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MINUTES OF THE ENERGY ISLAND PROGRAMME STRATEGIC FORUM 9:00 A.M. 17th NOVEMBER 2015 ENERGY CENTRE, COLEG MENAI, LLANGEFNI – LL77 7LP

PRESENT Matthew Clarke – DECC (Chair) Shunsuke Utena – Hitachi-GE Wyn Roberts – Interim Head of Nuclear Supply Chains, Dr. John Idris Jones – Energy Island Programme Director (EIP) Charlie Takser – Horizon Malcolm Twist – Hitachi-GE Andrew Beirne – DECC Glyn Jones – Grwp Llandrillo Menai Craig Ab Iago – AC Lowri Joyce – Hitachi-GE Simon Roscoe – North Police Sioned Williams – Council Dennis Evans – Economic Regeneration Partnership Philip Care – SHARP Stuart Law – Magnox (Wylfa) Martin Moore – Magnox (Trawsfynydd) David Sprake – Glyndwr University Liam O’Sullivan – SP Energy Networks Geraint Strello – BT Group Matt Durham – National Grid (NG) – National Grid (NG) – Menai Science Park Richard Sidi – Land & Lakes Brian Scowcroft – Land & Lakes Professor Siân Hope – Dylan Williams – Head of Economic & Community Regeneration (IACC) Arthur Wyn Owen – Corporate Director Sustainable Developments (Major Energy Consents Programme Sponsor), IACC Cllr Ieuan Williams – Leader & Portfolio Holder for Economic Regeneration, IACC Dr Gwynne Jones - Chief Executive (Programme Sponsor), IACC Alli Hunt – NSAN Dr Ian Rees – Coleg Menai, Grwp Llandrillo Menai Liz Davies – EIP Delivery Manager, IACC Manon Francis – EIP Development Officer, IACC APOLOGIES Councillor Dilwyn Owen Williams – Alan Raymant – Horizon Nuclear Power Lia Murphy - OFGEM Jean Llewelyn – NSAN Cllr Dilwyn Roberts – Chair of Economic Ambition Board Jon Phillips – NDA Gill Ronayne – Ronayne Consulting Ltd Rory Trappe – Magnox (Trawsfynydd) Richard Foxhall – Horizon Nuclear Power (HNP) Leon Flexman – Horizon Jonathan Jenkin – Nuclear Decommissioning Authority (NDA)

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Cllr Aled Morris Jones – Chair of the Wylfa Site Stakeholder Group Rhun ap Iorwerth – A.C Ynys Môn Gill Wood - Prospect Greg Evans – Horizon Nuclear Power (HNP) Professor John Hughes – Bangor University Mohammed Mehmet – Council Paddy McNaught – Unite the Union Mark Jones – GMB Gwenllian Roberts – Deputy Director – Head Energy Wales Unit, Welsh Government Philip Behan – Cavendish Fluor Partnership Andrew Jones – Public Health Wales Iwan Trefor Jones – Gwynedd Council Tristram Denton – Hitachi-GE Nuclear Energy ITEM 1 – Welcome & Housekeeping Cllr Ieuan Williams welcomed all to the meeting and undertook the safety briefing.  Forums’ membership reviewed – consisting of key stakeholder organisations, with one nominated representative (maximum 2) to ensure the relevant key stakeholder organisations are represented and maintain focus.  Significant progress since last meeting; Horizon:  IACC are currently commenting on the Horizon Health Impact Assessment and Impact Assessment – both circulated to key partners to shape PAC2 documentation  Horizon/ Hitachi GE announcement of Joint Venture partner is imminent  PAC2 will be released early in the new year Land and Lakes:  Land and Lakes planning application consented  Purchase of land from AAM on-going and expected to be complete early in the new year Orthios:  £1bn investment secured by Chinese Firm SinoFortone Group – with an additional £1bn secured for their site in Port Talbot  Purchase of land from AAM on-going and expected to be completed by the end of the year National Grid:  Public consultation on the preferred orange route commenced  IACC currently pulling together a detailed response Morlais:  Consultation underway with respect to the proposed variation to the boundary of the Demo Zone  In process of defining management process for the first round of sub-zone leasing. Aim to allocate areas within the Morlais zone by May 2016, but subject to change ITEM 2 – Agree Minutes from the previous meeting. The minutes from the previous meeting (28th July 2015) were agreed. Actions from previous meeting were reviewed. One action outstanding which can be provided in next meeting. First stage worker profile data – update to be presented at the next meeting (Magnox). ITEM 3 – UK Government (DECC), Wales (WG) & IACC update

