Expanding nuclear power s role in Hungary
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1 Expanding nuclear power s role in Hungary 9th Annual European Nuclear Power Budapest, June Sándor Nagy CEO, MVM Paks II. Ltd.
2 MVM Group (from October 2013) 2
3 Key assets of MVM Group Power Plants and the National Grid 1 nuclear power plant (2000 MW) 1 coal-fired power plant (240 MW) 2 cogeneration power plants (114 MW) 4 open cycle gas turbine power plants (526 MW installed capacity) 1 wind farm (23 MW installed capacity) 1 deep coal mine Owner of the Hungarian Transmission System (MAVIR) The grid includes transmission lines of 4855 km and 30 substations Capacity of transformers operating on the transmission network is MVA Total annual electricity consumption: ~42,2 TWh
4 Key assets of MVM Group Gas storage sites Two new companies, Hungarian Natural Gas Trade Ltd. and Hungarian Natural Gas Storage Ltd. joined the MVM Group through acquisition in 2013
5 Hungary s Electricity production Import: GWh Import Other national production Nuclear National production: GWh The NPP s share in the domestic production: 50,7 %
6 Trend of the electricity import 40% 35% 30% 25% 20% 15% 10% 5% 0% Source: MVM & MAVIR statistics
7 Domestic demand-supply The domestic power plants are getting obsolete. The current peakload of the Hungarian electrical system is 6300 MW, which will have reached MW by Peakload Renewables Gas< 50 MW Oil New capacity By the end of the next decade more than 6000 MW new capacity will be necessary. Gas Coal Nuclear
8 National Energy Strategy 2030 According to the National Energy Strategy, Hungary has to fulfill climate policy targets by increasing the share of renewable energy and other low carbon technologies.
9 National Energy Strategy 2030 Main Targets Maintaining the existing nuclear capacities Integrating the Central European grid network and constructing the required cross border capacities necessary to MW export Increasing energy savings, efficiency Increasing the share of renewable energy up to 1350 MW Utilizing the domestic coal and lignite resources in eco-friendly manner for power generation MW 1 The Hungarian Parliament approved the National Energy Strategy in its Resolution No. 77/2011. (X.14.)
10 Overview of renewable goals of Hungary National Action Plan : 14,65% of total gross energy consumption Obligation for the state Potential opportunity for the investors Relevant changes in regulatory environment is inevitable for achieving the NAP s goals Renewables capacities and generation in the NAP: Capacity (MW) Generation (GWh) HYDRO WIND ,545 SOLAR GEOTHERMAL BIOMASS ,688 BIOGAS TOTAL 755 1,536 5,597 MVM is committed to take a leading role in fulfilling the 20/20 goals of Hungary 10
11 MVM Paks Nuclear Power Plant Ltd. 4 units - VVER-440 design (PWR Second generation, safe model ) Operation commenced: 1982, 1984, 1986, 1987 Capacity after power upgrading: 4x500 MW Following the lifetime extension, the units are expected to operate until 2032 to 2037 Continuous safety upgrading - good safety and technical performance The safety of the nuclear power plant is guaranteed by: highly qualified, safety conscious and greatly committed personnel continued developments, safety enhancement measures and reconstructions intended to replace the obsolescent items of equipment.
12 Capacity upgrade Start up of the unit Capacity upgrade Unit 1 14/12/ /07/2007 Unit 2 26/8/ /12/2008 Unit 3 15/09/ /11/2009 Unit 4 09/08/ /09/2006
13 Lifetime extension
14 Project preliminaries MVM Teller Project July 2007 Establishment MVM Teller Project April 2008 Feasibility study Decision in Principle of the Parliament March yes 6 no 10 abstaining MVM Lévai Project July 2009 Establishment Preparation work of the planned project. Background work for successful decision making process. National Energy Strategy October 2011 Parliament s decision MVM Paks II. Nuclear Power Plant Development Co. July 2012 Establishment Continues the work of Lévai Project as an independent company.
15 Project preliminaries 14th January th February th March th June 2014 Intergovernmental Agreement (IGA) Treaty between the Government of Hungary and the Government of Russian Federation on cooperation in the field of peaceful use of nuclear energy Act II of 2014 The IGA in Hungary has been incorporated into the Act II of 2014, which came into force on 12th February The Government of Hungary and the Government of Russian Federation signed the agreement on provision of a loan for construction completion of Paks NPP. The Parlament accepted the Act related to the provision of loan for construction completion of Paks NPP. According to the Interngovernmental Agreement the Parties cooperate in maintaining and in developing Paks Nuclear Power Plant, including inter alia the design, implementation and commissioning of the new 5. and 6. VVER power plant units of at least 1000 MW installed capacity.
