EU Nuclear Energy Policy NPP KOZLODUY

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EU Nuclear Energy PolicyNPP KOZLODUY
Presented by Ivelina Gateva George
Jurov Radoslav Radev Vyara Samoukova
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EU Energy Policy

• EU Energy supplies
• -                     the Commission Green Paper
  on Security and Energy Supply (November 2000)
• -                     50 EU energy dependency in
  2000
• - 70 by 2030
• EU imports
• from insecure regions - Russia, the Middle East
  and Saudi Arabia
• OIL
• 45 of EU oil imports from the Middle East
• GAS
• 40 of gas imports from Russia
• EU-Russia Relations
• - unstable
• - no specific EU approach towards Russia
• - mainly deals between Russia and separate EU
  states.

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EU Energy Policy 2

• How the EU can diminish its dependence in the
  Energy sector?
• -   Focus on Algeria. Algeria provides 30 of
  EU gas imports (40 come from Russia and 25 come
  from Norway)
• -     new resources of energy
• A Possible Solution
• - EU Commission introduced energy plans,
  that will set the pace for a new global
  industrial revolution
• - Reduction of greenhouse gas emissions with 20
  by 2020
• - Decrease of the total energy consumption with
  20 by 2020
• - Saving from consumption saves the EU 60 billion
  euro a year.
• -         20 out of the EU total energy mix by
  2020 to be renewable energy sources, (by 2010
  10)
• -    Each member state to use 10 biofuels
  in transport fuel mix.

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EU Energy Policy

• Goal cuts in the EU energy bill -100 billion
  Euro every year.
• Renewable Sources
• - Promising approach, inefficient in practice
• -  The target the EU set in 1997 (of 12 by 2010)
  will not
• be met (Renewable Energy Roadmap)
• Obstacles that cannot be overcome quickly
• -  Countries are not ready to apply renewable
  yet.
• -  The burdensome authorization procedures for
  building and operating of such systems
• -  Different standards for such type of energy
  technologies

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EU Nuclear Policy

• EU - 145 NPPs
• 15 states producing 131 554 Mwe - 15 of total
  EU energy demand. Main producers France,
  Germany, UK, Sweden.
• The Commission in 2030 only 6 of total energy
  in the EU will be produced by nuclear plants.
  During the next two decades, the EU will need
  between 200 and 300 Gwe of new generating
  capacity.
• Moratorium on nuclear usage Italy, Spain,
  Belgium, Germany, Sweden, Netherlands, Austria.
• The only member states with a prospective
  development of new nuclear capacities are
  Finland, France, UK and the new member states.

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EU Nuclear Policy 2

• Legal Framework Euroatom
• Nuclear Fuel Supply
• The world's top uranium producers Canada (28 of
  world production) and Australia (23). Other
  major producers Kazakhstan, Russia, Namibia and
  Niger. Europe holds 2 of world reserves.

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EU Nuclear Policy 2

• Waste Management
• Opinion poll (2005) among the old EU 15
• 37 - in favor of the use of nuclear energy
• 55 - opposed
• If the issue of radioactive waste were
• considered as resolved 38 of those who
• are opposed to the use of nuclear energy
• would change their opinion.
•  
• The European Commissions "gives priority to
  geological burial of dangerous material as the
  safest disposal method to date. Member states
  will be required to establish national burial
  sites for the disposal of radioactive waste by
  2018. Research for waste management will also be
  stepped up.

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NPP Kozlody

• Reactors 1 and 2
• Bulgaria compensated 24 million ecu (the profit,
  which the
• NPP made for less than three months).
• reactors are actually not producing electric
  energy,
• (on stand by).
• Losses for Bulgaria
• -         Unused nuclear fuel amounting up to
  10.4 million leva.
• -         The unrealised profits from the two
  reactors only for 2002-2004 amount up to 1300
  kWh, or over 130 million leva.
• Increase in the price of the electricity produced
  by NPP Kozloduy
• i.  In 2001 the price of the energy produced by
  Kozloduy was
• ii.  Before the closure of Reactors 1 and 2, the
  price rises 15
• iii. After the closure the price went up by
  another 15

