“Nuclear renaissance and financial stability in the age of crisis” The return of Italy to nuclear power Davos, 18 February 2011 “World Forum for Communication” Enel SpA Vittorio Amedeo Alessio
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Part 1
…What we are saying…
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Enel: a major European nuclear player ”Our assets and projects speak for us”
Slovakia Operational: 4 VVER units, 1,896 MW Under construction: 2 VVER units of Mochovce 3&4, 880 MW
France
Potential development of new capacity: •Russia: Kaliningrad, two 1,117MW VVERs. Agreement with Rosatom •Romania: consortium led by Nuclearelectrica to build “Cernavoda 3&4” (1,500 MW)
Under construction: participation in 1 EPR unit in Flamanville, 1,630 MW
Spain Operational: 7 Units (6 PWR Westinghouse units and 1 BWR GE unit), 3,640 MW
Italian Nuclear Program: agreement with EDF for the joint development of at least 4 EPR units
5.5 GW of installed capacity and additional 1 GW under construction 3
European Generation Mix “Italians buck the trend..Could they be wrong about energy strategy?”
27%
14%
13%
32%
5% 5%
1%
28%
COAL *
46% 36% 22%
51%
23%
7% 12%
1% 10%
23%
26%
17%
41%
32%
Enel Worldwide Enel Italy
6%
13%
4%
Italy
NATURAL GAS
22%
Germany
75%
3%
18%
26% Spain
28%
14%
19%
France
EU27
12% of Enel global power production comes from nuclear fuel. Italy is the only large industrialized country without nuclear assets *
Coal, lignite
Source: Enerdata; Terna; Enel; Year 2009
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OIL
NUCLEAR
RENEWABLES
Nuclear power plants in the world
”Italy is surrouned by nuclear power plants but can’t rely on cheap nuclear energy”
200 km
441 reactors in 29 countries with total capacity of 374,000 MWe – or 14% of global power production
Within 200 km from Italian border, there are 26 reactors with 24,000 MWe
Nuclear is safe: power plants have reached 14,000 reactor years of operating experience Source: International Nuclear Safety Center (INSC) - U.S. Department of Energy (DOE)
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Nuclear power plants under construction “Fast-growing economies go for it”
MWe
26
China Russia
11 6
India
5
Korea
26.230 9.153 3.786 5.560
Bulgaria
2
1.906
Slovak Rep
2
782
Ukraine
2
1.900
Taiwan
2
2.600
2
2.650
Japan
1
692
1
1.600
1
1.600
Iran
1
915
Pakistan
1
300
USA
1
1.165
1
1.245
Argentina Finland France
Brazil
Enel developed or co-developed projects Source: International Atomic Energy Agency
• 65 power plants are being built in 16 countries • 62,000 MWe additional capacity • Several countries have started specific programmes to revamp nuclear energy, including the U.S., UK, France, China.
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Enel goes nuclear in Slovakia
”25 years after Italy banned nuclear, Enel is back to nuclear”
Lay-out of the plant
Description of the project Under development
Operating units
• In Slovakia Enel’s Slovenske Elektrarne is in the construction phase of two VVER 440 MW units in Mochovce plant • Investment: around 3 Bln EUR • The site was opened on Nov 2008; construction works are on-time: Sep 2010: reactor vessel has been put in place in EMO3 next milestones will be: Ott 2012: first fuel charge in EMO3 Dec 2012: first synchronization of EMO3
In Slovakia Enel is constructing two units with Russian VVER technology 7
Building first III Generation Unit in France
”Enel joins forces with EdF and builds Flamanville EPR reactor”
Flamanville lay-out
(render and actual)
• Enel is participating in the construction of a III Generation EPR Unit (1630 MW) in Flamanville with Plant under EdF
construction
Agreement with EdF
• Flamanville3 is based on the same EPR technology chosen by Enel for Italian Program • Enel is participating in the investment with a 12,5% share • Enel’s engineers are integrated in the EdF project structure, in order to participate to the design, realization and operation activities of the EPR series reactors • Enel has also an option for other EPR in France, and in particular will participate in Penly project
Flamanville project is a training experience for Enel, in sight of the Italian Nuclear Program development 8
The EPR technology
The origin of the European technology for 3rd generation NPP
French and German experience …
• France: 58 operational units
… the most advanced technologies … • Germany: 17 operational units
… III+ generation reactor EPR • N4 (Chooz B)
• Konvoi (Emsland)
EPR benefits of the decennial experience of realization and operation of PWR reactors in France and Germany: it is an evolutionary project based on French technology N4 and German technology Konvoi 9
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The EPR technology Safety features
Containment
4 redundant systems
Containment for core melt
EPR projects integrates the most advanced safety systems to reduce accident probability to not significant values and to eliminate any possible consequence for external environment 10
Part 2
...What is happening‌
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The Italian Nuclear Program Italian Government strategic guidelines
Italian consumptions1) [TWh/y]
Target [TWh/y; %]
Required nuclear power3) [MWe]
CAGR: +1.2%
≈ 400 100 (25%)
350
2008
2020
300 (75%)
≈ 13,000 MWe
2)
Nuclear Others
1) Covered by national production and import with import decrease by 2020 with respect to 2008 2) 17 years required to complete the program (2025) – 2020 used as reference point 3) Load factor equal to 90%
8 units 1,600 MWe each
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The Italian Nuclear Program Enel/EdF cooperation agreement
