CEZ GROUP:
THE LEADER IN POWER MARKETS OF CENTRAL
AND SOUTHEASTERN EUROPE
CURRENT STATUS OF NPP PROJECTS
SUMMER SCHOOL 2016
17th August; 2016
Petr Závodský
Director – Nuclear Power Plants Construction
SUMMER SCHOOL – NEW NUCLEAR BUILD
CONTENT
ČEZ Group
Current situation and possibilities
Nuclear in the world
ČEZ - nuclear projects - status
1
… KEY COMPONENTS TO BE ABLE TO BUILD A
NUCLEAR POWER PLANT …
2
6971
68
4649
5659
65
69
54
60
73
75
75
5358
64
66
73
77
62
7072
78
72
64 64
62
72
70
74 69
68
20
40
60
80
100
2000 2001 2002 2004 2005 2006 2007 2008 2009 2011 2012
%
(share of YES answers)
Population Participants Announced participation in referendum
CEZ GROUP IS AN INTERNATIONAL UTILITY
WITH A STRONG POSITION IN CEE
Source: 2014 data, EUR/CZK=27.533, * 1260 MW of installed capacity is currently offline
Energy Assets
CEZ Group in the Czech Republic
Installed capacity (MW) 13,470
Electricity generation, gross (TWh) 58.3
Generation market share 68%
Distributed electricity (TWh) 32.7
Distribution market shre 57%
Number of employees 20,503
Sales (EUR million) 5,547
CEZ Group in Poland
(100% stake in Skawina, 100% in Elcho)
Installed capacity (MW) 681
Electricity generation, gross (TWh) 2.6
Generation market share 1.8%
Number of employees 396
Sales (EUR million) 156
CEZ Group in Romania
(100% stakes in CEZ Distributie, CEZ Vanzare, Tomis Team,
Ovidiu Development, TMK Hydroenergy Power)
Installed capacity (MW) 622
Electricity generation, gross (TWh) 1.3
Generation market share 2.1%
Distributed electricity (TWh) 6.3
Distribution market share 14%
Number of employees 1,792
Sales (EUR million) 429
CEZ Group in Bulgaria
(67% stake in CEZ Razpredelenie Bulgaria, CEZ Electro
Bulgaria, 100% in TPP Varna, 100% in Free Energy Project
Oreshets )
Installed capacity (MW) 1,265*
Electricity generation, gross (TWh) 0.9
Generation market share 2.3%
Distributed electricity (TWh) 9.1
Distribution market share 29%
Number of employees 3,530
Sales (EUR million) 882
CEZ Group in Turkey
(50% stake in SEDAS through AkCez, 37.36% stake in
Akenerji)
Installed capacity (MW) 1,289
Electricity generation, gross (TWh) 2.7
Generation market share 1.1%
Distributed electricity (TWh) 8.0
Distribution market share 3%
3
4
A TOP 10 EUROPEAN UTILITY
SOURCE: Bloomberg, Annual reports, companies’ websites and presentations
Top 10 European power utilities Market capitalization in EUR bn, as of April 7, 2016
Top 10 European power utilities Number of retail customers in 2014, in millions
10
1
2
3
4
5
6
8
9
7
EdF
Enel
Iberdrola
E.ON
Engie
CEZ Group
EdP
Fortum
PGE
RWE
PGE 10
Enel 1
EdF 2
Iberdrola 3
E.ON 4
RWE 5
Engie 6
CEZ Group 8
EnBW 9
EdP 7
61,0
38,5
32,6
23,4
23,2
21,6
5,2
5,2
11,0
7,3
37,6
36,8
31,8
18,3
16,3
10,8
10,0
8.0
6,6
5,8
5
BETTER OFF FINANCIALLY THAN PEERS Net economic debt2/ EBITDA
Net financial debt/EBITDA
Key insights ▪ ČEZ group is one of the most profitable European utilities
▪ Its leverage is low compared to industry standards
EBITDA1
Percent, 2015
Net debt/ EBITDA1
Multiples, 2015
1 As reported by companies
2 Net economic debt = net financial net debt + liabilities from nuclear provisions & liabilities from employee pensions & reclamation provision
5.1
4.8
3.7
3.6
3.6
3.3
2.7
2.6
1.2
-1.7
EDP
EDF
EON
RWE
Iberdrola
Engie
Enel
CEZ Group
PGE
Fortum
2
Average 2.9x
36,6
31,1
26,3
24,4
23,5
23,3
19,8
16,2
14,4
6,5
Fortum
CEZ Group
PGE
EDP
EDF
Iberdrola
Enel
Engie
RWE
EON
CEZ IS A STRONG AND VERTICALLY INTEGRATED
PLAYER IN THE CZECH ELECTRICITY MARKET
Source: CEZ, ERU, MPO, companies´ data;
data for 2014 (distribution data for 2013)
CEZ fully owns the
largest Czech
mining company
(SD) covering 71%
of CEZ’ s lignite
needs
Remaining 3 coal
mining companies
are privately owned
The Czech
transmission grid is
owned and
operated by CEPS,
100% owned by
the Czech state
Lignite mining Generation Transmission Distribution Supply
CEZ
Others
5 out of 8
distribution
regions
61% of customers
57%
21.6 million tons
2014
43%
16.6 million tons
68%
58.3TWh
32%
27.9 TWh
100%
64.3 TWh 63%
36 TWh 39% of customers
Other competitors –
individual IPPs Other competitors –
E.ON, RWE/EnBW
6
37%
21 TWh
7
CEZ GROUP’S STRATEGY IS BUILT ON THREE PILLARS
We want to operate power
assets as efficiently as
possible from the point of
view of both shareholders
and customers
We want to pro-actively
react now to the future
design of power sector with
a large proportion of
decentralized and zero-
emission production and
diminishing differences
between producers and
consumers
Be among the best in the
operation conventional
electricity generation
and proactively respond to the
challenges of the 21st century
We want to offer our
customers partnership,
expertise, tools, and
financing to meet their
energy needs - our
customers are much more
active in the control of their
electricity and gas
consumption and use in
general as well as in their
own production
We want to complement this
with additional products that
have synergy with
electricity and gas sales
Offer customers a wide
range of products and
services addressing their
energy needs
We want to maintain our
position among the top 10
energy companies in Europe
take advantage of major
synergies in the operation of
our assets and when offering
new products and servicing
customers
We focus our attention on
regions and countries that
are close to both CEZ and the
Czech Republic in terms of
energy markets, economy,
politics and culture; however,
undisputed profitability
remains the key indicator
Strengthen and consolidate
our position in Central Europe
Vision: deliver innovative solutions to energy needs and contribute to a better quality of life.