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NPP Kozloduy

• Reactors 3 and 4
• closed on the 1st of January 2007
• Bulgaria produced 42-44 billion kWh of energy,
• - reactors 3 and 4 provided 5 5.5 billion
  kWh or only 12 - 14 of the total profit.
• Official reports from NEK (National Electric
  Company) for 2005 energy exports, amounted up to
  18,2 of the income of the company.
• - Increasing the price of electricity by 30,
  as of 2007
• fixed costs for producing electricity in NPP
  Kozloduy should in theory, and in practice be
  decreased. The company has cut its staff by over
  1000 people.
• In addition, the EU has agreed to increase the
  financial support for the putting out of function
  of the four reactors the country will receive
  420 million leva, or 40 million leva per year

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Electricity Prices

• Kozloduy NPP seems to be becoming more and more
  inefficient. For the production of 17 billion kWh
  in 2004, Kozloduy spends 17 million lv more than
  in 2001.
• 100 of the energy produced by NPP Kozloduy, both
  for the local and the international market are
  sold by the monopolist
• Russian origin of the reactors makes them only
  compatible with the energy coming from Russia and
  Ukraine. over 85 of all energy resources
  imported in Bulgaria from Russia and Ukraine.
• Reactors 5 and 6

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ECONOMIC SITUATION IN BULGARIA

• According to a report from the National
  Statistical Institute (23.08.2006)
• -         the gross yearly salary has been
  increased by 140 in 2005 as compared to 2000, to
  account the average sum of 3 834 lv
• -         the GDP of the country for 2005 is 41
  948 million lv, which is with 3 673 lv more that
  2004
• -         for the period of 2000-2004 the average
  economic growth of the country is 4 2005 7,
  2006 has reached the record 11
• -         Inflation in the country in 2005 was
  6.5, while in 2006 was about 6, and in 2007 it
  is expected to be around 3.
•  

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Reasons for the Closure

• The European Community
• Environmental and Energy policies,
• preservation of competition on the market
  therefore,
• -         the reactors are too old already, and
  respectively worn-out, which is a prerequisite
  for a nuclear catastrophe
• -         the NPP Kozloduy is fully dependent on
  energy from Russia, which creates a dominant
  position on the market
• -         the dominant position of NEC on the
  Bulgarian and regional market, which is in breach
  with the competition policy of the EU.

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Impact

• For the European Union
• - Single Market Economy
• - Guaranteeing of competition conditions.
• The region (the Balkans mainly) d
• Deficit of electricity has been encountered, (
  FYROM, the region of Kosovo, and Albania) - 40
  of its electricity was provided by NPP Kozloduy).
  
• In Bulgaria, in July, a 10 increase of the price
  for electricity is expected. However, this is
  believed to be just temporary, as the
  construction of NPP Belene should be finalized in
  the next few years. Moreover, as already
  presented, the life standard of the average
  Bulgarian has been increasing the last years
  therefore, there are no economic reasons for
  concerns.

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NPP BELENE

• 20 March 1981, NPP BELENE was approved for
  construction by
• a Council of Ministers of Bulgaria decree.
• 1990, due to collapse of Communism and changes in
  politics
• the project was abandoned.
• 20 December 2002, the Council of Ministers of
  Bulgaria decided
• to restart the project due to the future closure
  of reactors 3 and 4 of
• NPP Kozloduy.
• May 2005, the electricity produced by NPP Belene
  would cost between 3.2 and 3.7 eurocents per
  kW/h.
• 29 November 2006, NEK signed an agreement with
  Atomstroyexport (ASE) for the construction of NPP
  Belene.
•  
• October 2006, the French Framatome, the German
  Siemens and the Russian Atomstroyexports offer
  for using 3rd-generation VVER-1000/V-446B
  reactors was approved by NEK.

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Conclusion

• Electricity consumers in the Europe would benefit
  in the long run from
• Increased competition on the energy market which
  would stimulate the efficiency of energy
  generation
• NEK should not be a monopolist seller on the
  market for electricity, the commonly accepted
  strategy for liberalization of the market should
  be fully applied in all member states, including
  Bulgaria
• Long term security of energy supply could only be
  achieved through diversification of energy
  suppliers and flexible energy producers who are
  able to quickly adjust according to the
  international market trends
• 4. Maximum integration among the different
  energy systems through import and export
  competition.

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THE END
Thank you for the attention!