and components and other important

to safety issues

Commercial Operation Periodical

Safety Review

FSAR VATESI

PERMIT for Commercial Operation VATESI

VATESI

Commissioning

Positive conclusion of the IAEA mission on performed

procedures and results received in 2010

Consists of number of permitting stages. Permits issued by

VATESI. Includes preparation of USAR

COMPLETED

19

4. Legal Reform.

Improvements of Investment

Framework

Law on Change of Law on Nuclear Power Plant

Law on Granting the Concession and Assuming the

Essential Property Obligations of The Republic of Lithuania

in the Visaginas Nuclear Power Plant Project

Law on Change of Law on Enterprises and Facilities of

Strategic Importance to National Security and other

Enterprises of Importance to Ensuring National Security

Law on Ammendment of Law on Joint Stock Companies

Law on Ammendment of Law on Elecrtric Energy

Law on Change and Ammendment of Law on Energy

Law on Ammendment of Law on Concessions

Law on Ammendment of Law on Income Tax

Law on Ammendment of Law on Construction

Law on Ammendment and Law on Legal Status of

Foreigners

Law on Ammendment of Law on Land

Law on Ammendment of Law on Expropriation of Land for

Implementation of Projects of Critical Importance to the State

20

Set of legal acts approved in 2012

21 June 2012 Lithuanian

Parliament approved the

dedicated package of laws

necessary for further

Visaginas NPP project

development, inter alia

setting legal conditions for

Project Company

organization (PCO)

establishment and signing

of Concession agreement

21

Main legal acts for Visaginas NPP project environment

Law on the Nuclear Power Plant

The purpose of this Law - to create favourable legal, financial and organisational conditions that would help to implement the new nuclear power plant project Project Company Organisation described – establishement, role and

responisbilities

Legal status and requirements of Strategic Investor, National investor and

Strategic Partners described

Business Relations Model (MANKALA) and Taxation of the Project

Implementing Company

Concession model established

Requirements on project financing sources provided

Other: provision of land plots as the contribution in kind clarified; special

conditions for work and stay permits for non EU citizens; exemptions with

regard to qualification confirmation and certification of companies etc.

English translation of the law can be found following this link: http://www3.lrs.lt/pls/inter3/dokpaieska.showdoc_l?p_id=437747

22

Main legal acts for Visaginas NPP project environment

Law on Granting the Concession and Assuming the Essential Property Obligations of The Republic of Lithuania in the Visaginas Nuclear Power Plant Project

The purpose of the law: Approval of granting of the concession to the PCO in Visaginas NPP

project Approval of “Hitachi“ as the strategic investor, as well as the

development of the project based on Hitachi-GE ABWR technology Assumption of the essential property obligations of the Republic of

Lithuania stipulated in the draft concession agreement Approval of draft Concession Agreement (CA)

English translation of the law can be found following this link: http://www3.lrs.lt/pls/inter3/dokpaieska.showdoc_l?p_id=436569

23

Lithuania’s support and obligations to facilitate Visaginas

NPP project development

Essential State obligations stipulated in the CA

Lithuania’s obligations to facilitate project development

Design of the main access road of the Visaginas NPP project prepared Ensure transfer of the site and the related intellectual property to the

PCO

Foreign investments protection Buying-out of PCO shares (put option) in case of CA termination for the

events attributed to Lithuania’s liability Compensation to the entities indicated in the CA for the losses arising

from breach of the confidentiality undertaking by the Republic of Lithuania and violations of concession granting procedures and (or) guaranties

Draft Concession Agreement can be found following this link: http://www3.lrs.lt/pls/inter3/dokpaieska.dok_priedas?p_id=56758

24

5. Activities in HR

Development

25

National Plan for Preparation of Specialists in Nuclear Energy

The National Plan for preparation of highly qualified nuclear energy specialists has been adopted in May 2011 by the joint order of the Minister of Energy and the Minister of Science and Education.

The Plan foresees tasks and measures needed to educate the students later able to work in nuclear industry and related institutions

Organization of studies in nuclear

energy

Assurance of quality of study

programmes

Establishment of encouragement and

motivation system for students

Maintenance of material base of

educational and scientific institutions

Tasks and Measures

26

National HR Developments to Support Nuclear Capabilities

Estimation of HR needs for Visaginas NPP:

30 nuclear energy specialists during pre-project phase 100 nuclear professionals for nuclear power plant design and construction period about 300 nuclear professionals for NPP operation period around 60 professionals for state, higher education and research institutions

National Plan for Preparation of High Qualification Specialists in Nuclear Energy

Energy Physics Nuclear Engineering

Programme of HR Development

Nuclear Management and Engineering courses

Available sourcess

Ignalina NPP

Re-qualification and re-training

Thank You for the attention

Gediminas Karalius Adviser on nuclear energy development /Visaginas NPP project

Electricity Sector Division e-mail: gediminas.karalius@enmin.lt