Mission: guarantee safe, reliable and positive energy to our clients and the society as a whole.
Note: SME = small and medium-sized enterprises; ESCO = Energy service company
I II III
KEY STRATEGIC ACHIEVEMENTS OF 2015
2014 dividend to our
shareholders amounting to CZK
21.4 bn
We saved CZK 2.9 bn in fixed
costs compared to year 2014
Mining limits have been extended
for Bílina mine (possibility to
extract additional 100 – 150 m
tones of lignite)
We completed checks of welds on
Units I., II. and III. of Dukovany
nuclear power plant and submitted
an application for operating
license extension for Unit I.
We set up an SPV company for
spinoff of projects of new plants in
Temelín and Dukovany
Be among the best in the
operation of conventional
electricity generation
and proactively respond to the
challenges of the 21st century
Stabilized portfolio of electricity
customers, growing in gas (+36.9
th. connection points)
Customer satisfaction grew
(mainly with price and with product
and service offering) – from 77%
to 84 %
We are offering roof top PV from
CEZ – more than 100 signed
contracts, thousands being
negotiated
We gained majority stake (75%) in
ENESA a.s. focused on EPC
projects
3 extensive technological „smart
grids“ projects are prepared in the
Czech Rep.
Offer a wide range of
products and services to
customers, which address
their energy needs
We reduced financial exposure of
CEZ, a. s. abroad by CZK 9.3 bn
We completed two investments
into German innovative companies
Sonnenbatterie and SunFire (fuel
cells)
Allocation of green certificates
restored for Fântânele Vest and
Cogealac in Romania
We signed a framework
agreement for cooperation with
German group Aquila Capital,
offering investment opportunities
to wind farms in Germany (up to
120 MW)
On Feb 26, 2016 Standard &
Poor's confirmed CEZ rating on
the level of A- with stable outlook
Strengthen and
consolidate our position
in the region of Central
Europe
I II III
SPV - special purpose vehicle; EPC – Energy Performance Contracting
8
9
CEZ GROUP OPERATES LOW COST GENERATION
FLEET, …
Installed capacity and generation (2015)
CEZ has a long-term competitive
advantage of low and relatively stable
generation costs
2 731 4,4
4 290 26,8
5 237
23,8
2 817
5,3 845 0,5
Installedcapacity
Generation,gross
Hydro and
renewables
Lignite /
Brown coal
Nuclear
15,920 MW 60.9 TWh
Share on
generation
44%
7%
39%
Black coal
9% Coal power plants are using mostly
lignite from CEZ’s own mine
(67% of lignite needs sourced internally,
remaining volume through long-term
supply contracts)
Nuclear plants have very low
operational costs
CCGT
9
SUMMER SCHOOL – NEW NUCLEAR BUILD
CONTENT
ČEZ Group
Current situation and possibilities
Nuclear in the world
ČEZ - nuclear projects - status
10
11
Nuclear
Hydro
Pumped-storage
Lignite
Biomass
Power heating plant
Hard coal
Wind
Photovoltaic
Hardcoal with
coke gas
combustion
CCGT
OWNED BY ČEZ, a. s.
