supporting tennessee’s future energy needs… nuclear generation development & construction...
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Supporting Tennessee’s Future Energy Needs…Supporting Tennessee’s Future Energy Needs…Nuclear Generation Development & ConstructionNuclear Generation Development & Construction
Dan PrattManager, Pre-Construction Planning
March 10, 2009
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159 power distributors 62 direct serve industries Over 8.5 million people in an 80,000 sq mile service area Public users of land and recreational facilities Communities with economic development assistance
TVA Serves…TVA Serves…
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Fossil Plants
CombustionTurbines
Nuclear Plants
Hydroelectric Dams
Pumped-Storage Green Power
Fossil/Coal64%(45%)
Hydro6%(15%)
Nuclear30%(21%)
Combustion turbine and green power
1%(19%)
TVA’s Diversified Generation TVA’s Diversified Generation PortfolioPortfolio
Generation(Capacity)
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TVA Generating FacilitiesTVA Generating Facilities
11 fossil sites (59 units)
3 nuclear sites (6 units)
29 hydro sites (109 units)
11 combustion turbine sites (72 units)
1 pumped storage station
1 wind energy site
17,000 miles of transmission line
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Use TVA resources to meet demand.
Increase energy conservation and demand reductions.
Provide cleaner, reliable, and still-affordable energy.
Fifty percent of generation from zero or low carbon emitting resources by 2020
For current planning horizon, when large amounts of newgeneration are required, this means nuclear for base load and natural gas for peaking
Elements of TVA Generation StrategyElements of TVA Generation Strategy
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Sequoyah Nuclear PlantWatts Bar Nuclear Plant
Browns Ferry Nuclear Plant Bellefonte Site
TVA Nuclear PlantsTVA Nuclear Plants
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TVA Has Option That Others Do Not TVA Has Option That Others Do Not Watts Bar Unit 2 CompletionWatts Bar Unit 2 Completion
Five-year project began October 2007
Identical to the operating Unit 1
Unit approximately 60 percent complete
1180 MWe Net
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TVA Nuclear – Industry Leader in TVA Nuclear – Industry Leader in Nuclear Generation DevelopmentNuclear Generation Development
Browns Ferry 1 Watts Bar 2 Bellefonte 2 Units
2007 2012 2017 - 2019
Actual Planned...
Units 6 7 9Megawatts 6,800 8,280 10,5 – 10,9
Under Construction
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Bellefonte Option
Identified Power Planning Need2017 – 2019
Bellefonte Site(Alabama)
Developing Next Option for Baseload Developing Next Option for Baseload
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Option A - Units 3 & 4 (AP1000)
Option B – Units 1 & 2 (original units)
Technology Decision For BellefonteTechnology Decision For Bellefonte
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U1 License
BLN 1&2 /// BLN 3&4BLN 1&2 /// BLN 3&4
Long Lead Procurement (2 Units)
Site Preparation
U1 Completion to Fuel Load
U1 Startup
CP’s Reinstated
Detailed Engineering
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
CFR Part 50 Licensing Process
U2 Completion to Fuel Load
U2 Startup
Long Lead Procurement (2 Units)
Site Excavation
U3 First Concrete to Fuel Load
U3 Startup
COL IssuedLicense
ApplicationSubmitted
Detailed Engineering
CFR Part 52 Licensing Process
U4 First Concrete to Fuel Load
U4 Startup
AP1000BLN 3&4
Existing UnitsBLN 1&2
TVARequest
U2 License
DSEP
BOD Decision
BOD Decision
ITAAC Closure
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Key Insights… So FarKey Insights… So Far
Competition for talent
Value of existing plant infrastructure has increased over last few years as other options have increased in price.
Local communities supportive, but worried about short term cost and services impacts to communities (ex. schools).
Identify or recruit core team early, it takes longer to build this than you think.
