New Nuclear Build Programs Status and Prospects

Djurica Tankosic – President Global Nuclear Sabin Sabinov – Regional Director, Bulgaria Plants – current status

2010 Data and Trends:

X 438 power reactors in 30 countries,

X Total capacity of 371,5 GWe

X Global operating experience exceeds 12,700 RY

X Last decade the number of new build almost equals the number of permanent shut downs

X Out off 567 power reactors constructed worldwide 129 are no longer operational;

X Currently there are 358 reactors aged 20 years or older, compared to 80 reactors less than 20 years old

X More than 80% in their second half of the lifetime => growing need of replacement capacity

Half age 20 years 2 Nuclear Power Plants Updates: Jan09 –Jan10

250,000 Comparison by Regions - Jan 2009 X 2 Units were shut down:

200,000 • France's Phenix, 130 MW(e), FBR 62,200 • Lithuania's Ignalina 2 – 1500 MW(e), RBMK 150,000 32,600 34,400

2,400 3,230 18,300 1,500 X 4 New Units commissioned: 47,505 73,935

MWe 100,000

18,635 • Russia – Volgodonsk 2, 950 MW(e), WWER 19,980 123,440 113,497 50,000 6,820 36,200 • Japan – Tomari 3, 866 MW, PWR 72,539 5,000 6,740 47,368 18,760 4,191 4,565 1,985 692 1,842 4,146 4,179 0 • India – Rajasthan 5 & 6, 202 MW, RHWR Africa North Latin America Far East Eastern Middle East & Western America Europe & FSU South Asia Eu r o p e X Overall generating capacity increased 1.3 % Operable Under Construnction Planned Proposed X Construction of 15 Unit started: 250,000 Comparison by Regions - Jan 2010 • Russia - Units VVER - Novovoronezh 2-2 and

129,300 Leningrad 2-2 200,000 • USA – Watts Bar 2, 1180 MW, PWR

35,430 150,000 28,800 67,915 10,630 • China – 3 Units AP-1000, 6 Units CPR-1000 18,200 3,230 2,680 83,935

MWe 100,000 and 2 Units EPR 29,953 55,900 16,770 • South Korea – Shin - Kori 4, 1,340 MW, PWR- 113,771 7,970 123,603 50,000 73,407 34,700 8,740 APR1400 5,000 46,525 6,589 4,565 2,012 692 1,842 4,146 9,302 0 Africa North America Latin America Far East Eastern Middle East & Western X 25 New Units planned/scheduled Eu r o p e & FSU South Asia Eu r o p e Ope rable Under Construnction Planned Proposed X 26 New Units proposed 3 Technology Update Reactor Technology Update

Country and Size Main Features Identified by Supplier Reactor Design/Construct Progress Developer (MWe) (improved safety in all) NRC certification 2005. • Advanced Gen III design USA AP-1000 Complies with EUR • Passive Safety design (Westinghouse) ( 2 Loop 1100 Under Construction in China PWR) • In vessel retention

Future French standard. EPR Being built: Finland, France. • Evolutionary Gen III design France-Germany (4 Loop 1600 Submitted for NRC certification. • Active safety systems design (Areva NP) PWR) Complies with EUR. • Passive design for SA Endorsed by EU

Basic design in progress, EU-APWR 1700 Planned at Tsuruga. • Evolutionary Gen III design Japan (4 Loop US design certification application • Hybrid safety features (Mitsubishi) PWR) in 2008. EUR compliance in • Simplified Construction and operation review.

France-Japan Basic Design in Progress. 1 Mitsubishi/ Designed to US Codes and • Evolutionary design Gen III (3 Loop 1100 AREVA Regulations. • Simplified construction and operation PWR) Design Considers EUR. Design review of EC-6 ongoing • Evolutionary design of CANDU units Canada ACR-1000 1200 ACR-1000 withdrawn from UK review process • Reduced heavy water inventory (AECL) EC-6 1400 Currently unclear future (AECL • Enhanced passive safety systems sale announced)

5 Reactor Technology Update (cont.)

Country and Size Main Features Identified by Supplier Reactor Design/Construct Progress Developer (MWe) (improved safety in all)