OWNED BY A DAUGHTER
COMPANY OF THE CEZ
GROUP
IN THE CZECH REPUBLIC, CEZ GROUP OWNS AND OPERATES A BROAD PORTFOLIO OF POWER PLANTS
NPP Dukovany
VVER 4x440MW (PWR)
increased to 4x510 MW
NPP Temelín
VVER 2x1000MW (PWR)
planned increase to 2x1081 MW
THERE WILL OCCUR SIGNIFICANT ENERGY DEFICIT
LATEST IN 2035 (EVEN WITH EXPECTATION OF STRONG
DEVELOPMENT OF RES)
0
10 000
20 000
30 000
40 000
50 000
60 000
70 000
80 000
90 000
100 000
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11
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20
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20
42
20
43
20
44
20
45
GW
h
Hnědé uhlí Černé uhlí
Zemní plyn Ostatní plyny
Ostatní paliva Obnovitelné a druhotné zdroje energie
Jádro Jádro nové
Referenční scénář spotřeby Vysoký scénář spotřeby
Nízký scénář spotřeby Bez recertifikace JEDU
* Optimised scenario of Czech energy strategy 12
Brown coal
Natural gas
Other
Nuclear
Reference scenario
Low scenario
Hard coal
Other gases
Renewables
New Nuclear
High scenario
Decomm. EDU in 2025-27
SIGNIFICANT PART OF LIGNITE CAPACITY WILL BE
DECOMMISSIONED IN NEXT TWO DECADES
Low cost of domestic lignite
Thermal power plants next to mines –
only costs of internal logistics
Replacement of old units with more
efficient new technology (20% lower
CO2 emissions, from 1t CO2/MWh to
0.8 CO2/MWh)
Secured lignite supplies for the
investment lifetime
Majority of coal fired power plants will
disappeared from the electricity
market till 2035
Additional 1410 MW to be
decommissioned till 2040
Furthermore it is expected that NPP
Dukovany 1-4 (2000 MW) will be
decommissioned between 2035 - 37
5400
800
660
750
2210
Lignite (brown coal) capacity (MW)
Prunéřov (till 2040)
Ledvice (till 2055)
Tušimice (till 2037)
3190 MW
To be decommissioned
before 2035
+ NPP Dukovany
(50 years of operation)
2000 MW
Current capacity
of lignite fired PP Expected capacity
in 2035
13
Electricity production from power
plants of approx. 7 GW shall be
replaced by new build power
plants
,… WHICH IS A GREAT ADVANTAGE IN THE
CURRENT LOW PRICE ENVIRONMENT
14
20
25
30
35
40
45
50
55
60
65
Development of electricity price (year-ahead baseload, €/MWh)
Czech Republic Germany
Drivers of electricity price
Decline of hard coal prices due to shale gas discoveries in the US and declining Chinese imports
Decline in carbon prices due to oversupply driven by economic slowdown
Growing capacity of subsidized renewables at the time of stagnating/declining electricity demand
** Nuclear fuel costs and CZK50/MWh payment for fuel storage, cash cost of extracting own lignite, carbon costs are considered
* Current power price of 25 €/MWh, 2016 production of
CEZ hedged at €35/MWh, i.e. 10 €/MWh above current
forwards
18
12
4
-6
Nuclear** Lignite ** Hard Coal CCGT
Clean spreads by technology at current power prices* (€/MWh)
15
LONG TERM CONSUMPTION IN THE CZECH
REPUBLIC
HISTORICKÝ VÝVOJ SPOTŘEBY ELEKTŘINY V ČESKÉ REPUBLICE (tuzemská brutto spotřeba)
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000
45 000
50 000
55 000
60 000
65 000
70 000
75 000
80 000
1915 1920 1925 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
tuze
ms
ká
bru
tto
sp
otř
eb
a
[G
Wh
]
2. sv. válka
Hosp. krize
"Sametová"
revoluce
Vnitropolitická
destabilizace
Světová krize
...
Energetická krize,
klimatické výkyvy
Industrializace,
socialistická výstavba
EGÚ Brno, a. s. - 02 / 2011
3 dlouhodobé směrnice:
1. Meziválečné období - asi 190 GWh ročně
2. Socialistická výstavba - asi 1250 GWh ročně
3. Po roce 1989 - asi 1200 GWh ročně Délka poklesů spotřeby:
Hosp. krize 30. léta - 3 roky, o 14 %
2. sv. válka - 1 rok, o 34 %
"Sametová" revoluce - 3 roky, o 10 %
Vnitropolitická destabilizace - 3 roky, o 5 %
16
THERE IS A CLEAR CONNECTION BETWEEN ECONOMY
SITUATION AND ELECTRICITY CONSUMPTION
21%
4%
50%
source: ČSÚ, ERÚ, ČEZ
Year to year indexes – GDP × electricity consumption
Economic crisis
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Spotřeba elektřiny
HDP
Consumption
GDP
17
GERMAN WIND POWER PLANTS ARE CAUSING
PROBLEMS ALL AROUND CENTRAL EUROPE
18
Minimal CO2 emissions
Stability of fuel supply
Low cost of electricity
Long construction period
High investment
Politically sensitive issue
The only fuel that is available in
our region in sufficient amount
Existing international market
with black coal, import possible
High CO2 emissions
CCS still not commercially available
CO2 price of allowances
High efficiency (CCGT)
Flexible source
Relatively short construction
period and low investment cost
High gas prices
Gas prices are unstable and difficult
to predict in long term
Total dependence on import
No CO2 emissions
Environmentally friendly
Political support
Limited possibilities, strongly
dependant on local conditions
Risk for grid stability
Expensive (depending on subsidies)
Nuclear
Coal
Gas
Renewables
WHAT CZECH REPUBLIC CAN DO ?
(EXCEPT OF UNREALISTIC IMPORT AND MASSIVE SAVINGS)
19
Assets of the CEZ Group Branch offices
Upgrade of lignite existing plant
Construction started in 2007
Commissioning in 2012
Tusimice (4 x 200 MW)
Ledvice (660 MW)
New supercritical lignite unit
Construction started in 2007
Commissioning in 2015
Prunerov (3×250 MW)
Upgrade of existing lignite plant
In permitting stage
Commissioning in 2015
Pocerady (840 MW)
New combined cycle gas plant
Construction started in 2011
Commissioning in 2013
Fantanele + Cogealac (600 MW)
Wind farm
Construction started in 2007
WE ARE CURRENTLY UNDERTAKING SEVERAL MAJOR INVESTMENTS INTO THE GENERATION FLEET IN THE CZECH REPUBLIC AND ABROAD
Egemer (872 MW, in JV Akenerji)
New combined cycle gas plant
Construction started in 2011
Commissioning in 2014
0
10
20
30
40
50
60
70
80
90
100
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
LONG TERM FORWARD PRICES DON’T INDICATE THE
RECOVERY OF THE INVESTMENT ENVIRONMENT
Power price, Germany, EUR/MWh
CO2 price, EUR/t
In 2008 the market sent
the motivation signal for
investment - before the
crises. The CO2 price
was at the level that
promoting low-carbon
sources.
