ROSATOM Profile & Projects: Driven by Global Energy Challenges Vadim Titov Vice president, ROSATOM International Network Head of Rosatom Central Europe Varna, 15 June 2016 Global energy challenges: Reduction of CO2 Emissions Global Priorities of Energy Policy • Low CO2 power generation • Reduce local air pollution COP21 requirements Cost Optimization of Energy Environment Supply • Substantially increased energy efficiency • Increase competitiveness by using least-cost approaches for supply expansion Security of Supply Sustainability • Install new capacities and diversify the energy mix Economics Security of Supply • Baseload electricity needs • Reduce import dependency Electricity Prices Baseload Electricity 2 Russia’s commitment to COP21 principles: CO2 emission from fuel combustion in 2013 COP21 calls for urgent actions to stop the climate change by lowering CO2 emissions and transition to non-carbon economies Russia supports COP21 approaches: by 2030 all Russian NPPs will help to avoid 711 million tonnes of CO2 emissions per year During 60 years of Rosatom NPPs operation worldwide By 2030 all Russian design NPPs 15,344 MtCO2 were saved around the world will help to avoid (equivalent of 38 electricity plants with unit installed 2,4 billion tonnes of CO2 emissions capacity of 1000 MWh operating on coal during 60 years) per year In Russia 168 MtCO2 were saved – 10% of total yearly CO2 emission from fuel combustion 3 4 Challenge: Electricity price Solution: Make a kWh-based Sources: IEA, Transitional offer to a customer Markets Consultancy LLP There is no separate competition on nuclear market – it’s global competition based on LCOE. Key advantage of the MWh-based product offer: predictable long-term electricity pricing LCOE depending on the region and technology Nuclear LCOE is one of the most Without nuclear (VRE only): globally competitive and predictable Germany: electricity prices up 24% (from 2010 to 2014), CO2 emissions up 11% (Source: Eurostat) Source: Forbes.com, Conca, J., 2012 Japan: electricity prices up 12% (same period), CO2 emissions up 27% (Source: OECD) 4 Nuclear is required to provide the largest contribution to global electricity in 2050 Source: International Energy Agency 5 © 2015 Organisation for Economic Co-operation and Development 5 Nuclear is required to provide the largest contribution to global electricity in 2050 Source: International Energy Agency 5 © 2015 Organisation for Economic Co-operation and Development 6 Nuclear is required to provide the largest contribution to global electricity in 2050 Source: International Energy Agency 5 © 2015 Organisation for Economic Co-operation and Development 7 Nuclear is required to provide the largest contribution to global electricity in 2050 Source: International Energy Agency 5 © 2015 Organisation for Economic Co-operation and Development 8 Nuclear energy should deliver more: Harmony goal is 1000 GW TWh GW 25% of 1000 1250 generation 9000 GW GW 1000 7000 800 9200 10700 TWh TWh 5000 600 11% of 3000 400 generation 396 150GW 1000 GW 200 2400 Retirements TWh Additions 00 2014 2050 Source: World Nuclear Association. Growth required for nuclear energy to supply 25% of electricity in 2050 under demand forecast of two-degree scenario (see IEA, 2015, Energy Technology Perspectives 2015 6 To deliver 1000 GW new nuclear capacity to 2050 Period Connection rate Added capacity GW per year GW 2016-2020 10 50 2021-2025 25 125 2026-2050 33 825 _________________________________ Total new nuclear capacity 1000 GW 7 To deliver 1000 GW new nuclear capacity to 2050 Period Connection rate Added capacity GW per year GW 2016-2020 10 50 2021-2025 25 125 2026-2050 33 825 _________________________________ Total new nuclear capacity 1000 GW Yearly connection of new nuclear: Below 5 GW the last 15 years Doubled to 10 GW in 2015 Historically 31 GW in mid 1980s 11 7 To deliver 1000 GW new nuclear capacity to 2050 Period Connection rate Added capacity GW per year GW 2016-2020 10 50 2021-2025 25 125 2026-2050 33 825 _________________________________ Total new nuclear capacity 1000 GW Yearly connection of new nuclear: Below 5 GW the last 15 years Doubled to 10 GW in 2015 Historically 31 GW in mid 1980s 12 7 To deliver 1000 GW new nuclear capacity to 2050 Period Connection rate Added capacity GW per year GW 2016-2020 10 50 2021-2025 25 125 2026-2050 33 825 _________________________________ Total new nuclear capacity 1000 GW Yearly connection of new nuclear: Below 5 GW the last 15 years Doubled to 10 GW in 2015 Historically 31 GW in mid 1980s Source: World Nuclear Association, 13 Nuclear Fuel report 2015 7 1 4 Driven by a challenge The atom is more than just energy. It is a unique tool that is able to deal with the most fundamental challenges facing humanity. Customer requirements while developing 1 nuclear projects globally 5 Safe, referenced and reliable Ability of vendor to deliver technology within time & budget LCOE Life cycle support