What, Why & Objectives of Feasibility Study · PDF fileWhat, Why & Objectives of Feasibility...
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IAEA International Atomic Energy Agency
Overview for a feasibility study
What, Why & Objectives
of Feasibility Study ?
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Operation / decommissioning
•Preparing for
assuming
commitments &
obligations
Commissionin
g
Nuclear power option
included within the
national energy strategy
10 – 15 years
PHASE 2 PHASE 3 PHASE 1
MILESTONE 1 Ready to make a knowledgeable
commitment to a nuclear
programme
MILESTONE 2 Ready to invite bids
for the first NPP
•MILESTONE 3 •Ready to commission and
operate the first NPP
Bidding process
Pre project Project decision making Construction
Considerations before a decision to launch a nuclear power programme is taken
Preparatory work for the construction of a NPP after a policy decision has been taken
Activities to implement a first NPP
Maintenance and continuous infrastructure
improvement
•www.pub.iaea.org/MTCD/publications/ninfrastructure.asp
Pre- Feasibility Study Feasibility Study
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Preparation
of
Infrastructure
Commissioning
and Operation
• Project Decision Making • Feasibility Study
• Environment Impact
Analysis(EIA)
• Site Evaluation
• Bid information Specification
and Bidding and Evaluation
• EPC contract
• Construction
• Public information and
understanding
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Year Y-5 Y-4 Y-3 Y-2 Y-1 Y+1 Y+2 Y+3 Y+4 Y+5 Y+6
Milestones
Feasibility
Study
& Project Plan
License
Design &
Procurement
Construction
Project Phase
Prepare
FSAR FSAR Review
(12)
(18)
COD Major Contract Set RV F/L
Feasibility
Study
Prepare
PSAR PSAR Review
by Reg. Body
Construction
Excavation
Equip. Manufacture & Delivery
Pre-Project
Site Preparation
First
Concrete
Excavation
CHT
Startup
Long Lead
Equip. Order
Detailed Site Survey
Environ. Impact Assess
(12)
(24)
(12)
(18)
(50)
(18 ~ 24) (12)
(52)
Project Implementation
Typical NPP Project Schedule
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Pre-Requisites of Feasibility Study
• Analyse the country’s industrial infrastructure • Capability to fulfil the pre-requisites of a nuclear option
• What needs to be added and what needs to be upgraded
• Adequacy of its human resources in terms of availability,
competence and trainability
• Analyse the impact of a NPP projects • Economic impacts
• Cost impact of the project
• Financing landscape in and outside the country
• Social impacts of a nuclear power plant
• Environmental impacts
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Major steps nuclear power programme
Feasibility
Study for NPP
Preliminary
Siting &
Environmental
Impact
Assessment
Pre- Feasibility
For NP
Programme
National
Position for
Nuclear Power
Building the
Nuclear Power
Infrastructure
Siting &
Environmental
Impact
Assessment
Bid
Preparation
and Issue
Milestone 1 Milestone 2
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Major steps in energy project
Feasibility
Study
Bid
Preparation
and Issue
Vendor
Proposal
Preparation
Evaluation of
Vendor
Proposals
Structure of
Project
Ownership
Identify
External
Financing
Requirements
Environmental
Impact
Assessment
Prequalification
of Vendors
Negotiations
and Final
Contract
Select
External
Financing
Financial
Closure and
Start of
Project
Develop
Owner
Programs
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Major steps nuclear power programme
Feasibility
Study for NPP
Preliminary Siting
& Environmental
Impact
Assessment
Pre-Feasibility
For Nuclear
Power
Programme
National
Position for
Nuclear Power
Building the
Nuclear Power
Infrastructure
Siting &
Environmental
Impact
Assessment
Bid
Preparation
and Issue
Milestone 1
Milestone 2
Feasibility
Study
Bid
Preparation
and Issue
Vendor
Proposal
Preparation
Evaluation of
Vendor
Proposals
Structure of
Project
Ownership
Identify
External
Financing
Requirements
Environmental
Impact
Assessment
Prequalification
of Vendors
Negotiations
and Final
Contract
Select
External
Financing
Financial
Closure and
Start of Project
Develop
Owner
Programs
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Why is a Feasibility Study needed
A feasibility study is commissioned in order to assess, from
an overall perspective:
• All aspects of the energy demand in a specific country or
geographical area,
• To place the nuclear option in its rightful context
• To allow informed decisions & appropriate solutions
• To adopt safety driven solutions
• To establish the right level of investments
• Avoid costly mistakes and unnecessary risks
Main purpose of a feasibility study is to determine if a business
opportunity is possible, practical and viable.
