SMR Deployment Enablers

Transcription

1 SMR Deployment Enablers Kris MacCrory Decision Analysis Services 2017 Energy Technologies Institute LLP - Subject to notes on page 1

2 Small Modular Reactor (SMR) Deployment Enablers Project Kris MacCrory 21 st November 2017 developing strategy delivering certainty

3 SMR Deployment Enablers Project The Energy Technologies Institute (ETI) concluded that there is a need to take action now if the option to deploy SMRs as part of the UK s low carbon transition is not to be closed off. The SMR Deployment Enablers Project was initiated by the ETI to explore the answer to a critical question: What are the enabling activities in the first five years of an SMR programme necessary to support potential operations of a first UK SMR by 2030? what to do today?

4 Approach: Project Team The Project Team brings significant experience of the UK nuclear new build sector and marries this with expertise in major programme delivery support to. Energy Technologies Institute (ETI) Kris MacCrory Project Manager Stephen Davies Design Manager All team members are nuclear industry professionals with experience spanning investment analysis, risk management, nuclear operator organisational design, regulatory and licensing permitting & consents, technology requirements and analysis of policy. Technical Team Design Support Team David Norfolk Technical Lead Jack Lewis Technical Lead David Garrett Project Support John Earp Technical Lead Kevin Allars Technical Lead Guy Gillespie Project Support James Harris Technical Lead Steve White Project Support

5 Approach: Project Tools and Approach Project Tools Market Led Baseline Schedule FINAL DELIVERABLES Detailed Work Breakdown Structure Single Scope Description Sheet per WBS Item Risks Assumptions Evidence Integrated Schedule for 2030 FOAK Organisational Design Project Reports First 5 Years

6 Evidence: Work Breakdown Structure The range of activities that must be undertaken over the first 5 years of the SMR development programme. WBS UK SMR FOAK Development Programme ramme WBS 1 Facilitative Action by UK WBS 3 Establish Credible Nuclear WBS 5 Accelerate Technology Development WBS 7 Obtain Assessments, Permitting and Consents WBS 9 Initiate Supply Chain Development (to support DCO preparation) (route to acquisition understood) outlined (inc. district heating stification ment case Assumed investment trigger: Issue of idac, isoda WBS 2 Understand and Negotiate Business Case Assumed investment trigger: Issue of idac, isoda WBS 4 Select and Acquire Site(s), Seek Consent for Preliminary Works WBS 6 Establish Approved Funded Decommissioning Programme WBS 8 Identify and Engage with FOAK Stakeholders

7 Evidence: Organisational Design An SMR developer and organisational design of the associated operator. Provider of Finance Provider of Sites Provider of Technology Provider of People Provider of Experience Creator of investor and stakeholder confidence Developer Licensee UK corporate body or legal entity Company board and associated structures Company Executive Supporting functions Corporate structural features Internal organisational capabilities Organisational design combined with experienced resource to deliver licensee capability and capacity

8 Evidence: Market-led Schedule Reg Justification SSA / NPS Judicial Review risk window Judicial Review risk window CfD negotiations & identified Inv. Case Stage 2 Investment Case FID Legal entity Develop operator organisation Develop intelligent operator organisation FDP application Judicial Review risk window Euratom (A37, 41-44, 78) Develop Site Licence Application Early engagement SLA interaction Assessment Licence / Permit Grant y holdpoints and permissions Criteria FOAK site nomination Site acq n Consultations Local consultations Local consultations Grid Connection Agreement DCO application DCO Grant Grid enabling works Construction (non-nuclear and nuclear significant) Requirements Supply chain engagement FOAK reactor delivered to site Commiss g FOAK reactor operational Prepare GDA submissions Generic Design Assessment DAC, SoDA Technology readiness Develop test evidence Supply chain engagement Breadth and scale of the challenge look beyond technology and GDA and the necessary speed and sequence that must be worked through in order to achieve success. Long-lead procurement Establish manufacturing line FOAK assembly and testing Refine m fr process NOAK site acquisition(s) NOAK manufacturing and factory testing NOAK site preliminary works

