roles & organisation of the nepio in malaysia: case study

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Roles & Organisation of the NEPIO in Malaysia: Case Study Dhana Raj Markandu Malaysia Nuclear Power Corporation (MNPC) 1 Technical Meeting on Topical Issues on Infrastructure Development & Management of National Capacity for Nuclear Power Program 11-14 February 2013 Vienna, Austria

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Roles & Organisation of

the NEPIO in Malaysia:

Case Study

Dhana Raj Markandu

Malaysia Nuclear Power Corporation (MNPC)

1

Technical Meeting on Topical Issues on Infrastructure Development & Management of

National Capacity for Nuclear Power Program

11-14 February 2013

Vienna, Austria

Roles & Organisation of the NEPIO in Malaysia: Case Study

• Power Generation in Malaysia 1

• The Road to MNPC’s Establishment 2

• The Roles of MNPC as a NEPIO 3

• Current Activities of MNPC 4

• Concluding Remarks 5

Contents

Introduction to Malaysia

Source: Energy Commission (www.st.gov.my) * 2010 data

92

16

22

80

40

9.8

1.8

2.4

20

60

0% 20% 40% 60% 80% 100%

Electricity Generation (GWh)*

Peak Power Demand (GW)*

Installed Capacity (GW)*

Population (%)

Land Area (%)

MALAYSIA Land Area: 329,733 km2

Population: 28.3 million

EAST MALAYSIA (States of Sarawak & Sabah) PENINSULAR MALAYSIA

• Fossil fuels currently

dominate energy mix (94%)

• Need to diversify and

balance energy sources for

economic, environmental

and energy security reasons

• Electricity generation

targets from renewables

(solar PV, biomass, biogas

& mini-hydro): 2015 = 5%,

2020 = 9%, 2030 = 11%

• Need to explore the option

of using nuclear for power

generation post-2020 2011 total energy generation 2011: 104,220 GWh

Current Energy Scenario & Future Concerns

Sources: Energy Commission (www.st.gov.my) and Sustainable Energy Development Authority (www.seda.gov.my)

Gas 43%

Coal 45%

Hydro 5%

Distillates, Fuel Oil & Imported

7%

2011 Generation Mix for Peninsular Malaysia

2009 - 2010 2011 -

now

The Road to MNPC’s Establishment

26th June 2009

Government decision to consider

nuclear energy as an option for

electricity generation post-2020

in Peninsula Malaysia &

Nuclear Power Development

Steering Committee established

16th July 2010

Government decision to

adopt a National Nuclear

Policy for energy and non-

energy applications

10th December 2010

Decision to establish a fully

dedicated Nuclear Energy

Programme Implementing

Organisation (NEPIO)

25th October 2010

Economic Transformation

Program (ETP) launched

with the option of nuclear

energy use identified as one

of the Entry Point Projects in

the Oil, Gas & Energy Sector

7th January 2011

Establishment of

Malaysia Nuclear

Power Corporation

(MNPC) as a fully

dedicated NEPIO

Nuclear Power Development Steering Committee

Lead by Ministry of Energy, Green Technology & Water

Nuclear Power Programme

Development Working

Committee

Lead by Malaysian Nuclear Agency

Nuclear Power Project

Development Working

Committee

Lead by Tenaga Nasional Berhad (National Power Utility)

Nuclear Power Legislative

Development Coordination

Working Committee

Lead by Atomic Energy Licensing Board

& Energy Commission

Laying the Foundations: An Interim NEPIO

Plan & coordinate preparatory efforts towards development of nuclear energy for electricity generation

Undertake studies towards formulation of a Nuclear Power

Infrastructure Development Plan

The Bigger Picture: A National Nuclear Policy

VISION

Peaceful, safe & secure utilisation of nuclear energy &

technology for national well-being & sustainable development

MISSION

To enhance the national capability & competency for peaceful, safe & secure utilisation of nuclear energy & technology for

sustainable development & national well-being through technological innovation & appropriate legal & regulatory framework

towards eventual technological self-reliance.

OBJECTIVE

Energy Applications

To enhance the national readiness

for the utilisation of nuclear energy

as one of the fuel options for

electricity generation to ensure

energy supply security post-2020.