16 Project preliminaries The Government of Hungary and the Government of Russian Federation signed the agreement on provision of a loan for construction completion of Paks NPP (28th March 2014) and the Hungarian Parlament has accepted the related Act in 23th June The Russian Government is ready to allocate Hungary a loan of up to 10 Billion to build and commission Units 5 and 6 of Paks NPP. Hungary will start to repay the loan after the reactors have been commissioned (on the closest date to this event, i.e. March 15 or September 15) but not later than March The interest on the loan commencing 2014 until the commissioning of the reactors (and not later 2026) will be 3.95%, then over the first seven years of repayment 4.5%, during the second seven-year period 4.8%, and in the third one 4.95%.
17 Fundamentals for new Units General Reactor thermal power 3200 MW Gross electrical power 1198MW Net electrical power 1113 MW Net efficiency 34,8% Household supply 7,1% Load factor >90% Design lifetime 60 év Nuclear island Primary pressure 162 bar Reactor inlet temperature 298,2 C Reactor outlet temperature 328,9 C Turbine island Steam pressure 68 bar Steam temperature 283,8 C Steam flow rate 1780 kg/s PSA results Hungarian Nuclear Safety Code: Core damage frequency Large early release frequency <5,94*10-7 /yr <2*10-8 /yr > 10-5 /yr 10-6 /yr
18 Main design characteristics Proven design methods Double walled containment 4 independent safety systems (4x100%, 4x50%) Management of Beyond Design Basis Accidents (corecatcher, hydrogen recombiners, etc.) by means of passive safety systems Increased earthquake resistance 0,25 g - 0,35 g 72 hrs duration during total loss of electrical power with no fuel damage Application of high extent of diversity and functional redundancy Minimize of human error AES-2006 satisfies the requirements of European and international safety standards Forrás: Rosatom
19 Bird s eye view of the site
20 Licensing steps Parliament Decision in principle Site licensing MBFH - mining inspectorate Geological examination OAH Hungarian Atomic Energy Agency Safety evaluation of the site ÁNTSZ health authority Determination of dose constraint Environmental licensing KTVF environmental inspectorate Consultation or preliminary environmental assessment Environmental impact assessment In progress preliminary licenses Other licensing Pertaining to building affairs Physical protection Radiation protection Fire protection OAH MEKH OAH Construction license Construction license System installation licenses OAH MEKH License for operation License for energy production KTVF Construction license for systems of water management KTVF Operational license for systems of water management MEKH Hungarian Energy and Public Utility Regulatory Authority
21 Environmental licensing general overview Inspectorate s opinion Environmental investigations Natura 2000 investigations Preliminary Consultation Document Consultation process International phase Domestic phase Preliminary Archeological Documentation Environmental Impact Assessment (EIA) Application for environmental licence (2014) licence expected in the first half of 2015
22 Localisation Due to the IGA the share of Hungarian suppliying industry will reach 40% in the project MVM strated to explore and prepare the capable Hungarian companies Potential businesses (158 proper size businesses, 151 smaller businesses) Electrical, I&C Insrumentation and control Design, engineering consulting, R&D Mechanical Architecture, building, construction Analysis of the Hungarian supplying industry
23 Localisation Large companies Certification Small and micro enterprises Medium size enterprises Analysis of the Hungarian supplying industry
24 Our future enterprise - roadshow Venue Number of companies Paks 40 Kalocsa 37 Veszprém 79 Komárom 21 Debrecen 47 Miskolc 27 Budapest 120 Total: 388
25 Public acceptance % Do you accept that a nuclear power plant operates in Hungary? 90% 80% 70% 60% 26% 24% 21% 22% 18% 21% 16% 19% 19% 16% 20% 22% 19% 17% 27% 30% 33% 36% 33% 31% 28% 25% 24% No Yes 50% 40% 30% 74% 76% 79% 78% 82% 79% 84% 81% 81% 84% 80% 78% 81% 83% 73% 70% 67% 64% 67% 69% 72% 75% 76% 20% 10% 0% 11-m. 11-j. 11-j. 11-a. 11-s. 11-o. 11-n. 11-d. 12-m. 12-j. 12-j. 12-a. 12-s. 12-o. 12-d. 13-á. 13-m. 13-j. 13-j 13-s. 13-o. 13-n. 14-j. 25
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