Program details
Program
Technology
• Development of a series of at least 4 Nuclear Units in Italy • Definition of at least 2-3 suitable sites for the Program • EPR technology is the base for the whole Program • Flamanville3 is the reference project
• Enel and EDF are the Architect-engineers for Construction the project model • A multi-contract approach will be utilized
Development and ownership
First development phase
• Enel-EdF Joint Venture on equal basis (50/50) for the Feasibility study Sviluppo Nucleare Italia S.r.l. has been established on the 31st of July 2009
Plants ownership
• Dedicated Special Purpose Company for the Ownership and Operation: Enel to be the majority shareholder for the Plant ownership Enel Leadership for Plant operation Investment will be open to the participation of third parties
Development of at least 4 Nuclear Units based on the EPR technology and Flamanville 3 model 13
The Italian Nuclear Program Costs and timing
Costs
• Realization of one EPR Unit will require an investment of about – 4.5 Bln EUR worth (actual cost base is Flamanville3, this estimate should be better defined in consideration to site characteristics, materials and construction costs) • The construction of the NPP units will require an overall investment of about 18 Mld EUR
Timing
• Site selection process will end by 2011 • Final investment decision will be taken in 2013, after the assignment of the Construction and Operating License • Qualification activities for engineering, supplies and erection already started, in the next year first Requests for Offer will be issued, in three years first contracts with suppliers will be signed • 60 years of commercial operation
It is an infrastructural program with few precedents in Italy for investments extent 14
The Italian Nuclear Program
How Enel is structuring to cope with the program
Nuclear skilled resources [n.]
Actions 1.700
• Strong increase of skilled personnel dedicated to the Nuclear Program • Participation in Flamanville3 and Mochovce3&4 projects as training experiences (60 resources in France, 400 involved in Slovakia, 10 in Spain) • Technical training program dedicated to operations and engineering profiles
410
• Reinforcement of the network with european “nuclear” universities: masters and scholarships
200 30
2006 Beginning of the program
2010
2013
2020
Today
Early works at site
Start of operations
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The Italian Nuclear Program Legislative framework
Steps achieved
Next steps
• Implementing Decree approved in March 2010, it provides rules for localization, licensing and operations of new NPPs: Nuclear Energy Strategy Licensing procedures for localization and authorization of NPPs, nuclear fuel fabrication plants, spent fuel and radioactive waste storages, final disposal for radioactive waste Decommissioning fund Compensative measures Information campaign • Appointment of Nuclear Safety Agency (pending parliamentary approval) • Decrees to be approved for: Technical parameters for site selection Accepted technologies Operators requirements Criteria for Consortium composition Financial coverage
Our program is progressing but can be affected by delays in regulatory framework definition 16
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Part 3
…What people think…
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Nuclear power and the Italians Polls show the NIMBY syndrome is spreading, but… Fonte: GPF Monitor 3SC November 2010
“I am in favour of nuclear power production” We are telling them: “Nuclear energy is cheap, competitive and it can be produced at stable costs”; “Nuclear energy isn’t dependent on oil volatility and it’s key to the security of supply by allowing diversification”; “Italian consumers need a balanced mix of energy sources, split between coal, nuclear, natural gas, renewables”; “Nuclear energy is key to cut CO2 emissions, is well-established and safe, after 14,000 reactor years of operating experience”.
61% Somewhat Not so much
Yes Not at all
Highilghts:
30% of those polled is a strong opponent
Strong supporters reach only 9% of total
A large number of people is still undecided or hasn’t yet reached a firm decision on whether nuclear is good or bad for them.
61% of Italians haven’t made up their mind
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We are teaming up with industry, university, groups. “We have a 20 bln euro plan to jump-start the economy”
INSTITUTIONS
INDUSTRY
“We want to set up a strategic alliance to help Italy reduce oil dependency and secure an independent energy supply”
“Hundreds of Italian companies have a unique chance to access nuclear know-how and join the global nuclear reinassance”
ENVIRONMENTAL GROUPS
UNIVERSITY, RESEARCH
“A balanced energy mix will cut CO2 emissions. Nuclear waste can be stored safely”
“Enrico Fermi invented the reactor before Italy quit nuclear. Today you have another chance to help mankind to a better living” 19
Going public…
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Italian Nuclear Forum ad campaign: “And You?”
BLACK: “I am against nuclear because I am worried by the past”; WHITE: “I am in favour of nuclear because I am worried by future”; WHITE: “I am in favour of nuclear because I care about the environment”; BLACK: “I am against nuclear because I care about the environment”.
On air on tv, cinema, billboards, newspapers, Internet, since 19 December 2010 21
I guarantee it won't be easy. Suggestion box:
vittorioamedeo.alessio@enel.com
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