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Purpose of Feasibility Study (1)
Provide answers to a number of specific questions: • How can a new NPP be integrated to the existing electric power
system;
• What is the most suitable size and main features of the NPP;
• What is the preferred site and the possible issues associated with
the selected site;
• Which type of reactor (technology) should be the basis for bids
• VVER, EPR, AP-1000, APR-1400, ECR, ABWR, APR,ATMEA-1, CPR-1400
Assumptions often include such factors as:
• Technology used (equipment, production process, etc.)
• Financing (capital needs, volume and cost of goods, etc.),
• Marketing (prices, competition, etc.)
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Purpose of Feasibility Study (2)
Provide answers to a number of specific questions:
• How does cost and economics compare with alternative options;
• What are the organizational and manpower requirements to
implement the project ;
• What can the overall project duration and schedule be?
• Is the project financially viable? • Is it self-sustainable and what are the possible sources for financing;
• What type of contractual approach is most suitable for the plant
acquisition;
• Can the international market for NPPs, fuel cycle and essential
materials and services sustain the project during its operational life?
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Purpose of Feasibility Study (3)
• Can the country’s infrastructure support the project and what are
the possibilities for national industrial and bulk supply
participation?
• Can the nuclear safety criteria and regulation be implemented and
how?
• What will the environmental impact be and is it acceptable?
• Estimated time for the preparation of a feasibility study depends on the
complexity of the project and varies usually in the range of 12 – 18
months
• The information used is confidential and should be protected by
confidentiality agreements
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Feasibility Study Report
Executive summary
1. Introduction
2. Analysis of electric power
supply, justification of new
units
3. NPP unit capacity
4. Site characterization
5. NPP technology options
6. Summary of the results of the
preliminary EIA
7. Implementation of the new
build project
8. Procurement
9. Construction, operation, and
human resources
10. Localization/ National
Involvement
11. Licensing
12. Economic evaluation
13. Financing
14. Public Acceptance
15. Project Specification &
Invitation to Bid
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Feasibility Study
Feasibility Study
Technical issues
Infrastructure issues
Financial issues
Site
Selection
Public
Opinion
Capacity
Addition
Alternatives
Analysis Grid
Capability
Projected
Cost of
Electricity
Country’s NP
Infrastructure
Environment
Impact 14
Electrical
Market
Legal issues
IAEA International Atomic Energy Agency
Overview for a feasibility study
Use of Professional
Consultants
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Challenges for npp
Lack of experiences
• Get outside subject matter help
• IAEA’s Milestone’s document tells a Member State WHAT needs to be done, but not HOW to do it
• Get nuclear experts
• Both technical and legal
• Check their relevant experience and the quality of their team
• Hire someone you can trust
• Put your trust in them
• Be careful how you incentivize your advisors
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Why need to hire a consultant ?
• Requires a strong background both in the technical and financial
aspects of the project.
• Credibility placed on the study by potential members and other
interested parties.
• Important tool for the bidding process that has huge technical,
financial and sometime political implications.
• For these reasons, it is important to hire a consultant with no
formal ties to project, equipment manufacturers or marketers, so
an unbiased evaluation of project operating potential and
efficiency can be made.
