NUCLEAR
What are the key challenges
involved with developing
a nuclear site in the UK ?


Guillaume FERY
                      Presentation made
twitter.com/gfery     before the Fukushima
                      accident in Japan in
                      April 2011
Nuclear power



An expensive, controversial, risky and …
inevitable priority
to develop decarbonized energy
in the next decade.

 Strategic,     Delivery,       Intangible,
 Economic       Supply chain    reputational
 & regulatory   & Operational   & HR
 issues         issues          issues
CO2 molecule




More energy needed – CO2 emissions
      = Nuclear's comeback ?
New electric needs. electric car, train, etc. :   Fossil energy : consequences of
Ex: Nissan Leaf                                   shortage (peak oil)




  Is the grid compatible                          Biofuel : a good idea gone bad ?
  with intermitent green supply ?
The blackout ?
Nuclear's future in the UK                                19 existing plants
Facts & figures                                           generating about 18%
                                                          of UK's electricity

                                                          18 closed by 2023


                                                          8 nominated sites
                                                          4 new plants to be built
                                                          +9 early steps projects




Cost of decommissioning : £50 billions
Replacement of the existing capacity alone £20 billions    A GPB100 billion
Grid and others
                                                               project
Sources
Energy Trends Dpt of Energy & Climate Change UK
Nuclear industry association
Managing the Nuclear Legacy report
Developing a new nuclear site is
Around £ 2 billions or ...
 7 Airbus A380            100,000 MINIs




 100 high speed trains   200 miles of motorways
Can nuclear power
 be competitive
   in the UK ?




 Investment + operations + maintenance + uranium supply
    + waste management + dismantling – CO2 permits
Current and future
   Regulation

 Interaction with
 Public / private
  stakeholders
Manage and
anticipate the
whole project
lifecycle




                 Source Zicon and World Nuclear association
Public acceptance
The 8 nominated sites for the next nuclear plants




Site location

« NIMBY »
syndrom




                                       Energy and climate change dpt UK
Tackling the
skills challenge
Mapping the key challenges
                                              Mid term
                                                               Waste
                                                               management
  Energy                      Energy 2.0
  independence                +smart grid           R&D


                 Education                   Public
                 Nuclear                     Acceptance
                 Skills
                 training
                                            Low Carbon
                                            Economy
General                                                                   Business/private
                                            Implementation
responsability                                                            actions
                                                  Decomissionning
                 Policies,
                 Market
                 reforms &                                                      Strengthen
                 regulation                                   Financing         Supply
                                                                                chain

                                              Short term
« If we fail to develop new nuclear plants in the UK, we
will see a rise in energy costs.(…) This country needs
nuclear. We are there to bring a solution to the problem.»


Vincent de Rivaz
EDF ENERGY - CEO
The Sunday Mail
February 14th, 2011




                                     Time for action
                                     … let's do it !
Thank you.


     Guillaume FERY
Blog: http://orignal.blogspirit.com
         twitter.com/gfery
Appendix
Origin of electricity today
Today we are talking about nuclear development in the uk
and various implications involved with this trend
But really, what are we talking about ?

Here is how I how see the issue
Nuclear power is ...

To me, there are several ways to analyse the reborn
of nuclear power and to analyse the challenges to
face with developing a new site.

(règle de 3) : I see 3 level of challenges
•Strategic,
•Operational
•intangible

But to begin with, let's come back to the roots of this
nuclear's comeback
Globally, Talking about ENERGY
THIS IS THE KEY CHALLENGE !



At least for the next few decades, there are only a few realistic
options for reducing carbon dioxide emissions from electricity
generation:

•We can :
•‡increase efficiency in electricity generation and use;
•‡expand use of renewable energy sources
•‡capture carbon dioxide emissions at fossil-fueled (especially
coal) electric
•‡increase use of nuclear power.
Here are the trends and the facts

Buofuel and the competition with land
use.
Can we afford to do nothing ?

3 major risks :

•The black out
•The rise of the energy prices (cf fuel) and lack of energy
independence
•Climate change and CO2 impact (use of coal and gas)
That's is why, new nuclear development is clearly an option.

             What is the current situation in the UK ?
But Talking about new sites is talking about big money !

