Visaginas NPP Project. Visaginas NPP Project. Intelligence development – a key for success

Dr. Gintautas Klevinskas

Head of CC, Legal and Regulatory Environment

VAE, NPP Project Development CompanyVAE, NPP Project Development Company

TM/WS on the Introduction of Nuclear Power Programmes: Management and Evaluation of a National Nuclear Infrastructure

Vienna, 8-11 February, 2011

Outline

� Prerequisites and conditions for regional Visaginas NPP

� VAE (Visaginas Nuclear Power Plant preparatory works company)

� Experiences and good practices facilitating the process towards becoming � Experiences and good practices facilitating the process towards becoming

an ,,intelligent customer”. What and how we did?

� way of work� way of work

� human resources development

� development of quality assurance and safety culture

� interaction with competent authorities

� Conclusions

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Energy security is Government’s priority – nuclear is key

Before Ignalina NPP closure, nuclear power constituted a significant part of primary energy mix

Renewable 7.7%

Coal 2.3%

Nuclear

30.8%

30.8%

Oil products �Lithuania closed its Ignalina NPP on 31 December

2009 in line with commitment to the EU

Natural Gas

� Ignalina NPP provided 70% of Lithuanian power

and 35% of Baltic States’ power

� Investment in replacement generation is critical to Natural Gas 28.4%

Oil products

Renewable 12.5%

� Investment in replacement generation is critical to

reduce reliance on imports of fossil fuels

�Lithuania has an existing nuclear infrastructure and Oil products

44.3%

12.5%

Coal 3.7%

Electricity

Import 6.6%

�Lithuania has an existing nuclear infrastructure and

is well positioned to drive the European nuclear

renaissance

�Nuclear energy remains the key element of the Import 6.6% �Nuclear energy remains the key element of the

national energy strategy that was recently renewed

by the Government and submitted to Lithuania

Parliament for adoption

After the closure of Ignalina, imported fossil fuels from single source dominate the energy mix

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Natural Gas 32.9%

Parliament for adoption

New NPP is project for the region

NPP Project meets Common GoalsNPP Project meets Common Goals

� Provides security of supply via

- Diversity of primary energy sources

EST

- Diversity of primary energy sources

- Reduction of reliance on imported electricity

LV� Meets environmental targets for emissions

reductions: provides CO2 free base load capacity for

the Baltic countries & North East Poland

LV

� Contributes to regional supply-demand balance

� Is consistent with an interconnected, liberalized

LT

Visaginas

NPP

� Is consistent with an interconnected, liberalized

market

PLPL

Strong political support

Political commitment across the Baltic for development of new nuclear

LITHUANIA BALTIC REGION

� Integration of Baltic / European

systems

� Signed by all Baltic Sea countries and EU

� Sets out interconnection projects

National Energy

Strategy

Baltic Energy

Market

Interconnection

Plan

� Defines role of nuclear power in the

energy mix

� Security of supply post Ignalina

� Energy independence � Sets out interconnection projects

� Calls for liberalised Baltic energy market

New Nuclear Commitment to

Plan

� Implementation of interconnections

� NordBalt: EU funding granted

� Energy independence

� Legal foundations for the Project

Overall principles of partneringNew Nuclear

Power Plant Law

- passed

Commitment to

interconnection

projects

� NordBalt: EU funding granted

� LitPolLink: Project company in place, EIA

and Path of Way works in progress

� Overall principles of partnering

� Commitment to welcome a Strategic

Investor

Baltic Prime

Ministers’ Joint

Declaration

2010

Government

Decree # 300,

2009

� Unified energy strategy objectives

� Calls for open / transparent common

market

Reiterates commitment to interconnections

� Principles and goals of NNPP

� Concept of a Strategic Investor

� Structured timeline for the Project2010

2009� Reiterates commitment to interconnections

� Continued cooperation on the NNPP

Project

� Structured timeline for the Project

“The construction of new nuclear electricity plant will end the Baltic electricity isolation and integrate the region into the EU’s internal electricity market. This will not only be

for the benefit of all neighbouring EU countries in terms of security of supply but will also be of benefit for the EU as a whole in the fight against climate change.”

5

EU support to the project is provided through High Level Task Force (HLTF) on Nuclear Power Generation

for the benefit of all neighbouring EU countries in terms of security of supply but will also be of benefit for the EU as a whole in the fight against climate change.”

Commissioner for Energy for the European Union Günther Oettinger, Brussels, 31 May 2010

Strong public support

General public opinion on nuclear energy use for the electricity generation in Lithuania

Against

Neutral

In favor

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

In favor

Don't know

� Lithuania has been a “nuclear country” for over 25 years – long lasting nuclear culture

exists

� 54% of general public is in favour of future nuclear development in Lithuania (October� 54% of general public is in favour of future nuclear development in Lithuania (October

2010)

� 68% of general public supports regional partners and strategic investor participation in

Visaginas NPP project (October 2010)

�More than 90% of local Visaginas region population supports new Visaginas NPP

project

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Visaginas NPP – participants and their roles

Latvian

Government

Estonian

Government

Polish

GovernmentLithuanian Government

Owns OwnsOwns VAEEnergy sector and

nuclear legislation

� Regulatory regime

� Consenting regime

/ licenses

� Selects successful Strategic

Investor

� Awards Concession

� Political support

Owns majority /

Controls

VAE

(Lithuania Investor)Latvia utility Poland utilityStrategic Investor

� Contributes capital

� Receives production offtake

Contributes capital and

in kind: site,

infrastructure etc.

