Presentation on Current Status of Nuclear Programs Country: MALAYSIA

The 1st ASEAN+3 Senior Policymakers Course Korea, 8-14 July 2012

Presented by

Hamrah Mohd Ali ,

Ministry of Science, Technology and Innovation (MOSTI)

and Nor Shahbani Nordin,

Ministry of Energy, Green Technology and Water (KeTTHA).

Presentation Points

• Introduction

• Country Energy Profile.

• Government Policy on Nuclear Energy.

• Status of Nuclear Programs.

• Challenges in Developing Nuclear Power Program.

• Conclusions

Introduction

• Capital : Kuala Lumpur

• Official language : Malaysian

• Ethnic group : Malay - 50.4%

Chinese - 23.7%

Indigenous - 11.0%

India - 7.1%

• Government : Federal Parliamentary democracy

• Area : Total: 329,847 sq km

Land: 328,657 sq km

Water: 1,190 sq km

• Population : 28,334,13 (2010 Census)

Country Energy Profile

INSTALLED CAPACITY (MW) PEAK DEMAND

AS AT MEI

2011 (MW)

RESERVE

MARGIN (%)

Peninsular

Malaysia

TNB 7,096 32%

15,476

41% IPPs 14,777 68%

Total 21,873

Sabah SESB 437 37%

844

38% IPPs 733 63%

Total 1,170

Sarawak SEB 919 68%

1067

28% IPPs 430 32%

Total 1,349

15

System Capacity

FUEL MIX FOR PENINSULAR MALAYSIA

Peninsular Fuel Mix

Fuel Mix MW %

Gas 12,792 58.5

Coal 7,170 32.8

Hydro 1,911 8.7

Total Generation 21,817 100

Gas 58%

Coal 33%

Hydro 9%

6

consider nuclear energy as one of the options for electricity generation, post 2020 particularly in Peninsular Malaysia

set up Nuclear Power Development Steering Committee (JPPKN) and three (3) Working Committees

allocate RM25 million for a period of 3 years (2010 – 2012) to implement activities under JPPKN

Government Decision

adopt National Nuclear Policy as a guideline for the development of nuclear sector for electricity generation and non-electricity generation

The main players for this policy implementation are Ministry of Science, Technology and Innovation (MOSTI) and Ministry of Energy, Green Technology and Water (KeTTHA).

Y.A.B Prime Minister announced the establishment of Malaysia Nuclear Power Corporation (MNPC) as the NEPIO

To establish NEPIO as recommended by IAEA. NEPIO will replace the role and functions of JPPKN

ESTABLISHMENT

OF MALAYSIA

NUCLEAR POWER CORPORATION

(MNPC) AS A NEW

FULLY DEDICATED NUCLEAR ENERGY

PROGRAMME IMPLEMENTING ORGANISATION

(NEPIO)

Malaysia Nuclear Power Corporation (MNPC) registered under the Companies Act of Malaysia, and placed under the jurisdiction of the Prime Minister’s Department, as a new fully dedicated NEPIO, and officially launched by the Prime Minister to spearhead nuclear power deployment under the Economic Transformation Programme (ETP)

on 11th January 2011.

2011

ESTABLISHMENT OF MNPC AS NEPIO

9

Based on Memorandum of Association of MNPC under the Companies Act:

To plan, spearhead & coordinate the implementation of nuclear energy development programme for Malaysia

and to take the necessary action to realise the development of the first nuclear power plant in Malaysia;

To ensure the development of nuclear infrastructure for the country is in line with International Atomic Energy Agency (IAEA) guidelines

covering 19 key areas of national position, nuclear safety, management, funding & financing, legislative framework, safeguards,

regulatory framework, radiation protection, electrical grid, human resource development, stakeholder involvement,

site & supporting facilities, environmental protection, emergency planning, security & physical protection, nuclear fuel cycle, radioactive waste,

industrial involvement, and procurement; and,

To identify the company or special purpose vehicle (SPV) to be the owner and/or operator of nuclear power plant.

