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NNWE Executive Brief (1 November 2016)
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NNWE Executive Brief

Welcome to the bi-weekly Executive Brief aimed at distilling the most important market, regulatory and technological updates and delivering it straight into your inbox.
 

"As far as the nuclear industry is concerned, Brexit does present a serious challenge. It removes from the EU’s deliberations one of the strongest pro-nuclear voices. Entrenched anti-nuclear countries like Austria, alongside those like Germany whose hostility to nuclear is politically driven, will have much greater sway once Britain is no longer sitting at the table. Already some Green Party campaigners in continental Europe have seized on Brexit as a chance to allow other countries to break up Euratom. What these anti-nuclear voices fail to explain is how can Europe meet its own challenging climate targets at the same time as maintaining secure energy supplies unless there is a significant continuing contribution from nuclear. Brexit therefore means the nuclear industry must work harder both in Brussels and among member states to make its case. In this respect, as in so many others, Brexit is taking us into uncharted territory."

Tim Yeo, Chairman, New Nuclear Watch Europe (NNWE)

5 Things to Know

  • The EU ETS surplus started to decline for the first time in 2015 thanks to back-loading reforms but remains too substantial to drive CO2 abatement [Figure 1 - below].
  • UK marks 60th anniversary of Calder Hall - the world's first commercial nuclear power plant - which was opened in 1956 by Queen Elizabeth II. Calder Hall was in operation for 47 years.
  • The German cabinet has adopted a bill under which reactor operators will pay some €23.6bn into a state-owned fund for the decommissioning of nuclear power plants and managing radioactive waste.
  • The UK has laid out a welcome mat for any nuclear operators in the world who want to showcase their latest designs in Britain as long as they meet GDA approval. 
  • Unit 1 of the Novovoronezh II nuclear power plant is now operating at full power. Russia's first VVER-1200 reactor was connected to the grid on 4 August.
Source: EEA - Trends and projections in the EU ETS in 2016

Quotes of the week...


“Hinkley signals a renaissance and demonstrates the UK is open for business. It also showed we take the interests of national security very seriously, and other countries − including our Chinese investors − accept this. When factoring in costs and benefits in how the subsidy is arrived at, by our best estimates we judge Hinkley Point C remains a good deal. It will provide 7% of the UK’s power in a non-intermittent and low-carbon manner with secure baseload." -- Baroness Neville-Rolfe DBE CBE, Minister of State for Energy and Intellectual Property, BEIS

"[Novovoronezh II] is particularly important for Rosatom because it is the world's first 'Generation III+' design to be launched and because it will serve as a reference point for VVER-1200 projects in several other countries, with whom the corporation has construction contracts." -- Alexey Likhachov, Chief Executive, Rosatom


“Collectively, my supporting team has more than 200 years expertise working on large scale projects. I can really say nobody has ever before brought together that kind of team in Finland. -- Minna Forsström, Project Director, Fennovoima

Market Update

Market as of 31 October 2016

NewsFrench Areva is struggling to find a buyer for its new nuclear fuel unit, a key condition for the European Union to clear a state rescue package for the group, hit by years of losses.

Uranium Price: $20.00 (-2.75) lb | €18.39 (-2.04) lb
 
"There's a window of nine to 24 months" before signs of a turnaround can emerge...any attempts to introduce new supplies or dig new mines were not sympathetic to reality" -- John Borshoff, Managing Director, Deep Yellow 
 
Figure 2: 12-month price of uranium
Market as of: 31 October 2016. Courtesy of Ux Consulting Company

New Nuclear Project Tracker


EPR (EDF) Gen III+
Prospective developments: 0

News: The first-of-a-kind EPR plant at Olkiluoto has passed two major milestones this month and is on track to start-up in late 2018.
AP1000 (Westinghouse-Toshiba) Gen III+
Future development: 6 (China), 4 (US), 6 (India)
 
News: The AP1000 is expected to be GDA approved for use in the UK in March 2017.
ATMEA1 (Areva-Mitsubishi) Gen III+
Prospective developments: none
 
News: The Sinop nuclear development is waiting the results of its environmental impact assessment before final confirmation by the Turkish government.
ABWR (GE Hitachi-Toshiba) Gen III
Prospective developments: 4 (Japan), 2 (UK)
 
News: India is due to sign a MoU with Japan which could lead the way for GE Hitachi to develop new NPP in the country. An announcement is due in November. 
APR1400 (Kepco) Gen III
Prospective developments: 4 APR+ (Gen III+) in South Korea
 