Contributes capital

Receives production

offtake

Contributes capital

Receives production

offtake

Contributes capital

Receives production

offtake

Estonia utility

Policy setting

� Considers and

approves

� Decommissioning

regime

� Has relevant expertise and capability

to lead construction and project

management

– Planning & construction oversight

– Can seek technology selection as

part of tender

infrastructure etc.

Receives production

offtake

offtake offtake offtakeinvestment

incentives

� Interacts with

European

Commission

including any

State Aid

PROJECT COMPANY

� Can be awarded the EPC, O&M

contracts

Develops, builds, runs and decommissions the NPP

State Aid

approvals

� Tax and

Customs regime

Lithuanian Nuclear

Regulator (VATESI)Regulation and licensing

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Regulation and licensing

Required contract

Lithuanian Government infrastructure

� National legal framework� National legal framework

� International treaties and international cooperation

� Regulatory framework

� R&D

� Human resources

� Education and training� Education and training

� Finance

� Economics� Economics

� Grid system

� Public information and acceptance

� Transportation

NPP project infrastructure

� Two existing sites in Visaginas, Lithuania� Two existing sites in Visaginas, Lithuania

�Access to cooling water – Lithuania’s largest

freshwater lake

�Fully integrated into the electricity

transmission, road and railway systems

�Technological auxiliary facilities

�Logistics storage facilities, workshops and

administrative buildings

�Facilities for radioactive waste treatment and

storage

Already recognised Lithuania’s contributionAlready recognised Lithuania’s contribution

Major conditions to obtain a license

Nuclear System of Internal

Responsibility for Nuclear

High CompetenceNuclear

Safety CultureInternal Control

for Nuclear Safety

Competenceof Staff

Direct applicability to preparatory works too!Direct applicability to preparatory works too!

Visaginas NPP project timeline. Time to develop intelligence

Preparatory works stage 2007-2011

Project planning

and Preliminary

NPP

commissioning

Preparatory works

and Preliminary

Safety Analysis

Report

Construction process, testing

of systems, preparation of

Final Safety Analysis Report

commissioning

2007 2010 2011 2013 2015 2017 2018/2020

Selection of

Strategic

Establishment of

joint project

Time devoted to

develop

capabilities and Investor company

capabilities and

intelligence

Intelligence maintenance and

improvementimprovement

Project Preparatory Works Company - VAE

� VAE was established in August 2008 to oversee preparatory work for a

new NPP in Lithuanianew NPP in Lithuania

� VAE started from 8 persons in summer 2008 and has grown up to 30 in the

beginning of 2011 with the expected growth more than twice at the end of beginning of 2011 with the expected growth more than twice at the end of

2011. All positions do require higher education

� Currently there are 4 PhD, 2 candidates for PhD, 2 certified PMPs, 1� Currently there are 4 PhD, 2 candidates for PhD, 2 certified PMPs, 1

certified FA. Membership in different national and international associations

� Work is divided into projects and programmes� Work is divided into projects and programmes

� Particular importance is given to quality assurance and compliance of the

process and results with established requirementsprocess and results with established requirements

�,,The results shall not give any reason to doubt!”

VAE. Intelligence development through competencies

Project Management

TechnologiesProject

EconomicsProject Legal (Contracts)

General Infrastructure

Legal and Regulatory Environment

Infrastructure

ResultsResults

Intelligence development in human resources to support

nuclear capabilitiesnuclear capabilities

Plan human resources development and have goals!

�Near-term goal – development of VAE organization

�Attracting of outside competence is very important at the beginning

� IAEA support is crucial (e.g. regional or national TC projects, particular attention

to expert missions)

Education of Physics of

Nuclear

Energy

Physics

Nuclear

Engineering

Education of

existing

specialists

IAEA Nuclear

Education

Centre

(in future)

�Long-term goal – ensuring necessary

competencies during implementation(in future)

competencies during implementation

of entire project

Plan for Preparation of High Qualification

Specialists in Nuclear Energy

Intelligence development in delivery of results.Intelligence development in delivery of results.

