PRESENT & FUTURE

OF CERNAVODA NPP

ROMANIA

Dr. IONEL BUCUR

CERNAVODA NPP SITE DIRECTOR

& SNN SA CNO

FEBRUARY 2016

NUCLEARELECTRICA S.A.

CERNAVODA NPP

ROMANIA HAS ONE NUCLEAR POWER PLANT LOCATED IN

CERNAVODA AND OPERATED BY S.N. NUCLEARELECTRICA S.A

Nuclear Fuel Facility

SNN Head-Office

Cernavoda NPP

Heavy Water Plant

2

Power

MW(e)

Type Operation since

Cernavoda 1 706,5 PHWR 1996

Cernavoda 2 704,8 PHWR 2007

Cernavoda 3 720 PHWR Under construction

Cernavoda 4 720 PHWR Under construction

Cernavoda 5 706,5 PHWR Not any more

considered

CERNAVODA NUCLEAR POWER PLANT

CERNAVODA NUCLEAR POWER PLANT

3

SNN SA HAS BEEN LISTED TO THE BUCHAREST STOCK EXCHANGE

WITH 10% OF ITS SHARES IN LATE 2013;

ROMANIAN STATE IS THE MAJORITY SHAREHOLDER (81,27%), THE

REMAINING SHARES BEING OWNED BY “FONDUL PROPRIETATEA”

(9,72%) AND OTHER SHAREHOLDERS (9%);

SNN SA HOLDS 100% OF ENERGONUCLEAR SA SHARES, THE

COMPANY THAT HAS DEVELOPED THE PROJECT ON CONSTRUCTION

AND COMMISSIONING OF CERNAVODA NPP UNIT 3 & UNIT 4.

THE OPERATOR OF CERNAVODA NPP UNIT 1 & 2 (1413 MW INSTALLED)

IS THE UTILITY:

SOCIETATEA NATIONALA NUCLEARELECTRICA S.A. (SNN),

ESTABLISHED IN 1998;

4

SNN S.A.

BUCHAREST

CERNAVODA NUCLEAR POWER PLANT

PITESTI NUCLEAR FUEL FACILITY

• SAFE & EFFICIENT OPERATION OF UNITS 1 & 2 – CANDU 6

• MANAGEMENT OF ALL SNN ASSETS IN CERNAVODA, INCLUDING PRESERVATION OF

UNITS 3 – 5 & HEATING SUPPLY TO CERNAVODA TOWN

• NUCLEAR FUEL FABRICATION

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ELECTRICAL POWER PRODUCTION TO END OF JUNE 2015 (GWh) – BREAKDOWN

BY RESOURCE TYPE

ROMANIA IS CLOSER TO ACHIEVING SUSTAINABLE ENERGY SYSTEM LARGELY

BECAUSE A HIGHER SHARE OF ITS ENERGY MIX COMES FROM LOW CARBON

ENERGY SOURCES, SUCH AS HYDRO, NUCLEAR AND RENEWABLE SOURCES

(~65%). 6

CERNAVODA NUCLEAR POWER PLANT

MISSION/ VISION

TO GENERATE ELECTRICAL AND THERMAL POWER USING NUCLEAR

TECHNOLOGY ENSURING HIGH NUCLEAR SAFETY, ECONOMIC EFFICIENCY, AND

CARE FOR PEOPLE AND ENVIRONMENT;

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NUCLEAR SAFETY IS A PERMANENT PREOCCUPATION IN ALL THE ACTIVITIES;

RESPECT FOR THE ENVIRONMENT AND CONCERN FOR FUTURE GENERATIONS;

10

CERNAVODA NUCLEAR POWER PLANT UNITS 1 & 2

PERFORMANCE

UNITS 1 & 2 OF CERNAVODA NPP – TO BE MAINTAINED AMONG THE FIRST 20

NUCLEAR UNITS IN THE WORLD;

MEET ALL REQUIREMENTS & CONDITIONS IMPOSED BY EUROPEAN

COMMISSION FOR NUCLEAR INDUSTRY;

CERNAVODA NUCLEAR POWER PLANT

PRIORITIES

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MANAGEMENT OF RADIOACTIVE WASTE AND DECOMMISIONIG ACCORDING

TO LEGAL PROVISIONS AND EUROPEAN PRACTICES;

BE INVOLVED IN U3 & U4 COMPLETION, COMMISSIONING & OPERATION;

SUPPORT THE DEVELOPMENT OF LOCAL COMMUNITY AND MAINTAIN A

PERMANENT DIALOGUE WITH LOCAL COMMUNITY IN ORDER TO INCREASE

THE ACCEPTANCE OF NUCLEAR ENERGY.

