Nigel Houlton. EDF Energy. 28th January
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Nigel Houlton. EDF Energy. 28th January

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Nigel Houlton. EDF Energy. 28th January Nigel Houlton. EDF Energy. 28th January Presentation Transcript

  • EDF Energy – Generation Lifetim e Managem ent of the Existing Nuclear Fleet Nigel Houlton - Head of Lifetim e P rogram m es UKTI Civil Nuclear Export Showcase – 28 January 2014 Nigel Houlton, Lifetim e P rogram m es Manager 1 1
  • EDF Energy’s Nuclear Fleet • 8 Stations in UK Hunterston - 7 AGRs (Com m issioned 1976 - 1988) - 1 PWR (Com m issioned 1995) Station Hunterston B Hinkley Point B Hartlepool Heysham 1 Dungeness B Heysham 2 Torness Sizewell B 2 2 Reactor type 2 AGRs 2 AGRs 2 AGRs 2 AGRs 2 AGRs 2 AGRs 2 AGRs 1 PWR NET capacity in Megawatts (MW) 890 870 1,180 1,160 1,040 1,220 1,190 1,191 Torness Hartlepool Heysham Sizewell Hinkley Point Dungeness Year commissioned 1976 1976 1983 1983 1983 1988 1988 1995 ED F Energy, Generation, Lifetim e – UKTI Civil Nu clear Export Sh owcase-28Jan14 – N ot P rotectively Marked Age in years 38 38 31 31 31 26 26 19
  • The Future of Nuclear in the UK • • The power sector will play a pivotal role - P ower industry is expected to be alm ost com pletely decarbonised by 2050 - Som e predict demand for electricity could double over the sam e period • Challenge around achieving a sustainable, affordable and secure lowcarbon supply of electricity for the future • Newnuclear has been recognised as an essential part of the future m ix • 3 Clim ate Change Act - UK com m itted to reduce em issions by 80% by 2050 Existing nuclear stations w continue to play a key role ill ED F Energy, Generation, Lifetim e – UKTI Civil Nu clear Export Sh owcase-28Jan14 – N ot P rotectively Marked View slide
  • The Case for Life Extension • • Pipeline for newnuclear in the UK and potentially abroad - UKs new build am bition will require thousands of additional, m ainly highly-skilled jobs • Life extensions could play a significant role in both keeping the lights on and keeping us on track for the 2050 targets - Does not change the need or urgency of the newnuclear program m e • 4 The existing nuclear fleet provides - the m ost affordable, large-scale, low -carbon source of electricity in the UK - work for >300 com panies, 90% of our £650m annual spend goes to UK companies A newapproach to lifetime planning is needed to support this ED F Energy, Generation, Lifetim e – UKTI Civil Nu clear Export Sh owcase-28Jan14 – N ot P rotectively Marked View slide
  • A new approach to lifetim e planning • • The previous approach to lifetim e planning was short-term and incremental and until recently there was no clear long-term forecast about the potential of the fleet • 5 Lifetime Programme im plem ented to support the strategy - to ‘seek life extensions for all its nuclear power stations where it is safe and com m ercially viable’ As our stations approach end of life and the UK firm s up its pathway for decarbonisation, the need for longer-term planning to realistic dates is em phasised: - Safety - Resources planning - UK infrastructure and Supply Chain planning - Openness and clarity ED F Energy, Generation, Lifetim e – UKTI Civil Nu clear Export Sh owcase-28Jan14 – N ot P rotectively Marked
  • What determ ines technical lifetim e? Non-replaceable com ponents that degrade through use: AGR - Graphite boilers: - Boilers Graphite core: • 6 ED F Energy, Generation, Lifetim e – UKTI Civil Nu clear Export Sh owcase-28Jan14 – N ot P rotectively Marked
  • Our lifetim e expectation • We conducted an extensive reviewof the potential lifetimes of th e AGRs using all available inform ation and our predictive m odels of degradation • This allowed th e relevant experts to provide a judgement on the appropriate planning dates for the fleet • B eing keen to ensure th ese im portant dates were shared openly, we issued a stock exchange announcement in Feb ’12 with th e following extract: “EDF Energy has completed a further technical review of the potential life limiting plant areas…. is now expecting an average life extension of seven years across the AGR fleet. The strategic target for S izewell B remains at 20 years.” 1 • In Decem ber 2012 we announced a seven year life extension of Hinkley Point B and Hunterston to allow th em to operate to 2023 in line with th e above expectation. We expect to be operating th e AGR’s well into the 2020’s The seven year average expectation for the AGRs includes the 5 year extension of Heysham 1 and Hartlepool announ ced in Decem ber 2010 and the 7 year life extension announced in Decem ber 2012 1 7 ED F Energy, Generation, Lifetim e – UKTI Civil Nu clear Export Sh owcase-28Jan14 – N ot P rotectively Marked
  • Transform ation of Lifetim e Managem ent • Early engagement with: - key supply chain partners - key external stakeholders our approach has been w idely w elcomed • • We have form ed a Strategic P artnership for Lifetim e with four key suppliers to our fleet, Am ec, Atkins, Cavendish Nuclear and Doosan P ower System s • 8 Leading a different approach with the key supply chain enabling activities and infrastructure - Openly sharing - Working together We believe our approach to the whole supply chain is creating a strong sense of leadership and shared responsibility to the needs of the country ED F Energy, Generation, Lifetim e – UKTI Civil Nu clear Export Sh owcase-28Jan14 – N ot P rotectively Marked
  • Exam ple of Longer Term Collaboration to Underpin Life Extension Data P rocessing and Control System s – Thales UK E –E DF nergy wishes to significantly extend the operational life of its existing nuclear power stations without having to replace the obsolete Data P rocessing and Control S ystem (DP ) upon which they rely. s CS The existing DP are vulnerable to: CS • Ageing and obsolescence of equipm ent, workforce and supply chain • M odern standards and alignm with ent safety claim s “Solutions” not just products and services to underpin Lifetime Programme Value Proposition - Lifetim e Support Contract - Long term collaborative working - Incorporate existing support contracts - Support safe, reliable and m aintainable DP CS until cessation of generation plus four years - Dem onstration of value add to DP CS through life - Support m aintenance of through life strategy Through Life - Continuous validation of DP CS until cessation of Managem ent generation plus four years Develop Strategic P artnership Strategy Technical Support Resource Managem ent Critical Supplier Network 9 - SQEP resource base to support DP CS - Assistance to EDF Energy safety case - Develop additional suppliers - Act as single m anagem ent for lower tier key suppliers - Long term contracts ED F Energy, Generation, Lifetim e – UKTI Civil Nu clear Export Sh owcase-28Jan14 – N ot P rotectively Marked
  • Conclusion • • The previous shorter-term planning approach is no longer sufficient • Longer-term planning, based on a reasonable expectation of lifetim e, is appropriate and our approach has received strong support • We have reviewed our lifetim e potential and updated our guidance to the m arket around an expectation of an average life extension of 7years for AGRs and 20years for Sizew B ell • We announced a 7 year life extension for Hinkley P oint B and Hunterston in Decem ber 2012 in line with this expectation • 10 Life extension is good for the country and good for EDF Energy We are underpinning our planning dates w robust strategies and plans involving our key ith suppliers and stakeholders ED F Energy, Generation, Lifetim e – UKTI Civil Nu clear Export Sh owcase-28Jan14 – N ot P rotectively Marked