Intermediate oversupply
and drop in coal and gas
prices decreased the
power price.
Unpredictable support of
renewables threatens the
European power and
CO2 market that should
motivate investment into
the power sources.
Note: 2014 …2020 - baseload forwards (CAL14 – CAL19 EEX) 20
THE DEMAND FOR ENERGY IS LIKELY TO GROW
21 Source: Eurostat, 2012
Final consumption of electricity per capita
MWh/cap
Further economic
convergence in the
V4 countries
towards the
European core can
be expected
Differences in
consumption
between
comparable
countries are given
by the structural
differences in the
GDP
5,1
2,3
4,2
2,6
3,8
6,0
3,2
5,4
3,5
4,6
0
1
2
3
4
5
6
7
EU15 PL CZ HU SK
1993 2011
- 24 % - 24
+90%
+12%
+74%
+33%
4
5
6
7
8
9
10
15 20 25 30 35 40 45 50
V ČR NELZE V PŘÍPADĚ EKONOMICKÉ KONVERGENCE
OČEKÁVAT ABSOLUTNÍ POKLES SPOTŘEBY
Spotřeba elektřiny* na osobu [MWh/os] vs.
HDP na osobu [tisíce PPS/os], 2012
Existuje silná korelace
mezi úrovní ekonomiky
a spotřebou elektřiny na
obyvatele
I přes ekonomiku
orientovanou na průmysl
má ČR nižší spotřebu
elektřiny na osobu než
jiné vyspělé
západoevropské země
Spotřeba elektřiny ve
skandinávských zemích
(FI, SE) je na úrovni
dvojnásobku průměru
EU. Např. Norsko
vykazuje 24,5
MWh/osobu
CZ
EU15
PT
GR
ES
IT UK
FR
DE
BE
IE
AT
NL
DK
consum
ption o
f ele
ctr
icity p
er
capita
GDP per capita
Zdroj: Eurostat, ENTSO-E
SK
* Konečná spotřeba včetně ztrát v síti a elektromobility
**Růst HDP ve stejné výši jako OTE (2,4% ročně), ASEK vychází z OTE
CZ 2040
dle ASEK**
CZ 2040
OTE nízký
CZ 2040
OTE vysoký
22
38
62
DE power price 2014 Nuclear full costs
NUCLEAR OFFERS A LOW – EMISSION, LOW COST
SOLUTION FOR COUNTRIES STILL WORKING ON
ECONOMIC CONVERGENCE TO EU CORE
Electricity price in Germany compared with nuke full cost
EUR/MWh
Electricity
alone
RES
surcharge
100
EUR/MWh
62%
38%
23
STUDY FOR THE EUROPEAN COMMISSION,
DG ENERGY
24
William D. D’haeseleer
Professor at the University of Leuven (KU Leuven),
Belgium
SUMMER SCHOOL – NEW NUCLEAR BUILD
CONTENT
ČEZ Group
Current situation and possibilities
Nuclear in the world
ČEZ - nuclear projects - status
25
26
SOME FIGURES – NPPs IN THE WORLD
* Source: WNA 1.8.2016 ** Including Japan (43)
2006
2010
2011
„Today“*
Units in commercial operation 435 442 434 445**
Installed power GWe 368 376 370 389
Ratio of nuclear power in overall
production 16% 14% 13,8% 11,5%
Under construction 28 63 61 61
On order or planed 64 156 156 170
Proposed 158 322 343 339
Operable = Connected to the grid;
Under Construction = first concrete for reactor poured, or major refurbishment under way;
Planned = Approvals, funding or major commitment in place, mostly expected in operation within 8-10 years;
Proposed = Specific program or site proposals, expected operation mostly within 15 years.
COUNTRY
Country Profile) No. MWe net No.MWe
grossNo.
MWe
grossNo.
MWe
gross
WORLD** 445 388,777 61 64,589 170 177,685 339 381,6
China 34 30597 20 22596 42 47930 136 156000
Russia 35 26053 8 7104 25 27755 23 22800
India 21 5302 6 4300 22 20700 38 44000
UAE 0 0 4 5600 0 0 10 14400
USA 100 100013 4 5000 18 8312 24 26000
Japan 43 40480 3 3036 9 12947 3 4145
Korea RO 25 23017 3 4200 8 11600 0 0
Pakistan 3 725 3 1841 1 1161 0 0
Belarus 0 0 2 2388 0 0 2 2400
Slovakia 4 1816 2 942 0 0 1 1200
Argentina 3 1627 1 27 2 1950 2 1300
Brazil 2 1901 1 1405 0 0 4 4000
Finland 4 2741 1 1700 1 1200 1 1500
France 58 63130 1 1750 0 0 1 1750
Poland 0 0 0 0 6 6000 0 0
Turkey 0 0 0 0 4 4800 4 4500
United Kingdom 15 8883 0 0 4 6100 9 11800
Vietnam 0 0 0 0 4 4800 6 6700
Canada 19 13553 0 0 2 1500 3 3800
Iran 1 915 0 0 2 2000 7 6300
Egypt 0 0 0 0 2 2400 2 2400
Czech Republic 6 3904 0 0 2 2400 1 1200
Bangladesh 0 0 0 0 2 2400 0 0
Hungary 4 1889 0 0 2 2400 0 0
Ukraine 15 13107 0 0 2 1900 11 12000
Jordan 0 0 0 0 2 2000
Kazakhstan 0 0 0 0 2 600 2 600
Romania 2 1310 0 0 2 1440 1 655
Armenia 1 376 0 0 1 1060
Bulgaria 2 1926 0 0 1 950 0 0
Indonesia 0 0 0 0 1 30 4 4000
Lithuania 0 0 0 0 1 1350 0 0
REACTORS REACTORS REACTORS REACTORS
WORLD
UAE First "Newcomer" In 27 Years To Start Nuclear Power Plant Construction
The United Arab Emirates is the first country to start the construction of its first nuclear power
plant in 27 years, since construction was started on China's first plant in 1985.