UK Government (DECC) – Matthew Clarke Hinkley Point C

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 Announcement last month – EDF and its Chinese partner China General Nuclear Corporation (CGN) committed to take forward Hinkley Point C.  Companies signed a Strategic Investment Agreement – EDF confirmed it will take a 66.5% stake in Hinkley with CGN taking 33.5%. Contract for Difference:  The Government and EDF have finalised Contract for Difference and ancillary documentation – offers increased price certainty for the electricity produced from Hinkley Point C.  Funded Decommissioning Programme approved – ensures the tax payer doesn’t pick up the cost of decommissioning the plant in future.  Secretary of State (Amber Rudd) will take her final decision on the Contract for Difference when EDF and CGN have signed full investment documentation.  Hinkley Point C expected to have major economic benefits – creating 25,000 jobs, with at least 5,000 people from Somerset expected to work directly on the project, providing a £40M boost to the local economy every year.  Hope that Hinkley Point C will have direct supply chain opportunities for businesses in Wales but also note concerns expressed that it could make the shortage of skilled workers for construction projects worse (as reported by the Royal Institution of Chartered Surveyors).  Hinkley Point C is the first project to get to this stage in the new nuclear programme, positive sign to progress with other projects in the UK.

UK Wide  Continue to work on other issues and lessons learned from the Hinkley Point C process.  Focused on structured engagement around the next two projects.  Commitment to work with other developers in particular Japanese partners remain.  Continually looking to maximise UK content in supply chain, particularly local companies.  Number of initiatives put in place (working with industry) to help prepare and develop UK suppliers to bid for nuclear new build opportunities and develop capacity among suppliers e.g. the Manufacturing Advisory Service and the Fit for Nuclear programme (run by the Nuclear Advanced Manufacturing Research Centre).  Skills – key area. DECC in collaboration with other Whitehall departments working closely with industry and skills: o Identify skills shortage in specific professions through Labour Market Intelligence. o Training and entry schemes (Degree Apprenticeships, Trailblazers) o Recognising/ benchmarking transferrable skills o Nuclear Industry Council (NIC) – has a specific workstream devoted to skills. Currently considering consultation responses about its direction going forward. o Nuclear Skills Strategic Group (NSSG) – acts as the lead strategic skills forum representing the nuclear industry’s skills demands in the UK. Provides strategic direction on skills infrastructure, processes and training provision. Reports to the NIC.  Small Modular Reactors (SMR) – no Government Policy on SMR at present. Techno-Economic Assessment ongoing – complete Spring 2016.  Spending Review announcement due 25th November 2015. Update to be provided at the next meeting. Await outcome of that to see what it means for DECC – Government is committed to new Nuclear and clear that it wants to see a significant expansion in new nuclear.

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Wales (WG) Overview – Wyn Roberts Wyn Roberts explained that responsibility of his work is mainly around Nuclear Supply Chain.

POLICY & CONSENTS  Wales Bill – draft bill published in October setting out how it will deliver the St David’s Day commitments. Clauses 8 and 17 of most interest to the Energy agenda. o Clause 8: Onshore petroleum licensing 76 Clause 8 transfers to Welsh Ministers certain executive functions exercised currently by the Secretary of State relating to onshore petroleum licensing in the Welsh onshore area. o Clause 17: Gives effect to the policy intention to devolve to Wales the responsibility for energy planning development consents for projects up to an including 350MW onshore and in Welsh territorial waters.  Energy Bill – announced in the Queen’s Speech in May. Will deliver on two of the Government’s key energy commitments – 1. North Sea Oil and Gas and oversee transition of the OGA from an Executive Agency of DECC to a Government-owned company; 2. Allow local people to have a greater say on new onshore windfarm applications by removing the need for the Secretary of State’s consent for large onshore wind projects.  Proposed legislative changes mean that final decisions on planning applications for onshore windfarms (with generating capacity over 50MW) in and Wales will be taken by local authorities.  UK Secretary of State announced in June that the Renewables Obligation scheme to new onshore wind would close early from April 2016 next year.  Continue to engage with DECC, particularly over the transitional arrangements for on-shore wind, which have had the effect of stopping a number of projects in Wales with immediate effect.

