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NUCLEAR POWER PROGRAMME FOR POLAND Objectives, Assumptions and Basic Infrastructure

MINISTRY OF ECONOMY. NUCLEAR POWER PROGRAMME FOR POLAND Objectives, Assumptions and Basic Infrastructure. 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.

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NUCLEAR POWER PROGRAMME FOR POLAND Objectives, Assumptions and Basic Infrastructure

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  1. MINISTRY OF ECONOMY NUCLEAR POWER PROGRAMME FOR POLANDObjectives, Assumptionsand Basic Infrastructure 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

  2. MINISTRY OF ECONOMY Ambitious Objective Construction of Nuclear Power Plants in Poland. First unit commissioning in 2020 • 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 The greatest challenge in the history of Polish energy market and post war economy • 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

  3. MINISTRY OF ECONOMY Challenges for the Polish Power Sector • Security of electricity supply • Diversification of fuel mix • Development of interconnections and transmission grid • Restrictions on SO2, NOx, CO2 emissions • Development of new generation sources • Increase in electricity generation efficiency 3

  4. MINISTRY OF ECONOMY EU Climate Energy Package – Additional Challenges New Emission Trade Scheme (ETS) – linear decrease of available CO2 allowances Full auctioning within ETS for electricity sector since 2020 15% share of RES in final energy consumption in 2020 – target for Poland Implementation of CCS technology – participation in the EU Flagship Programme 4

  5. MINISTRY OF ECONOMY 58.7% 35.0% 1.7% 2.0% 2.2% 0.3% 0.1% 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

  6. MINISTRY OF ECONOMY 7% 6% 5% 5% 16% 44% 17% to 5 years 5-10 years 10-15 years 15-20 years 20-25 years 25-30 years over 30 years Age Structure of the Existing Power Plants in Poland 6

  7. 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 biofuels • Development of competitive fuel and energy markets • Limitation of energy sector’s impact on environment

  8. Nuclear fuel Lignite 15.7% 21.0% Other fuels 0.5% RES 18.8% Natural gas Hard coal 6.6% Oil products 36.0% 1.5% Net electricity generation by fuel type in 2030

  9. 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

  10. 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

  11. MINISTRY 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

  12. 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

  13. „Framework time schedule for nuclear power activities”- stages I until 31.12.2010preparation and approval by the Council of theMinisters of the Polish Nuclear Power Program II 2011 – 2013 NPP site selection and conclusion of a contract forconstruction of the first NPP III 2014 – 2015 preparation of technical design and obtaining allrequired decisions and permits IV 2016 – 2020 construction of the first NPP in Poland MINISTRY OF ECONOMY

  14. 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

  15. Preparatory phase – key issues MINISTRY OF ECONOMY • 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

  16. MINISTRY OF ECONOMY Nuclear Power Programme for Poland Preparatory Team – activity fields Government Commissioner for Nuclear Power (Undersecretary of State in the Ministry of Economy) NEPIO NEPIO Supported by Nuclear Energy Department Electricity Market Study and Economical Assessment Legal Research and Development Public Consultation Technology Assessment Human 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 • Electricity market structure • Electricity mix • Base 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 • Nuclear power education programme for human resources specializing in nuclear power • Staff training • International cooperation • Education programme • R&D resources development

  17. Nuclear Power Programme for Poland Other (main) partners involved REGULATORY 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

  18. Framework time schedule for nuclear power development- tasks 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 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

  19. Preparatory phase – main threats and risks 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

  20. 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 s Thank you for your kind attention Competition for poster advertising the issue of public acceptance for nuclear power in Poland (Cracow, 27.04–14.05.2006)

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