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ELETRONUCLEAR Angra 3 Current status and challenges to continue Vienna February 2017

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Page 1: Angra 3 Current status and challenges to continue Angra 3 When plant construction was stopped in the late 1980s, approximately US$ 455M in costs had already been incurred (infrastructure,

ELETRONUCLEAR

Angra 3

Current status and challenges to

continue

Vienna

February 2017

Page 2: Angra 3 Current status and challenges to continue Angra 3 When plant construction was stopped in the late 1980s, approximately US$ 455M in costs had already been incurred (infrastructure,

ELETRONUCLEAR

Introduction – Brazilian Transmission Network

Manaus

Brasília

São Paulo Itaipu

Porto Alegre

Fortaleza

Salvador

Rio de Janeiro

Belo

Horizonte

Recife

Angra

4.000 km

Integrated electric power system: continental

dimensions

Page 3: Angra 3 Current status and challenges to continue Angra 3 When plant construction was stopped in the late 1980s, approximately US$ 455M in costs had already been incurred (infrastructure,

ELETRONUCLEAR

Introduction – Brazilian Energy Matrix 2015

Renovation of the Energy Matrix

o Uncertainties in a mainly hydropower driven system

o Need for secure energy supply and economic competitiveness

o Energy matrix based on a sustainable, diversified and competitive energy

o Increase the installed hydropower capacity (transmission lines, environmental challenges, low capacity factors…) is difficult

Page 4: Angra 3 Current status and challenges to continue Angra 3 When plant construction was stopped in the late 1980s, approximately US$ 455M in costs had already been incurred (infrastructure,

ELETRONUCLEAR

Nuclear Installed Capacity

ANGRA 1 - PWR

Installed Capacity: 657 MW

Technology: Westinghouse

Start of Operation: January 1985 ANGRA 2 - PWR

Installed Capacity : 1.350 MW

Technology : KWU/ Siemens (AREVA)

Start of Operation : February 2001

ANGRA 3 - PWR

Installed Capacity : 1.405 MW

Technology: KWU/ Siemens/ Areva

Start of Operation : December 2022

São Paulo

220km

Belo Horizonte

350km

Rio de Janeiro

130km

CNAAA

Page 5: Angra 3 Current status and challenges to continue Angra 3 When plant construction was stopped in the late 1980s, approximately US$ 455M in costs had already been incurred (infrastructure,

ELETRONUCLEAR

Angra 3

Grafenrheinfeld Initial Phase of the Project - 1975: Brazil – Germany Agreement (Pacific Use of Nuclear Power)

- Reactor type: PWR-1.350 MW / Power uprate to 1.405 MW

- Original Contract: 1976 (together with Angra 2)

- Original Reference Plant: Grafenrheinfeld

- Start of civil works: July-1984

- Construction suspension: June-1986

Original Design modernization - Konvoy series: Emsland / Neckarwestheim 2 / Isar 2

- Implementation of modernization: Angra 2 e Angra 3

Current design reference - Reference plant: Angra 2

- Angra 2 documentation: Partial use for Angra 3

- Base for the Angra 3 PSAR: Angra 2 FSAR

Neckarwestheim I s a r

Emsland

NeckarwestheimNeckarwestheim I s a rI s a r

EmslandEmsland

Angra 2

Page 6: Angra 3 Current status and challenges to continue Angra 3 When plant construction was stopped in the late 1980s, approximately US$ 455M in costs had already been incurred (infrastructure,

ELETRONUCLEAR

Angra 3

National Supplies - Market Guaranty Protocol: Main purpose: to develop the

national industry for the nuclear sector

- Valid for Angra 2 and Angra 3

Siemens/KWU (AREVA) - Scope: Technology transfer and basic and detailed design and supplies

for the nuclear and safety systems

- Supplies, Services and Guarantees for Angra 2 and Angra 3

Authorization for Project Resumption - Governmental decision in June 2007

- Civil works resumed in 2009

Agra 2

Page 7: Angra 3 Current status and challenges to continue Angra 3 When plant construction was stopped in the late 1980s, approximately US$ 455M in costs had already been incurred (infrastructure,