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Don’t be “pennywise … pound foolish”
The chain is only as strong as the weakest link
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Consultant selection criteria
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No. Criteria Points
1 Previous experience in creating similar Feasibility Studies 0- 20
2 Knowledge of the industry to be studied (Nuclear Power) 0- 15
3 Qualifications of principal/key member team of Consultant 0- 10
4 Understanding of the Project Owner structure 0- 10
5 Proposed interaction/interfaces with the Project Owner designated
representatives
0- 15
6 Verbal presentation/communication skills of the Consultant team 0- 10
7 Reasonableness of FS cost 0- 15
8 Miscellaneous 0- 5
TOTAL 0-100
IAEA International Atomic Energy Agency
Project Contract Structures
Super turnkey Normal turnkey Split-package
NI CI
BOP CW
NF
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View of Nuclear Power Plant
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Island of Nuclear Power Plant
Presented by Jean-Louis Ricaud, Industrial involvement : Key considerations for developing a localization plan
TM on nuclear infrastructure, IAEA, Feb 6 2014 at Vienna
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Components of NPPs • Pumps
• Heat Exchangers
• Pump motors
• Vessels/ tanks
• Piping
• Valves
• Core internals
• Cables
• Electric Facilities
• Turbines
• Concretes and Steel
Structure
• Instrumentations
• Ventilation equipment
• Mechanical equipment
• Power supply systems
• Others
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About 60,000 components
• Reactor Pressure Vessel
• Reactor Internal
• Reactor Main Coolant Pump
• Primary coolant pipe
• Pressurizer
• Steam Generator
• Containment
• Concrete structure
• Cables
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Nuclear Island / Conventional Island
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Nuclear Island
Primary
System
Primary Side
Auxiliaries
Balance
of NI
NI-Electrical Supply
and I&C
Heating, Ventilating, Air
Conditioning (HVAC)
Conventional Island
Steam Turbine
Generator incl.
aux system
and I&C
Balance of CI
Cooling
Water
System
CI-Electrical Supply
Heating, Ventilating, Air
Conditioning (HVAC)
Water-
Steam Cycle
Balance of Plant
Nuclear Power Plant
Presented by Dong Su Shin, Contents of the Feasibility Study for a New NPP, June 10- 14 2013 at Ulsan, KINGS
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Turn Key Contract for Construction
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ITB-Turnkey
NI
+
CI
+
BOP(A/E)
Contract-Turnkey
NI
+
CI
+
BOP(A/E)
Presented by Dong Su Shin, Contents of the Feasibility Study for a New NPP, June 10- 14 2013 at Ulsan, KINGS
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Split Type Contract for Construction
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ITB-Component Contract-Component
NI
CI
BOP
NI
CI
BOP
Presented by Dong Su Shin, Contents of the Feasibility Study for a New NPP, June 10- 14 2013 at Ulsan, KINGS
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Multi-contract for Construction
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ITB-Component Contract-Component
NI NSSS
BONI
CI BOCI
T/G
Pre-project
NSSS
T/G
FUEL
A/E
FUEL
A/E
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Muti-contract and technical transfer
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ITB-Component Contract-Component
NSSS-EQ T/T NSSS
T/G
A/E
Fuel
NSSS-SD T/T
T/G T/T
Fuel T/T
A/E T/T
Presented by Dong Su Shin, Contents of the Feasibility Study for a New NPP, June 10- 14 2013 at Ulsan, KINGS
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Korea Case
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China - Qinshan phase (turnkey project)
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Turn Key Contract
• Main contractor:
• Design and supply of the Npp
• Equipment procurement and design of the BOP
• Management of Npp construction
• Subcontractor management
• Construction work with subcontractors
• Provision of guidance and direction to the owner for
commissioning.
• Overall commissioning management,
• Training of owner’s plant management, operations and
maintenance staff.
