Polish NPP project and EIA requirements

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Polish NPP project and EIA requirements

IAEA, Vienna, 18.05.2016

Krzysztof Wojciech FORNALSKI

PGE EJ 1 Sp. z o.o.

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 This Presentation has been prepared by PGE S.A. (“ PGE”) and PGE EJ 1 Sp. z o.o. (“ PGE EJ 1”) (the

“Company”) on the basis of information received from different sources, including not independently audited and publicly available information. The Company is not responsible for the accuracy, reliability and consistency of information contained in this Presentation (“ Presentation”).

 This Presentation includes results of preliminary analyses considered by PGE and PGE EJ 1. PGE and PGE EJ 1 reserve the right to introduce changes and modifications as well as to complement this information at any given stage and are not under obligation to explain reasons for these changes, modifications and complementation.

 The information included in this Presentation cannot form the basis for any claims or civil law suits against PGE, PGE EJ 1 or any other entity from within PGE Capital Group, in particular with regards to damages or indemnities to be paid in case of negligence in contracting.

 PGE and PGE EJ 1 wish to inform that all responsibilities and risks pertaining to and resulting from any decisions taken on the basis of or in relation to the information provided in the Presentation shall be borne by makers of these decisions. As a result, PGE and PGE EJ 1 on their own behalf and on behalf of all their directors, partners, employees and agents, declare that none of the entities listed herein will incur any liability towards any person in connection with any consequences of the decisions and/or actions taken in reliance on this Presentation and information provided.

 This Presentation reflects prevailing conditions, and PGE and PGE EJ 1’s understanding of the current situation, all of which are accordingly subject to change after this date upon obtaining new information or occurrence of new events.

 For internal distribution only.

Disclaimer

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EIA requirements in Poland (NPP project)

The proposed scope of the EIA report for Polish NPP

Agenda

Site selection process for the first Polish NPP

Polish Nuclear Power Plant (NPP) new build project overview

Polish NPP project and EIA regulations

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Agenda

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 Unchanged country imperatives driving nuclear power introduction to Poland – security of supply (aging generation fleet, EU climate change policies)

– Electricity supply shortage (near blackout) in August 2015, State Grid

Operator forced strong electricity supply reductions on large and industrial customers for the first time since 1989

 Continued Polish government commitment to the implementation of the Polish Nuclear Power Programme

 Nuclear power in future fuel mix according to the Polish Energy Policy until 2050 (each of three reference scenarios defined includes nuclear in the national energy fuel mix)

 Increase of Poland’s industrial capabilities with a number of Polish companies having potential to join the nuclear supply chain

 Diversification of Poland’s generation portfolio in order to lower CO₂ emission (currently approx. 90% based on coal and lignite)

 PGE as the leader continues NPP build project development activities with important milestones achieved

Business purpose of NPP new build project NPP Project

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6 Mining

Power generation

Transmission

Distribution

Wholesale &

Supply

• 2 open pit lignite mines (Bełchatów and Turów)

• Lignite output 50 million tons p.a.

• Production net ca. 55 TWh

• Installed capacity ca. 12.6 GW

• Sales of heat ca. 18 million GJ

• 2 Lignite-fired power plants (Bełchatów and Turów)

• 2 Hard coal-fired power plants (Opole and Dolna Odra)

• Combined heat and power plants – 8 sites (Szczecin, Pomorzany, Gorzów, Bydgoszcz, Zgierz, Kielce, Rzeszów and Lublin-Wrotków)

• Hydroelectric power plants (Hydro ca. 97 MW, Pumped-storage ca. 1.5 GW), Wind farms 311 MW

• Activity of PSE S.A.

PGE Polish Energy Group – Main Investor

• Distribution of energy 32.54 TWh

• Distribution grid: 281,290 km

• Number of substations: 91,374

• Final consumers 39.60 TWh

• Wholesale market 62.44 TWh

• Balancing market 1.10 TWh Nuclear potential locations

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Stage II Stage III Stage IV

Stage I

Pre-development Development Construction Start-up

and commissioning

 Site selection – site investigation and environmental surveys – obtaining the decision on environmental conditions and site permit

 Development and execution of Integrated Proceedings (amongst others selection of technology)

 Business and financing model development (incl. support mechanisms)

 National and site infrastructure planning (incl. transmission system)

 Communication and Education (public support)

 Preparation and implementation of Integrated Management Systems

 Building nuclear and other specific competences (Capacity Building)

 Obtaining the Decision in Principle

 Preparation of a detailed technical plan of a nuclear power plant (FEED)

 Prep. of a preliminary safety report

 Obtaining key decisions, permits and licences:

– Licence issued by the PAA (Polish National Atomic Energy Agency) – Construction permit for NPP and

environmental permit

 Signing a contract regarding the connection to the transmission grid

 Development of associated infrastructure for the NPP construction

 Communication (public support)

 Building of key competences and human resources development

 Financial close and Final Investment Decision

 Site preparation and initiation of the final stage of the process

 First concrete

 NPP construction process

 Delivery of long lead equipment

 System tests

 Development of national and site infrastructure for the NPP operations

 Connection to the transmission grid

 Simulator installation

 Further expertise development and building site operator structure

 Fuel Loading Permit

 Power tests

 Start-up Licence

 Integration of the NPP with the National Grid

 Operating licence

 Concession for power production

 Commercial operation (COD)