As of 30 August 2012, the Barakah-Unit 1 is reported in the IAEA Power Reactor Information
System (PRIS) as "under construction".
The Emirates Nuclear Energy Corporation (ENEC) poured the first nuclear safety-related
concrete on 18 July 2012, after receiving a construction license from the Federal Authority of
Nuclear Regulation. The first unit of the APR1400 technology supplied by a Korean consortium
led by KEPCO is scheduled to be in operation in 2017 and three additional units are planned to
be operational by 2020.
The UAE has started its nuclear power program to meet increasing demand for electricity.
Other potential "newcomers":
Saudi Arabia, Bangladesh, Indonesia, Jordan, Thailand,Vietnam, …..
CHINA
1st NPP in operations since 1994
Currently 34 units in operation (except of 2 Candu 6, all are PWR (300, 600 &1000 MWe);
20 units under construction: 23 MWe; 42 planned: 48 MWe (PWR …. AP1000, EPR,
VVER-1000, CPR1000, HL1000, BN-800…)
30
USA …. NUCLEAR REGULATORY COMMISSION APPROVES
CONSTRUCTION OF FIRST NUCLEAR UNITS IN 30 YEARS
The USA is the world's largest producer of nuclear power, accounting for more than 30%
of worldwide nuclear generation of electricity.
The country's 100 nuclear reactors produced 798 billion kWh in 2015, aprox. 20% of total
electrical output.
Following a 30-year period in which few new reactors were built, it is expected that 4 new
units may come on line by 2020, the first of those resulting from 16 licenses
applications made since mid-2007 to build 24 new nuclear reactors.
However, lower gas prices since 2009 have put the economic viability of some of these
projects in doubt.
Government policy changes since the late 1990‘s have helped pave the way for
significant growth in nuclear capacity. Government and industry are working closely on
expedited approval for construction and new plant designs.
Vogtle, GA AP1000 x 2 2400 Southern Nuclear Operating
Company
24/7/08,
COL Feb 2012
loan guarantee;
11/2016, 11/2017
V. C. Summer,
SC
AP1000 x 2 2400 South Carolina Electric &
Gas
31/3/08,
COL Mar 2012
loan guarantee;
2017, '18
31 31
EUROPE
Finland
OL3, prep 2 new
units
Rusia
New construction
+ plans
Bulgaria & Romania
Kozloduy, Cernavoda
Hungary
New unit at Paks
France
Construction at
FLA3 prep, Penly
Life Extension
England
Preparation of new
construction / new
legislation
Slovenia
New unit at Krsko
Germany
Phase out till 2022
Sweden
Replacement of
old units
Italy
No nuclear in
referendum
Spain
Life Extension
Ukraine
Plans for new
units
Slovakia
Construction at
Mochovce,
Preparation at
Jaslovské Bohunice
Belorusia
2 new units Lithuania New BWR in
cooperation with
Baltic countries
Turkey
Plans for 6 units
Switzerland
No new nuclear
Belgium
Phase out ??
Poland
Prep. of new 6
GWe
Czech R.
New units
LAND USE NUCLEAR VS WIND AND SOLAR
32
Hinkley Point C:
- 430 acres, 174 ha,
- 26 TWh/year (3200 MW, 93%
up time), about 7% of the total
UK demand.
Solar:
- - 130 000 acres, 52 609 ha
Wind onshore:
- - 250 000 acres, 101 171 ha
ANNUAL NUCLEAR SHARE IN ELECTRICITY MIX BY
COUNTRY AND HISTORIC MAXIMUM
33 Source: The World Nuclear Industry Status Report 2014
WORLD NUCLEAR REACTOR FLEET, 1954–2014
34 Source: The World Nuclear Industry Status Report 2014
NUCLEAR POWER REACTOR GRID CONNECTIONS
AND SHUTDOWNS, 1954–2014
35 Source: The World Nuclear Industry Status Report 2014
NUMBER OF NUCLEAR REACTORS UNDER
CONSTRUCTION
36 Source: The World Nuclear Industry Status Report 2014
AGE DISTRIBUTION OF OPERATING NUCLEAR
REACTORS
37 Source: The World Nuclear Industry Status Report 2014
SUMMER SCHOOL – NEW NUCLEAR BUILD
CONTENT
ČEZ Group
Current situation and possibilities
Nuclear in the world
ČEZ - nuclear projects - status
38
39
DUKOVANY NPP 4 x 500 MWe In operation since 1985
Type of reactor: VVER 440 type V 213
Power uprating from 440 MW to 500 MW
Dukovany NPP among top NPPs world-wide as per
operational and safety performance indicators
Safety long time operation program
Total electricity production over 300 TWh
TEMELÍN NPP 2 x 1000 MWe First connection to the grid 2000
Type of reactor: VVER 1000 type V320
Installed capacity 2 x 1000 MW
Temelín NPP is the largest energy source in CR
Temelín NPP is built and designed at the highest
level of safety
Planned power uprating up to 1080 MW (till 2015)
Total electricity production over 150 TWh
ČEZ IS OPERATING 6 NUCLEAR UNITS ON 2 SITES
ČEZ’S GROUP NUCLEAR COMPETENCIES
The first research reactor was put into operation in the Czechoslovakia in 60’, making the
country the 7th in the world in peaceful use of the Nuclear energy (reactor installed at NRI
Řež).