DELIVERY Wales Nuclear Programme:  Cross sector/ cross department Programme Board established in late 2014.  Outline business case endorsed in June 2015 - subject of ministerial discussion early July.  Currently developing detailed business case – to be considered early in the New Year.  Business Case makes argument for additional resources to be made available to support a range of interventions, focussing on infrastructure, supply chains, sites and property and inward investment. Wylfa Newydd:  Formal Engagement Frameworks established with Horizon and Hitachi-GE – minimise duplication of effort.  Now have working engagement groups on: Employment and Skills; Education; Strategic Infrastructure; and Supply Chains.  Aim to minimise duplication in how we all communicate; also to find practical way to maximise local and regional input into the project. Coleg Llandrillo-Menai:  First Minister made an official visit to Grŵp Llandrillo Menai 12th November 2015.  Representative from the Grŵp and Lockheed Martin UK were present and made public an agreement that will see the two companies working together to deliver specialist training at the Llangefni college campus.  During visit, First Minister met with employers and apprentices who are part of the apprenticeship training agency run by Cwmni Prentis Menai.

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 WG recently announced an additional £375k into the Cwmni Prentis Menai programme this year to support 30 extra apprentices. Marine Sector:  Menter Môn congratulated on the significant process made on moving the Morlais Demo Zone forward in a difficult funding environment.  Marine Energy Task & Finish Group (chaired by Andy Billcliff) inception meeting was held on the 2nd September 2015. Issues considered by the group are Planning, Grid, Consenting; Risk Financing, EU Match Funding. A plan will be produced by February 2016, with opportunity to launch it at the Ocean Energy Event.  Ocean Energy Event (23-25 Feb 2016) in Edinburgh, Scotland. Organised and hosted by RenewableUK in partnership with Scottish Renewables. WG will be present with a stand and hosting: Marine Energy Pembrokeshire, Marine Power Systems, Menter Môn, Marine Space Ltd, Tidal Lagoon Power, SEACAMS, Tidal Energy Ltd.

Isle of Anglesey County Council Update – Dr Gwynne Jones  The EIP resource is scheduled to come to an end on 31st March 2016. The IACC Corporate Plan outlines commitment to ‘Developing the economy’ and fully recognises that the projects associated with the EIP provide a vehicle for progressing this transformational change. Commitment remains.  Significant progress has been made as a result of the EIP’s facilitation and engagement role. The Programme has stimulated the Welsh Government and North Wales Economic Ambition Board response to the potential developments and remains influential in progressing the relevant workstreams. However with projects now moving from development stage into the consenting process and as a result the relationship with the developers evolving it is recognised that the Programme has come to a critical stage in its lifecycle.  Although the budget remains uncertain the IACC remains committed to progressing the Programme beyond March. With the projects moving from development to implementation the IACC are currently reviewing the Programme to ensure that the potential benefits from energy investment are achieved.  Updates regarding HR changes within the EIP were given:  Mr. Arthur Owen (IACC Corporate Direct for Sustainable Development) has been with the IACC for over 40 years and will be retiring at the end of the year. Thanked for his invaluable input and strategic direction over the years.  Dr John Idris Jones’ secondment from Magnox to the Programme will come to an end on 31st December 2015. John will return to his substantive post with Magnox. Both the EIP team and Forum members thanked John for his commitment to the Programme during the past three years and look forward to continuing to work with him going forward, albeit in a different capacity.  Gareth Hall was seconded from the Welsh Government to the EIP; he retired from his role with the Welsh Government at the end of September. However, as outlined by Dr. Gwynne the IACC have secured Gareth’s on-going services on a consultancy basis.  The Authority has recently appointed two new Deputy Chief Executives – Annwen Morgan & Caroline Turner. Will be briefed at the next meeting in terms of their allocated departmental responsibilities.  In the meantime all communications should be directed: o Consenting – Gwyndaf Jones (Chief Planning Officer) o All other issues – Dylan Williams (Head of Economic and Community Regeneration ITEM 4 – Magnox Update WYLFA SITE