GROSS CAPACITY FACTOR U1+U2 (%)

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PLANT PERFORMANCE

0

20

40

60

80

100

GCF U1 97.62 84.8 100.10 91.53 99.67 87.16 99.40 91.14 96.92

GCF U2 93.23 96.92 90.6 97.24 91.07 98.47 89.15 98.50 92.23

GCF U1+U2 95.37 90.87 95.35 94.38 95.37 92.82 94.28 94.82 94.58

2007 2008 2009 2010 2011 2012 2013 2014 2015

CERNAVODA NPP – IN TOP OF THE WORLD NUCLEAR

POWER PLANTS

THE RESULTS CERNAVODA NPP ACHIEVED IN RECENT YEARS HAVE PLACED

THE PLANT AMONG THE MOST PERFORMANT WORLD NUCLEAR POWER

PLANTS;

ACCORDING TO NUCLEAR ENGINEERING INTERNATIONAL (NEI) STATISTICS

THAT HAVE CONSIDERED PLANTS’ UNIT CAPABILITY FACTOR (UCF) SINCE IN

SERVICE TO THE END OF JUNE 2015, UNIT 2 IS SITUATED ON 3RDPLACE, AND

UNIT 1 ON 14TH, WITH A UCF OF 92.7%, AND 89.4%, RESPECTIVELY, OUT OF 398

UNITS PERTAINING TO 178 UTILITIES FROM 29 COUNTRIES (AS OF OCTOBER

2015);

WITH A UCF OF 91,1% SINCE IN SERVICE, ROMANIA IS PLACED ON THE 1ST

PLACE IN THE WORLD, ACCORDING TO THE SAME MAGAZINE;

THESE RESULTS WERE ACHIEVED OBSERVING THE NUCLEAR SAFETY

REQUIREMENTS FOR POPULATION, ENVIRONMENT AND PLANT PERSONNEL.

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12

LOAD FACTORS TO END OF JUNE 2015 AS PER NUCLEAR

ENGINEERING INTERNATIONAL MAGAZINE

AVERAGE YEAR-TO-DATE, 12-MONTH LOAD FACTOR & LIFETIME

LOAD FACTOR BY COUNTRY TO END OF JUNE 2015

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IMPACT ON PEOPLE & ENVIRONMENT

CUMMULATED RELEASES OF RADIOACTIVE EFFLUENTS U1&U2 (μSv)

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LEGAL DOSE FOR POPULATION 1000 Sv

AUTHORISATION CONSTRAINT 100 Sv

THE AVERAGE ANNUAL DOSE 0,57% FROM THE LEGAL DOSE (9 YEAR ROLLING)

0

2

4

6

8

10

12

Radioact ive eff luents U1 10.45 4.82 7.07 3.98 2.24 4.25 3.53 4.33 2.346

Radioact ive eff luents U2 0.15 0.88 1.44 1.75 1.37 2.05 1.99 1.68 2.662

Total 10.6 5.7 8.51 5.73 3.61 6.30 5.52 5.25 5.01

2007 2008 2009 2010 2011 2012 2013 2014 2015

COLLECTIVE RADIATION EXPOSURE: COMPARISON OF CANDU-6 UNITS

MEAN VALUE (man·Sv)/ UNIT

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0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

Cernavoda NPP 0.135 0.340 0.250 0.395 0.195 0.460 0.255 0.300 0.194

CANDU-6 mean value 1.040 1.260 1.100 1.060 1.090 1.350 0.780 0.870 0.620

2007 2008 2009 2010 2011 2012 2013 2014 2015

CERNAVODA NPP – RADIOACTIVE WASTE STORAGE SOLUTION

INTERMEDIATE

DRY SPENT FUEL

STORAGE

SOLID

RADIOACTIVE

WASTE INTERIM

STORAGE

LOCATION FOR

THE LOW AND

MEDIUM LEVEL

WASTE

REPOSITARY

FACILITY

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SPENT FUEL STORAGE SOLUTION

AFTER 7 YEARS OF COOLING IN THE UNIT SPENT FUEL BAY, THE NUCLEAR

FUEL REMOVED FROM BOTH REACTORS IS TRANSFERRED INTO AN

INTERMEDIATE DRY SPENT FUEL STORAGE, ON SITE.

