Akkuyu Nuclear Power Plant Progress To-date and the …€¦ · · 2017-05-16Akkuyu Nuclear Power...
Transcript of Akkuyu Nuclear Power Plant Progress To-date and the …€¦ · · 2017-05-16Akkuyu Nuclear Power...
Akkuyu Nuclear Power Plant –
Progress To-date and the Way
Forward
6th Annual Global Infrastructure
Leadership Forum
New York City
February 2013
AKKUYU NGS AŞ
Akkuyu NPP Power Generation JSC
ROSATOM Rosatom state nuclear corporation
Akkuyu Nuclear Power Plant is the First Rosatom BOO Construction Project Outside Russia
Akkuyu Project Features
Akkuyu site, Turkey
• Energy sector (generation)
• First Nuclear Power Plant in Turkey
• First Rosatom ВОО (build-own-operate) project. Under the
IGA, Rosatom is responsible for engineering, construction,
operation and maintenance of the plant.
• Legal basis: Intergovernmental Agreement, May 12, 2010
• Project design: AES-2006 (VVER-1200)
• Number of units: 4 x 1200 MW
• Total capacity: 4,800 MW
• Construction period: 2011-2023
• Total cost ~ $ 20 bln
• Power Purchase Agreement for 15 years, fixed price terms
• Support of the Russian and Turkish Governments
• Maximization of Turkish personnel involvement in
construction and operation of the plant.
• Job creation potential – up to 10 000 for the construction
only
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AKKUYU NGS AŞ
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Why BOO? Pros and Cons
• Potential profit from power sales –
high dynamics of GDP and power
consumption in Turkey
• Forecast for growth of power
consumption and capacity deficit
• Electricity market liberalization and
electricity price growth in Turkey
• Turkish power market investment
attractiveness
• Availability of grid infrastructure and
possibility to export power to
Europe and the Middle East
• Government support of the project
in Turkey and Russia
AKKUYU NGS AŞ
Pros Cons Why BOO?
• Profit from electricity
sales after pay back
period
• Fixed price РРА
(weighted average
12.35 cent/kwh) and
fixed quantity - (70% of
Units 1 and 2 output
and 30% of Units 3 and
4 output – revenue
guarantee for the
investor
• Need to forecast long-term
electricity price – high
probability of error and change
in long-term electricity price.
• The Project Company bears all
the risks
• Possibility of unpredictable
growth of the construction
costs, economic and political
force majeure
• Difficulty to find an investor
(«long» money)
Project Financial Indicators and Equity Structure
Akkuyu NPP JSC
Site license holder, owner of the NPP and the power generated
100%
• Construction time: 11 years total
5 years (from first concrete to 1 Unit
commissioning)
• Operational lifetime: 60 years
• Generation output : 35.2 bln.
kWh/year (for four units)
• IRR > 8%
• Targeted D/E Ratio – 70/30
• CAPEX: estimated at $20 bln
• Payback period from the date of
commencement into commercial
operation : 16 years
• Interest coverage ratio: 5,0
Akkuyu Equity Structure
AKKUYU NGS AŞ
The Russian side
provides Initial
funding. Later, up
to 49% of shares
may be transferred
to investors
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Atomstroyexp
ort CJSC
Interrao
OJSC
Rosenergoatom
OJSC
Atomenergore
mont OJSC Atomtekhen
ergo OJSC
0.1% 0.1% 66.3% 3.5% 30%
49 % - Investors
Akkuyu CAPEX structure, % Akkuyu CAPEX
-1 000
0
1 000
2 000
3 000
4 000
5 000
6 000
2010 2012 2014 2016 2018 2020 2022 2024
Mln
, $
5
Turkey is One of the Most Dynamic World Economies with
Strong Growth Potential
Sources: The World Bank, World Economic Outlook - IMF, October 2012
AKKUYU NGS AŞ
233
303
392
483 531
647
730
615
734 789
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
• Turkey is rated the 16th world economy
based on GDP ($789 B in 2011)
• Turkish government reforms targeting
further integration with EU standards will
result in the investment climate
improvement
10,9
7,9
6,3 5,9
4,2 4,2 3,8
2,1 1,4
0,9 0,9 0,6 0,2
8,5
6,6 6,6
4,1 4,1 3,8 3,6 3,4
3 2,3 2,2
1,1 0,9 0,8
Top world economies GDP dynamics
(annual average growth rate), 2002-2011
Forecast of top world economies GDP dynamics
(annual average growth rate), 2013-2017
Turkey GDP dynamics ($B)
0
50
100
150
200
250
300
generationconsumption and losses
6
Electricity Consumption and Generation Growth Rates in Turkey
are Comparable to the World’s Emerging Economies
Electricity generation dynamics,
2000-2010 (annual average rate)
Power Generation and consumption dynamics in Turkey
(bln kWh)
AKKUYU NGS AŞ
13,1
6,9 6,2 6,1 6,1
4,5 4,3 3,6
2,7 1,9
1
13
7 7 6 6
4 4 3
2 1 1
Electricity consumption dynamics,
2000-2010 (annual average rate)
Unlike other countries, Turkey did not experience electricity
consumption decline as an outcome of the world economic
crisis
Electricity consumption per capita lags behind the top world
economies and has opportunity for rapid growth
Per capita consumption (kWh per capita), 2010
Sources: EIA DOE US, The World Bank
12563
9463
8002 7865
6070 5796 5291 5072
2716 2342 2338
Source: Power industry
development strategy, 2009
188
500
2010 2023
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Government plans for 2023:
Increase export to 500 $B.