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 End of generation – 30th December 2015.  Looking at transition April-May 2016.  Currently 512 FTE at Magnox.  Consulting with Trade Unions and the company with regards to what the defueling structure will look like. 377 FTE (subject to NDA funding) at the beginning of the defueling process. Decreases after Phase 1 of defueling (3 years) to 300 FTE. Beyond that – 150 FTE.  Defueling Wylfa Power station – largest reactors in the UK.  Currently looking at lifetime plan – treating it as unconstrained from perspective of funding.  Defueling Wylfa Power Station is a vastly different process to defueling Trawsfynydd Power Station (much quicker process).  Once Wylfa has been successfully defueled, there will only be the need for care and maintenance/ remote monitoring (therefore no significant staff numbers).

TRAWSFYNYDD SITE  Regional approach for Magnox.  Making people aware of opportunities at Trawsfynydd (2028 – 2032 care and maintenance).  Steadily reducing workforce – but still a lot of opportunities (particularly in Projects).  600 roles across Cavendish Fluor available for people from Magnox if they wish to apply for them.  Roadshows held – 6 individuals moved to parent body organisations.  Currently in process of finalising lifetime plan.  Remain engaged with Trade Unions regarding structure.

Comments/ Questions: Regarding the gap between end of generation and defueling at Wylfa and the start of Wylfa Newydd, are there any discussion between Cavendish Fluor, Hitachi and Magnox in terms of tracking people and ensuring the skills base is maintained in North Wales.  There are activities ongoing, which will be increased as the numbers become clearer. On-going work programme (care and maintenance) to be completed 2026.

Horizon have been in discussion with Cavendish Fluor regarding interaction between decommissioning and new build works. Important that safety is maintained – draft contract sent to Cavendish in September 2015, and comments returned.

Welsh Government noted the intention to establish a Task Force for Magnox and come up with a Programme of Action – first meeting to be held before Christmas.

The Forum noted appreciation of the work undertaken by Magnox and their successful operation.

Despite reduction in employment, both sites will remain significant locally - is there still intention to take on apprenticeships over the next five years?  Magnox continue to take on apprenticeships through Cwmni Prentis Menai however it will not be on the same level as previous.

Wylfa Visitor Centre.  The visitor centre has been a key part of engagement over the years with tens of thousands people/ children having been to visit. The Visitor Centre will close at the

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end of November 2015, and from January onwards the Centre will be used to give Safety Seminars training. The content of the Visitor Centre will be donated to museums and libraries across Wales.  The Visitor Centre staff were thanked for their commitment.

ITEM 5 – National Grid Consultation – North Wales Connection Matt Durham gave a presentation providing an update on the North Wales Connection project and the latest on the consultation. Copy available on request.

Comments/ Questions: If National Grid go ahead with the Orange route, are you considering undergrounding the existing line that goes across the Menai Straits?  Cannot do anything with the existing line (not during this project), because no new infrastructure can be created.

What arguments do people need to give to National Grid to allow you to look at the undergrounding of the whole new proposed infrastructure?  Combination – thing such as visual impact, combined with independent assessment. Planning guidance starts with a principle of an overhead line, OFGEM will require us to justify any undergrounding as it costs £10’sM more per km. Recognition that undergrounding is not the best option for everyone, for example some farmers will object. The main point is to explain your reason – be as descriptive as possible.

What thought have you given to have some section underground and some overhead?  National Grid start with a principle of overhead lines. There is also need to consider transition points if going for an option of some sections underground and some overhead.

Meifod provided a successful argument for undergrounding– could you detail their argument and how it was won?  Every argument is individually assessed.

Pylon design – have National Grid had much reaction/ enquiries regarding this?  Pylon design has not been significantly raised in the consultation events – people don’t seem to have a preference and we haven’t decided what type this would be at this stage. It would appear to be sensible to mirror what is there already on the landscape – however it may come up in later consultation events.

Parallel routing – would have thought National Grid would have looked at a better diversity. The better diversity you have, the less stress there is on the plant whenever you get a disconnection. A: Agree, but with the parallel routing, National Grid are complying with the standards, there is a suitable distance to avoid cascade.

ITEM 6 – Scottish Power Update Liam O’Sullivan provided an update on the SPEN business and activities in North Wales and Anglesey. Copy available on request.

