THE NUCLEAR POWER IN THE NUCLEAR POWER IN ROMANIAROMANIA

F. Glodeanu, G. AndreiF. Glodeanu, G. Andrei

New Cooperation Strategies in the Geopolitical

and Economic European Space – UE 27Thessaloniki, June 7th - 8th 2007

SOCIETATEA NATIONALA NUCLEARELECTRICASOCIETATEA NATIONALA NUCLEARELECTRICA

SNN SACNE PROD

Cernavoda – Unit 1CNE INVEST

Cernavoda – Units 2 -5NUCLEAR FUEL PLANT Pitesti

COMPLETION OF UNIT 2PRESERVATION OF UNITS 3-5

U#2 Project Management:AECL, ANSALDO and SNNCommercial operation: 2007

NUCLEAR FUEL FABRICATION

•Domestic natural uranium

•Imported Zircalloy components

SAFE AND EFFICIENT OPERATION OF UNIT 1

•Commercial operation starting with December 2, 1997

•Gross Output: 706.5 MWe

POWER GENERATION IN 2005POWER GENERATION IN 2005

17%

40%

9%

34%

Oil & Gas10,232 GWh

Hydro20,285 GWh

Nuclear 5,554 GWh Coa

l 23,615 GWh

TOTAL – 59,686 GWh (gross)

0102030405060708090

1997 1999 2001 2003 2005

NUCLEAR FUELFAILURE RATE

NUCLEAR FUELNUCLEAR FUEL

The Nuclear Fuel Plant - Pitesti is providing the fuel for the Cernavoda –NPP

The fuel has excellent performances

0.086%

0.042%

0.011%

0%

0.011%

0 % 0 % 0 %0 %

WASTE MANAGEMENT AND DECOMISSIONINGWASTE MANAGEMENT AND DECOMISSIONING

Operational radioactive wastes are safely stored on Operational radioactive wastes are safely stored on site in a temporary storage.site in a temporary storage.

According to the national strategy a Low and Medium According to the national strategy a Low and Medium Level Waste Repository shall be build in Saligny near Level Waste Repository shall be build in Saligny near Cernavoda NPP, under ANDRAD responsibilities.Cernavoda NPP, under ANDRAD responsibilities.

The High Level Radioactive Wastes Repository shall be The High Level Radioactive Wastes Repository shall be developed later, taking into account the developed later, taking into account the intermediate storage intermediate storage

For decommissioning the plant is performing specific For decommissioning the plant is performing specific studies to develop the optimal solution.studies to develop the optimal solution.

Specific legislation for radioactive waste management Specific legislation for radioactive waste management and decommissioning , including provisions for and decommissioning , including provisions for financial resources was approved by the Romanian financial resources was approved by the Romanian Parliament in 2006.Parliament in 2006.

THE GOVERNMENT ENERGY STRATEGY

Romania is closely observing the energy policy of the European Union.

The Ministry of Economy and Finance is drafting a new national energy strategy for the next 15 years.

The strategy considers the importance of improving the energy efficiency, environment protection and the optimum utilization of natural resources.

The gross power generation is forecasted to increase from 62.7 TWh in 2007 up to 100 TWh in 2020..

The new energy strategy includes completion of Units 3 and 4 of Cernavoda NPP and clearly indicate its long-term commitment to nuclear energy

THE ROLE OF NUCLEAR POWER

As a proven and safe technology, nuclear power has an important role to play in terms of ensuring secure electricity generation without any CO2 emissions.

Nuclear power is an excellent source of base-load power

Romania has a well-developed nuclear infrastructure: Heavy water plant Nuclear fuel fabrication plant Technically qualified and experienced staff Domestic uranium resources

UNITS 3 & 4 PROJECTUNITS 3 & 4 PROJECT

The feasibility study confirmed the technical and economical feasibility of the Project

The unique business proposition of the Project resides in:

• The cost advantage (the levelised unit energy cost for this Project is lower than other forms of electricity generation),

• Heavy water and nuclear fuel locally available• Local experience and competency in

constructing and operating other units, • Public support, and • Safe, western technology.

CONSTRAINTS CONSTRAINTS

NO Governmental financial support NO Governmental financial support NO sovereign guaranties for loansNO sovereign guaranties for loans NO power purchase agreement with NO power purchase agreement with

state entitiesstate entities

THE MODEL THE MODEL

Joint venture set up by many shareholders, Joint venture set up by many shareholders, including SNN (the so-called “Finnish including SNN (the so-called “Finnish model”), no majority shareholder;model”), no majority shareholder;

SNN will contribute to the equity with the SNN will contribute to the equity with the existing assets;existing assets;

Heavy water and nuclear fuel are to be Heavy water and nuclear fuel are to be provided from domestic sources;provided from domestic sources;

Shareholders will receive the power at cost Shareholders will receive the power at cost in proportion to their investment in the in proportion to their investment in the project;project;

ADVANTAGES OF THE MODELADVANTAGES OF THE MODEL

The model is already accepted by the The model is already accepted by the European Union (used in Finland) and European Union (used in Finland) and comply with the regulations of the comply with the regulations of the liberalized electricity marketliberalized electricity market

Financing sources (initial equity and Financing sources (initial equity and loans) provided by investors.loans) provided by investors.

The “legitimate” needs of the intensive The “legitimate” needs of the intensive energy industry – representing 35% of energy industry – representing 35% of Romania’s GDP – can be solved (as the Romania’s GDP – can be solved (as the European Union recommends in the European Union recommends in the Electricity Green Book, chapter 2.1 (v))Electricity Green Book, chapter 2.1 (v))

FUTURE STEPS FUTURE STEPS

Actions scheduled for 2007:• Binding offers to be requested from potential

investors;• Preferred investors to be selected• Negotiations with selected investors, and• Investors agreement is to be executed.

Once the investors agreement is executed the process to conclude agreements with the other key stakeholders such as financiers and contractors should commence.

The ultimate goal is to set-up the commercial and financial frame of the project and start works in 2008.

CONCLUSIONSCONCLUSIONS

As a proven and safe technology, nuclear power has an important role to play in terms of ensuring secure base load electricity generation without any CO2 emissions.

The energy strategy of the Romanian Government includes completion of Units 3 and 4 of Cernavoda NPP and clearly indicate its long-term commitment to nuclear energy

Romania has the infrastructure for implementation of new nuclear power projects.

Thank you for the attention !Thank you for the attention !