WWER AES91 Tianwan 2 in Operation Russia 1000, Being built in India and Bulgaria • Evolutionary Gen III (ASE) AES92 1060 Meets EUR, Endorsed by EU • Diversified (Active and Passive) Safety (4 Loop Meets IAEA Standards PWR)

WWER Extension of WWER1000 Russia 1200 • Evolutionary Gen III 1200 Under construction in Russia (ASE) (4 Loop • Diversified (Active and Passive) Safety PWR) Design considers EUR and IAEA

USA 1350 Four units operating in Japan • Advanced Gen III (GE-Hitachi) ABWR Under construction in Taiwan • Primary Containment surrounded by Toshiba Certified by USNRC secondary structure

Korea Based on System 80+ which was APR-1400 • Evolution of GEN II design (Korea Hydro & certified in U.S. (2 Loop 1400 • Single Containment Nuclear Power Two units in Construction in Korea PWR) • Simplified construction and operation Co.) Recently announced for UAE

Gen IV - work is still ongoing, does not represent a near term potential for large commercial application

6 OECD OEMs Development

1980s 1990s 2000s Current major B&W Nuclear Technologies manufacturers of Sold to Framatome B&W Fuel } NPPs Babcock & Wilcox (USA) (Some equipment- manufacturing operations were integrated into B&W Canada) AREVA and MHI agreed on Business integration (Jan2001) (Holding collaboration in nuclear (Oct 2006) company AREVA was created) Framatome (France) Framatome (France) Framatome ANP AREVA NP Siemens (Germany) Siemens (Germany)

Mitsubishi Heavy Industries Mitsubishi Heavy Industries Mitsubishi Heavy Industries Mitsubishi Heavy Industries

Combustion Engineering ABB bought out CE and BNFL (UK) made it a subsidiary PWR Asea (Sweden) BNFL bought ABB’s BWR Asea Brown Bovery (ABB) nuclear business PWR & BWR Brown Bovery at Cle (SZW) ABB was created as a BHFL bought Result of a merger out WH (1999)

Westinghouse (USA) Westinghouse (USA) Westinghouse (USA) Westinghouse (USA)

Toshiba Toshiba Toshiba Toshiba

Hitachi Hitachi Hitachi Hitachi

GE (USA) GE (USA) GE (USA) GE (USA)

ASE (Russia) ASE (Russia) ASE (Russia) ASE (Russia)

7 Nuclear Power Sector Development Projections Nuclear electricity generation expansion, 2008-2020

9 Global Nuclear Capacity projections to 2050 /NEA low , high and phase-out scenarios/

X By 2050, global nuclear capacity is projected to increase by a factor of between 1.5 and 3.8

X Under the high scenario, the nuclear share of global electricity production would rise from 16% today to 22% in 2050

X Under both scenarios, nuclear generation would continue to be heavily based in the OECD countries

X Although a number of countries currently without nuclear power have plans to join the nuclear energy community, they are likely to add only about 5% to global installed nuclear capacity by 2020

X In case of no nuclear build (phase-out scenario), the world electricity production will suffer significant shortage after 2020 regardless the plant lifetime extension possibilities

10 Global Nuclear Capacity Projections to 2030 /WEO/

Nuclear power-generation capacity by region in X Renewed interest in building NPPs by a the WEO 2009 Reference Scenario large number of countries: • Nuclear Club countries lead by China, Russia and India • New Nuclear programs – ME, Asia, Africa X USA: • increase of installed nuclear power capacity from 101 GW in 2007 to 115 GW in 2030 • Increase initially supported by financial incentives to power producers: X Western Europe: Estimates of Nuclear Electrical Generating Capacity • falling nuclear power capacity from 132 GW to 103 GW

250 • drop of nuclear share from 28% in 2007 to 200 19% in 2030 150 • Decrease resulting from”: GWe 100 − policies to phase out NPPs 50 − widespread retirements of existing reactors, 0 notably after 2020

2007 2010 2020 2030 2007 2010 2020 2030 2007 2010 2020 2030 2007 2010 2020 2030 2007 2010 2020 2030 2007 2010 2020 2030 2007 2010 2020 2030 2007 2010 2020 2030 X Growing interest in nuclear power in Africa Eastern Far East Latin Middle North South Western many Eastern Europe and FSU Europe America East and America East Asia Europe countries.