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LOW & MEDIUM RADWASTE STORAGE SOLUTION

IN ORDER TO REDUCE THE STORAGE VOLUME FOR THE LOW AND MEDIUM

LEVEL RADIOACTIVE WASTE, THEY ARE COMPACTED AND THEN STORED IN AN

RADIOACTIVE WASTE INTERIM STORAGE, ON SITE;

TO FURTHER REDUCE THE VOLUME, THAT WASTE IS PROCESSED AND FINALLY

INCINERATED AT STUDWIK, SWEDEN;

AT THE END OF 2015 MORE THEN 57.300 KG OF SOLID RADIOACTIVE WASTE

HAVE BEEN SENT TO INCINERATION AND 2.233 KG OF ASH HAVE BEEN

RECEIVED AT CERNAVODA NPP.

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SIGNIFICANT EXPERIENCE IN NUCLEAR GENERATION (CANDU), MORE THAN 25

YEARS OF NUCLEAR REACTOR OPERATION;

EXPECTED LIBERALIZATION OF THE ELECTRICITY MARKET AND

CONSEQUENTLY A SIGNIFICANT PART OF THE ELECTRICITY WILL BE SOLD ON

THE COMPETITIVE MARKET, AT HIGHER PRICES;

ELECTRICITY CONSUMPTION INCREASE AND THE EXISTENCE OF OLD

ELECTRICITY GENERATION ASSETS IN ROMANIA DETERMINE THE NEED FOR

NUCLEAR INVESTMENTS;

COMPETITIVE ADVANTAGES & OPPORTUNITIES

MOTIVATING U3 & U4 PROJECT

HIGH PREDICTABILITY OF THE OPERATING COSTS;

RELIABLE SOURCES OF RAW MATERIALS, LOW FUEL DEPENDENCY AND LOW

VARIABLE COSTS;

OPERATIONAL STABILITY AND HIGH PERFORMANCE INDICATORS SUPPORT

RAISE IN SNN’S COMPETITIVENESS;

ELECTRICITY PRODUCTION PROCESS IS BASED ON HIGHLY PERFORMING

TECHNOLOGY, INTERNATIONALLY ACKNOWLEDGED AND WITH A HIGH NUCLEAR

SAFETY LEVEL;

NUCLEAR ENERGY IS A CLEAN, FREE OF CO2 ENERGY.

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2 UNITS X 720 MW CANDU 6;

EXISTING STATUS OF CIVIL

CONSTRUCTION (U3 – 51%, U4

– 30%);

TODAY, THE PROJECT

COMPANY ENERGONUCLEAR

DEVELOPS THE KEY

ACTIVITIES AND BUSINESS

PROGRAM ESTABLISHED BY

SNN;

ESTIMATED VALUE 6.5B EURO.

UNITS 3 & 4 PROJECT DESCRIPTION

SNN HAS JUST SIGNED A MEMORANDUM OF UNDERSTANDING WITH CGN

INVESTOR AND HAS A FIRM PLAN TO CONTINUE NEGOCIATION FOR

INVESTOR’S AGREEMENT.

NUCLEAR NEW BUILD

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Kosovo A

EC POSITIVE OPINION IN RELATION

WITH PROJECT (EURATOM TREATY

ART. 41) – REQUIREMENTS FOR

NEW PROJECTS;

UPDATED LICENSING BASIS

DOCUMENTS AND SAFETY DESIGN

GUIDES HAVE BEEN APPROVED BY

THE ROMANIAN NUCLEAR

AUTHORITY CONSIDERING NEW

SAFETY TARGETS;

LETTER OF COMFORT ISSUED BY

THE ROMANIAN NUCLEAR

AUTHORITY STATING THAT THE

DESIGN IS LICENSABLE;

ENVIRONMENTAL PERMIT HAS

BEEN ISSUED;

FEASIBILITY STUDY COMPLETED;

PROJECT ACHIEVEMENTS

PRELIMINARY DECOMMISSIONING PLAN & RADWASTE MANAGEMENT STRATEGY;

EXISTING STRUCTURES EVALUATED AND CONFIRMED TO BE FIT FOR PURPOSE

BY DESIGN AUTHORITY.