ELETRONUCLEAR

Angra 3

ANGRA 2

ANGRA 2: Reference Plant

ANGRA 3

Extensive use of the Angra 2 design documentation (~70%)

Executive

documents for

Angra 3

ANGRA 2 “AS-BUILT” +

Design Changes/Adaptations

• Foundation on rocks

• Design changes from Angra 2

• Digital I & C

D

E

S

I

G

N

Page 8: Angra 3 Current status and challenges to continue Angra 3 When plant construction was stopped in the late 1980s, approximately US$ 455M in costs had already been incurred (infrastructure,

ELETRONUCLEAR

Angra 3

When plant construction was stopped in the late 1980s, approximately US$

455M in costs had already been incurred (infrastructure, basic design and

detailed engineering, import and national equipment already delivered)

Effective preservation (proven techniques from Angra 2)

Around 13,500 tons of already

delivered components

Diesel Generators

Heavy components for the primary

circuit (RPV, SGs, RCPs, PRZ)

Part of the TG-Set components

Process equipment

Piping

Pumps

Valves

Page 9: Angra 3 Current status and challenges to continue Angra 3 When plant construction was stopped in the late 1980s, approximately US$ 455M in costs had already been incurred (infrastructure,

ELETRONUCLEAR

Angra 3

Note: The baseline for this Project Progress is of 30,34% in 2009 (Project Resumption – civil

works). The progress above reflects the General Executive Schedule (Rev 4), with the start of

commercial operation in December, 2022

Global Physical Progress = 61,4% (Dec/16)

Project Physical Progress

10,8%

75,8%

60,5%

10,8%

67,3%

77,5%

81,1%

61,4%

67,3%

80,4%

Eletromechanical Erection

(ANGRAMON + Steel

Containment)

Civil Works

Suppliers

Engineering

PROJECT

Planned until dec-16 Performed until dec-16

Page 10: Angra 3 Current status and challenges to continue Angra 3 When plant construction was stopped in the late 1980s, approximately US$ 455M in costs had already been incurred (infrastructure,

ELETRONUCLEAR

Angra 3 - Original Contracts (status 2014/15) – State Model

Import Supplies, Services, Warranty &

Guarantee

Civil Construction

National Supplies

Electromechanical

Erection

Engineering

Services

National Supplies

NEW BIDS RENEGOTIATED

CONTRACTS

A N G R A 3 MAIN CONTRACTS

Civil Design and Structures

Non-Nuclear Buildings

Page 11: Angra 3 Current status and challenges to continue Angra 3 When plant construction was stopped in the late 1980s, approximately US$ 455M in costs had already been incurred (infrastructure,

ELETRONUCLEAR

Angra 3

Limitations imposed to Eletronuclear´s cashflow due to the reduction of

Angra 1 and 2 tariffs, which led to a considerable revenue loss,

prevented the company from providing the required counterpayments

to make withdrawals from the external financing

Start of the “Lava Jato” operation

Due to the above, Eletronuclear was forced to take exceptional

measures:

Payment delays

Contract suspensions / Pace reduction

General Executive Schedule revision – start of commercial

operation in December 2022

Relevant Facts 2015

Page 12: Angra 3 Current status and challenges to continue Angra 3 When plant construction was stopped in the late 1980s, approximately US$ 455M in costs had already been incurred (infrastructure,

ELETRONUCLEAR

Angra 3

Several actions towards creating conditions to enable the

resumption of the Project:

Reevaluation of the Project time schedule;

Feasibility studies listing the main milestones that have to be

completed, in line with the revised time schedule;

Indepentent assessment of the Project Budget;

Technical note on the price of energy and tariff;

Evaluation of the cost to cancel the Project, as well as assessment

of the costs incurred from aspects not attributable to Eletronuclear

Relevant Facts 2016

Page 13: Angra 3 Current status and challenges to continue Angra 3 When plant construction was stopped in the late 1980s, approximately US$ 455M in costs had already been incurred (infrastructure,