Reach average per capita revenue of $25,000
Reach GPD growth up to $ 2 trln
Join the top 10 world economic states.
• This will lead to the deficit of generation capacities.
• Besides, Turkey attempts to reduce energy dependency on imported fuel and
decrease gas share in its power generation mix.
• Turkey’s commitment to CO2 reduction also requires reduction of coal and gas
generation, and increases its cost.
Sources: Turkish Electricity Transmission Corporation,
2011, EPDK. Mercados
In order to Join Top‐10 of the World Most Developed Countries
by 2023, Turkey Needs Electricity Consumption to Grow 8 %
Annually AKKUYU NGS AŞ
Decrease of the gas generation share is one of the objectives of the 2009 Power
Strategy. Turkey plans to increase renewables’ share to at least 30% by 2023
(including hydro) and to build up to 3 nuclear power plants (up to 5% of total power
generation)
2011
Planned GDP growth, $ B
Electricity consumption forecast in Turkey
(B kWh)
Generation structure, 2011 Generation target structure
for 2020
789
2000
ВВП в 2011 ВВП в 2023 GDP in 2011 GDP in 2023
Major Milestones of the Project
2 stage 3 stage 4 stage
1 блок
2 unit 2 блок
3 блок
4 блок
Preparation Construction Operation and
maintenance Decommissioning
1 stage
Commissioning
Akkuyu JSC
registration NPP construction license
Start site survey
Electricity
generation license
2021
2022
2023
First concrete
1 unit
2 unit
3 unit
4 unit
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AKKUYU NGS AŞ
1955
1956
1965
1972
1974-1975
1976
1981
1977-2009
May 2010
July 2010
December
2010
An Agreement on peaceful use of the atom signed with the
U.S.
Atomic Energy Committee begins its work
Studies on the construction of the NPP begin
The Department of Atomic Energy created
A study on the first NPP site location conducted
A license for the Akkuyu site on the Mediterranean coast
obtained
Cooperation Agreement with the IAEA signed
Tender for building 4 NPP units in Turkey held
Signing the Intergovernmental Agreement between the RF
and the TR
The Law ratifying the IGA enters into force in Turkey
“Akkuyu” NPP Power Generation JSC (AKKUYU NGS
ELEKTRIK URETIM ANONIM SIRKETI) is registered in
Turkey
March 2011 Preliminary engineering survey; start of the front end
engineering design, licensing and Environmental Impact
Assessment process, generation license application
March 2012 Environmental Impact Assessment Hearings (EIA)
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Akkuyu Chronology AKKUYU NGS AŞ
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Project Cooperation Between Russia and Turkey Covers a
Wide Range of NPP Related Construction and Operation
Issues
NPP engineering, design field supervision
Russian responsibilities Mutual responsibilities Turkish responsibilities
Spent fuel treatment
Personnel training
Fuel supply
Nuclear island and other
special equipment and materials
Construction and assembly work
Issuing project documentation
Construction management/
supervision
Wholesale of electricity
Operation, maintenance and upgrade
Startup and Commissioning
Decommissioning and decontamination
AKKUYU NGS AŞ
Operation and upgrades
Emergency planning
R&D
Infrastructure development,
including power grids
Physical protection
Public outreach
Nuclear energy regulation
and legislation
development
Site allocation
Site infrastructure
Participation in O&M
Grid connection
Construction and assembly
work
Provision of materials and
equipment
Electricity wholesale strategy
development and
implementation; power export-
import activities
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Rosenergoatom InterRAO
Project engineering design General contractor
Developing preliminary, basic and
detailed design documentation
Technical acceptance of equipment
and services at all stages of the project
commissioning
Engineering surveys
Construction and assembly work
Equipment and materials supply
JSC was incorporated in Turkey. Plays the role of license holder, NPP owner, and GR
coordinator in Turkey
«Akkuyu» NPP
Owner of the NPP and electricity generated
Akkuyu NPP JSC
«Akkuyu NGS Elektrik Üretim Anonim Şirketi»
Atomstroyexport
Kurchatov institute Scientific advisor
Purchasing electricity
from the NPP and
trading at the Turkish
market
Atomenergoproject
(AEP)
Principal designer
Rosatom State
Corporation
Project Sponsor
Responsible for the
project implementation
and realization of
objectives
ТЕТAS (Turkish
Electricity Trading
and Contracting
Company)
TVEL JSC fuel supply
VNIIAES JSC System integrator
Automatic process control
system principal designer
Gidropress Design
Bureau Nuclear island principal
designer
Electricity sale
AKKUYU NGS AŞ
Project Organizational structure
How AES-2006 Safety is Ensured?