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MAIN CONCLUSIONS OF THE FEASIBILITY STUDY

- PERFORMED BY ERNST & YOUNG -

THE PROJECT IS FEASIBLE BOTH FROM THE TECHNICAL

AND FROM THE ECONOMICAL POINT OF VIEW, HOWEVER

A NEW ELECTRICITY MARKET MECHANISM IN ROMANIA

WOULD BE NECESSARY TO ATTRACT FOREIGN

INVESTORS;

CANDU IS A PROVEN TECHNOLOGY WITH A LICENSABLE

DESIGN (NOT FIRST OF A KIND IN ROMANIA);

THE PROJECT ADDRESSES THE KEY LESSONS LEARNT

FROM FUKUSHIMA ACCIDENT;

EXTENSIVE O&M EXPERIENCE AND INFRASTRUCTURE

(UNIVERSITIES, TRAINING FACILITIES, DESIGN AND

MATERIALS SUPPLIERS) EXIST TO SUPPORT THE

PROJECT;

REGULATORY AND TECHNICAL RISKS ASSESSED TO BE

LOW;

PROJECT COSTS RISKS ASSESSED TO BE LOW TO

MEDIUM;

DURING THE WHOLE PERIOD OF OPERATIONS THE

LEVELISED COST OF ELECTRICITY IS LOWER THAN THE

PROJECTED AVERAGE ELECTRICITY MARKET PRICE IN

REAL TERMS.

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S.N. NUCLEARELECTRICA – INVESTMENT STRATEGY

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MAJOR INVESTMENTS

PARTICIPA TION IN ENERGONUCLEAR ( 100 %) ;

TOTAL INVESTMENT 6.5 BILLION EURO ;

CONSTRUCTI ON PERIOD : 201 7 - 20 23 ;

COMMISSIONING : 20 23 .

ESTIMATED VALUE FOR U1 REFURBISHMENT: 1,2 BILLION EURO ;

MAJOR CAPEX IS EXPECTED TO OCCUR BETWEEN 2021 – 2023, U1 BEING SHUT - DOWN IN 2024;

ESTIMATED VALUE FOR U2 REFURBISHMENT: 1,2 BILLION EURO ;

MAJOR CAPEX IS EXPECTED TO OCCUR BETWEEN 2033 – 2035, U2 BEING SHUT - DOWN IN 2036.

OCCUR THROUGH THE ENTIRE PERIOD

ANALYZED;

MAIN PROJECTS :

• HEAVY WATER DETRITIATION

STATION;

• INVESTMENTS FOR INCREASING THE

NUCLEA R SAFETY OF CERNAVODA

NPP (POST - FUKUSHIMA

INVESTMENTS);

• INTERMEDIATE SPENT FUEL DRY

STORAGE;

TOTAL VALUE OF THE INVESTMENTS

APPROX 457 MIL EURO .

CONSTRUCTION OF UNITS 3 & 4 REFURBISHMENT OF U NITS 1 & 2 OTHER INVESTMENTS

2017 20 23 2030 2038

TIMELINE

CONSTRUCTION OF UNITS 3 & 4

PREPARATION OF U1 REFURBISHM ENT

OTHER INVESTMENTS

20 24 20 16

SHUTDOWN OF U1

36 20

SHUTDOWN OF U2

PREPARATION OF U2 REFURBISHM ENT

20 26

THE DETAILED EVALUATION (STRESS TEST) PERFORMED AT CERNAVODA

PROVES THAT BOTH CERNAVODA NPP UNITS MEET THE NUCLEAR SAFETY

REQUIREMENTS UNDER THE PROJECT WHILE HAVING SUFFICIENT DESIGN

MARGINS AGAINST SEVERE EARTHQUAKE AND FLOODING, STATION BLACK-

OUT, AND LOSS OF ULTIMATE HEAT SINK;

