What, Why & Objectives of Feasibility Study · PDF fileWhat, Why & Objectives of Feasibility...

IAEA International Atomic Energy Agency

Overview for a feasibility study

What, Why & Objectives

of Feasibility Study ?

IAEA

IAEA

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

IAEA 6

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

IAEA 7 7

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

IAEA

8

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

IAEA

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.)

IAEA


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?

IAEA


• 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

IAEA

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

IAEA 14 14

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


Overview for a feasibility study

Use of Professional

Consultants

IAEA 16

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

IAEA

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.

17

Don’t be “pennywise … pound foolish”

The chain is only as strong as the weakest link

IAEA

Consultant selection criteria

18

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


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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IAEA 3/28/2014 21

IAEA

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

IAEA

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

23

About 60,000 components

• Reactor Pressure Vessel

• Reactor Internal

• Reactor Main Coolant Pump

• Primary coolant pipe

• Pressurizer

• Steam Generator

• Containment

• Concrete structure

• Cables

IAEA

Nuclear Island / Conventional Island

3/28/2014 24

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

IAEA

Turn Key Contract for Construction

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ITB-Turnkey

NI

+

CI

+

BOP(A/E)

Contract-Turnkey

NI

+

CI

+

BOP(A/E)


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Split Type Contract for Construction

3/28/2014 26

ITB-Component Contract-Component

NI

CI

BOP

NI

CI

BOP


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Multi-contract for Construction

3/28/2014 27


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

3/28/2014 28


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


IAEA

Korea Case

IAEA

China - Qinshan phase (turnkey project)

IAEA

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

IAEA

Site project management organization

(Qinshan)

IAEA

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

IAEA

Business Model for Construction and

Operation Contract

3/28/2014 36

IAEA

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.

IAEA

Akkuyu Nuclear Power Plant is the First Rosatom BOO Construction

Project Outside Russia

38

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.

3/28/2014 40

IAEA

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.

3/28/2014 41

IAEA

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

IAEA


To the satisfaction of all

Stakeholders



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Attractive Investment



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

IAEA

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

3/28/2014 46

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