AKKUYU NGS AŞ
• Defense-in-depth
• Self-defense of the reactor
• Safety barriers
• Multiple duplication of the
safety channels
• Active and passive safety
systems
• Safety concept, including
not only accidents
prevention but beyond
design basis accidents
consequences prevention,
ensuring localization of
the radioactive instances
within the containment
vessel
• Safety culture for all the
lifecycle stages: from
selecting the site up to
decommissioning
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NPP Design and Construction
AKKUYU NGS AŞ
• The Project Company has received the NPP
construction site with effective site license and
renewed licensing conditions.
• Public Hearings have been held.
• Independent engineering surveys have been
completed in order to get an independent
assessment of the Akkuyu NPP site seismicity.
• The Power Generation License application has
been filed.
• The EIA Application Dossier has been prepared
and filed. The EIA Report is being prepared.
• The engineering design work is underway
• The Information Centers have been opened in
Büyükeceli and Mersin
• Launch of the site preparation works
• Completion of the EIA Report development and
obtaining the EIA Positive Conclusion
• Submission of the NPP Construction License
• Completion of the engineering design
development
• Start of site infrastructure construction
• Building of a construction and assembly base
• Obtain the Power Generation License
• Negotiations and signing of a Power Purchase
Agreement
2011-2012 Results Tasks for 2013
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Infrastructure development of the nearby cities will lead
to construction of the new roads, hospitals, schools,
sport facilities and will end up in establishing of about 15
000 new positions for infrastructure facilities, including
medicine, trade, transport.
The Turkish Party will partially do the construction and
assembly work, as well as supplies of non-specialized
equipment and NPP operation.
It is planned that 95% of the construction will be
conducted by the Turkish companies; 40% of the
assembly work will be conducted by the Turkish
companies; 20% of the equipment and materials will be
provided by the Turkish companies.
In addition to the construction experts (in the “peak
years” more than 10 000 people will work on the
construction site only), and more than 2000 operational
personnel will work at the NPP and around 1200 will be
involved during the planned outages.
Jobs creation and infrastructure development
AKKUYU NGS AŞ
Social Effect From NPP Construction
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Investment highlights AKKUYU NGS AŞ
Attractive geographical
location
Strong political support of the
Project by the Governments of
Turkey and the RF
Substantial and growing
demand for energy in Turkey
Interconnections with
the EU and neighboring states
(Middle East, Caucasus)
Proven, safe, reliable and
environment –friendly reactor
technology
Attractive value creation
potential
Diversified sources of funding
Proven nuclear expertise and
established legal framework
• Turkey is at the cross-roads of Europe, Russia and the Middle East, the bridge between the oil and
gas hungry Europe and oil and gas rich Russia and the Middle East
• Turkey is one of the fastest growing economies with strong growth potential
• The project is supported by the governments of Turkey and the RF
• It is based on the Intergovernmental Agreement (IGA) between the Turkey and the RF
• Prime –minister of Turkey is one of the key proponents of the project
• Strong political priority for the project in Russia.
• Annual electricity demand in Turkey – 6% annual growth in 2000-2010, 8% annual growth is
expected until 2023
• Electricity shortage is expected already in 2014, rolling blackouts currently occur in Turkey.
• Turkey joined ENTSO-E European synchronized zone
• Opportunity to export electricity to neighboring states in Europe and the Middle East
• Generation 3+ NPP meeting advanced safety requirements. Passive and active safety systems
• Experience of the reference NPP operation in Russia, India, China
• NPP design complies with the Russian norms, is in the process of obtaining all the required
licenses and permissions in Turkey. The reactor refers to the evolutionary family VVER that meets
all standards of the IAEA, the certificate EUR, will pass various international licensing procedures
(Czech Republic, Great Britain), etc.
• Payback period from the date of commencement into commercial operation : 16 years, IRR > 8%
• 15 years fixed term PPA (power purchase agreement) with fixed price and assured return of
investments
• Favorable investment climate in Turkey. Electricity market liberalization and growing electricity prices
• Partners are invited to take part in Akkuyu NPP construction as equity investors (up to 49%),
equipment suppliers (with credit agencies support), off-takers and providers of debt financing
• Russia is one of the world leaders in the nuclear industry: 10 NPPs in operation/ 24 units in
Russia with total capacity of 18.6 GW/ 19 more units are in order backlog overseas. Well-
developed legal framework and reference NPP experience
Project information
AKKUYU NGS AŞ
Webiste in Turkish, Russian and English
www.akkunpp.com
Brochure about the project in
Russian, Turkish and English
Public information Center
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