Q & A / Comments:

M-Sparc stated they are very interested in the innovation side of SPEN’s business and would welcome engagement on a wider level.

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Will the 20% to 25% increase in capacity from the conversion of an existing AC circuit to DC operation help community projects to connect?  Yes, however community projects are difficult, as it is difficult to make them financially viable.

SP Manweb were thank for their work – they are enabling a lot of work going forward.

Item 7 – Developer Project Updates  Updates were circulated previous to the meeting.

Hitachi-GE  Utena San provided an update from Hitachi-GE’s perspective.  Delivery Team update: o Important process ahead - to develop Tier-1 delivery team. Confirmed in late summer that Hitachi are in exclusive discussion with two partners. Those are continuing to go very well. Significant discussions - about establishing the commercial framework which will underpin that relationship for the decade ahead. o Now in the latter stages of a three-year programme of construction studies, all of which have been carried out hand-in-hand with major British suppliers. Hope to begin selecting first Tier-2 partners within the first half of the coming year.  Supply Chain engagement: o Supplier website launched in October – details of registered companies could be shared with partners - 160 suppliers registered to-date. o No compromise on cost, quality or competitiveness, but a commitment to giving local, regional and UK companies a ‘helping hand’ and a level playing field. o Supply chain charter outlines commitments on approaches and behaviours – including issues of local opportunity, and Welsh language. o Based on three-year programme of construction studies, Hitachi recognizes may do some development of tools in UK, for example- lever coupler. Looking for such good partner in UK and some feasible fund in UK.  Technology/ GDA update: o Continues to progress well through GDA. o End of October – announcement of progression from step 3 to step 4, with ONR’s step 3 summary published. o Completion of GDA remains on target for the end of 2017. o SoDA (Environment Agency and Natural Resources Wales) consultation planned for Autumn 2016. o Continued stakeholder engagement and bilingual website: http://www.hitachi-hgne-uk-abwr.com/

Horizon -Charlie Tasker  Archaeological work underway – contract value £3M – largest in the UK. One hundred personnel and will be delivered within the next three months. This work de-risks the construction programme.  Cable diversion programme will commence in the next two weeks and completed by Summer.  Working with Welsh Water to improve the water supply pipe.  Demanding more and more resources. Looking to increase office space from 35-50 desks to 120 desks. Numerous posts within Site Development have been advertised locally. Some of these are at site with others currently at Gloucester but with future transfer to Wylfa.

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 Continually developing jobs and skills. The team has grown from 80 to 320 personnel - the team from Hitachi-GE are integrated with Horizon’s team.  Supply Chain Charter developed – ensuring local companies can apply for work, but have got to be competitive.  Next stage of consultation will commence early next year.  Site licence application on programme for Q2 2016.  Horizon recognise that having grid connection is very important and they have been supporting the National Grid consultation by having team members present at the consultation events to answer questions.  Contractor Joint Studies being progressed to support the transfer of construction knowledge to the UK to ensure compliance with UK H&S requirements.  Road Improvement Programme – The on and offline road improvement TCPA consents applications will be submitted in 2016. Online road improvements in the section Valley to Wylfa scheduled to commence 2016/17.

Q&A/ Comments: What progress have Horizon made in terms of the schools interaction Programme? - Horizon have a schools interaction programme and are going out and engaging with schools. In addition Horizon also support other local schemes/ events including supporting Cwmni Prentis Menai and the Codi STEM event.

Dr Gwynne wished to thank Magnox for the work they have been doing through the Visitor Centre, in particularly with the Primary Schools – the work they have been doing is invaluable.

Item 8 – Chair Sum Up & Close  Chair noted it is an interesting time with developments.  Important work to be done in the joining of existing Magnox and Wylfa Newydd project.  Thanked National Grid and SPEN for their interesting presentations and echo the Forum’s thanks to Arthur Owen and John Idris Jones, wishing them all the best and looked forward to potentially working with John again in a different capacity.  DECC/IACC are welcoming feedback / comments about the forum on how it is working and if it can be improved.

Next meeting February 2016

Action Summary Owner First stage worker profile data – update to be presented at Magnox the next meeting. Approval Final Note Approved Date Matthew Clarke – Department for Energy and Climate Change 29/11/2015

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