9 Analysis: Enabling Actions Aim: Commence GDA and y Justification early and complete within a 5 year timeframe Method: Enhance the quality of engagement between vendor(s) and s by raising awareness of the GDA process, in particular the UK regulatory standards and expectations, and by promoting progress on GDA and y Justification processes. ramme Criteria necessary for compiling case for FID met by end-2024 FID achieved by mid-2025 (to support DCO preparation) 5 year timeline post-fid (route to acquisition understood) outlined (inc. district heating stification ment case Assumed investment trigger: Issue of idac, isoda Enhance the confidence of private sector investors that future revenue SMR generation is likely. Identify opportunities for the operator to commence wider site licence and consenting work in parallel with vendor GDA (noting that this will represent a commercial risk to the private sector). Limit uncertainty within the investment case that underpins FID (in order to release interim investment ahead of FID and increase investor confidence concerning FID itself) Limit uncertainty within the investment case that underpins FID Assumed investment trigger: Issue of idac, isoda Minimise the scope of post-fid construction to nuclear significant works by undertaking as much preliminary site work as is permissible ahead of Site Licence Grant (i.e. all nonnuclear construction) Ensure the manufacture and assembly of the FOAK reactor is not on the critical path, by commencing the procurement of long-lead items ahead of FID.

10 Analysis: Facilitated Schedule White paper Reg Justification SSA / NPS CfD principles CfD negotiations Bootcamp & identified Criteria Legal entity FOAK site nomination Requirements Inv. Case Prepare GDA submissions Generic Design Assessment Develop intelligent operator organisation, inc. nuclear baseline Early engagement FDP application Consultations Local consultations Local consultations Technology readiness EC liaison Site acq n Grid Connection Agreement Prelim consents idac, isoda Euratom (A37, 41-44, 78) Develop test evidence Develop Site Licence Application DCO application SLA interaction Stage 2 Investment Case Preliminary works Supply chain engagement DAC, SoDA Assessment DCO Grant Licence / Permit Grant Grid enabling works FID Develop intelligent operator organisation, inc. nuclear baseline y holdpoints and permissions Nuclear significant construction FOAK reactor delivered to site Commissioning FOAK reactor operational Supply chain engagement Long-lead procurement (inc. tender) Establish manufacturing line FOAK assembly and testing Refine m fr process NOAK site acquisition(s) NOAK manufacturing and factory testing NOAK site preliminary works

11 Analysis: Critical Programme Milestones Milestone: Publication of White Paper, setting out intent Initiate / Bootcamp Commence Generic Design Assessment (GDA) and y Justification Nominate site into new Strategic Siting Assessment Complete site selection / acquisition Issue of interim Design Acceptance Confirmation (idac) and interim Statement of Design Acceptability (isoda) to Commencement / acceleration of site specific licencing/permitting/development consenting and organisational development work Indicative Timescale: September 2017 September 2017 December 2017 March 2018 September 2020 August 2020 August 2020

12 Conclusions (1 of 3): Overview A credible integrated schedule demonstrates the potential for a UK SMR operating by 2030; achieving this schedule depends on the creation of early investor confidence. For an effective programme to achieve FOAK SMR deployment, significant commitment and facilitative action is required from the outset. It is insufficient for the first 5 years of the deployment schedule to focus on just GDA and y Justification.

13 Conclusions (2 of 3): Moving Forward A strong and early marriage is required between developer / operator and vendor. The notion of a developer / operator / vendor boot camp is proposed as a near-term risk mitigation activity. A co-ordinated public communications plan is required, led by the prospective Licensee, supported by the vendor and facilitated by. The scale of the recruitment challenge to establish a Nuclear Baseline should not be underestimated, with staged planning essential. s will need to be able to resource-up without adverse influence on current UK nuclear safety activity.

14 Conclusions (3 of 3): Reflection Bounding assumptions were judged to be sound in the context of a deployment schedule leading to a UK FOAK SMR operating by The evidence gathered forms the basis of a toolkit which could be used to test or assess the feasibility of specific scenarios for SMR Deployment in the UK. Deployment of a FOAK SMR in the UK is achievable by 2030 under the bounding scenario considered by this study.

15 Working with ETI What went well Holding an "ETI Info Day", where ETI presented and shared further context and insight with the whole project team ahead of the Project Kick-Off ensured everyone was aligned prior to commencing the project and understood the requirements clearly. Running integrated client and project team workshops throughout the project meant that ETI could be engaged in the progression and shaping of work, able to contribute their insight and see how the project team was evolving work and thoughts. Next time The interaction with ETI members was very positive and useful, any opportunity for more interaction with ETI members and wider stakeholders early in the project would always be good, in order to explore and understand their individual drivers more deeply and maximise returned benefit.

16 For further information contact: Kris MacCrory +44 (0) developing strategy delivering certainty