global aspects and contract model of the angra 3 project · pdf fileeletronuclear iaea...

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IAEA Technical Meeting Warsaw, February 2016 /

Global Aspects and Contract Model of the

Angra 3 Project

Jean Brunswick Technical Control Manager

IAEA Technical Meeting February 10-12 2016

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Introduction – Brazilian Energy Matrix Summary

Introduction – Brazilian Energy Matrix

Current Nuclear Installed Capacity

Angra 3 – Basic Information

Angra 3 – Contracts

Angra 3 – Import Supply and Service Contracts

Angra 3 – Current Status

New Builds

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Manaus

Brasília

São Paulo Itaipu

Porto Alegre

Fortaleza

Salvador

Rio de Janeiro

Belo Horizonte

Recife

Angra

4.000 km

Hydro-Thermic Transition

Integrated electric power system: continental

dimensions

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Renovation of the Energy Matrix

o Difficulties and uncertainties in a mainly hydropower system

o Need for securing energy supply and economic competitiveness

o Composition of a power supply based on a sustainable, diversified and competitive energy

o Increasing difficulties to increase the installed hydropower capacity (transmission lines, environmental challenges, low capacity factors…)

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Hydro Thermal Nuclear Wind


Evolution of the Installed Capacity

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HYDROPOWER POTENTIAL Fraction considered to be technically, environmentally and economically possible to be developed: 150/180 GW out of a total of 260 GW

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Introduction – Brazilian Energy Matrix Post-2030 Expansion

• Mix of Natural Gas, (depending on availability), Coal (depending on the

feasibility of clean carbon Technologies and economic viability) and Nuclear

(public acceptance and economic competitiveness)

• Renewable sources (biomass, wind and solar) and expansion of energy

efficiency programs will be an indispensable complement (water saving for dry

periods, felixibility, local solutions)

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Uranium Reserves

• Currently the world’s 6th largest reserves

• Sufficient for 116 years, considering the current consumption (WEO 2006 – IEA)

• With reprocessing, this time frame is extended exponentially

Only 30% Prospected 309.000 tons

ITATAIA

CAETITÉ

Availability and price stability for the nuclear fuel

Security against price volatility in the world Market

Technology on nuclear fuel fabrication

Additional estimated in 800.000 tons (INB 2006)

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Introduction – Brazilian Energy Matrix Reasons for a Program of Nuclear Power Generation

o Long-term strategy to provide a supply of sustainable, diversified and competitive energy

o Introduction of advanced energy technologies of high performance and safety

o A Nuclear Power Program is an Industrial Project

o Productive capacity in Brazil and insertion in global value chains

o Economies of scale and gradual cost reduction

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Angra 3

A N G R A 1 Installed Capacity: 657 MW Technology: Westinghouse

Start of Operation: January/1985

A N G R A 2 Installed Capacity: 1.350 MW Technology: Siemens/KWU

Start of Operation: January/2001


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1970: Technical specifications issued 8 invitations (5 competitors) Reactors of different technologies

1971: Evaluation of the Proposals Winner: Westinghouse / PWR

Power: 657 MWe

1972: Contract Signing

Contract Mode: “Turn Key”

Construction start: 1972

Construction delays: Technical, administrative, political and financial aspects

Start of operation: Jan-1985

Availability factor: 78,04% (1997 through 2009)

A N G R A 1

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A N G R A 2 Nuclear Agreement Brazil –

Germany

Contract mode: Technology transfer

Power: 1350 MW

Technology: Siemens KWU - Germany

Construction start: June – 1977

Interrupted works: Financial and political aspects

Construction resumption: 1996

Start of operation: Jan - 2001

Availability factor: 85,87% (2001 through 2009)


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Angra 3 – Basic Information Grafenrheinfeld Initial Phase of the Project

- 1975: Brazil – Germany Agreement (Pacific Use of Nuclear Power)

- Reactor type: PWR-1.350 MW / Power uprate to 1.405 MW

- Original Contract: 1976 (together with Angra 2)

- Original Reference Plant: Grafenrheinfeld

- Start of civil works: July-1984

- Construction suspension: Junho-1986

Original Design modernization - Konvoy series: Emsland / Neckarwestheim 2 / Isar 2

- Implementation of modernization: Angra 2 e Angra 3

Current design reference - Reference plant: Angra 2

- Angra 2 documentation: Partial use for Angra 3

- Base for the Angra 3 PSAR: Angra 2 FSAR

Neckarwestheim I s a r

Emsland

NeckarwestheimNeckarwestheim I s a rI s a r

EmslandEmsland

Angra 2

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National Supplies - Market Guaranty Protocol: Main purpose: to develop the

national industry for the nuclear sector

- Valid for Angra 2 and Angra 3

Siemens/KWU - Scope: Technology transfer and basic and detailed design and supplies

for the nuclear and safety systems

- Supplies, Services and Guarantees for Angra 2 and Angra 3

Authorization for Project Resumption - Governmental decision in June 2007

- Civil works resumed in 2009

Agra 2


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ANGRA 2

ANGRA 2: Reference Plant

ANGRA 3

Extensive use of the Angra 2 design documentation (~70%)