Changing NRC leadership
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CompetitiveNon-VolatileElectric Price
Clean Air Value
ReliableEnergySupply
Zero Air Emissions
Protection against CO2 risk
Long-TermCosts
Attractive
Less Dependence
on Oil and Gas
High Capacity Factors
~67%of
Total Cost Fixed
The Benefits of New Nuclear
EconomicDevelopment
~$1 Local Benefitsfor
every $1 Spent
Up to 2000Jobs During Construction
and ~500 Per UnitDuring Operation
Nuclear Options Being Developed Because…Nuclear Options Being Developed Because…
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0 10 20 30 40 50
Cost of CO2, $/Metric Ton
Levelized Cost of Electricity, $/MWh
30
40
50
60
70
80
90
100
110
120
Wind (32.5% capacity factor)
New Nuclear
Pulverized Coal
IGCCBiomass
NGCC ($10/MMBtu)
NGCC ($8/MMBtu)
Rev. October 200895% confidence level
The Carbon FactorThe Carbon FactorEPRI Comparative Costs in 2015EPRI Comparative Costs in 2015
NGCC ($6/MMBtu)
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Nuclear Energy Nuclear Energy Emission Free GenerationEmission Free Generation
Nuclear Energy Is On Par with Renewables
1041
622
17 46 14 39 15180
200
400
600
800
1000
1200
NaturalGas
Hydro Wind Geo-thermal
Tons
CO
2-equ
iv/G
Weh
Life Cycle COLife Cycle CO22 Emissions Analyses Emissions Analyses
Coal Nuclear Biomass SolarPV
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U.S. New Nuclear - Sites With License U.S. New Nuclear - Sites With License Application Projects and Contracts Application Projects and Contracts
ConstellationCalvert Cliffs
SouthernVogtle
DominionNorth Anna
TVABellefonte
EntergyGrand Gulf
EntergyRiver Bend
Progress Levy County
DukeW. Lee
SCE&GV.C. Summer
Progress Harris
NRGSouth Texas
TXU Comanche Peak
Amarillo
AmerenUECallaway
DTE EnergyFermi
ExelonVictoria County
PP&LBell Bend
FP<urkey Point
ConstellationNine Mile Point
EPC Signed
COLAAnnounced
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Key Project Siting IssuesKey Project Siting Issues
Geologic and Seismic
Water Availability and Usage
Transmission
Population/Emergency Planning
Other Environmental (Meteorological Data)
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New Nuclear Design AlternativesNew Nuclear Design Alternatives
WestinghouseAP1000
1120 MWe
Hitachi-GE or ToshibaABWR
1320 MWe
AREVAEPR
1600 MWe
GE- HitachiESBWR
1550 MWe
MitsubishiUS APWR
1700 MWe
Current Status ofAnnounced Intentions
Technology Units
AP1000 12
TBD 8
ESBWR 3
EPR 3
ABWR 2
APWR 2
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Simplification Eliminates Components and Simplification Eliminates Components and Reduces Cost to Construct & OperateReduces Cost to Construct & Operate
**
50% FewerValves
35% FewerSafety Grade
Pumps
80% LessPipe
45% LessSeismic Building
Volume
85% LessCable
Passive Benefit
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Pump/Valve Module
Raceway Module Structural ModuleDepressurization Module
Module Type
Structural
Piping
Mechanical Equipment
Electrical Equipment
TOTAL
Number
122
154
55
11 342
Designed to Be Built Faster Through Modular Designed to Be Built Faster Through Modular ConstructionConstruction
AP1000
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Cost of New Nuclear QuizCost of New Nuclear Quiz
Vendor Says….
Cost of plant is:
$3200/kw
Utility Says…
Cost of plant is:
$4300/kw
Which is Correct?
Wall Street Says…
Cost of plant is:
$5500/kw
All are the same… and for the same project!
Overnight Plus Owners Cost EPC Only Escalated to 2017
EverythingIncluding Interest
During Construction
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Major Hurdles for New Plant ConstructionMajor Hurdles for New Plant Construction
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New Nuclear Development Approach New Nuclear Development Approach Incremental Levels of Increased CertaintyIncremental Levels of Increased Certainty
Uncertainty Today Future Uncertainty
Technology Certainty (Final Design Engineering)
NRC Regulatory Certainty (COL Issuance)
Time
Manage the uncertainty in a planned deliberate manner
Project Development Certainty
Financial Certainty
WorkingIn
Parallel
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Once Through Versus Once Through Versus Closed Fuel CycleClosed Fuel Cycle
OperatingReactors
Used Fuel
Yucca MountainGeologic
Repository
AdvancedRecycleReactor
Recycle FuelFabrication
SeparationsByproducts
WasteManagement
MOX Recycle
Once Through
Used FuelThrown Away
ClosedRecycle
ResidualWaste
OperatingReactors
Used Fuel
Yucca MountainGeologic
Repository
AdvancedRecycleReactor
Recycle FuelFabrication
SeparationsByproducts
WasteManagement
Mixed Oxide Fuel Recycle
Once Through
Used FuelThrown Away
ClosedRecycle
ResidualWaste
OperatingReactors
Used Fuel
Yucca MountainGeologic
Repository
AdvancedRecycleReactor
Recycle FuelFabrication
SeparationsByproducts
WasteManagement
MOX Recycle
Once Through
Used FuelThrown Away
ClosedRecycle
ResidualWaste
OperatingReactors
Used Fuel
Yucca MountainGeologic
Repository
AdvancedRecycleReactor
Recycle FuelFabrication
SeparationsByproducts
WasteManagement
Mixed Oxide Fuel Recycle
Once Through
Used FuelThrown Away
ClosedRecycle
ResidualWaste
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Where are We Headed Over Next Decade Where are We Headed Over Next Decade
Energy Efficiency Technologies
Grid of the Future
Nuclear Sustainability and Expansion
Cleaner Coal
Plug-in Hybrid Vehicles
Accelerating Solutions
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Summary MessagesSummary Messages
Nuclear will provide clean competitively priced power– Provided risk can be managed in such a way as to keep cost of capital
at reasonable levels.
Re-establishing the infrastructure to build plants will likely result in longer planning horizons (with extended timelines for cash flows) for the initial wave of new reactors.
Nuclear will remain a key generation source and expand as part of the energy mix for the foreseeable future.