paul m. murphy senior counsel bechtel power corporation vienna, austria november 8, 2007
DESCRIPTION
International Atomic Energy Agency: Milestones for Nuclear Power Infrastructure Development Opening Remarks - Finance. PAUL M. MURPHY Senior Counsel Bechtel Power Corporation Vienna, Austria November 8, 2007. National Position Management Legislative Framework Regulatory Framework - PowerPoint PPT PresentationTRANSCRIPT
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PAUL M. MURPHYSenior Counsel
Bechtel Power Corporation
Vienna, Austria
November 8, 2007
International Atomic Energy Agency:
Milestones for Nuclear Power Infrastructure Development
Opening Remarks - Finance
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The Journey: 19 MilestonesThe Journey: 19 Milestones
National Position
Management
Legislative Framework
Regulatory Framework
Stakeholder Involvement
Site & Supporting Facilities
Environmental Protection
Nuclear Fuel Cycle
Industrial Involvement
Procurement
Nuclear Safety
Safeguards
Radiation Protection
Electrical Grid
Human Resources Development
Emergency Planning
Security & Physical Protection
Radioactive Waste
Funding & Financing
Role of Government
Leadership / Commitment
Legal Framework & Rule of Law
Institution Building
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Key MotivationsKey Motivations
Overall Growth in Demand for Energy Linkage between energy and development
Energy Security / Self-Reliance
Energy Diversity
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World OverviewWorld Overview
Global electricity demand to increase 50% by 2025 1.6%/yr for
industrial world 3.6%/yr for
developing world
0
2
4
6
8
10
12
Bil
lio
ns
(p
eo
ple
)
Year
ICA
PP
04
1850 1900 1950 2050 21002000
6.4
9
0
10
20
30
40
50
ICA
PP
04
Tri
llio
n k
Wh
1850 1900 1950 2050 21002000Year
13
31
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0
100
200
2003 2010 2015 2020 2025 2030
World Overview
Percent Growth in Nuclear CapacityWorld Overview
Percent Growth in Nuclear CapacityPe
rcen
t Gro
wth
(GW
e) 137%
Developing Nations
Industrial Nations
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World Overview
Forecasted Nuclear CapacityWorld Overview
Forecasted Nuclear Capacity
0
100
200
300
400
2003 2010 2015 2020 2025 2030
GW
e C
apac
ityy
Asia Western Europe North America
Asia
WesternEurope
NorthAmerica
Mature Market Economies (industrial nations)
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0
50
100
150
2003 2010 2015 2020 2025 2030
World Overview
Forecasted Nuclear CapacityWorld Overview
Forecasted Nuclear CapacityG
We
Cap
acity
y
Other Asia Europe and Eurasia
Other
Asia
EuropeAnd
Eurasia
Emerging Economies (developing nations)
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World Overview
U.N. Human Development IndexWorld Overview
U.N. Human Development Index
4,000 8,000 12,0000.3
1.0
India
China
Pakistan
Russia
GermanyAustralia
Canada
UKFrance Japan
U.S.
Annual Electricity Use kWh/Capita
0.6
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Key MotivationsKey Motivations
Overall Growth in Demand for Energy Linkage between energy and development
Energy Security / Self-Reliance
Energy Diversity
Economics Low operational costs relative to other forms of power
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United States Perspective
Electricity Production CostsUnited States Perspective
Electricity Production Costs
1995–2005 (averages in 2005 cents per kWhr)
Production costs = operations and maintenance costs + fuel costs
Source: Global Energy Decisions
85 87 89 91 93 95 97 99 01 03
0
1
2
3
4
5
6
7
8
9
10
11
05
2005
Oil 8.09
Gas 7.51
Coal 2.21
Nuclear 1.72
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Key MotivationsKey Motivations
Overall Growth in Demand for Energy Linkage between energy and development
Energy Security / Self-Reliance
Energy Diversity
Economics Low operational costs relative to other forms of power
Emissions / Global Warming
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16% of world’s electricity Displaces 2.5 billion metric tons of CO2 /year 38 GW brought on line or under construction
since 2000
World Overview
Quick Facts—NuclearWorld Overview
Quick Facts—Nuclear
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1041
622
17 46 14 39 15180
200
400
600
800
1000
1200
NaturalGas
Hydro Wind Geo-thermal
Tonn
es C
O2-e
quiv
/GW
eh
Coal Nuclear Biomass SolarPV
World Overview
Life Cycle CO2 Emissions AnalysesWorld Overview
Life Cycle CO2 Emissions Analyses
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Key MotivationsKey Motivations
Overall Growth in Demand for Energy Linkage between energy and development
Energy Security / Self-Reliance
Energy Diversity
Economics Low operational costs relative to other forms of power
Emissions / Global Warming
Note: Drivers are different, depending on national situation
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Financing IssuesFinancing Issues
High Capital Costs
Long Construction Periods Return on Investment is an Issue
First-of-a-Kind Risk
Sustainability of Government Commitment
Regulatory Uncertainty
Commitment to International Regimes
Supply Chain
Fuel Cycle
Operational Success & Safety Culture
Human Resources
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What makes nuclear power unique?What makes nuclear power unique?
Scale Cost Development / Construction
Period
Safety
Public Perception / Public Relations
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Source: Bisconti Research Inc.
Important
for our energy
future
91%
Keep the option to build nuclear plants
84%
Definitely build
nuclear plants in
future
77%
Accept new
reactors at nearest
plant
71%
Favor use of nuclear
energy
82%
United States Perspective Increasing Public SupportUnited States Perspective Increasing Public Support
Summer 2007 survey of residents living near Nuclear power plants.
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What makes nuclear power unique?What makes nuclear power unique?
Scale Cost Development / Construction
Period Safety
Public Perception / Public Relations
Regulatory Environment
Fuel Cycle
Site Security
International Features Treaty Regimes / Legal
Framework Cross-Border Non-Proliferation
Interdependence of the Nuclear Industry
Impact of Success/Failure
Being Part of the “Nuclear Club”
Commitment to Excellence
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PROJECT
Parties Involved In a Nuclear Power Project
Risk Allocation?
Labor
Subcontractors Consultants
Commercial Banks
ECAs GovernmentRegulation &
LicensingFinancial
CommitmentsTreaty Commitments
& National Law
Equipment & Material Suppliers
Multilaterals Government
Public
Spent Fuel Managemen
t
Offtakers
Operators
Human Capital
Owners
EPC Contractor
Fuel Supply
NSSS Suppliers
Financing Entities
Decommissioning
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Concluding ThoughtsConcluding Thoughts
There is no one, right way to achieve success
However, there are certain fundamental principles that will enhance the chances of success