NEW WAYS TO RESPOND TO SEVERE ACCIDENTS HAVE BEEN IDENTIFIED AND

PROCEDURED (SAMG);

DESIGN MODIFICATIONS TO PREVENT AND LIMIT SEVERE ACCIDENTS

AFTERMATH THAT CAN LEAD TO CORE MELTDOWN HAVE BEEN IDENTIFIED,

AMONG WHICH WE MENTION:

ADDITIONAL FIRE WATER SYSTEM IN THE REACTOR VESSEL AND SPENT

FUEL BAY;

ADDITIONAL WATER SUPPLY SYSTEM AND OVERPRESSURE PROTECTION

SYSTEM IN THE REACTOR VAULT;

ENVIRONMENTAL QUALIFICATION OF CERTAIN MEASUREMENT AND

CONTROL LOOPS;

CAPACITY INCREASE AND SEISMIC QUALIFICATION OF CLASS I/ II

BATTERIES, ETC. 24

OVERVIEW ON FINAL STRESS TEST REPORTS

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IMPLEMENTATION OF UNIT 1 & UNIT 2 EMERGENCY FILTERED

CONTAINMENT VENTING SYSTEMS;

INSTALLATION OF UNIT 1 & UNIT 2 PASSIVE AUTOCATALYTHIC

RECOMBINERS (PAR’s) SYSTEMS FOR HYDROGEN RISK MITIGATION;

INSTALLATION OF A HIDROGEN MONITORING SYSTEM FOR

CONTAINMENT’S ATMOSPHERE (HERMETIS).

ALL THESE IMPROVEMENTS HAVE BEEN ALREADY IMPLEMENTED.

ALSO, A NUMBER OF ADDITIONAL ACTIONS HAVE BEEN DEVELOPED FOR

IMPROVING THE POWER PLANT RESPONSE CAPABILITY IN CASE OF STATION

BLACK-OUT (ADDITIONAL MOBILE DIESEL GENERATORS & MOTOPUMPS), AND

HAVE BEEN ALREADY IMPLEMENTED. TOTAL COST FOR ALL THAT

IMPROVEMENTS WAS CLOSE TO 60 M EUR.

WANO SIGNIFICANT OPERATING EXPERIENCE REPORTS (SOER) ISSUED IN 2011

AND 2013 WERE OF PARTICULAR IMPORTANCE FOR CERNAVODA NPP IN

IMPLEMENTING EMERGENCY AND ACCIDENT RESPONSE STRATEGIES FOR AN

EXTREME EXTERNAL EVENT.

NUCLEAR ENERGY IS PART OF THE NATIONAL AND EUROPEAN ENERGY

POLICY, IN TERMS OF THE THREE PILLARS:

– AN IMPORTANT SOURCE OF CLEAN ENERGY/ LOW POLLUTION; – MAJOR CONTRIBUTION TO THE SECURITY OF ENERGY SUPPLY; – COMPETITIVE SOURCE OF ELECTRICITY AND CONTRIBUTOR TO THE PREDICTABILITY

OF THE ELECTRICITY PRICE.

FEASIBLE, SAFE AND STABLE BASE LOAD SOURCE OF ELECTRICITY;

LONG DURATION OF OPERATIONS/ LIFE EXTENION (> 50 – 60 YEARS);

IMPORTANT SOURCE FOR PROGRESS AND HIGH TECHNOLOGY AT NATIONAL

LEVEL;

SPREADING MODERN BUSINESS APPROACH AND SAFETY CULTURE TO THE

HORIZONTAL SUPPLY CHAIN OF THE NATIONAL INDUSTRY;

POSITIVE EFFECTS OVER THE NATIONAL INDUSTRIAL INFRASTRUCTURE

FROM FURTHER DEVELOPMENT OF NUCLEAR ENERGY (NUCLEAR FUEL,

DESIGN-ENGINEERING, EQUIPMENT AND COMPONENTS FABRICATION,

CONSTRUCTION-ERECTION, USE OF UNITS 1 & 2 OPERATIONAL EXPERIENCE,

ETC).

BENEFITS OF NUCLEAR ENERGY

SOCIAL & ECONOMICAL IMPACT AT NATIONAL SCALE

26