solution and Flexible schemes of more implementation & financing 9 Rosatom offers complete solution from uranium supplies to NPP construction operation and decommissioning Key Activities of Rosatom* Guaranteed supply of complete life-cycle products and services Fuel fabrication Flexible capabilities Mining of NPP supply from components Research and and services to turn-key and development TVEL BOO projects Science & Innovation ARMZ Conversion Being a state corporation and enrichment Rosatom is taking advantage of TVEL unique industry Tenex Power equipment NPPs engineering access to privilege resources and services & construction ASE Group Atomenergomash, Gidropress Rusatom Service Gas centrifuges OKBM manufacturing Spent nuclear Power TVEL fuel treatment Generation FCNRS, NUKEM Rosenergoatom * Boxes include names of key Rosatom’s Technologies subsidiaries in the relevant sector 10 Russian-designed VVER reactors keep providing electricity throughout the world: above the Arctic Circle and at Russia the southern tip of India Ukraine Country Constructed In operation Armenia Armenia 2 1 h China Iran Bulgaria 6 2 EU: China 2 2 Czech Republic India Slovakia Czech Republic 6 6 Finland Finland 2 2 Hungary Germany 6 - Bulgaria Hungary 4 4 Iran 1 1 India 2 1 72 power units with VVER reactors have been constructed since Russia 20 18 the 1960s. At present 56 VVER reactors are in operation at 19 Slovakia 6 4 NPPs in 11 countries. Ukraine 15 15 All Russian-designed reactors, including 38 VVER units operating TOTAL 72 56 outside Russia, successfully passed stress-tests. 11 Rosatom: Recently commissioned NPPs Russia, Rostov NPP Russia,СТРАНОВАЯ Kalinin NPP Russia, Rostov NPP Russia, Novovoronezh Unit 2 - 1000 MW Unit 4 - 1000 MW Unit 3 - 1000 MW NPP II, Unit 1 - 1200 MW ЭКСПЕРТИЗА 2010 РЕГИОНАЛЬНЫ 2012 2014 2016 Х ЦЕНТРОВ 2011 2013 2015 Iran, Busher NPP India, Kudankulam NPP Russia, Beloyarsk NPP Unit 1 - 1000 MW Unit 1 - 1000 MW Unit 4 – 864 MW 12 Modern VVER-1200 – evolutionary Forefront of nuclear technology – Generation 3+ idea of the revolutionary safety reactor Proven and mature solutions – 1400 reactor years of VVER-1200 is based on the most recent total operating time achievements of the Russian nuclear A high level of internal safety gained through evolution industry. Its unique safety concept is a of design. Protection from outer impacts balanced combination of both active and Most demanded capacity suitable for various grid passive safety systems. Core Catcher device conditions – 1000-1250 MWe implemented. Long – run facility – design lifetime of the19 main equipment: 60 years 2 0 Rosatom: Current VVER 1200 projects in Russia and in Europe Leningrad NPP II Novovoronezh NPP II Unit 1 - 1200 MW, 2017 Unit 2 - 1200 MW, 2019 С Novovoronezh NPP II И LeningradН NPP II Unit 2 – 1200 MW, 2018 Е Р Г И Belarus, Ostrovets NPP Я Unit 1 - 1200 MW, 2018 Ostrovets NPP Unit 2 - 1200 MW, 2020 Finland, Hanhikivi NPP Unit 1 - 1200 MW, 2024 Hanhikivi NPP Hungary, Paks II NPP Unit 5 - 1200 MW, 2025 Unit 6 - 1200 MW, 2026 Paks II 15 VVER is highly welcomed worldwide Great Britain 4 Finland Czech Republic 1 2 Belorussia Slovakia 2 Kazakhstan 1 7 2 Hungary Ukraine Armenia 2 1 2 4 Iran China С 2 Turkey 8 EgyptИ India Bangladesh Н СТРАНОВАЯ 4 2 2 Vietnam Е Jordan 12 2 ЭКСПЕРТИЗА NigeriaР 2 Malaysia РЕГИОНАЛЬНЫ 2 Г Saudi Arabia 2 И 2 Indonesia Х ЦЕНТРОВ Brazil Я 2 4 South Africa Argentina 8 1 34 25 $110,3 billion 24 Rosatom foreign order portfolio In progress Potential for the next 10 years Tendering process/ negotiations Rosatom NPP construction overseas portfolio – more than 90 units 16 Rosatom: key figures #1 in key segments $16 bln Revenue #1 in uranium enrichment $6,3 bln #1 Export revenue in new NPPs construction in the world 256 000 17% Number of employees of the world nuclear fuel market at year end 2015 3 17 More than 50 years of mutual Russian-Bulgarian cooperation 1966: Start of Kozloduy NPP construction 18 Rosatom is reliable partner Kozloduy NPP: Operating reactors - Russian design • Units 5, 6 VVER-1000 Supplies of nuclear fuel by TVEL reactors • In operations since 1987 Cooperation in Lifetime Extension project and 1991 Rusatom Service 19 Rosatom is reliable partner Lifetime extension of Kozloduy NPP Units 5, 6 Implementation Contract Project timeframe September 2014 Feasibility justification of Consortium of Rusatom Service JSC lifetime extension of Kozloduy 2014 ‐ 2016 – Rosenergoatom Concern OJSC ‐ NPP Unit 5 up to 60 years EDF (Electricite de France) January 2016 Feasibility justification of Consortium of Rusatom Service JSC lifetime extension of Kozloduy 2016 ‐ 2018 – Risk Engineering (Bulgaria) NPP Unit 6 up to 60 years 20 Rosatom is reliable partner Almost 40 years of reliable supplies of nuclear fuel for Bulgarian nuclear reactors С И СТРАНОВАЯ Н Е ЭКСПЕРТИЗА Р РЕГИОНАЛЬНЫ Г И Х ЦЕНТРОВ Я Kozloduy NPP, Units 5, 6 TVEL won the tenders in 2002 21 Thankwww.rosatom.cz you for your attention!.