News:
Shin Kori 4 is undergoing a re-cabling of some of its systems and is due to come online in January 2017.
VVER-1000 (Rosatom) Gen III, VVER-1200 (Rosatom) Gen III+
Prospective developments: 14 (Russia), 2 (China), 12 (India), 1 (Finland), 3 (Turkey), 2 (Hungary)
 
News: Hanhikivi 1 in Finland is on track to start construction in 2018 for a 2024 connection date in a strong statement of support between Russian and Finnish companies. 
News: India and Russia have officially launched the second phase of the Kudankulam II nuclear power plant as part of an intergovernmental agreement signed between Moscow and New Delhi in 1998.
News: Rosatom have opened their first regional office in India as cooperation between the two nations on nuclear energy deepens.
Hualong1 (CGN) Gen III+
Prospective developments: 1 (UK), 6 (China)
 
News: CGN are looking to propose their plans for the Hualong 1 development at Bradwell in
the UK for GDA approval before the end of the year. 
PHWR (NPCIL) Gen III
Prospective developments: none
 
News:
 Kakrapar Unit 3 is due to come online at the end of 2016 but may be delayed as final checks are concluded.

Global Decarbonisation

Nuclear energy will play an important role in achieving the "three Es" - economic growth, energy security and environmental protection - says the Institute of Energy Economics, Japan (IEEJ) in their latest report. 


France is set to abandon its plan to introduce a carbon floor price on its energy sector following pressure from the miners’ and energy workers’ union which forced the French government to back down.


Sweden is on track to produce all its energy from renewable sources by 2040. Renewables such as hydro and wind last year accounted for 57% of the Nordic nation's power production, with the rest coming from nuclear.

Industry News

The National Grid Company has unveiled detailed proposals for the £2.8bn project to connect the proposed nuclear power station at Moorside in Cumbria into the UK electricity network.


Slovakia's Nuclear Regulatory Authority expect completion of a third block at the Mochovce nuclear power plant to be completed by November 2017.The fourth block should be finished a year later, in November 2018.


Construction of Ukraine's used fuel storage facility at the site of the Chernobyl nuclear power plant is expected to start in March 2017


Used fuel from the Ignalina plant in Lithuania has been moved to an interim Spent Fuel Storage Facility which is due to begin official commercial operation next year after final regulatory approval.


Finland have signed a four year service contract to share repository know-how with Czech Republic Radioactive Waste Repository Authority (SÚRAO).


Unit 2 at the Temelín NPP in the Czech Republic was restarted on 14 October following a scheduled shutdown

New Reports

- European Enironment Agency: Trends and projections in the EU ETS in 2016 - The EU Emissions Trading System in numbers
- The Institute of Energy Economics, Japan: Asia / World Energy Outlook 2016

NNWE in the news

Nuclear Report
Politico
Bloomberg

Infrastructure Intelligence
Sunday Telegraph

Politics

Russia and Paraguay have signed their first MoU to cooperate in nuclear energy and hope to develop a nuclear science and technology centre together. 


Public support for nuclear energy in the UK has decreased according to the latest government figures, it now stands at 33% as opposed to 36% at the last assessment. 

Nuclear Regulation

Sweden has made good progress in its legislative and regulatory framework for security at nuclear power facilities according to the IAEA.


The French Nuclear Safety Authority has requested that five of EDF's nuclear power units are taken offline for additional inspections as parts of the steel components have been found to contain high concentrations of carbon.


A small amount of radioactive iodine was released into the environment during an incident involving the handling of test fuel at the Halden research reactor in Norway.

Innovation (Gen IV)

Techno-Economic Assessment (TEA) on SMRs, commissioned by the UK government, is due to be published by the end of November.


Essel Group Middle East has agreed to invest $18m in Swedish-Canadian SMR technology company LeadCold Reactors. The SEALER design - intended for use in remote areas - could generate 3-10 MWe over a 10-30 year period without refuelling.

NNWE Blogs

Tim Yeo, Chairman of NNWE Gives a Keynote Speech at the 4th European Nuclear Power Briefing 2016
Pan-European CfDs' called for at EU nuclear Conference
NNWE reflects on the 60th anniversary of Calder Hall nuclear power station

- New nuclear power heralded at Conservative Party conference
- NNWE Briefing Results in Calls for Greater Standardisation of Nuclear Components
Following Hinkley, the UK nuclear industry is now at a turning point

About New Nuclear Watch Europe (NNWE)



Chaired by Tim Yeo (Former MP and Chair of the Energy and Climate Change Select Committee) we campaign to ensure nuclear power is recognised as a desirable way for EU governments to meet their long-term security needs. 

For more information please visit our website at: www.newnuclearwatch.eu 
Copyright © 2016 New Nuclear Watch Europe, All rights reserved.