24 Oct., 2008

Korean Nuclear Industryand its Competitiveness

2008 ATS Autumn Seminar, Helsinki

2

ContentsContents

I.I. Introduction to Korean Introduction to Korean Electric Power IndustryElectric Power Industry

II. Competitiveness of Korean Nuclear IndustryII. Competitiveness of Korean Nuclear Industry

III. Summary III. Summary

I. Introduction to Korean Electric Power IndustryI. Introduction to Korean Electric Power IndustryI. Introduction to Korean Electric Power Industry

4

Structure of Electric Power Industry

DistributionDistribution Power SalesPower SalesGenerationGeneration TransmissionTransmission

KoreaPower

Exchange

K N FK N FNuclear FuelNuclear Fuel

K D NK D NTelecommunicationTelecommunication

KOPECKOPECEngineeringEngineering

K P SK P SMaintenanceMaintenance

KEPCOKEPCOHydro & Nuclear Co.Hydro & Nuclear Co.Hydro & Nuclear Power Gen. Hydro & Nuclear Power Gen.

5 Gen. Co.5 Gen. Co.Thermal Power GenerationThermal Power Generation

KOSEPCOKOSEPCOKOMIPOKOMIPO

KOWEPOKOWEPOKOSPOKOSPOKOEWPOKOEWPO

Korean Electric Power Industry Korean Electric Power Industry

5

Korean Nuclear InfrastructureKorean Nuclear Infrastructure

KHNPKHNP

UtilityUtility

ConstructionConstruction BOPBOP

HyundaiDaewoo

HyundaiDaewoo VendorsVendors

KOPECKOPEC KNFKNF DoosanDoosanKPSKPS

- ArchitectEngineering

- System Design

- ArchitectEngineering

- System Design

- Fuel Design & Manufacturing

- Core Design

- Fuel Design & Manufacturing

- Core Design- Maintenance- Maintenance

- ComponentDesign & Manufacturing

- ComponentDesign & Manufacturing

KINSKINS KAERIKAERI

- Operation & Maintenance- Overall PM of Construction and R&D

Nuclear Regulatory Body

National Research Institute

6 6

Trend of installed capacity (unit : MW )

0

10

20

30

40

50

1961 1971 1981 1991 2007Year

NuclearCoalOilGasHydro

3672,628

9,835

19,849

68,268

26.0%

30.0%7.9%

8.0%

26.3%

Cap

acity

Other

1.8%

Status of Electric Power (in 2007)Status of Electric Power (in 2007)

7 7

17,71617,716

20,465

5,4925,404

17,948

26.0%26.3%

7.9% 8.0%

30.0%

1.8%1,243

Installed Capacity

Total: 68,268 MW Total: 374,567 GWh

Electricity Generation

Nuclear HydroOilGasCoal Other

36.5%

136,599136,599

39.8%

149,121

66,06917.6%

4.4%1.3%16,493

4,989

Status of Electric Power (in 2007)Status of Electric Power (in 2007)

8

Nuclear Power In KoreaNuclear Power In Korea

SeoulUlchin #1,2,3,4,5,6

Kori #1,2,3,4► Shin Kori #1,2,3,4

Wolsong #1,2,3,4► Shin Wolsong #1,2Yonggwang

#1,2,3,4,5,6

(As of Dec. 31, 2007, Units: MW)

Site In Operation Under Const. Total

Kori 4 (3,137) 4 (4,800) 8 (7,937)

Wolsong 4 (2,779) 2 (2,000) 6 (4,779)

Yonggwang 6 (5,900) - 6 (5,900)

Ulchin 6 (5,900) 2 (2,800) 8 (8,700)

Total 20 (17,716) 8 (9,600) 28 (27,316)

In Operation► Under Construction

► Shin Ulchin #1,2

9

History of Nuclear Technology DevelopmentHistory of Nuclear Technology Development

Overview

2000s1980s

Constructionof Kori #1 (`71-`78)

1990s

ComponentLocalization (`~’85)

1970s

TechnologySelf-reliance

Introductionof Nuclear Power

Promotion ofLocalization

OPR1000Development (`95)

Development ofAdvanced Reactor

APR1400Development (`02)

2010s

Development of APR+

APR+Development (`15)

10

National Energy PlanNational Energy Plan

■ National Energy Committee was held to establish “ New National Energy Plan by 2030” Aug. 27, 2008

The share of NPP in the overall power capacity26% 41% from 2007 to 2030

80

60

40

20

%

year2007 2030

InstalledCapacity

GenerationCapacity

26 3660

41

NPP units20 in operation8 under const.