ČEZ safely operates 6 nuclear units (4×VVER440 at Dukovany NPP, 2 × VVER1000)
ČEZ prepares three new nuclear project (Temelín 3&4, Dukovany 5&6, New unit at
Jaslovske Bohunice NPP – Slovakia).
Škoda Praha was the original general supplier of the technology for all nuclear units in
Czechoslovakia including Temelín 1&2 NPP; Škoda Praha is also an EPC supplier of the
heating plants (coal, gas).
Energoprojekt (currently a division of NRI Řež) was the general designer of all nuclear
units in Czechoslovakia including Temelín 1&2.
NRI Řež is active not only in support of currently operating plant (especially research for
life time extension) but also in generation IV. Research (for example Allegro) as well as
partially in Small modular reactors.
40
41
Temelín
Construction of Units 3&4
Pressurized Water Reactor
(PWR)
Dukovany
Construction of Unit 5
Pressurized Water Reactor (PWR)
Jaslovské Bohunice
Pressurized Water Reactor
(PWR)
ČEZ‘s PLANS FOR NEW NPP‘s BUILDS
42
THE BUILDING OF NEW REACTOR UNITS IS A PRIORITY
FOR BOTH ČEZ AND THE CZECH REPUBLIC
State energy concept
Guarantee energy supplies which will be
Reliable
Safe (safe production resources)
Friendly to the environment – almost
zero emissions
For an acceptable price
Supplying continuously even in crisis
situations
Targets
Building 2 new units in
Dukovany and/or
Temelín
Installed capacity
2,000 - 3,300 MWe
PWR Generation III+
reactors
Minimum life 60 years
Other project in
preparation
Jaslovské Bohunice
power plant (JV with
JAVYS)
ČEZ’s attitude
Nuclear energy has always been for
ČEZ profitable
The new nuclear reactors will help ČEZ
to increase the proportion of emission-
free generation facilities
By building new units, ČEZ would
replace decommissioned existing coal
power plants
EPC TENDER ACC. TO PUBLIC TENDERING – THE WORLD
UNIQUE PROCESS HAS BEEN CLOSE TO SELECTION OF
EPC SUPPLIER …
43
Competitive open
process
Three nuclear
technology leaders
retained
as bidders
Tender procedure compliant with European Union and Czech public tendering
Balanced technical and commercial criteria for offer evaluation
Specifications selected to favour the standard design option with minimum modification
Technical requirements adapted from European Utility Requirements (EUR) as a starting point, modified mainly for:
Site conditions
Legislation requirements and licensing process in the Czech Republic
CEZ operational experience from Dukovany and Temelin (6 units all together)
Technical advisor recommendation
Emphasis on safety and security following Fukushima incident
Selection of EPC contractor independent from partnership process
Westinghouse Electric Company LLC
Westinghouse Electric Czech Republic s.r.o
Areva NP SAS
SKODA JS a.s
ZAO Atomstroyexport
OAO OKB Gidropress
44
SUMMARY OF PASSED MILESTONES AND NEXT STEPS
REGARDING EPC TENDER
Initiation of EPC
tender
Consultation
meetings I
with qualified
bidders
First round of
tender
changes
implementatio
n
Initiation of
external
assessment of
tender
specification
Consultatio
n meetings
II
Qualification
finished
Aug 2009 Feb 2010 Jun 2010 Feb 2011 Feb 2011 Apr 2011
Decision about
tender changes
Submission of
the tender
specification to
executive and
supervisory
board
Approval of
tender
specification
Tender
specification
issued
Documentation
ready
for second round
of external
assessment
19th-25th May 2011 15th June 2011 20th Sep. 2011 20th Oct. 1011 31st Oct. 2011
Bid submission Approval by MB
and SB of ČEZ
Signature of the
EPC contract
Final notice to
proceed – start of
construction
Finalisation of
the evaluation
and negotiations
2nd July 2012 April 2014 Tender
canceled
45
SUMMARY OF PASSED MILESTONES
REGARDING EIA PROCESS
Initial EIA
assessment
EIA doc.
published
(+sent to
Germany
and Austria)
Slovakia
requested to
participate on
EIA process
Poland
requested to
participate on
EIA process
All comments
submitted for
assessment
EIA
documentatio
n submitted
Jul 2008 –
Feb 2009 May 2010 Jun 2010 Sep 2010 Dec 2010 Jan-Mar 2011
Second consultation
meeting with Austria
Assessment
ready Public hearing EIA decision
First consultation
meeting
with Bavaria
9th May 2011 May-June 2011 February 2012 June 2012 January 2013
First
consultation
meeting with
Austria
Jan 2011
Prague
Temelin
Lock chamber
Vrane
Lock chamber
Štěchovice
By-pass
By-pass
By-pass
weir
Kořensko Orlik
Slapy
Kamýk
47
High consum. scenario
NPP Dukovany till 2027
Keeping limits at ČSA
Low scenario of renewables
No new nuclear
Import of electricity
Natural gas
Gas scenario with limited self sufficiency
Low consum. scenario
NPP Dukovany till 2027
No new nuclear
Keeping limits at ČSA
High scenario of renewables
Renewables
Import of electricity
Green scenario with limited self
sufficiency
Electricity consumption
NPP Decom.
