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Emerging Europe

Civil Nuclear Opportunities

Jonathan Allen 27 January 2014, London

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What is Emerging Europe? •  Nine countries - stretching from Slovenia to Romania,

from Poland to Croatia

•  All EU regulated, part of the EU’s Single Market •  110 million consumers

•  A combined GDP of over £ 1 trillion •  Potential to double exports by 2020

•  Lower risk profile than other distant emerging markets

•  Easy and low cost access – just 2-3 hours from the UK

•  Proven market for UK businesses

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Sustainable Medium-term Growth...

Average Annual GDP Growth Forecast (%)

2010-20 2020-30 2030-40

CEE Average 4.7 4.2 3.8

Dev. World 1.8 1.8 1.9

Asia 5.8 5.1 4.7

Latin America 4.9 4.5 4.1

...on a par with other emerging economies

Source: HSBC The World in 2050

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Main Challenges

•  Outdated perceptions of the region among UK businesses

•  Bureaucracy •  Transparency •  Strong and increasing global

competition across the region

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Civil nuclear opportunities across “Emerging Europe” Country   New  Build   Life  Extension   Decommission   Waste  disposal  

Bulgaria   Kozloduy  Unit  7      &  Belene  (x2)?    

Kozloduy  (5  &  6)   Kozloduy  (1-­‐4)   Radiana  /  NDF  

Czech  Rep.   Temelin  (x2)   Dukovany     -­‐   -­‐  

Hungary   Paks  (x  2)   Paks  1   -­‐   LILW  Repository  

Poland   New  NNB  (x2)   -­‐   -­‐   -­‐  

Romania   Chernovoda    (Units  3  &  4)  

Chernovoda    (1  &  2)  

-­‐   Chernovoda  WDF  

Slovakia   Mochovce  (3  &  4)    &  Bohunice?  

Bohunice   V1  Jaslovské  Bohunice    

-­‐  

Slovenia   Krsko  (Unit  2)   Krsko  NNP   -­‐   LILW  

UNCLASSIFIED

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New Build –7 countries, over £66 bn

•  Poland: 2 x new 3GW (each) power plants in 2024 & 2030 (£1 bn AUKV)

•  Bulgaria: New Westinghouse AP1000 reactor at Kozloduy NPP – early 2020s (£800m)

•  Czech Republic: New reactor at Temelin NPP in 2024 (£500m)

•  Romania: 2 x CANDU 6 reactors at Cernavodă in 2022 (£400m)

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Life Extension in 4 countries, over £2.1 bn

•  Bulgaria: 20 year life extension, 2 VVER units, from 2014, £40m AUKV

•  Romania: Replacing fuel channels in CANDU reactors, Cernavoda,£120m AUKV from 2018

•  Slovenia: Life extension of Westinghouse PWR operating life in Krško, £15m AUKV

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Decommissioning & Waste Management £3.5 bn across 5 markets

•  Bulgaria: On-going decommissioning (4 units) and waste programme with UK firm (Nuvia Ltd) co-managing, £40m AUKV

•  Romania: New waste repository project, starting 2015, £40m AUKV

•  Slovakia: Ongoing tendering for decommissioning 2 units, £100m AUKV

10 It’s not just about world-class Civil Engineering....

UK Nuclear supply chain….

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Our not-so-secret weapon!

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Czech Republic: Bretislav Nitka •  New Build (£17 bn AUKV)

•  2 companies (Westinghouse AP1000 and Rosatom VVER) under evaluation

•  The winner should be announced in Q1 2015

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Romania: Daniella Lulache •  Building of 2 CANDU 6 reactors at Cernavoda

•  Legal and consulting services - construction of 3rd & 4th reactors, Cernavoda

•  LIL waste repository

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Poland: Marzena Piszczek

•  2 x new 3 GW nuclear power plants in 2024 and 2030 (cca. £12 bln total cost)

•  Owner’s Engineer tender (3 UK companies involved) – winner to be announced in Q1 2014

•  Integrated Reactor tender to be issued in Q4 2014

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Slovakia: Peter Liska •  New NPP - Jaslovské Bohunice

•  Decommissioning the two units of V1 - Jaslovské Bohunice NPP

•  V1’s two reactors to be decommissioned in 2025

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Bulgaria: Sashka Evtimova •  20 year life extension - Kozloduy Unit 5 & 6

•  New Build - AP1000 reactor at Kozloduy

•  Decommissioning - VVER reactors at Kozloduy site

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Hungary: Csilla Toth •  2 new VVER nuclear power plants (Paks NNP)

•  Ongoing project for 20 year life extension of 4 existing blocks (VVER-440)

•  Final disposal facility for low- and intermediate-level wastes

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Slovenia: Ales Bursic •  Considering building 2nd nuclear reactor at Krško (~1.2 GW)

•  Extension of operating life of Krško

•  Decommissioning & Waste Management opportunities .

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Croatia: Zeljko Tomsic •  Hrvatska Elektroprivreda - co-owner of 696 MWe NPP Krško

in Slovenia

•  Croatia has not yet reached the decision on the construction of NNB

•  Preliminary activities – not carried out yet

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Follow up:

Bartosz.Kozinski@fco.gov.uk

27 January 2014, London