Low High 11 New plant construction – geography

12 Projections for nuclear power by region

13 New Nuclear Constructions New Construction Plans – current status

X With total capacity of 51,855 MW the 56 units under construction will increase global nuclear capacity by 13.7%. X PWR predominantly being built worldwide – 47 units with 44,689 MW X China, Russia, Japan, Korea and India – global leaders in ongoing constructions X Aktive plans in many ME, Asia/ Africa X Many Asia newcomers very active NUMBER OF REACTORS UNDER CONSTRUCTION WORLDWIDE* X Europe is active: Reactor Type Total Total Country / economy Units (MWe net) • 2 reactors under construction in WE PWR BWR PHWR GCR LWGR FBR ARGENTINA 1 1 692 • 4 reactors under construction in EE BULGARIA 2 2 1,906 CHINA 21 21 20,920 X Compliance with commonly established FINLAND 1 1 1,600 FRANCE 1 1 1,600 Safety level expectations => big question INDIA 2 2 1 5 2,708 IRAN 1 1 915 that might change the market accessibility JAPAN 1 1 1,325 KOREA SOUTH 6 6 6,520 PAKISTAN 1 1 300 RUSSIAN FEDERATION 7 1 1 9 6,894 SLOVAKIA 2 2 810 TAIWAN, CHINA 2 2 2,600 UKRAINE 2 2 1,900 UNITED STATES OF AMERICA 1 1 1,165

TOTAL 47330125651,855 * WorleyParsons Evaluation based on official information from IAEA PRIS(January 2010) Nuclear Energy Outlook, 2009 & WP experience

Source: IAEA PRIS, February 2010 15 Americas New Build

X USA: • First actual constructions expected 2011 + • Certification of ESBWR expected in 2011 • AREVA EPR and Mitsubishi APWR design approval expected in 2012 • Till 2012 only AP1000 and ABWR designs available (AP-1000 still under US NRC review) • Proposals for over 20 new reactors, all late Gen 3 reactors • The first 17 COLAs for these have been filed • 4 to 8 new reactors expected to be on line by 2020

X Canada: • up to 10 planned units (ACR-1000, EPR or AP1000) X Brazil: • Angra 3 PWR 1270Mwe construction start planned for 2010 • 4 PWRs planned to 2025

16 WorleyParsons Support to New Nuclear Programs around the World WorleyParsons Heritage in Nuclear Power

Worley

1995 1997 1999 2000 2002 2004 2005 2006 2007 2007 2008

Transfield Power Western Power BRW Generation Engineering & Engineering Corp. Scientific Services

Shippingport NPP

Parsons E&C 1957

1893 1906 1942 1973 1995 1997 2002

2004 - China 2007 - Chile 2007 - India 2008 – South Africa

1818 9-Jun-10 Nuclear Experience Highlights

X Work on nuclear projects since mid 50s 55+ Years of Industry X Full Range of Nuclear Plant Services : Experience

• Engineer of Record 18 • Continuing Services Nuclear Units Engineer of Record • Extended Power Up-rate • Owner’s Engineer 30,000+ MW Nuclear Projects • Lender’s Engineer • Operating Plant Radiological DBA and Severe Accident Analyses • New Applications

19 Available Nuclear Expertise

Sofia/ Reading • All engineering disciplines • Extensive 3D CAD expertise • Cost control, estimating, scheduling, financial • Project Management • Document control, configuration management • Legal, contract management • Licensing • Construction, construction management • Proven international support records

Sofia, Bulgaria Reading, PA

X Approximately 460 employees and X Approximately 450 employees staff augmentation support and staff augmentation support X Significant nuclear PM experience X Long lasting excellence in nuclear accumulated last 10 years PM role X Main centre for IAEA and EU X Vast US NRC regulations regulations application experience application experience 20 Sofia Power Hub Main Projects

Temelin NPP Oskarshamn Units 3&4 NPPUnit 2 Uprate Mochovce NPP Units 3&4 Far East NPP 4000MW

