Upload
phamnhan
View
216
Download
3
Embed Size (px)
Citation preview
®
Platts 8th Annual European Nuclear Power 2013
Procurement for New Nuclear Programs
27 June 2013
Warsaw, Poland
1
®
Procurement for New Nuclear Programs
• Nuclear power programs – risk and opportunity
• Supplier Selection – it’s not really about technology
• Scope – not what the customer should worry about
• Cost – not to be confused with price
• Funding – a deal breaker or deal maker
• The need for a Commercial Strategy
2
®
Lightbridge Corporation
Nuclear
Fuel
Technology
Advisory
Services
New design for LWRs
• More power
• Less spent fuel
• Improved safety
• Versatile design options
Full scale lead test
assembly in PWR
~ 2018
Nuclear New Build
Generation Services
Regulatory Services
• Technical
• Commercial
• Regulatory
• Management
• Legal
• Political
3
®
1 2 3 4 5
Risk and Opportunity in Nuclear Power Programs
Program Work Scope
Turnkey NPP Supply
4
IAEA Contract Date
IAEA
Conventional
Innovative Innovative
-5 -4 -3 -2 -1
Conventional
Major opportunity in early phases
New Build Schedule
Risk includes owner’s responsibilities
4
®
Supplier Selection
• Detailed technology evaluations provide limited benefit
– Gen III/III+ designs on offer now will produce electricity with comparable reliability and will exceed generally accepted safety goals.
• Use reference plants
– Very limited design changes
• No single supplier can provide turnkey
– Suppliers must form teams
• Projects rarely fail because of technology or design
– Implementation is key
• Most important to focus selection on the team / your future partner
– Team strength and commitment is critical
• Intelligent Customer: know yourself
– Conduct a skills gap analysis
5
®
Configuration Control
Acceptance Scheduling
• Owner’s responsibilities
– Infrastructure
– Licensing and permits
– Training and manpower
• IAEA guidelines
– should be cross checked, improved,
but not obeyed
Interface Specification
Owner’s
Responsibilities
Supplier
Responsibilities
Scope…what’s important
Program
Requirements
Regulations,
Guidance &
Obligations
∆ Reference
Plant
• Requirements vs. Scope
– Requirements are customer focused
– Requirements spec enhances bid assessment and delivery verification
6
®
Requirements Specification Example
Program
Goal
Safety Quality Security Schedule Cost Regulation Localization Technology Training
Advanced Proven Licensed
Detailed
Requirement
Acceptance
Test
Capacity Commitment Capability
Detailed
Requirement
Acceptance
Test
Requirement
Breakdown Structure
Customer defines levels 1 down to 2 or 3;
Supplier defines further down to detailed
requirement with acceptance tests
L1
L2 examples
7
®
Cost…what customer’s can impact
• Nuclear power is an oligopoly
– Price is determined more by market dynamics than by actual cost of the facility
– Market dynamics change rapidly from buyers to sellers markets
– Intelligent Customer can create favorable conditions
• Customer decisions impact program cost
• Risk ultimately rests with the customer
Scope based
Requirements based
Single source
Multiple bid competitive
Fixed Price
Target Price, Incentives
Turnkey
Separate Suppliers
Supplier Insurances
Owner Insurance (OCIP)
EPC only
Equity Partnership
8
®
Funding…a deal breaker or deal maker
• Large capital expenditure (>20bnUSD)
before revenues begin
• Few utility owners have such large
resources available
• Project financing by investors alone
does not work
– High risks
– Long duration / exposure
• Need government funding or debt
guarantees
• Potential for supplier government
support or equity participation
9
®
• Focus on maximum long term value, not initial price
• Need up front thinking – fuel, support services,
– training,
– commissioning
– operations,
– waste management, and
– decommissioning
• Need an integrated commercial strategy – procurement process
– evaluation criteria
– contract type
– harmonize incentives
Commercial Strategy
– contract scope
– risk & opportunity
assessment
– funding plan
Manufacturing
and construction Production costs
(O&M plus fuel)
Major refurbishment
(e.g. steam generator
replacement)
Decommissioning
10
®
Summary
• Know what you need and define success.
• Map your authorities and manage stakeholders and interfaces
• Manage risks & opportunities with long term view
• Integrate overall program together with top level, wholly inclusive risk
and opportunities register
• Don’t expect to save time, or recover time in construction, but there
are many opportunities up front
• Study and understand successful programs: supplier teams and
customers
• Know yourself – conduct skills gaps analysis (no need to share the
results!)
11
®
Lightbridge Corporation – Business Segments
Advisory Services Business
Nuclear Regulation
• Leading regulatory
team from
international
agencies
• Advisory services on
design, development
and management of
nuclear energy
programs according
to highest standards
Nuclear Generation
• Industry leading team
from international
technology & fuel
suppliers, utilities, and
government agencies
• Provide strategies
with comprehensive
plans for new or
expanding nuclear
programs
Metallic Fuel Technology
Versatile Fuel Design
• Applicable to all
water-cooled reactors
• Plutonium disposition
from civil and legacy
weapons sources
Improved
Economics
• 10-17% power
uprate and longer
fuel cycles in
existing reactors
• 30% or greater
power uprate in new
build reactors
Enhanced Safety
• Key Safety
Improvements vs.
existing fuels
• Accident tolerant
fuel design
13