REGULATORY, FINANCIAL AND POLITICAL CHALLENGES TO NEW BUILD: THE EDF EXPERIENCE

Transcription

1 REGULATORY, FINANCIAL AND POLITICAL CHALLENGES TO NEW BUILD: THE EDF EXPERIENCE WNA Regional Workshop Series Moscow October 2016 Sandro Baldi Director of Technologies and Strategy Nuclear New Build Division - EDF

2 Table of Contents Nuclear New Build: an exceptional endeavour Current Challenges to New Build in the World EDF: How to Manage the Challenges and Succeed Hinkley Point C: a unique and exciting journey EDF: What Did We Learn? 2

3 Nuclear New Build: an exceptional endeavour Highest safety and security standards & Rigorous licensing process Capital intensive with Large upfront CAPEX * Source: IEA-NEA Nuclear Energy Roadmap 2015 Vast quantities of materials and equipments Millions Engineering hours Hundreds contracts Thousands people on construction site Significant Impacts and Benefits on Local communities and business Long Average Construction duration => belated Return On Investment 3

4 Current Challenges to New Build in the World Regulatory Challenges Financing Challenges Politics and Policy Challenges Public Acceptance Challenges 4

5 Current Challenges to New Build in the World Regulatory Challenges Nuclear Licensing & Environmental acceptance Prescriptive or guidelines approach Visibility and reliability of duration of process Regulators approachability and vendor/regulator openness Safety & Security Increased and more stringent requirements Electricity Market competition Competitive market or protected/controlled markets Existence or not of capacity mechanism Contract for Difference/Price guaranty 5

6 Current Challenges to New Build in the World Financing Challenges Large upfront CAPEX History of cost overrun and delays Manage long term risks Long term Return On Investment Costs of decommissioning and waste disposal Need to keep a healthy Balance Sheet 6

7 Current Challenges to New Build in the World Politics and Policy Challenges Political Instability Disadvantageous Energy Subsidy Approach Unfavourable Energy Policies International Climate Resolutions Lack of National Energy Strategy 7

8 Current Challenges to New Build in the World Public Acceptance Challenges Rarely managed via a mature political approach Frequently erratic Used and abused by media Require high level of effort and extensive communication 8

9 EDF: How to Manage the Challenges and Succeed Strong Leadership Durable and Reliable Partnerships Transparent, Flexible, Resilient Stakeholders Management Safe, Performing, Reliable Product 9

10 EDF and its Worldwide Partners: A Long Journey which started in the 1970 s PWR 900 CPO PWR 900 CP1 and 10 CP Koeberg 1& PWR 1300 P4 86 South Africa 12 PWR 1300 P Ulchin 1&2 89 South Korea Owner s assistance for new nuclear build projects in the world 84 4 PWR 1500 N4 98 Daya Bay 1&2 94 China PWR: Pressurised Water Reactor CP0, CP1, CP2, P4, P 4, N4, EPR = technological series for French reactors EPR: European Pressurized water Reactor Ling Ao 1& Ling Ao 3&4 11 China 05 China EPR Olkiluoto 3 07 EPR Flamanville Finland (Areva) France Past Projects Current and Future Projects 09 EPR Taishan 1&2 17/18 China France EPR under construction Hinkley Point C 1& /26 UK Abroad EPR Project Sizewell C UK Hualong Project Bradwell B UK Worldwide Licensing Experience & Worldwide Strong Partnerships 10

11 JAN 2006 Government policy proposes nuclear as a significant part of our future energy mix. Hinkley Point C: a unique and exciting journey The first nuclear power station to be built in the UK in a generation. NOV 2009 Formal consultation begins with local communities over 2 years. NOV 2012 MAR 2013 Nuclear site licence granted. Secretary of State approves construction of HPC. Radioactive Substances Regulations Permit Granted FEB 2015 Opening of 1.5 million Construction Skills and Innovation Centre. OCT 2015 SEP 2016 Signature of contracts (UK Gov + partners and suppliers) EDF and CGN agree joint investment in HPC OCT 2008 Early engagement begins with local residents FEB 2012 DEC 2012 Preparatory works begin on-site UK EPR reactor approved under GDA. OCT 2014 European Commission approves agreement between EDF Group and UK Government. JUL 2015 JUL billion in contract values agreed million in value to the South West. Final Investment Decision (FID) by EDF Board 11

12 EDF: What Did We Learn? Strong Leadership Developer Credibility and Durable and Reliable Partnerships Transparent, Flexible, Resilient Stakeholders Management Safe, Performing, Reliable Product Are the KEYS to unlock SUCCESS in overcoming CHALLENGES 12

13 Thank You Sandro BALDI WNA Regional Workshop Series - Moscow October