Kozloduy NPP Belene NPP Units 5&6 Units 1&2

New Armenian NPP First Egyptian NPP First Jordanian NPP

21 Drivers Towards Increased Nuclear Capacity

Before: X Need to alleviate urban smog caused by coal-fired power plants. X Nuclear - a non fossil base-load capacity => reduced dependence on imports of fossil fuels. Today: X Increased demand of generating capacities - Global population growth + industrial development = > doubling of electricity consumption by 2030. - Need to renew a lot of edging generating stock in USA and EU over the same period X Climate change concerns - Use of fossil fuels must be reduced and replaced by low-emission sources of energy - Renewables, only, will not be able to close demand gap. - Nuclear power => the only readily available large-scale alternative to fossil fuels. X Security of Supply - A major topic on many political agendas (vulnerablility to interrupted deliveries of oil and gas) - Easy access, trade and storage of X Economics - Studies show that nuclear energy is the most cost-effective of the available base-load technologies. - Carbon emission reductions encouraged through government incentives and trading schemes => economic benefits of nuclear will increase further. X Robust to fuel price increases • Low impact of nuclear fuel prices increases on the final electricity production costs => long-term advantage of nuclear over fossil fuels 22 X Supporting slides

23 Reactor Plans in Russia

24 New Build Plans Europe

X Czech Republic: plans for Temelin 3&4 and Dukovany-5(3400 MWe)

X Slovakia: 2 WWER 440 at Mohovce under construction; plans for construction of new in Bohunice 2025 (1200 MWe) X Hungary: Paks 5&6 – 2 x 1000MW X Slovenia: Krsko 2 1000MW (PWR) X Lithuania: Visaginas 1&2. 2 x 1600 MW(e) to be built by Lithuania, Latvia, Estonia and Poland X France: Flamanville-3 EPR 1650 is under construction; plans for Penly 3 EPR 1620 MWe X UK: two PWRs 1650 are planned at Hinkley Point, two at Sizewell; 11 new sites proposed (first on-line as early as 2017) X Finland: Olkiluoto 3 EPR 1600 under construction; plans for: − Olkiuloto 4, 1x1600MW − a new build at Pyhajoki or Simo site with Areva's EPR or Toshiba's ABWR X Italy: JV between EDF and Enel to conduct feasibility studies on building four 1650 MWe Areva EPR units after 2015 X Poland: 2x1000 MW construction in 2016-20 X Romania: plans for two CANDU 6 at Cernavoda 1440 MWe

25 New Build Plans inAsia & Africa X Turkey: • May 2010 – Agreement with Russia for 4 reactors at the Akkuyu site X Egypt: • Site application under regulatory review • BIS under preparation X Armenia: • Metsamor – 1000 MW(e) AS-92 X Jordan: • Ongoing competitive dialogue with 3 reactor vendors • Completed site selection study • Ongoing environmental impact assessment of the proposed Aqaba site X UAE: • December 2009 - the KEPCO-led consortium* selected by ENEC for 4x APR-1400 • Site selection announces - four reactors to be built at one site • Commercial operation envisaged in 2017/ 2018 (2019/ 2020 for units 3 & 4) X Japan: • Nuclear capacity pnanned to grow by 12.94 GWe by 2019 • Share of supply growing from 2007's depressed 262 TWh (25.4%) to about 455TWh (41%) in 2019 • Two (2756 MWe) units under construction and 12 (16,532 MWe) planned X Pakistan: • Chasma-2 PWR 300MWe under construction, expected start-up 2011 • Plans for construction of Chashma 3 & 4 620 MW X India: • Kaiga 4 PHWR 202MWe, • Kudankulam 1&2 PWR (WWER) 1000MWe • Kalpakkam PFBR 470MWe under construction • 20 units planned; another 20 units proposed for construction X South Korea: • 6 units under construction • Another 6 planned – APR 1000 1350 MWe and OPR 1000 MWe

26 Nuclear Program of China

By the end of the 12th Five Year Plan (2011-15) some 25 GWe is planned to be operational, and 45 GWe by the end of the 13th Five Year Plan

27 Asia Newcomers

MYANMAR Announced in May 2007, will build with a foreigh VIETNAM help. First nuclear power reactors expected to be operational after 2015. PHILIPPINES Plans to build four Nuclear energy reactors to meet 4.7% of being discussed electricity needs. after a plan for a was scrapped in 1986.

THAILAND Nuclear Power Infrastructure Establishment Plan approved.

MALAYSIA Broad study of future energy needs to be completed by 2010; nuclear power under consideration.

INDONESIA The first four to six nuclear power plants expected to be ready after 2016 28