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The Challenges Facing New Generation CapacityAn overview and discussion

Paolo Gaio

Westinghouse International NPP

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The Nuclear Renaissance Has Arrived

However, it must not be forgotten that the Renaissance

would not be possible without the continued safe and

effective operation of the current worldwide fleet

Capacity factors are up and safety-related occurrences are

down, providing the most economic baseload generation in

the world.

THIS IS BOTH A SHARED RESPSONSIBLITY AND ACKNOWLEDGEMENT TO ALL OPERATORS AND VENDORS

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AP1000 Created and Designed to meet Customer Requirements

AP1000 Was Developed To Meet Advanced Light Water Reactor Utility Requirements (ALWR URD)

– Issues were discussed with EPRI ALWR Staff and Utility Staff

– All issues were resolved

Sometimes the design was changed

Sometimes URD requirements were changed

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AP1000 Satisfies EURAP1000 assessed against EUR,

AP1000 Assessment detailed and thorough– Over 5000 requirements

assessed

EUR Certified on 15 May, 2007

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Simplification and Standardization are Key to Future Nuclear Plant Construction

Simplicity and standardization in Design through reduced number of components and bulk commodities

Simplicity in Safety through use of passive safety systems

Simplicity in Construction through modularization

Simplicity in Procurement through standardization of components and plant design

Simplicity in Operation and Maintenance through use of proven systems and components, and man-machine interface advancements

Improved Safety, Competitive Economics and Good Performance

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Essential Change: The New Licensing Process – 10 CFR 52

I TAAC metConstruction

Operation

CombinedConstruction

and OperatingLicense(COL)

Early Site Permit(ESP)

Design Certification AP1000 Certified

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Supply Management ChallengesAbrupt, expanding demand; diminished supply chainLong lead times for specialty steel forgings, SG tubingLogistics of moving large components around the worldCompetition with supply to other industries and

competitors

Standardized plant advantages - efficiency, lower costs:Opportunity to establish a learning curveMultiple standard plants = higher production volumes

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Nuclear is a Local Project Too

Opportunities for local industry

- Craft construction labor and materials

- Module fabrication

- More engagement according to capability

- Operation. Possibly technology transfer, as in:

- Republic of Korea

- China.

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Project Socio-Economic Impact

Locally:

- Develops local artisan

force

- Creates higher skilled,

higher paying jobs

- Ripple-effect to local

economy.

Project Construction Staffing - Including Module Fabrication

0

500

1000

1500

2000

2500

Months

Eq P

ers Unit 2

Unit 1

Site Devel & Modules

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Human Resource Challenge

After the 1970s, nuclear business retrenched, hiring stalled

Declining enrollment in nuclear engineering schools

Legacy: Gap in the US nuclear work force. Average age, 48 years.

But now…

Nuclear school admissions growing

Opportunities for new graduates at Westinghouse

- 500 new graduates hired over past 5 years

- Expect 150 more/year through at least 2010

- Plus experienced hires

US NRC, 200-400 to be hired/year through 2008

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Modular Construction Allows More To Be Done in Parallel Resulting in Shorter Construction Schedule

36-48 month construction period for the Nth plant, and financing costs that are >25% lower than earlier generations

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New Designs Have to Deliver

Cost basis that can compete with other energy sources

- High degree of certainty for schedule and cost

- Reduced construction time and costIncreased levels of safetyEasier to operate and maintainStandardized plants Expanded Grid Capability

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The Current Position for Grid operators

Grid operators need to maintain the quality, the voltage and frequency of the electricity generated under increasing the pressure of:

– Increasing Electrical Demand

– Aging Generation Plant & Transmission Infrastructure

– Pressure to Reduce CO2 – Driving Renewables

Result – More Flexible Generation Required

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Traditional Generation Mix

Base load typically comprises of Coal and Nuclear – Plants

which have long start up times high capital costs and low

fuel costs.

Peak load is usually supplied from gas fired and hydro

plants that are must faster to come online and have

increasingly higher fuel cost

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Future Generation Mix

Increase in Renewable Generation– Wind & Solar has Transient Output

There is extensive evidence of large-scale mid-winter weather in which very little wind generation was available across Northern Europe

Oswald J et al, ‘Will British Weather Provide Reliable Electricity?’ 2008 and Bach P-F

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AP1000 - Smarter Generation

The AP 1000 uses ‘Grey Rods’ to control the reactor ouput – Not water boronation.

This provides the ability for:– 5% per minute ramp changes– 50% Load change per day and a 2 hour linear

ramp characteristic and this is in addition to…– Follow load changes of less than 10% peak-to-

peak at a rate of 2% per minute of rated load – (That’s equivalent to 12MW in 30seconds)

Full Generation Flexibility while maintaining a 60 Year life

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Questions ?