OBJECTIVE

Non-Energy Applications

To enhance nuclear & radiation technology innovation & application in various industrial

sectors, healthcare, agriculture, resource management & environmental protection

towards enhancing national economic competitiveness, societal well-being, food &

water security, and sustainable development in line with other relevant national policies,

particularly the national policies for the relevant sectors of applications.

THRUST 1:

Energy

THRUST 2:

Industry

THRUST 3:

Medicine

& Healthcare

THRUST 4:

Food

& Agriculture

THRUST 5;

Water,

Natural Resource

& Environmental

Management

FIVE SECTORAL APPLICATION THRUST AREAS

FIVE CAPACITY-BUILDING THRUST AREAS AS FOUNDATION

THRUST 6:

Research,

Development

& Application

THRUST 7:

Comprehensive

Nuclear Legislation

& Regulations

THRUST 8:

Human Capital

Development

& Competency

THRUST 9:

Public Information

THRUST 10:

Compliance with

International

Nuclear Governance

Source: Economic Transformation Programme (ETP), http://etp.pemandu.gov.my/

An Actionable Plan: The ETP (1)

A comprehensive effort to transform Malaysia into a high-income nation by 2020.

12 National Key Economic Areas

6 Strategic Reform Initiatives

• Oil, Gas & Energy • Tourism • Education • Palm Oil & Rubber • Business Services • Healthcare • Financial Services • Wholesale & Retail • Agriculture • Electrical & Electronics

• Communications Content & Infrastructure

• Greater Kuala Lumpur & Klang Valley

• Competition, Standards & Liberalization • Public Service Delivery • Government's Role in Business • Narrowing Disparities • Human Capital Development • Public Finance Reform

Rationale

Explore option of deploying nuclear energy to meet future demand and diversify the energy mix for Peninsular Malaysia

Actions

Study the possibility of delivering a twin unit nuclear power plant with total capacity of 2000 MW post-2020

Critical Path Items

- Gain public acceptance

- Ratify relevant international treaties

- Ensure correct regulatory framework in place

- Obtain approvals for site, including from local populace

Oil, Gas & Energy NKEA: Entry Point Project 11

Deploying Nuclear Energy for Power Generation

Source: Malaysia NKEA OGE Laboratory 2010, Economic Transformation Programme (ETP), http://etp.pemandu.gov.my/

MILESTONE 1 - 2010

Ready to make a knowledgeable

commitment to a nuclear programme

MILESTONE 2

Ready to invite bids for the first

nuclear power project

MILESTONE 3

Ready to commission and operate

the first nuclear power plant

An Actionable Plan: The ETP (2)

- Established on 7th January 2011

Placed under the jurisdiction of the Prime Ministers Department

Supersedes the 2009 Nuclear Power Development Steering Committee

Moving Forward: A Fully Dedicated NEPIO (1)

• Nuclear power for a sustainable high-income economy

Vision

• Establishing a comprehensive groundwork for a successful, sustainable, safe, secure and peaceful national nuclear power programme within time, on budget and in a transparent manner

Mission

Moving Forward: A Fully Dedicated NEPIO (2) St

rate

gic

Ob

ject

ive

s

To plan, spearhead and 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 the 19 key areas of:

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

• National position • Legislative framework • Stakeholder involvement • Site and supporting facilities

• Nuclear safety • Regulatory framework • Funding and financing • Security and physical protection

• Management • Radiation protection • Environmental protection • Industrial involvement

• Safeguards • Electrical grid • Emergency planning • Human resource development

• Procurement • Nuclear fuel cycle • Radioactive waste

MNPC

Legal & Regulatory Study

Programme Development

Study

Stakeholder Engagement &

Public Communications

Nuclear Power Human Resource

Capacity Development

Owner/ Operator Special Purpose

Vehicle Study

Project Development

Study

Roles of MNPC as a NEPIO

MNPC Organisation Structure

Board of Directors

Chief Executive Officer

Programme Development

Director

Manager

Executive

Project Development

Director

Manager

Executive

Regulatory Coordination

Director

Manager

Executive

Corporate Services

Manager (Stakeholder Engagement)

Manager (Human

Resources)

Executive (Finance)

Support Staff (x3)

Additional personnel may be recruited as necessary according to progress of work

•Developing the Nuclear Power Infrastructure Development Plan (NPIDP)