Who is going to pay for that ?
A challenge is to Make nuclear market attractive for
private investors



In most deregulated markets nuclear power is not now cost
competitive with COAL or GAS.
...but what about carbon issue.
Emissions permit can make Nuclear competitive
The regulatory challenge

Necessary reforms include a minimum price for carbon
permits and so-called capacity payments to low-carbon
generators

Market reform

Consultation process

Global standards for safety

Link with the authorities & regulators
EX: UK Atomic Energy Authority
ANOTHER CHALLENGE IN                  A long term project
   DEVELOPING A NEW SITE itself :        (2011/2018) 7 years
   PROJECT MANAGEMENT
                                          Nuclear Fuel
   Embrace From cradle to grave
                                          management
   • Design / technology (EPR, etc.)
                                          •Mining
   •Manufacturing and components
                                          •Conversion,
   • Supply chain and logistics
                                          Enrichment and Fuel
   • Engineering support
                                          Fabrication
                                          •Electricity Generation
   Effects of delays
                                          •Used Fuel
   HR aspects on the construction site
                                          Management
                                          •Waste Management
ABOUT THE DELIVERY                        •Decommissioning
Strenghthen the UK nuclear industry       •Transport
supply chain:

•BAE Systems, Doosan Power Systems        =>Manage transition
•Rolls-Royce, Westinghouse                on the existing sites
•AREVA
In public opinions Nuclear = fears
On a technical point of view (risk) or ethical protest
(future generation, etc.)

Some of us remeber Tchernobil 25 years ago.
Recently EDF admitted failures in france

Short terms : operations (nuclear leakage)
Long term : waste & disposal

NGO protest
Recently (14fev)
NIA challenges WWF and Greenpeace 'subsidy' claim
Who is OK to have a nuclear plant in his hown area ?
(NIMBY)

NB : In some cases, the site already exists

Difference between areas of consumtions and areas of
production = protests and tensions

Developing a new site = local problems
Image risks,
Impact for the property value

Communication
People involvement
Connections with NGOs
Last but not least, the knowledge & skills challenge

SKILLS
Civil engineering
Maintenance
R&D
Technological
Planning, project management

Young people : are the specialities very attractive at school ?
Scientific careers
Nuclear specialists

Cf initiatives such as nuclear skills passport by Nuclear association

EXAMPLE :
In France AREVA is hiring 5 000 technicians and engineers.
Universities only graduate 350 nuclear engineers every year !
AS A CONCLUSION
I wrote this matrix to summarize the key
challenges involved in developing a new nuclear
site in the UK
To end this presentation, let's listen to what EDF Energy
CEO Vincent de RIVAZ said last week-end in the
newspaper
Nuclear in the uk
Nuclear in the uk
Nuclear in the uk
Nuclear in the uk

