Operating Lives of European NPPs to Be Extended
The authors are analysts of NH Investment & Securities. They can be reached at ys.jung@nhqv.com. -- Ed.
To handle the current energy crisis, Europe is reviewing the continuation of NPP operations. If today’s energy woes sustain over the mid/long term, shifts in energy policy are highly likely.
Operating lives of European NPPs to be extended
According to media reports, the German Minister of Environment said last week that she is willing to consider operating the Isar 2 nuclear power plant (NPP) in Bavaria beyond its planned shutdown at the end of this year if an ongoing government assessment concludes that such a step is necessary. In July, German Chancellor Olaf Scholz also said that he will consider continuing to operate Emsland (1.4GW), Isar 2 (1.4GW), and Neckarwestheim 2 (1.4GW) in order to achieve energy security.
In addition, this July, the Belgian state signed a letter of intent (LOI) with NPP operator Electrabel to extend the operation of the Doel (1.1GW) and Tihange (1.0GW) plants by 10 years. The two parties are expected to reach a final agreement by end-2022.
Europe faces a serious energy crisis owing to the Russia-Ukraine war. A number of European countries are now putting on hold their nuclear exit policies, which have in most cases been in place for over two decades. Even in Germany, which has been active in removing nuclear from the grid, differing views now exist regarding nuclear policy. If the current energy crisis persists, European countries will inevitably change their policy stances.
Holtec submits second part of federal loan application to DOE
Holtec International, which is working in cooperation with Hyundai E&C, revealed that it has submitted Part 2 of its federal loan program application (US$7.4bn) related to its SMR project—Part 1 of the application submitted to the Department of Energy (DOE) was approved in March. Developing the SMR-160 (160MWe, pressurized water reactor (PWR)), the company plans to allocate acquired federal funds for construction of a four-unit power plant and SMR manufacturing facilities. According to the Korea Energy Economics Institute (KEEI), Holtec is reviewing several sites, including Oyster Creek (New Jersey) land acquired from Exelon, for construction of the SMR plants, and state funding is essential for the project to move forward.
1) On Jul 20, the construction commencement ceremony was held for unit 1 of the El Dabaa NPP in Egypt. The plant will comprise four Russian-supplied VVER-1200 reactors worth US$30bn. 2) In Kazakhstan, site evaluation is currently underway to build an NPP for which reactors are to be selected around late-2022 or early-2023. Final candidates for the reactors include Rosatom (Russia), EDF (France), CNNC (China), and Korea Hydro & Nuclear Power (Korea). The reactor construction is expected to cost US$5bn. 3) During her meeting with National Assembly speaker Jin-pyo Kim, the acting speaker of Romania’s Senate acknowledged that the US, Korea, and Romania need to cooperate closely in the nuclear power arena. Korea and Romania are to continue their discussions about building two new NPPs.