NPP units39 in operationadditional

11 units

Nuclear Power

11

Public Opinion Changing Public Opinion Changing ““ 67.5%, Support New NPP67.5%, Support New NPP””

■ Public Opinion Research : “Proper ratio of NPP in national power generation” (Over 20 ages / 1,000 people)

80

60

40

20

%

NPP is Necessary Support New NPP

200782.8

92.5

67.5

43.6

NPP is Safe

51.4

63.4

2008

0

Public Opinion Change

12

II. Competitiveness of Korean Nuclear IndustryII. Competitiveness of Korean Nuclear IndustryII. Competitiveness of Korean Nuclear Industry

▪▪ Continuous ConstructionContinuous Construction

▪▪ World Class OperationWorld Class Operation

▪▪ Cost Effective Supply ChainCost Effective Supply Chain

▪▪ Competitive CostCompetitive Cost

13

NSSS : Nuclear Steam Supply System, A/E : Architect Engineering

Installed Capacity : 17,716 MW, as of end of 2007

Plant

PWRPWRPWRPWR

950950

1,0001,000

W/HW/H

DOOSANBechtel/KOPECBechtel/KOPEC

KOPECKOPEC

’86.08’87.06’95.03’96.01

PWRPWRPWRPWR

950950

1,0001,000

FramatomeFramatome

’88.09’89.09’98.08’99.12

FramatomeFramatome

KOPECKOPEC

#1#2#3#4

#1#2#3#4

PWRPWRPWRPWR

587650

950950

W/HW/HW/HW/H

GilbertGilbert

Bechtel/KOPECBechtel/KOPEC

’78.04’83.07’85.09’86.04

PHWRPHWRPHWRPHWR

679700700700

AECLAECL/DOOSANAECL/DOOSANAECL/DOOSAN

AECLAECL/KOPECAECL/KOPECAECL/KOPEC

’83.04’97.06’98.06’99.09

#1#2#3#4

Kori(KRN)

#1#2#3#4

Wolsong(WSN)

Yonggwang(YGN)

Ulchin(UCN)

ReactorType

Capacity(MW)

NSSSSupplier A/E Commercial

Operation

PWRPWR

1,0001,000

KOPECKOPEC

’02.05’02.12#5#6

DOOSANDOOSANDOOSAN

DOOSANDOOSAN

PWR 1,000 ’04.07KOPEC#5 DOOSANPWR 1,000 ’05.04KOPEC#6 DOOSAN

Continuous Construction Continuous Construction -- since 1970ssince 1970s

14

Continuous Construction Continuous Construction -- 8 Units under Construction8 Units under Construction

Plant ReactorType

Capacity(MW)

A/ECommercialOperation

Shin-Wolsong(Shin-WSN)

1,000 DOOSAN KOPEC 2012 03

2013. 01

#1

#2 1,000 DOOSAN KOPEC

1,000

1,000

DOOSAN

DOOSAN

KOPEC 2010. 12

2011. 12

#1

#2Shin-Kori(Shin-KRN)

1,400 DOOSAN KOPEC 2013. 09

2014. 09

#3

#4 1,400 DOOSAN KOPEC

KOPEC

Shin-KoriShin-KRN)

PWR (KSNP+)

PWR (APR1400)

PWR (KSNP+)

PWR (KSNP+)

PWR (KSNP+)

PWR (APR1400)

NSSS & TGSupplier

Installed Capacity : 6,800 MW, as of end of 2007

1,400 DOOSAN KOPEC 2015. 12

2016. 12

#1

#2 1,400 DOOSAN KOPECShin-Ulchin(Shin-UCN)

PWR (APR1400)

PWR (APR1400)

15

Continuous Construction Continuous Construction -- ShinShin--KoriKori 1&21&2

Jun. 2011Jun. 2010Fuel LoadingDec. 2011Dec. 2010COD

Dec. 2009Dec. 2008First EnergizingApr. 2009Mar. 2008Reactor Vessel InstallationJun. 2007Jun. 20061st Concrete Pouring

Unit 2Unit 1Milestone

- OPR1000 project- Capacity : 2,815MWth x 2 units- Const. Cost : 4.91 billion US$- Progress rate : 70.04% (Aug.’08) - Current Construction Work :#1 : Rx & S/G Installed,

Dome concrete poured #2 : RCB exterior wall concrete pouring (CLP 10)