Quality assurance

VATESI

BSR-1.4.1

QA

Programme

BSR-1.4.1Requirements

for

Management

Systems

� Quality assurance requirements in company are based on national requirements and

IAEA recommendations

� Graded approach is applied – major projects have their own quality assurance � Graded approach is applied – major projects have their own quality assurance

programmes (example: project on Site Evaluation for the new NPP in Lithuania)

� Particular individuals are appointed to supervise the implementation of QA requirements

� Independent review and regular audits shall be conducted regularly

Activity Status

Major part of preparatory works already finishedActivity Status

Environmental Impact AssessmentPreparation of EIA Programme

Preparation of EIA Report

-IAEA mission

FinishedFinished

Finished

Finished

Transportation Study- Route selection

- Technical and economical evaluation

FinishedFinished

Finished

Site evaluation against IAEA safety requirements-Evaluation of geological conditions

OngoingFinished-Evaluation of geological conditions

-Evaluation of external human induced and meteorological events

-Evaluation of seismic factors

-Evaluation of geotechnical conditions

-Evaluation of distribution of population and dispersion of radionuclides

-IAEA mission

Finished

Ongoing

Finished

Finished

Finished

Finished

Territorial planning OngoingTerritorial planning-Coordination of preparation of territorial planning document

-Preparation of VAE special communication plan

-Route safety survey

OngoingFinished

Ongoing

Finished

Drūkšiai lake (ultimate heat sink) hydrological and thermal balance measurement Finished

Supply chain study Finished

-Legal and regulatory environment description

-Description of requirements on physical protection

-Nuclear fuel supply strategy

-Radioactive waste management strategy

Finished

Finished

Finished

Finished

Description of existing Ignalina NPP infrastructure Finished

Evaluation of possibilities to connect to the engineering networks Finished

Preparation of infrastructure for connection of VAE to the distribution network-Preliminary study on connection of VAE to the schemes of distribution network

OngoingFinished-Preliminary study on connection of VAE to the schemes of distribution network

- Preliminary solutions for connection of VAE construction sites to the electricity networks

Finished

Ongoing

Environmental due-diligence of the sites-Ecogeological audit

-Study on removal of construction remains

-Study on radionuclide contamination of the sites

FinishedFinished

Finished

Finished

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Improvements in regulatory regime - plans

An attractive nuclear regulatory regime is key to the Project

Aims:

� An efficient, transparent and streamlined consenting and regulatory process

� No undue interference with smooth planning, construction and operation� No undue interference with smooth planning, construction and operation

� In line with experience in other EU jurisdictions, international requirements is a key

consideration

What has been done:

� Review to identify an appropriate legal and regulatory regime for the NNPP

� Review ongoing to identify appropriate legal and regulatory regime for the NNPP� Review ongoing to identify appropriate legal and regulatory regime for the NNPP

� Amendments were discussed with all stakeholders

Plans:Plans:

� To discuss the amendments in Parliament

� Expected passing of laws in Parliament – 1st half of 2011

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Nuclear Energy: Legal Framework

Law on Nuclear Energy

Sets up a basis for the state nuclear energy regulation, competence of state institutions in this fieldSets up a basis for the state nuclear energy regulation, competence of state institutions in this field

Establishes functions of nuclear safety regulatory authority

Conditions for nuclear facilities design, construction and operation

Requirements for prevention of the nuclear accidents and liquidation of consequences

Civil liability in the field of nuclear energy

Economical and financial conditions for operation of the nuclear facilities

Law on Nuclear Law on Radiation Protection

Law on Radioactive Waste

Economical and financial conditions for operation of the nuclear facilities

Employment specifics in the field of nuclear energy

Law on Nuclear

SafetyLaw on Radiation Protection

Law on Radioactive Waste

Management

Law on Nuclear Power

PlantLaw on Decommissioning Fund

� Legal framework is being updated in order to address new NPP project needs

Set of Regulatory Requirements

� Legal framework is being updated in order to address new NPP project needs

Intelligence development in nuclear regulatory matters

� In 2008 the official consultation procedure was initiated by VAE and

agreed with VATESIagreed with VATESI

� Consultations are held in particular fields of interest in legal matters,

nuclear safety, site evaluation, licensing, quality assurance, physical nuclear safety, site evaluation, licensing, quality assurance, physical

protection, radioactive waste management, general time schedules etc.

� Decisions regarding further actions to be taken are adopted during joint

quarterly meetingsquarterly meetings

� Beneficiaries are both parties. This procedure helps:

� for the future operator to understand the requirements imposed by the regulator since

the very beginning of their development, on the one hand, andthe very beginning of their development, on the one hand, and

� for the regulator to be directly involved and to be up-to-date regarding the

development of the project, on the other

State Nuclear State Nuclear

Power Safety

Inspectorate

(VATESI)

Conclusions

Lithuania is not a newcomer in operation of nuclear facilities, but still a

newcomer in a new build

Key factors for a Project success:

At organizational level:

� A clear and creative attitude to development of core competencies

� Proper and timely implementation of preparatory phase works serving for the delivery of

results important to next steps (BIS, contract preparation and evaluation etc.)

At country level:

� Long-term Government commitment. Role of the NPP project’s host country should not

be underestimated

� Efficient, transparent and streamlined legal and regulatory environment

� Priority given to the human resources development plan� Priority given to the human resources development plan

Thank you very much for your attention!Thank you very much for your attention!