ELETRONUCLEAR

Angra 3 New Model

Import Supplies, Services, Warranty &

Guarantee

Civil Construction

National Supplies

Civil Construction

Electromechanical

Erection

NEW BIDS

RENEGOTIATED

CONTRACTS

A N G R A 3 MAIN CONTRACTS

Civil Design and Structures

Non-Nuclear Buildings

NEW BIDS

Remaining Engineering

Services

Remaining National Supplies

Page 14: Angra 3 Current status and challenges to continue Angra 3 When plant construction was stopped in the late 1980s, approximately US$ 455M in costs had already been incurred (infrastructure,

ELETRONUCLEAR

Angra 3 – Main Challenges

Angra 3 New Model (still to be decided)

Definition of legal framework and business model for private partner

participation

Bidding process for private partner participation (or Inter-

Government Agreement)

New energy contractual model (tariff) to ensure private stakeholder

participation

Financial resources for Project completion (State funding or private

participation)

Engineering Works

Civil Construction, Eletromechanical Erection and Commissioning

Licensing and Enviromental commitments

Applicability of the new model to new NPPs

Page 15: Angra 3 Current status and challenges to continue Angra 3 When plant construction was stopped in the late 1980s, approximately US$ 455M in costs had already been incurred (infrastructure,

ELETRONUCLEAR

Angra 3 – Main Challenges

Angra 3 New Model (still to be decided)

Definition of scope for Eletronuclear (owner) and for the private

partner:

Eletronuclear to be the responsible for:

Plant commissioning and operation

Licensing activities

Design of the plant

Contracts with Areva (imported supplies and services)

Scope to be harmonized and defined, depending on the new model

Engineering support during construction and erection

Digital I&C (hardware)

Delivery of non-ordered national supplies

Angra 3 Simulator

Page 16: Angra 3 Current status and challenges to continue Angra 3 When plant construction was stopped in the late 1980s, approximately US$ 455M in costs had already been incurred (infrastructure,

ELETRONUCLEAR

Angra 3 – National Packages (still to be contrated)

15

1 M 219 Air Blowers 1 10

2M307 / M308 / M309 / M316 /

M317 / M341 / M351

H3 Cranes - Travelling Cranes and Electric Crabs, Auxiliary Travelling Crane,

Transport Trolley for Waste Drums 7 24

3 I009AElectrical and Electronic Equipment for the Commissioning and I&C Cold Workshop -

Part A1 4

4 I009BElectrical and Electronic Equipment for the Commissioning and I&C Cold Workshop -

Part B1 4

5 I009CElectrical and Electronic Equipment for the Commissioning and I&C Cold Workshop -

Part C1 4

6 I010 Pressure Measuring Equipment for the Cold Workshop Commissioning 1 3

7 I011 Tools for Commissiong of the Cold Workshop 1 3

8 I012 Workbench for the Commissioning of the I&C Coldworkshop 1 4

9 I015 Modernization of the Automation of Angra 2 Demineralizing System (GC system) (*) 1 8

10M405 -Cast Iron Pipes and

ConnectionsCast Iron Pipes and Connections 1 12

PENDING BIDDING PROCESSES

- THE TECHNICAL DOCUMENTATION IS AVAILABLE

BRAZILIAN SUPPLY BIDDING PROCESSES - GENERAL SITUATION SE.T (STATUS: SEPTEMBER 2016)IT

EM

PACKAGE SCOPEQUANTITY OF

PACKAGES

SUPPLY

DEADLINE

(months)

Page 17: Angra 3 Current status and challenges to continue Angra 3 When plant construction was stopped in the late 1980s, approximately US$ 455M in costs had already been incurred (infrastructure,

ELETRONUCLEAR

Angra 3 – National Packages (still to be contrated)

15

11 M151 Filter Exchange Machine (repair) 1 18

12 M191 Hot Laundry 1 6

13 M192 Cold Workshop 1 10

14 M193 Hot Workshop 1 12

15 M198 Electrolytic Cell Bank 1 6

16 M302 / M318 / M334b / M336 Locks Sealing Wall, Stand Rods, Guide Rods, Radiation Sample Holder, Lifting Eyes

of the Precast Elements of the Pool, RPV Sample Holder5 24

17 M342 Radiation Sample Holder 1 12

18 M360 Crabs 1 18

19 M399 Cranes and Beams of the Turbine Building 1 18

20 M602A / M603A Metering Pumps 2 12

PENDING BIDDING PROCESSES

- THE TECHNICAL DOCUMENTATION IS BEING PREPARED

BRAZILIAN SUPPLY BIDDING PROCESSES - GENERAL SITUATION SE.T (STATUS: SEPTEMBER 2016)IT

EM

PACKAGE SCOPEQUANTITY OF

PACKAGES

SUPPLY

DEADLINE

(months)

