Approach for new nuclear capacity

Transcription

1 Approach for new nuclear capacity

2 Fortum a leading energy partner The Nordic countries, Russia and the Baltic Rim in focus Operations in 12 countries Approx. 16,000 employees in the Fortum Group 1.3 million electricity retail customers 1.6 million electricity distribution customers District heating for 80 cities, in seven countries Second largest in power generation

3 A listed company A company listed on the NASDAQ OMX Helsinki The Finnish State 50.8% More than 50,000 shareholders 2008 turnover of approx. 5.6 billion EUR Households 5.1% Financial institutions and insurance companies 1.5% Other Finnish investors 7.2% International investors 35.4%

4 Fortum s European production, 2008 Power generation Hydro power 44% Coal 23% Heat production Biomass fuels 20% Other 2% Peat 1% Biomass 2% Natural gas 2% Coal 4% Nuclear power 45% Other 10% Oil 4% Waste 7% Peat 7% Natural gas 16% Heat pumps, electricity 13% Total generation 52.6 TWh (Generation capacity 10,788 MW) Total production 25.0 TWh (Production capacity 10,468 MW)

5 Fortums Co-ownership in nuclear Forsmark Olkiluoto Loviisa Loviisa 3? Oskarshamn

6 Fortum Generation Loviisa Nuclear Power Plant Loviisa NPP includes two PWR units VVER-440, 2 x 488 MWe (net). Loviisa 1 started operation in 1977 and Loviisa 2 in Renewed operational licenses for 50 years lifetime (LO1, 2027 and LO2, 2030). Load factors 2008: LO1 86,0% LO2 93,9% Production 2008: 7,67 TWh.

7 Need for new capacity Globally European wide and in Russia TWh 35,000 30,000 25,000 20,000 15,000 10,000 5, ~14,000 TWh TWh 4,000 3,000 2,000 1, ,300 TWh TWh 1,800 1,600 1,400 1,200 1, Source: IEA World Energy Outlook 2008, reference scenario for generation IEA projects that in reference scenario GW of capacity additions are needed by Of this GW is to be installed by 2015 (~600 GW under construction in 2007) Existing/remaining production Demand Source: Eurelectric, Eurprog 2007, EU27, Fortum Demand, General scheme, base case, 2007 Demand, APBE, base case, post-crisis, March 2009 General scheme = power sector development target adopted by the government in 2007 APBE = forecasting agency in charge of updating General Scheme Source: Eurprog 2006; Europe, EU27; Fortum

8 Decisions for new nuclear capacity are urgent 146 reactors in EU Average operational age is 23 years 18% of the reactors are over 30 years old

9 Loviisa 3 The new unit will be constructed on the island Hästholmen. 9

10 Fortum s Decision-in-Principle application On , Fortum submitted to the Government the decision-inprinciple application. Government decision estimated in beginning of 2010 Final political decision in parliament estimated during summer The Decision in Principle for the final disposal of spent fuel for Loviisa 3 submitted to the ministry by Posiva. 10

11 Five reactor alternatives ABWR AES2006 EPR ESBWR APR1400 Boiling water reactor Pressurised water reactor Pressurised water reactor Boiling water reactor Pressurised water reactor Toshiba-Westinghouse Atomstroyexport AREVA NP General Electric Hitachi Korea Hydro & Nuclear Power Japan, Sweden Russia France-Germany United States South Korea MW MW MW MW 1450 MW 11

12 Planning and permit process for Loviisa 3 Other clarifications to be appended to the Government resolution application EIA program EIA report According to the Nuclear Energy Act GOVERNMENT RESOLUTION (Decision-in-Principle) Preliminary safety assessment from STUK Approval from the City of Loviisa Decision-in-principle from the Government Ratification from the Parliament Environmental permits Construction license from the Government according to the Nuclear Energy Act Building permit Other possible permits Construction of the power plant Operational license from the Government according to the Nuclear Energy Act

13 After Dicision In Principle application Political process The DIP application from the MEE to the Government Statement from the town of Loviisa Decision in principle by Finnish Government Decision in principle by Finnish Parliament Environmental Impact Assessment (EIA) completed Technical process Fortum's DIP application to the Ministry of Employment and the Economy (MEE) Safety assessment from STUK Application for construction license to Finnish Government Building permit to town of Loviisa Environmental permits to environmental permit authority MEE = The Ministry of Employment and the Economy

14 Planned schedule for implementation of Loviisa 3

15 Both political and technical decision making Political decisions - Decision in principle by Government and Parliament - Statement from the town council in Loviisa. Technical decisions - Construction license by the Finnish Government - Building permit by the town of Loviisa - Environmental permits by environmental authorities - Operating license. 15

16 Main content of DIP application Application to Government Description of expertise available, competence and experience Description of general significance and energy supply Applicants financial prerequisites Overall financial plan for the project Technical principles of the planned nuclear facility Description of safety principles followed Ownership and occupation of planned site Planning arrangements Site survey EIA report summary Fuel management Arrangements for nuclear waste management Technical material to be submitted separately to STUK 16

17 Overall good of Society according to legislation Legislation wants' to secure political expediency of consideration The need of new electricity capacity and importance for the national economy Safety of the plant is crucial when considering the overall good of society Justification for the Overall good of society can be ( Government bill 16/1985): National economy Security of energy supply Regional political and economical issues 17

18 Plan for waste management is crucial

19 Political decisions and technical solutions for final disposal of spent fuel are in place for Fortum and TVO

20 Combined heat and power production Nuclear power plant systems containing radioactivity do not come into contact with district heat water at any point. The district heat tunnel is a separate project that requires collaboration with district heat players.

21 District heat tunnel is feasible The district heat tunnel to be excavated is technically feasible and is about 70 km long. The diameter of the incoming and outgoing pipes is about one meter. The tunnel requires an environmental impact assessment and addressing in provincial plans. Only the tunnel s above-ground structures require agreements and separate zoning. The tunnel s construction cost is significantly affected by the price of steel and economic cycles. 21

22 Fortum strengths Fortum s nuclear competence and good track records. Fortum s possibility to invest in renewable energy and nuclear energy. Regional political, employment and economical aspects. Fortum has a reliable plan for nuclear waste management. Fortum has a strong economy and resources to build the new unit. 22

23 Thank you for your attention