TASKS OF MNPC

10

Malaysia Nuclear Power Corporation

MNPC to plan, spearhead and coordinate the implementation of nuclear

energy development ( targeted by 2021 as per ETP Nuclear Timeline)

MNPC is in a temporary form, specific responsibilities are still with

each agencies e.g regulatory body, R&D institution

Some of the highlight…

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Preparation Phase Decision Phase

Implementation Phase Launch

Regulatory Framework Preparation

Permits & Safety Analysis

Operation Permits & Safety Reports

Pre-Feasibility Study (PFS)

Pro

ject

Dev

elop

men

t

Feasibility Study (PFS)

Basic & Detailed Design

Bid Invitation & Evaluation

Contract Award & Vendor Procurement

Site Grading & Excavation

Construction

Commissioning

Signing/Ratifying or Acceding to International Instruments & Legislative Development

Site Investigations

Site Permit

Construction Permit

Preliminary Safety Analysis Report (PSAR)

Pre-Operational Baseline Radiological Data Gathering

Final Safety Analysis Report (PSAR) for Operating Licence

Operator Training

Continuous Stakeholder Involvement, Public Information, Human Capital, Industrial & Technological Development Pro

gra

mm

e &

Reg

ula

tory

D

evel

opm

ent

NUCLEAR POWER DEVELOPMENT PLANING

12

KE

Y

PLA

YE

RS

MNPC as NEPIO

SPV Owner/Operator Regulator

[conceptual & not to scale]

Source: adapted & updated from Malaysia’s National Key Economic Areas (NKEA) Laboratory 2010

•Nuclear Power Infrastructure Development Plan (NPIDP) being developed by consultants to MNPC; •Self-assessment of 19 Infrastructure Issues with the same consultant; •Public Communications Kick-Start Strategy being developed by consultants; •Possibility of engaging Malaysian university with strong credentials in creative communications for public communication; •Malaysian universities developing & starting nuclear-related courses.

•Legal & Regulatory Study undertaken by consultant to MNPC from June 2011 to Sept 2012; •Phase 1 of L&R Study completed with proposed new governance structure & draft comprehensive nuclear law to be tabled in Parliament by Sept 2012, and Nuclear Power Regulatory Infrastructure Development Plan (NPRIDP), all submitted to IAEA for review/comment; •Phase 2 of L&R Study currently undertaken for formulation of regulations.

•Consultant engaged by MNPC to undertake Formulation of NPIDP; Full Feasibility Study; Detailed investigations of

potential plant sites; Preparation of Bid

Documents; SPV Owner/Operator &

financing options; for 21-month period from January 2012;

•All of the above studies are on-going, except for delay in detailed site investigations; •Training programme to be provided by the consultant at the home office in USA.

PROGRAMME DEVELOPMENT

LEGAL & REGULATORY DEVELOPMENT

PROJECT DEVELOPMENT

Status of Nuclear Power Programme

13

▪ Public opinion survey to identify priority segments & concerns

▪ Awareness projects ▪ Transparency in project implementation

Public Acceptance

▪ Promote public acceptance

▪ Fast-track process & government priority International Governance

▪ Sign/ratify relevant treaties & conventions

▪ Align on international best practices ▪ Top-down mandate to accelerate process ▪ Engage foreign experts to assess

site & construction permit applications

Regulatory Context

▪ Put in place detailed regulations

▪ Public information programme ▪ Option for localities to bid to host

nuclear power plants & facilities as in Japan & Republic of Korea

Nuclear Plant Site Acquisition

▪ Acquire approval for plant sites ▪ Obtain public support in locality

▪ Negotiate with vendors based on timeline Construction Timeline

▪ Require best-in-class timeline from vendors

Potential Resolution Challenge

▪ Combine low-cost & market financing (e.g. sovereign-guaranteed export credits, foreign equity, commercial loans, including Islamic financing)

Project Financing

▪ Obtain low-cost financing

KEY CHALLENGES

14 Source: Malaysia’s National Key Economic Areas (NKEA) Laboratory 2010

CONCLUSIONS

• To address all challenges before Government make a firm decision on NPProgramme

• Important to address integrated plan on Human Capital Development on NPProgramme

• Need to ensure sustainable development in the electricity sector

• Holistic and comprehensive approach in meeting the challenges – Long Term Energy Master Plan

•

Thank you…