Page 18: Angra 3 Current status and challenges to continue Angra 3 When plant construction was stopped in the late 1980s, approximately US$ 455M in costs had already been incurred (infrastructure,

ELETRONUCLEAR

Angra 3 – National Packages (still to be contrated)

Cont.

21 M420A/M497 Welded Piping and Special Supports 2 24

22 M420B/M401 Special Piping Parts and Rectangular Lugs 2 24

23 M492 Special Supports of the Fixed Points for the Piping Penetrations at the Containment

Sphere - UJA and UJB1 24

24 M178A / M372 / M340 / M311B Decontamination Room Lining + Special Doors (former M 178A) 4 18

25 M176 Decontamination Basins 1 18

26 M607A Interconnection duct between the buildings UKA and UKH - Ventilation System 1 12

27 E 026 Expansion of the Radio System 1 8

28 E 060 Drying Ovens, Benches and Others 1 5

29 E 070 IP CCTV System for the Operation, Radiation Protection and KPC 1 12

BRAZILIAN SUPPLY BIDDING PROCESSES - GENERAL SITUATION SE.T (STATUS: SEPTEMBER 2016)

ITE

M

PACKAGE SCOPEQUANTITY OF

PACKAGES

SUPPLY

DEADLINE

(months)

Page 19: Angra 3 Current status and challenges to continue Angra 3 When plant construction was stopped in the late 1980s, approximately US$ 455M in costs had already been incurred (infrastructure,

ELETRONUCLEAR

Angra 3 – National Packages (still to be contrated)

24

30 M 612 A/AFM Fire Protection System + SCOPE OF THE ERECTION COMPANY M502/507/514B 1 12

31 M 613 A, B and C Hand Fire Extinguishers and Firefighting Trailers 3 12

32 M 617 A Furniture of the Cold Laboratory 1 8

33 M 617 B Furniture of the Hot Laboratory 1 8

34 M 617 C Reagents and Glassware 1 -

35 M 620 Oil Separator 1 12

36 M 701 Consumables for the Commissioning 1 -

37 M174 Primary Coolant Purification System 1 24

38 M196 Injection and Spray Nozzles GN 1 12

39 M197 Sludge Filter GN 1 12

40 M226 Plastic Pumps GN 1 12

PENDING BIDDING PROCESSES

- THE TECHNICAL DOCUMENTATION PREPARATION HAS NOT STARTED YET

BRAZILIAN SUPPLY BIDDING PROCESSES - GENERAL SITUATION SE.T (STATUS: SEPTEMBER 2016)

ITE

M

PACKAGE SCOPEQUANTITY OF

PACKAGES

SUPPLY

DEADLINE

(months)

Page 20: Angra 3 Current status and challenges to continue Angra 3 When plant construction was stopped in the late 1980s, approximately US$ 455M in costs had already been incurred (infrastructure,

ELETRONUCLEAR

Angra 3 – National Packages (still to be contrated)

41 M228 Metering Pumps GN 1 12

42 M227 Circulation Pumps GN 1 12

43 M229 Agitator of the Tank for Preparation of Flocculant GN 1 12

44 C 001 Shielding Doors 1 18

45 C 002 Common Steel Doors 1 18

46 C 003 Turnstiles 1 6

47 I001 Electronic Transmitters (GN System) 1 3

48 I002 Manometers (GN System) 1 3

49 I003 Orifice Plates (GN System) 1 4

50 I006 Control System (PLC) (GN System) 1 6

51 I007 Signal Distribution Module (GN System) 1 3

TOTAL: ~ R$ 140.000.000,00 (US$ 38.888.888,88 - US$1,00 = R$ 3,60)

