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EU Nuclear Energy Policy NPP KOZLODUY

EU Nuclear Energy Policy NPP KOZLODUY . Presented by : Ivelina Gateva George Jurov Radoslav Radev Vyara Samoukova. EU Energy Policy. EU Energy supplies - the Commission Green Paper on Security and Energy Supply (November 2000) - 50% EU energy dependency in 2000

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EU Nuclear Energy Policy NPP KOZLODUY

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  1. EU Nuclear Energy PolicyNPPKOZLODUY Presented by: Ivelina Gateva George Jurov Radoslav Radev Vyara Samoukova

  2. 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.

  3. 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.

  4. 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

  5. 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.

  6. 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 worldreserves.

  7. EU Nuclear Policy 2 Waste Management • Opinion poll (2005) among the old EU 15 • 37% - in favorof the use of nuclear energy • 55% - opposed • If the issue of radioactive waste were considered as resolved 38 % of thosewho 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.

  8. 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%

  9. 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

  10. Producer of Electric Energy Price for Energy (lv./mWh) 1. Kozloduy NPP 14.27 2. FFPP "Bobov Dol" 55.26 3. FFPP "Maritsa 3" 57.28 4. "Toplofikaciq Ruse" 55.39 5. FFPP "Varna" 45.82 6. FFPP "Maritsa Iztok 2" 33.24 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:

  11. 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%.

  12. 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.

  13. 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.

  14. 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 Atomstroyexport’s offer for using 3rd-generation VVER-1000/V-446B reactors was approved by NEK.

  15. 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.

  16. THE END Thank you for the attention!

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