New Nuclear
Lignite mining limits
Renewables development
Key source
Energy balance
Reference scenario
NPP Dukovany till 2037
Three units (2033-2037)
Keeping limits at ČSA
Realistic RES scenario
Nuclear
Full self sufficiency
Optimized scenario according to SEP
Reference scenario
NPP Dukovany beyond 2040
Two units (2030,2032)
Prolomení ÚEL
Realistic RES scenario
Combination
Export remainder
Secure and sefl sufficient
Reference scenario
NPP Dukovany beyond 2040
One unit (2038)
Breaking mining limits
Low scenario of renewables
Possible Import
Conventional sources
Conventional and Economical
Low consum. scenario
NPP Dukovany till 2034
Two units (2033,2038)
Keeping limits at ČSA
High PV, wind
Full self sufficiency
Low carbon sources
Decarburization scenario
STATE ENERGY POLICY HAS BEEN APPROVED IN 2015
LONG TERM ROLE OF NUCLEAR ENERGY SECTOR
The transition to a low/zero carbon energy sector in 2050 in the context of meeting the
Czech international obligations.
Communication of EU: 2050 – 80% - 95% emissions of GHG compare to 2005 (zero
emission energy sector).
Ensuring energy security (ability of long-term electricity supply even in the absence of
external supply sources).
Creating reserves of uranium fuel for 4 or more years.
Industrial production and export potential.
Nuclear energy industry and infrastructure – 15 000 people, 2 % GDP, potential to double
this share.
The knowledge base of the economy (the leader of hi- tech industrial production,
organizational and structural skills).
High value added, with significant multiplication to other (material R&D, engineering etc.).
48
CZECH STATE ENERGY POLICY
SUMMARY OF GOALS FOR NUCLEAR ENERGY
Strengthening the role of the nuclear energy in the energy mix of the Czech
Republic, compensation for decreasing production from thermal (coal) power plants
=> up to 50% share on gross electricity generation.
Promote and accelerate the process of negotiation, preparation and execution of
new nuclear units at existing locations with a total capacity to 2,500 MW,
respectively, annual production of around 20 TWh in the period of 2030-2035.
Aim the start of operation around possible shutdown of Dukovany NPP, it means
after 2035.
Creating the conditions for extending the operational period of Dukovany NPP up to
50 (or 60) years.
Ensuring the conditions for the establishment and operation of a secure and
long-term repository of radioactive waste; decide on nuclear repository location
until 2025.
Identification and securing territorial protection for other suitable locations for
potential NPPs.
49
NATIONAL ACTION PLAN FOR NUCLEAR ENERGY
RECOMENDED STEPS
Immediate continuation of preparatory works for NPP Temelín project and on
NPP Dukovany project
Preparatory works to be done for 2 units on each site (land, permits, licenses)
Current expectation is to build 1 unit on each site only
However with possible extension to 2 units on respective site if needed
Carve out both projects into project companies to enable future entry of the state
or strategic partner
Start discussion with strategic partners
Start the discussion with EU (tender approach, allowable financing models,
assurance of the project feasibility)
Decide and approve the final investment and delivery model in order to assure
feasibility of the project.
Preparation of the Czech legislation modification in order to enable acceleration of
the preparation works
Keep know-how and teams
50
ČEZ NUCLEAR NEW BUILD PROJECTS
51
New NPP Temelín
SPV (Special Purpose Vehicle) established
Fulfilment of conditions from permission and licenses
issued (EIA, Initial Safety Report/nuclear siting, …)
Related investments (at site, in the region)
Other preparatory works (ČEPS, …)
New NPP Dukovany
Preparation of the project started in 2010
Feasibility study approved
Complex water supply study
EIA process stated
Site investigation under progress
New NPP Jaslovské Bohunice (SK)
JV company (JESS) established in 2009
Joint Czech / Slovak team established
Feasibility study approved
EIA process stated
Site investigation under progress
51
%
49
%
100
%
ČEZB
ČEZ
PREPARATION AND CONSTRUCTION OF THE NPP IS
LONG JOURNEY AND THEREFORE SHOULD START
IMMEDIATELY
Year
2030 2020 2040
2015 2032
17 years – deterministic
(without risk impact)
2037
22 let – realistic (with risk
impact)
Start of the
project End of commissioning
of the NPP
Fáze:
6-7 years 4-7 years 7-9 years
Construction and
commissioning
Engineering, nuclear
licences, site permit,
construction permit
Selection of the
supplier, EIA, Nuclear
sitting
Start of
construction
52
NPP DEVELOPMENT AND CONSTRUCTIONS IS A LONG
PROCESS CONTAINING NUMBER OF RISKS Milestone Years
from T0
(risk
free)
Risk and its impact Delay
(in
years)
Delay on
critical
path
Years
from T0
(incl. risk)
EIA process
resulting in
positive EIA
statement
4 Prolongation of the process - complicated process including international hearing and
discussions
Complaint or legal proceeding – strong opposition of NGO , number of obstructions and
complaints
1 0 5
Site permit
(nuclear
regulator)
5,5 Longer preparation of the documentation (need to prepare more information than originally
expected)
Suspension of the process – request for provision of additional information
Law suit based on third party claim
1 0 6,5
EPC tender acc.
to public proc.