Nuclear in the uk

  • 1.
    NUCLEAR What are thekey challenges involved with developing a nuclear site in the UK ? Guillaume FERY Presentation made twitter.com/gfery before the Fukushima accident in Japan in April 2011
  • 2.
    Nuclear power An expensive,controversial, risky and … inevitable priority to develop decarbonized energy in the next decade. Strategic, Delivery, Intangible, Economic Supply chain reputational & regulatory & Operational & HR issues issues issues
  • 3.
    CO2 molecule More energyneeded – CO2 emissions = Nuclear's comeback ?
  • 4.
    New electric needs.electric car, train, etc. : Fossil energy : consequences of Ex: Nissan Leaf shortage (peak oil) Is the grid compatible Biofuel : a good idea gone bad ? with intermitent green supply ?
  • 5.
  • 6.
    Nuclear's future inthe UK 19 existing plants Facts & figures generating about 18% of UK's electricity 18 closed by 2023 8 nominated sites 4 new plants to be built +9 early steps projects Cost of decommissioning : £50 billions Replacement of the existing capacity alone £20 billions A GPB100 billion Grid and others project Sources Energy Trends Dpt of Energy & Climate Change UK Nuclear industry association Managing the Nuclear Legacy report
  • 7.
    Developing a newnuclear site is Around £ 2 billions or ... 7 Airbus A380 100,000 MINIs 100 high speed trains 200 miles of motorways
  • 8.
    Can nuclear power be competitive in the UK ? Investment + operations + maintenance + uranium supply + waste management + dismantling – CO2 permits
  • 9.
    Current and future Regulation Interaction with Public / private stakeholders
  • 10.
    Manage and anticipate the wholeproject lifecycle Source Zicon and World Nuclear association
  • 11.
  • 12.
    The 8 nominatedsites for the next nuclear plants Site location « NIMBY » syndrom Energy and climate change dpt UK
  • 13.
  • 14.
    Mapping the keychallenges Mid term Waste management Energy Energy 2.0 independence +smart grid R&D Education Public Nuclear Acceptance Skills training Low Carbon Economy General Business/private Implementation responsability actions Decomissionning Policies, Market reforms & Strengthen regulation Financing Supply chain Short term
  • 15.
    « If we failto develop new nuclear plants in the UK, we will see a rise in energy costs.(…) This country needs nuclear. We are there to bring a solution to the problem.» Vincent de Rivaz EDF ENERGY - CEO The Sunday Mail February 14th, 2011 Time for action … let's do it !
  • 16.
    Thank you. Guillaume FERY Blog: http://orignal.blogspirit.com twitter.com/gfery
  • 17.
  • 19.
  • 20.
    Today we aretalking about nuclear development in the uk and various implications involved with this trend
  • 21.
    But really, whatare we talking about ? Here is how I how see the issue Nuclear power is ... To me, there are several ways to analyse the reborn of nuclear power and to analyse the challenges to face with developing a new site. (règle de 3) : I see 3 level of challenges •Strategic, •Operational •intangible But to begin with, let's come back to the roots of this nuclear's comeback
  • 22.
    Globally, Talking aboutENERGY THIS IS THE KEY CHALLENGE ! At least for the next few decades, there are only a few realistic options for reducing carbon dioxide emissions from electricity generation: •We can : •‡increase efficiency in electricity generation and use; •‡expand use of renewable energy sources •‡capture carbon dioxide emissions at fossil-fueled (especially coal) electric •‡increase use of nuclear power.
  • 23.
    Here are thetrends and the facts Buofuel and the competition with land use.
  • 24.
    Can we affordto do nothing ? 3 major risks : •The black out •The rise of the energy prices (cf fuel) and lack of energy independence •Climate change and CO2 impact (use of coal and gas)
  • 25.
    That's is why,new nuclear development is clearly an option. What is the current situation in the UK ?
  • 26.
    But Talking aboutnew sites is talking about big money ! Who is going to pay for that ?
  • 27.
    A challenge isto Make nuclear market attractive for private investors In most deregulated markets nuclear power is not now cost competitive with COAL or GAS. ...but what about carbon issue. Emissions permit can make Nuclear competitive
  • 28.
    The regulatory challenge Necessaryreforms include a minimum price for carbon permits and so-called capacity payments to low-carbon generators Market reform Consultation process Global standards for safety Link with the authorities & regulators EX: UK Atomic Energy Authority
  • 29.
    ANOTHER CHALLENGE IN A long term project DEVELOPING A NEW SITE itself : (2011/2018) 7 years PROJECT MANAGEMENT Nuclear Fuel Embrace From cradle to grave management • Design / technology (EPR, etc.) •Mining •Manufacturing and components •Conversion, • Supply chain and logistics Enrichment and Fuel • Engineering support Fabrication •Electricity Generation Effects of delays •Used Fuel HR aspects on the construction site Management •Waste Management ABOUT THE DELIVERY •Decommissioning Strenghthen the UK nuclear industry •Transport supply chain: •BAE Systems, Doosan Power Systems =>Manage transition •Rolls-Royce, Westinghouse on the existing sites •AREVA
  • 30.
    In public opinionsNuclear = fears On a technical point of view (risk) or ethical protest (future generation, etc.) Some of us remeber Tchernobil 25 years ago. Recently EDF admitted failures in france Short terms : operations (nuclear leakage) Long term : waste & disposal NGO protest Recently (14fev) NIA challenges WWF and Greenpeace 'subsidy' claim
  • 31.
    Who is OKto have a nuclear plant in his hown area ? (NIMBY) NB : In some cases, the site already exists Difference between areas of consumtions and areas of production = protests and tensions Developing a new site = local problems Image risks, Impact for the property value Communication People involvement Connections with NGOs
  • 32.
    Last but notleast, the knowledge & skills challenge SKILLS Civil engineering Maintenance R&D Technological Planning, project management Young people : are the specialities very attractive at school ? Scientific careers Nuclear specialists Cf initiatives such as nuclear skills passport by Nuclear association EXAMPLE : In France AREVA is hiring 5 000 technicians and engineers. Universities only graduate 350 nuclear engineers every year !
  • 33.
    AS A CONCLUSION Iwrote this matrix to summarize the key challenges involved in developing a new nuclear site in the UK
  • 34.
    To end thispresentation, let's listen to what EDF Energy CEO Vincent de RIVAZ said last week-end in the newspaper