BRAZILIAN SUPPLY BIDDING PROCESSES - GENERAL SITUATION SE.T (STATUS: SEPTEMBER 2016)IT

EM

PACKAGE SCOPEQUANTITY OF

PACKAGES

SUPPLY

DEADLINE

(months)

Page 21: Angra 3 Current status and challenges to continue Angra 3 When plant construction was stopped in the late 1980s, approximately US$ 455M in costs had already been incurred (infrastructure,

ELETRONUCLEAR

Schedule CEG_Rev4 – (55 months)

Page 22: Angra 3 Current status and challenges to continue Angra 3 When plant construction was stopped in the late 1980s, approximately US$ 455M in costs had already been incurred (infrastructure,

ELETRONUCLEAR

Schedule CEG_Rev4 – (55 months)

Current Critical Path Primary Circuit

UJA Completion / Pool Lining Erection

Containment Sphere

Erection and Commissioning of the Polar Crane

Positioning of the Components and Primary Circuit Erection

Cleaning / Commissioning / Tests

Sub-Critical Path

Erection and Commissioning of the Control Room

Erection of the Simulator

Start of commercial operation in December 2022

Critical and Sub-Critical Path

Page 23: Angra 3 Current status and challenges to continue Angra 3 When plant construction was stopped in the late 1980s, approximately US$ 455M in costs had already been incurred (infrastructure,

ELETRONUCLEAR

Budget

Project Estimated Costs – Financial Progress (status Dec-16)

ITEM Estimated (MR$) executed Until October-

2016 (MR$) % executed

Environmental Licensing 142,4 6,8 4,76%

Environmental Impacts 368,5 99,4 26,98%

National Engineering 1244,2 464,2 37,31%

Foreign Engineering 2795,1 953,9 34,13%

National Supplies 1363,8 647,6 47,49%

Imported Supplies 5160,6 1546,0 29,96%

Civil Construction 3193,3 1406,1 44,03%

Eletromechanical Erection 3947,0 366,8 9,29%

Pre-Operating Costs 30,0 0,0 0,00%

Other Payments 1162,0 396,8 34,15%

Contingency 873,8 0,0 0,00%

First Fuel Load 770,4 478,8 62,14%

TOTAL (Direct Costs) 21.051,1 6.366,2 30,24%

Page 24: Angra 3 Current status and challenges to continue Angra 3 When plant construction was stopped in the late 1980s, approximately US$ 455M in costs had already been incurred (infrastructure,

ELETRONUCLEAR

Angra 3 – Corporate Challenges

Company Challenges at Corporate Level

Company restructuring

Cultural changes / Integration of different areas

Compliance initiatives

Personnel replacement and training

Two sucessive retirement incentive programs

Preservation of company technical knowledge

New management model (mixed management team, supervision over

the private partner, centralized management towards a single

contractor... – to be defined)

Page 25: Angra 3 Current status and challenges to continue Angra 3 When plant construction was stopped in the late 1980s, approximately US$ 455M in costs had already been incurred (infrastructure,

ELETRONUCLEAR

Angra 1

Angra 1 Challenges

Complete ageing management program

implementation (LTO)

License renewal Project

Modernization Project

Power uprate

Extended operation cycle

Obsolecense Management

Increase spent fuel sorage capacity

Page 26: Angra 3 Current status and challenges to continue Angra 3 When plant construction was stopped in the late 1980s, approximately US$ 455M in costs had already been incurred (infrastructure,

ELETRONUCLEAR

Angra 2

Angra 2 Challenges

Implementation of ageing management program

Modernization Project

Power uprate

Efforts for operatation experience exchange with

remaining SIEMENS/KWU plant operators

Obsolecense Management

Technical support from NPP vendor and original

suppliers

Increase spent fuel sorage capacity

Page 27: Angra 3 Current status and challenges to continue Angra 3 When plant construction was stopped in the late 1980s, approximately US$ 455M in costs had already been incurred (infrastructure,

ELETRONUCLEAR

Angra 3

Page 28: Angra 3 Current status and challenges to continue Angra 3 When plant construction was stopped in the late 1980s, approximately US$ 455M in costs had already been incurred (infrastructure,

ELETRONUCLEAR

Richard Shouler

[email protected]