16

Continuous Construction Continuous Construction -- ShinShin--WolsongWolsong 1&21&2

Jul. 2012Sep. 2011Fuel LoadingJan. 2013Mar. 2012COD

Feb. 2011Apr. 2010First EnergizingJun. 2010Aug. 2009Reactor Vessel InstallationOct. 2008Nov. 20071st Concrete Pouring

Unit 2Unit 1Milestone

- OPR1000 project- Capacity : 2,815MWth x 2 units- Const. Cost : 4.71 billion US$- Progress rate : 44.20% (Aug.’08) - Current Construction Work :#1 : RCB exterior wall CLP 11~12,

RCB exterior wall concrete pouring (CLP 3)#2 : Mudmat work, Preparing 1st concrete pouring

17

Continuous Construction Continuous Construction -- ShinShin--KoriKori 3&43&4

Jan. 2014Jan. 2013Fuel LoadingJul. 2014Jul. 2013COD

Jul. 2012Jul. 2011First EnergizingAug. 2011Aug. 2010Reactor Vessel InstallationNov. 2009Nov. 20081st Concrete Pouring

Unit 4Unit 3Milestone

- First APR1400 project- Capacity : 3,983MWth x 2 units- Const. Cost : 5.73 billion US$

- Progress rate : 24.07% (Aug.’08)- Current Construction Work

Site Grading, Excavation, Mudmat work really finished (#3 RCB, AB A/B)

18

Continuous Construction Continuous Construction -- ShinShin--UlchinUlchin 1&21&2

Apr. 2016Apr. 2015Fuel LoadingJul. 2016Jul. 2015COD

Jan. 2014Jan. 2013First EnergizingDec. 2013Dec. 2012Reactor Vessel InstallationMar. 2012Mar. 20111st Concrete Pouring

Unit 2Unit 1Milestone

- Second APR1400 project- CP Application was submitted :Sep. 25, 2008

- CP Issuance (expected) : Jan. 2010- Const. Cost : 6.3 billion US$- NSSS Supply Contract : Dec. 2007

124 3

19

World Class Operation World Class Operation -- Performance RecordPerformance Record

0.60.50.60.60.40.50.50.90.41.10.91.10.91.6shutdown

92.395.591.494.292.793.290.488.390.387.687.587.387.487.2C.F.(%)

40

60

80

100CapacityFactor (%)

`93 `94 `95 `96 `97 `98 `99 `00 `01 `02 `03 `04 `05 `06 `07

1

2

3

490.3

Capacity Factor (Korea)

79.5

Capacity Factor (World Average)

0.6

Unplanned shutdown / Unit

0.6

90.3

20

79.3

0.5

10

95.5

‘05

78.9

0.5

8

93.2

‘01

78.9

0.4

8

92.7

‘02

76.5

0.6

11

94.2

‘03

78.8

0.6

12

91.4

‘04

0.30.60.55Shutdown rate/ unit-year

-77.879.5World Avg. CapacityFactor

41211Shutdown

94.78(’08.6)

90.392.3CapacityFactor

’08.8‘07‘06Content

World Class Operation World Class Operation -- Performance RecordPerformance Record

21

Cost Effective Supply Chain Cost Effective Supply Chain –– KOPEC (A/E & NSSS)KOPEC (A/E & NSSS)

ScopeDesign and Engineering for New NPPsOperation & Maintenance (O&M) Services for operating NPPsSolution Finding for Radwaste ManagementDevelopment, Design & Engineering of small power and research Rx

Abundant ExperiencesArchitect Engineering & NSSS System Engineering

In Operation : 20 units Under Construction & Design : 8 unitsSuspended (KEDO) : 2 units

Overseas ExperienceTech. Services for Lungmen NPPs (Taiwan)Consulting Services for CGNP (China)Participation in NuStart COL with AP1000 (USA). Etc.