Executive documents for

Angra 3

ANGRA 2 “AS-BUILT” + Design Changes/Adaptations • Foundation on rocks • Design changes from Angra 2 • Digital I & C

D E S I G N


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Costs that had already been incurred around R$ 1.5 billion (infrastructure, basic design and detailing engineering, import and national equipment already delivered

Strict preservation (proven techniques from Angra 2)

Around 13,500 tons of already delivered components

Heavy components for the

primary circuit (RPV, SGs, RCPs, PRZ)

Part of the TG-Set components Process equipment Piping Pumps Valves


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Angra 3 - Contracts

Import Supplies, Services, Warranty &

Guarantee

Civil Construction

National Supplies

Electromechanical Erection

Engineering Services

National Supplies

NEW BIDS RENEGOTIATED CONTRACTS

A N G R A 3 MAIN CONTRACTS

Civil Design and Structures

Non-Nuclear Buildings

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Angra 3 – Import Supply and Service Contracts AREVA Supply Contract

Lump Sum Model Supply of the import equipment and components to complement the already

delivered import scope for Angra 3, in the valid Contract for Angra 2 and 3. Delivery of all components to site (DAP)

Includes Supply Packages manufactured directly by AREVA, as well as by

subcontractors. Equipment, components and materials should be identical to those of Angra 2, whenever possible (design, dimensions, quality and function)

Spare and Wear parts, as well as resupply of “cannibalized equipment” and

changes effected in Angra 2

Main Components being supplied: Diesel Generator Refueling Machine Pumps Compact storage racks Electronic Cabinets Cables I&C equipment

Piping HVAC Switchgears Valves Heat Exchangers

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Angra 3 – Import Supply and Service Contracts AREVA Service Contract

Performance of the imported (AREVA) services required for the construction, electromechanical erection and commissioning of Angra 3

o Coordination o Design, engineering and quality assurance o Design Review o Training o Transport supervision and inspections o Erection supervision o Commissioning (full responsibility)

Services executed by Work Orders (Semestral, Package and Task Work Orders) General Inspections Cannibalization Inspections Support Delegations

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Note: The baseline for this Project Progress is of 30,34% in 2009 (Project Resumption – civil works)

Global Physical Progress = 59,4% (Dec/15)

18.0%

80.2%

75.7%

87.1%

65.3%

10.8%

67.3%

73.9%

78.9%

59.4%

ElectromechanicalErection

Civil Works

Supplies

Enginnering

PROJECT

Performed until Dec-15 Planned until Dec-15

Project Physical Progress

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Limitations imposed to ELETRONUCLEAR’S cashflow due to the reduction of the Angra 1 and 2 tariffs, which led to a considerable revenue loss, prevented the company from providing the required counterpayments to make withdrawals from the external financing

Due to the above, ELETRONUCLEAR was forced to take exceptional measures:

Payment delays

Contract suspensions / Pace reduction

General Executive Schedule – commercial operation in 01.05.2019 -> already being reevaluated

Relevant Facts 2015

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Similarity between Angra 3 and Angra 2 created extremely favorable expectations to its implementation

Unexpected difficulties found from the Project resumption onwards:

o Extremely complex contracts renegotiation processes

o New nuclear licensing requirements related to the use of new and/or updated codes and regulations

o Gradual authorizations from the licensing authorities for the release for concrete pouring services

o Licensing requirements for civil structures required independent revisions for structural calculations

Lessons Learned / Important Remarks

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o Loss of capabilities and knowledge of the engineering companies, suppliers and construction/erection companies that performed works in the Angra 2 Project, due to the gap between the conclusion of Angra 2 and the resumption of Angra 3 (9 years!)

o Increasing number of Angra 2 Design Modifications that need to be included in the Angra 3 design

o Delays in the definition and availability of the required financing to support the contracting of import services and supplies

o Several “cannibalizations” during the Angra 2 electromechanical erection and commissioning stages and during Angra 2 outages (company decision due to Angra 3 uncertainties)

Lessons Learned / Important Remarks

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IAEA Technical Meeting Warsaw, February 2016 / Page 25


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New Builds

State Model Corporate Model Agreement between Countries

Government support • Long term strategy • Financial resources Risks • To the consumers • To the taxpayers

Government support • Long term

strategy

Participation of the private sector (Build – Own – Transfer)

Risks • To the company’s

stockholders and partners

• To the consumers

Cooperation • Technology

supplier • Buyer Risks • Shared

between the countries

Contract Models for New Builds

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Jean Brunswick [email protected]

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