NUCLEAR ENERGY IN BULGARIA MILKO KOVACHEV MINISTER OF ENERGY AND ENERGY RESOURCES

1. NUCLEAR ENERGY IN BULGARIAMILKO KOVACHEVMINISTER OF ENERGY AND ENERGY RESOURCES ANNUAL SYMPOSIUM WORLD NUCLEAR ASSOCIATION 3-5 SEPTEMBER, 2003, LONDON, UNITED KINGDOM

2. Energy Policy Of Bulgaria • Substantial recent developments • New energy strategy (2002) • New energy legislation - in line with the acquis • Major priorities – fully corresponding to the EU priorities • Security of supply • Environmental protection • Competitiveness • Major steps • Liberalization of the markets • Privatization • Nuclear • Plays and will play an important role in the Bulgarian energy sector • Nuclear safety – a leading prerequisite

3. Bulgaria’s Energy Profile • About 60% of the energy sources imported, mainly in the form of crude oil, natural gas and nuclear fuel • The primary energy balance well structured in terms of energy sourcesdiversity

4. Bulgaria – Natural Energy Hub • Natural transit center for energy supplies from Russia and Caspian Region to Southern Europe and from Asia to Central and Eastern Europe • Well established energy infrastructure • Very good grid transmission capacities • Electricity export in 2002 – 7.1 GWh

5. Export Assuring Regional Energy Balance Romania Serbia Montenegro Albania Kosovo FYROM GreeceTurkey

6. Nuclear Share in Bulgaria Net electricity generation in 2002 • In 2002, the nuclear share of the installed capacities was 28.7% • In 2002, the nuclear share of the generated electricity was over 47% • During the last 10 years KNPP covered over 40% of Bulgaria’s electricity demand

7. Importance of Nuclear for Bulgaria Economic Aspects • Provides ~45% of the electricity generation • Enables Bulgaria to be a net exporter of electricity • Maintains the effectiveness and competitiveness of electricity production • Low production price, life cycle costs included • Highly competitive price at the international markets • Low fuel component, at low and stable fuel costs

8. Importance of Nuclear for Bulgaria Environmental Aspects • Substantially contributes to the environmental protection and global warming prevention goals of Bulgaria • In 1995 Bulgaria ratified the UN Framework Convention on Climate Change • In 1997 Bulgaria signed the Protocol (ratified 2002) to the Convention committing to decrease with 8% the greenhouse gas emissions by 2020, as compared with 1988 levels

9. Nuclear Power Plants in Bulgaria • Kozloduy NPP • Units1&2 : VVER– 440/V 230, commissioned 1974, 1975 • Units 3&4: VVER–440/V 230*, commissioned 1980, 1982 • Units 5&6: VVER–1000/V 320, commissioned 1988, 1983 • Belene NPP • Infrastructure in place to host 6 VVER-1000 Units • Unit 1 constructed 40%, equipment delivered 80% • Construction frozen in 1990 • Governmental Decision in 2002 to reconsider the project

10. Kozloduy NPP - Present Status • Units 1&2 : shut-down on December 31,2002 by Decision of the Council of Ministers • Units 3&4: upgrade programme completed with positive IAEA and WANO assessments. Based on modernization results and new nuclear legislation, in 2003 the Bulgarian Regulator issued long-term licenses for units 3-4 operation • Units 5&6: large-scale modernization programme to be completed in 2005, aiming at lifetime extension by 20-25 years

11. Is Nuclear Safety a Political Issue or a Technical One? • Political view • 1992, G7: VVER 440/V 230 plants аre unsafe and not upgradeable at a reasonable price • 2002, EC: Kozloduy NPP Units 1-4 are considered as unsafe and not upgradeable • Technical view • IAEA 2002 • WANO 2003 • Special attention should be paid to the safety level reached after the improvements already implemented

12. PublicAcceptance • Do you agree that Kozloduy NPP is effective and competitive? • Bulgaria’s Accession to the EU • Against the closure of Kozloduy NPP Units 3 and 4 - 77%

13. Positive Features of the Nuclear Power Industry in Bulgaria • Extensive review process of the design basis and operational safety • Stage-by-stage modernization of nuclear installations • Upgrading based on approved technologies • International Verification • Employees are highly motivated to work in the nuclear power industry • Highly qualified operational, engineering and maintenance personnel. • Senior Management and Operational Staff Certification by a State Qualification Committee • Low personnel turn-over • National system for training and qualification of the personnel in the nuclear industry field • Strong international expert support

14. Perspectives of Nuclear in Bulgaria • Bulgaria will further rely on the safe use of nuclear power for its energy balance and for keeping its position in the region • EU Accession is a national priority for Bulgaria thus defining the frames of the cooperation between the EU and Bulgaria in the energy sector • In 2002 Bulgaria provisionally agreed to close units 3 & 4 in 2006, two major issues still remaining to be addressed: • Peer Review to be carried out by EU Member States, expected in November 2003 • Social and economic consequences of early closure to be tackled, substantial EU support expected

15. Conclusions • The EU accession is a primary goal of the Bulgarian Government • We strongly believe that nuclear safety will not be considered as a political mechanism related to the EU accession • We are ready to contribute fully and openly to any professional safety level assessment • We expect a substantial assistance to meet the negative impact of early closure of significant nuclear production capacities