22

3-Dimensional Design Verification System 3-D ModelingInterference Check AnimationWalk-through Data Navigation

OutputPiping design drawingPiping isometric drawing Pipe support drawing Cable tray layout drawingHVAC duct layout drawing Bill of material Welding data and location Analysis data deck

Cost Effective Supply Chain Cost Effective Supply Chain –– KOPEC (A/E & NSSS)KOPEC (A/E & NSSS)

23

Cost Effective Supply Chain Cost Effective Supply Chain -- DoosanDoosan (NSSS & T/G)(NSSS & T/G)

Integrated ManufacturerMain Product▪ NSSS : RV, SG, RVI, CEDM, IHA, PZR, RC Piping▪ BOP : H/Ex, PV & Tanks, Fuel Rack, Cask▪ T/G : Turbine, Generator, Condenser, MSRSupply Record▪ Domestic

- PWR 18 units, PHWR 3 units- Replacement : Kori#1 SG

▪ Overseas - China : Qinshan Phase III#1,2, AP1000 4units(Sanmen & Hiyang)- USA : Vogtle , Summer, etc. 6 units - Replacement : Sequoyah#1,2 SG, Wattsbar#1 SG, Entergy RV 4 Heads,

Palo Verde 3 RV Heads with CEDMs

24

Cost Effective Supply Chain Cost Effective Supply Chain -- DoosanDoosan (NSSS & T/G)(NSSS & T/G)

25

Cost Effective Supply Chain Cost Effective Supply Chain -- KNF (Fuel)KNF (Fuel)

Design & Fabrication Capability of PWR and CANDU fuelssince 1989

Core design and safety analysis for PWR:148 reloads and 8 Initial Core Manufacturing of fuels and related componentsFuel Maintenance and Service

Development of Advanced Fuel Design TechnologyDevelopment of Plus7 and ACE7 as advanced fuelNegotiating the supply Plus7 to SONGS of USA

Production CapacityFuel assembly fabrication (MTU/Year)- PWR : 400/500(from 2009)- PHWR : 400Gd rod fabrication (MTU/Year) : 30

26

Cost Effective Supply Chain Cost Effective Supply Chain -- KNF (Fuel)KNF (Fuel)

Fuel road : 264Guide tubes : 24Instr. Tube : 1Top nozzle : 1Zry S/g : 6+3Inconel S/G : 2

W type(14x14, 16x16, 17x17)

Fuel road : 236Guide tubes : 4Instr. Tube : 1Top nozzle : 1Zry S/g : 10Inconel S/G : 1

OPR1000type

CANDU FuelCANFLEX Fuelfor Test Reactor

27

The amount of orders awarded was rapidly increased by 139% from 2006 to 2007in Middle East region. ☞ Current total amount of

orders received 15,000 Million U$ (by 2008.5)

The share of Plant Const. market in ME region was 16%1) in 2005.

▪ 1) 16% is the highest portion in

ME Plant construction market.

Cost Effective Supply Chain Cost Effective Supply Chain -- Construction co.Construction co.

World top-class performance in Plant construction- Top Ranked in Plant Construction Market in Middle East

28

The Burj Tower

(700 m, Dubai) Desalination Plant

(0.32 billion U$, Kuwaiti) Combined Cycle Plant

(2.06 billion U$, Qatar)

Cost Effective Supply Chain Cost Effective Supply Chain –– achievement in overseasachievement in overseas

29

Competitive Cost - GA Improvement

OPR1000 Improved OPR1000 APR1400

(note: not scaled)

UCN #3,4YGN #5,6UCN #5,6

SKN #3,4SUN #1,2

SKN #1,2SWN #1,2

30

OPR1000 → Improved OPR1000 → APR1400

▪ Design Improvement

- Compound Building located between two units

▪ Application of New Construction Method

- Modular Const. Method (Steel Plate Concrete)

▪ Construction & Operation Experience

▪ Lesson Learned from Continuous Projects

Competitive Cost -- Material ReductionMaterial Reduction

31

Competitive Cost - Material ReductionMaterial Reduction

32

First ConcretePour

SetRx. Vessel

FuelLoad COD

9 M5 M4 M22 M21 MUCN #3

CHT HFT

61M

YGN #5 7 M5 M5 M20 M22 M 59M

SKN 1&2 51M7 M4 M17 M19 M 4 M

UCN #6 55M6 M6 M4 M21 M 18 M

47M6 M4 M16 M17 M 4 MSWN 1&2

SKN 3&4 55M8 M4 M4 M20 M 19 M

48M6.5 M4 M17 M17 M 3.5 MNth Plant

OPR1000

APR1400

Competitive Cost – Reduction of Construction DurationReduction of Construction Duration

33

III. SummaryIII. SummaryIII. Summary

34

SummarySummary

Continuous construction & abundant experiencesExcellent construction and operation performancesCost effective supply chainsWell qualified human resources

Resources and Experiences are ready for overseas project

Reduce Risk and UncertaintyProvide Competitive Cost and High Reliability

Kiitos!

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