•Conducting the self-assessment of IAEA 19 Infrastructure Issues

• Implementing an Integrated Work Plan with the IAEA

•Supporting the human resource capacity development for a domestic nuclear power industry

•Developing strategies for stakeholder engagement & public communications

PROGRAMME DEVELOPMENT UNIT

•Conducting Site Evaluation Studies

•Conducting Feasibility Studies

•Developing the Project Bid Documents

•Managing the contract with the Project Development Studies consultant

PROJECT DEVELOPMENT UNIT

•Developing the Nuclear Power Regulatory Infrastructure Development Plan

•Developing the Atomic Energy Bill, new Regulations & new Guidelines

•Conducting a Legislation Gap Analysis

•Supporting initiatives for International Legal Instruments

•Managing the contract with the Legal & Regulatory Studies consultant

REGULATORY COORDINATION UNIT

Responsibilities of the Core Units

Legal & Regulatory Study

• Comprehensive new law covering safety, security & safeguards, formation of a new regulatory body and the independence element of the regulatory body.

Atomic Energy Bill

• Comprehensive, clear short and medium term actions, benchmarked against IAEAs 19 infrastructure issues, to be carried out by Malaysia to embark on a nuclear power programme.

Nuclear Power Regulatory Infrastructure

Development Plan

• Study of laws and subsidiary laws in Malaysia that may be impacted by the revision of the existing Atomic Energy Licensing Act.

Legislation Gap Analysis

• International instruments for nuclear power deployment that Malaysia should be a party to, to demonstrate commitment to ensure nuclear safety, security and safeguards as per international governance and give confidence for vendors to supply to Malaysia.

International Legal Instruments

• 10 subsidiary regulations to the Atomic Energy Bill Subsidiary

Regulations

• 8 subsidiary regulations to the Atomic Energy Bill Subsidiary Guidelines

• Comprehensive assessment of national capabilities, state-of-preparedness and infrastructure requirements pertinent to the development of a nuclear power programme.

• National self assessment of the conditions required to achieve milestones of the IAEA 19 Key Nuclear Infrastructure Areas.

Nuclear Power Infrastructure

Development Plan

• Detailed technical, financial and economic analysis of the viability of nuclear power as part of the national energy mix, including a comparison of against other sources of generation.

• Recommendations on possible nuclear reactor technologies, plant size, manpower requirements and other main technical features.

Feasibility Study

• Shortlisting and evaluation of candidate sites for a possible nuclear plant in accordance to regulatory requirements and guidelines, including impact assessments for environmental, radiological, socio-economic, socio-cultural and safety aspects.

Site Evaluation

• Recommendations on the bidding and contractual approach to be adopted as well as the preparation of bid documents and bid evaluation methodologies to invite potential vendors for the construction of a possible nuclear power plant.

Bid Documents

4-in-1 Project & Programme Development Study

• Formulation and implementation of a communications strategy and action plan for nuclear power, incorporating a comprehensive public opinion survey.

• Continuous engagement with national and international stakeholders at all levels.

Stakeholder Engagement &

Public Communications

• Facilitating the identification and/or establishment of a Special Purpose Vehicle (SPV) that will own and/or operate the possible nuclear power plant, including manpower requirements .

• Assessing sources and methods of financing for a possible nuclear power plant project.

Owner/Operator Special Purpose

Vehicle Study

• Supporting the competency development of domestic human resources required for a successful and sustainable nuclear power industry, both at a company level and also at a national scale in collaboration with academic institutions and other relevant agencies.

Nuclear Power Human Resource

Capacity Development

Other Areas of Work

Concluding Remarks

MNPC

Ministries, Agencies,

Regulators, Utilities, Subject Matter Experts & Other Relevant

Stakeholders

IAEA International and Local

Consultants

The establishment of MNPC as a fully dedicated NEPIO facilitates a focused drive towards the implementation of a nuclear energy development program for Malaysia.

MNPC will continue to spearhead and coordinate a collaborative national effort towards enabling a well-informed Government decision on the option of using nuclear power post-2020.

Thank You

Dhana Raj Markandu Senior Manager, Project Development Unit

Malaysia Nuclear Power Corporation

[email protected]