BEMF presented its vision for new capacities at Kozloduy NPP.
On 20.02. 2018, within the framework of a one-day National Discussion Forum - public discussion on the topic "The Construction of the Belene NPP - feasibility, alternatives, economic models", organized by the Bulgarian Energy and Mining Forum, Dr. Ivan Hinovski presented his view on the project for a NEW NUCLEAR POWER PLANT AT KOZLODUY NPP - "Preliminary assessment of the advantages, risks and opportunities for implementation".
According to Dr. Ivan Hinovski, in the event of a decision to develop a second nuclear power plant at the Belene site, a significant part of these assets will remain unusable after the shutdown of units 5 and 6, i.e. their residual value will form a loss, which at current prices is comparable to the losses in the event of refusal to use them at the alternative site. In addition, an opinion was expressed that the construction of a new nuclear capacity at the Kozloduy NPP is engineering, technical, environmental and economically possible and permissible under any of the two alternatives: 1. Construction of a nuclear power plant, based on maximum use of the equipment manufactured for the Belene NPP nuclear island. 2. Construction of nuclear units, new projects – ATMEA 1, AR 1000, AES-2006.
The presentation covered topics such as:
– main objectives of nuclear safety and radiation protection, as well as environmental impact assessment;
– advantages of the sites under consideration and especially Site 2 – preferred due to a number of advantages: high elevation, non-floodability, very low liquefaction potential, best seismic characteristics, easy maintenance and connection to the electricity grid;
– place of the project in regional energy;
– the assessed risks of the investment project;
– the upcoming activities and steps of the project, according to the regulations;
– the unconditional advantages of the Kozloduy project over any alternative project;
In the socio-economic assessment and financial analysis section, Dr. Hinovski examined the case study "state aid" and presented a concept for "general asset management":
1. "Kozloduy NPP" is an investor in the new project (corporate project), with its company "New Power" being the project manager.
2. The investment intention is justified by a possible deficit on the Bulgarian and regional market and the possibility of baseload energy supplies, which corresponds to the production of at least 1000 MW per unit and/or more with increased electrification of transport (question about the future of units 5 and 6 after 2027);
3. Kozloduy NPP is taking the initial steps towards project implementation based on reinvesting the profits from its activities – this covers a period of 3-4 years until a construction permit is obtained – without borrowed capital;
4. In order to achieve compliance with available financial resources and necessary costs, at this stage the implementation of Unit 7 is being considered initially. The implementation of Unit 8 is being postponed by a minimum of 5 years and upon proving feasibility.
5. After 4 years, Kozloduy NPP takes steps to attract capital for the construction of the site by registering on the stock exchange as a public company and selling a minority stake, subsequently seeking credit financing from banks or an investment partner;
6. No state aid is sought to finance the project, which is essential in the discussion with the EC;
In conclusion, BEMF indicated that due to the advantages of the available infrastructure and personnel, the investment in units 7 and 8 of the Kozloduy NPP would be about 1 billion euros smaller than other alternatives.
P.S. The management of New Powers expresses its gratitude to BEMF for the topics raised regarding the project and supports all initiatives to overcome any attempts at manipulation and speculation regarding the possibilities for the use of acquired nuclear equipment from the project terminated in 2012.