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Overall Organization of the project and
scope of supply ( Qinshan phase 3)
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Turn Key Contract
• Owner: • Site preparation
• Provision of permanent site facilities (offices, warehouse, etc.)
• Local staff to the Site Project Management Organization
• Management of the BOP construction;
• Management of licensing;
• Execution of commissioning;
• Provision of Quality Control of NPPs and BOP offshore equipment
during manufacturing;
• Provision of additional site QC of NPP construction
• Provision of the first fuel loading
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Site project management organization
(Qinshan)
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Integrated TQNPC/ AECL Commissioning Team
(Qinshan)
Note 1: The AECL Commissioning and Operations organization provides guidance and direction to TQNPC
Commissioning and Operations organizations and has a reporting relationship to AECL Project Director.
Note 2: The TQNPC Commissioning Technical, Commissioning Execution and Production Organization perform the
Commissioning and have a reporting relationship to the TQNPC General Manage
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Business Model for Construction and
Operation Contract
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BOO: Build Own Operate
• The operator is granted the right by the host
government to develop, finance, build, own,
operate, and maintain a facility for a specified
period.
• During this time the entity owns the project and
retains revenues.
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Project will be subject to all applicable laws, regulations and codes
in Turkey. All necessary licenses, permits and approvals from
related governmental organizations shall be obtained by APC.
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Akkuyu Nuclear Power Plant is the First Rosatom BOO Construction
Project Outside Russia
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Akkuyu Project Features
Akkuyu site, Turkey
AKKUYU NGS AŞ
Mersin
• First Nuclear Power Plant in Turkey
• 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)
• Total capacity: 4,800 MW. (4 x 1200 MW)
• Implementation period: 2011-2023
• Total cost ~ $ 20 bln
• Power Purchase Agreement for 15 years, fixed
price terms
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Power purchase agreement
TETAS will purchase:
- 70% of electricity from Unit 1 and 2
- 30% of electricity from Unit 3 and 4
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BOOT: Build Own Operate Transfer
(construction, operation)
• The operator initially owns the nuclear power
plant.
• An agreement between the parties allows a
transfer of the nuclear power plant ownership
to a local operator after a specified period of
time.
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BDF: Build Design Finance
• Vendor assumes the responsibility for the
design, construction and financing of the plant,
but transfers the responsibility of operating the
plant to the local operator and host government.
• Assist the operator in the plant commissioning
and during its first period of operation.
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Interesting Challenges
Plant
People Processes
and Procedures
Safe, secure,
environmentally
responsible design for
specific site acceptable
to Regulators and
Authorities
Design, Construction,
Operation, Maintenance
Cover all aspects of
managing the Site
(plant & people)
throughout life
Need to develop all at
the same time
Presented by Dr Janet Wilson, Director of Licensing and Permissions, Horison Nuclear Power , experiences of developing and Building ABWR in the UK
Feb 6 2014 at Vienna
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Interesting Challenges
To the satisfaction of all
Stakeholders
Presented by Dr Janet Wilson, Director of Licensing and Permissions, Horison Nuclear Power , experiences of developing and Building ABWR in the UK
Feb 6 2014 at Vienna
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Interesting Challenges
Attractive Investment
Presented by Dr Janet Wilson, Director of Licensing and Permissions, Horison Nuclear Power , experiences of developing and Building ABWR in the UK
Feb 6 2014 at Vienna
IAEA
Recommendations
• There are three main construction contract
types – turnkey, split-package and multi-
contract.
• The roles and responsibilities of the project
management team will vary, depending on the
adopted contract approach.
45
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Recommendations
• The multi-contracting structure has higher risks
• Interface Requirements Falling Through the Cracks,
Misunderstandings Among Contractors,
• Schedule Control And Delivery Risks,
• But It Allows for more local participation.
• This type should only be undertaken if the owner had
successfully gone through a nuclear power project
already, so it is not recommend this.
• A turnkey contract is lower risk. As a newcomer
county, it is recommended
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