law
5,5 Complaint or legal proceeding initiated by rejected of non-successful bidder
Prolongation of the notification process in EC
Prolongation of negotiation and / or of internal approval process
1 1 6,5
Site permit
(ministry of local
development)
7,5 Prolongation of assessment on ministry due to scope and complexity of the project
Suspension of the process - request for provision of additional information
Law suit based on third party claim
0,8 1,8 9,3
Construction
permit (nuclear
regulator)
9,5 Longer preparation of the documentation (need to prepare more information than originally
expected)
Suspension of the process – request for provision of additional information
0,5 2,3 11,8
Construction
permit (ministry
of trade and
industry)
10,5 Prolongation of assessment on ministry due to scope and complexity of the project
Suspension of the process - request for provision of additional information
Law suit based on third party claim
0,5 2,8 13,3
Take over of first
unit 17,5 Delay due to poor performance of Supplier
Delay resulting from change in law
2 4,8 22,3
53
Rozhodnutí o přípravě jaderných projektů je dnes
rozhodnutím o budování příležitosti, nikoliv o výstavbě
0,00%
2,00%
4,00%
6,00%
8,00%
10,00%
12,00%
14,00%
16,00%
Okamžik
rozhodnutí o
výstavbě
Ilustrativní příklad
Konkrétní
dodavatel
technologie
Investiční
náklady
(%)
54
PODPORA ROZVOJE JADERNÉ ENERGETIKY V ČR – ČASOVÉ SROVNÁNÍ
Od podzimu 2014 zaznamenán mírný pokles podpory rozvoje jaderné energetiky
v ČR.
55
Q4) Jste Vy osobně pro rozvoj jaderné energetiky v naší republice? (odpovídají všichni respondenti N=500)
(stat. chyba: max. 3,7%) *Pozn.: V letech
1995-1998 a 2010
nerealizováno ZDROJ DO 2012: STEM
56
68
47
6358 59 56
52 54
59 59
6771
54
6467
59
44
32
53
46
36 3329
33
41414648
44414237 41
0
20
40
60
80
100
1994
1995
*
1996
*
1997
*
1998
*
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
*
2011
2012
2013
2014
2015
%
Určitě + spíše ano Spíše + určitě ne
Pokles podpory JE vlivem havárie v jaderné elektrárně Fukušima I. Pokles podpory JE v důsledku zrušení tendru
na dostavbu ETE.
Pokles podpory JE – může souviset s protesty proti úložištím jaderného odpadu a se zhoršením vnímání bezpečnosti v Evropě a ve světě (terorismus, přírodní katastrofy).
56 56
CZECH POWER INDUSTRY ALLIANCE
ŠKODA PRAHA initiative for export of conventional island of the NPPs and
subsequently generally for energy sectors
Initiative substantial also for preparation nuclear projects in ČR (Temelín, Dukovany)
Initiative is also in line with tasks given by the government – Czech government has
approved National Action Plan for Nuclear Energy on 3rd June, 2015. In the chapter
5.3., there is stated the following; Organization of the supply chain:
Although they are private companies owned by various owners, their common interest
is to carry out business in the sector under the powerful control of the state.
Knowledge and the maintenance or development thereof and the involvement of
suppliers are important for the development of the sector as a whole.
It is recommended to initiate the establishment of an organisation which would
associate the industrial undertakings participating in supplies for the nuclear
energy sector. Such an organisation would be a partner of the Committee (with
the representative of the organisation as a member thereof) and could provide for the
transfer of knowledge between the government and the industry, participate in the
assessment of the NAP NE and submit proposals aimed at the Committee and
coordination of members thereof.
ŠKODA PRAHA brings traditional trademark and takes the lead of the Alliance
57
CZECH POWER INDUSTRY ALLIANCE
EXPORT COORDINATOR OF CZECH DELIVERIES FOR
NUCLEAR POWER PLANTS
Full members:
1. ŠKODA PRAHA a.s.
2. ŠKODA JS a.s.
3. VÍTKOVICE HOLDING, a.s.
4. Doosan Škoda Power s.r.o.
5. SIGMA GROUP a.s.
6. MSA, a.s.
7. I.B.C. Praha spol. s r.o.
Associated members:
1. ALTA, a.s.
2. ZAT a.s.
3. ZVVZ GROUP, a.s.
4. OSC, a.s.
5. KRÁLOVOPOLSKÁ RIA, a.s.
6. Elektro Kroměříž a.s.
CPIA Board:
• Mr. Bodnár – Chairman – Škoda Praha
• Mr. Perlík – Vice-Chairman – Škoda JS
• Mr. Světlík – Member – Vítkovice
• Mr. Koníček – Member – I.B.C. Praha
Potential newcomers:
1. CHEMCOMEX Praha, a.s.
2. FANS, a.s.
3. NOEN, a.s.
4. ETD Transformátory, a.s.
5. ZK – TERMOCHEM s.r.o.
6. JSP, s.r.o.
7. ….
58
Czech Power Industry Alliance
www.cpia.cz
DO WE HAVE RESPONSES TO THE FOLLOWING QUESTIONS?
What are the alternatives we have, compared to nuclear. How real are they in the Czech Republic conditions?
Which criteria we are taking into the account (is the current spot price the only criterion we should take into the account)?
What is the social price of the security of supply?
Will we be able to buy electricity at competitive price, if there are no new sources in the Czech Republic?
How the Czech energy sector will look like in 2035 without the investment into new sources?
What is the cost of a black-out in the Czech Republic? How real is the risk?
What is socially acceptable price for electricity and what is current price?
Will not lead postponement of decision on build - up / unsupported build - up new sources to problems, which will be heavy, or impossible manageable in the future?
60
61
TEMELÍN NOW
62
TEMELÍN NOW & FUTURE
THANK YOU FOR YOUR ATTENTION
63