 Daily operations of the NPP

 Maintenance of the NPP

 Fuel management

 Waste management

Decision

in Principle Final Investment Decision Fuel Loading

IAEA (Phase 2) IAEA (Phase 3)

Source: own materials

Preparation of the investment process and construction of Poland’s first nuclear power plant is divided into four key stages (in line with IAEA recommended approach)

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8 Decision in

Principle Source: own materials

National and site infrastructure planning and preparation

Feasibility Study Site selection

(EIA, Site Permit) based on site characterization

Stakeholder Management and

Communication (local communities

focus)

Integrated Proceedings

Implementation of Integrated Management

System

Capacity Building Support

mechanisms and business

model

Legislation and relations with

European Commission

Decision in Principle

Organization of Polish Nuclear Program – 10 main projects

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Agenda

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Site selection

 Full environmental studies and site characterization works to be started in 2016 (seismic already ongoing, meteo equipment under installation)

 Preliminary national and site infrastructure plan developed in cooperation with local communities and Pomerania voivodeship

 First stage of transmission grid and transmission infrastructure analyses completed for candidate sites in cooperation with PSE – Polish National Grid So far studies and analyses were conducted in three considered sites of a nuclear power plant: "Choczewo ", "Lubiatowo-Kopalino" (Choczewo) and

"Żarnowiec" (Gniewino and Krokowa). Based on their results, in January 2016, two sites were selected for the full program of site characterization

and the environmental impact assessment - "Lubiatowo-Kopalino" and

"Żarnowiec".

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Environmental assessment

The purpose of environmental assessment is to provide data necessary for a decision whether a given site is suitable for the

construction of a nuclear power plant in terms of environmental protection.

Start – 2016 Duration – 12 months

Site investigation

The objective of site investigation is to confirm that a given site is suitable for a nuclear power plant in terms of nuclear safety.

Start –2016 Duration – 24 months

Site

characterization and environmental assessment

Preparations are underway to launch full environmental assessment and site investigation by PGE EJ 1

The Environmental Scoping Report (ESR) has been prepared and, on the 5th of August 2015, the first stage of the environmental impact assessment (EIA) procedure

was launched.

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Agenda

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EIA Requirements

EIA requirements in Poland – Nuclear Power Plant context

THE E.I.A. ACT

 The Act of 3 October 2008 on the Provision of Information on the Environment and its Protection, Public Participation in Environmental Protection and Environmental Impact Assessments

 Polish: Ustawa z dnia 3 października 2008 r. o udostępnianiu informacji o środowisku i jego ochronie, udziale społeczeństwa w ochronie środowiska oraz o ocenach oddziaływania na środowisko

Other acts of the Parliament:

 The Environmental Protection Act

 Polish: Ustawa Prawo ochrony środowiska

 The Atomic Law Act

 Polish: Ustawa Prawo atomowe

 Secondary legislation to Atomic Law: Regulation of the Council of Ministers of 10 August 2012 on detailed scope of assessment with regard to land intended for the location of a nuclear facility, cases excluding land to be considered eligible for the location of a nuclear facility and on requirements concerning the location report for a nuclear facility (Journal of Laws of 10 August 2012, item 1025)

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This Act shall implement within the scope of its regulation the following Directives of the European Communities:

 Council Directive 85/337/EEC of 27 June 1985 on the assessment of the effects of certain public and private projects on the environment (OJ L 175 of 05.07.1985, p. 40, as amended;

OJ, Polish special edition, Chapter 15, Vol. 1, p. 248);

 Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora (OJ L 206 of 22.07.1992, p. 7, as amended; OJ, Polish special edition, Chapter 15, Vol. 2, p. 102);

 Directive 2001/42/EC of the European Parliament and of the Council of 27 June 2001 on the assessment of the effects of certain plans and programmes on the environment (OJ L 197 of 21.07.2001, p. 30; OJ, Polish special edition, Chapter 15, Vol. 6, p. 157);

 Directive 2003/4/EC of the European Parliament and of the Council of 28 January 2003 on public access to environmental information and repealing Council Directive 90/313/EEC (OJ L 41 of 14.02.2003, p. 26; OJ, Polish special edition, Chapter 15, Vol. 7, p. 375);

 Directive 2003/35/EC of the European Parliament and of the Council of 26 May 2003 providing for public participation in respect of the drawing up of certain plans and

programmes relating to the environment and amending with regard to public participation and access to justice Council Directives 85/337/EEC and 96/61/EC (OJ L 156 of 25.06.2003, p.

17; OJ, Polish special edition, Chapter 15, Vol. 7, p. 466);

 Directive 2008/1/EC of the European Parliament and of the Council of 15 January 2008 concerning integrated pollution prevention and control (OJ L 24 of 29.01.2008, p. 8).

THE E.I.A. ACT

EIA Act

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The selection of the proper site for NPP construction is a complicated multi-step process. The EIA items are represented in, inter alia:

• site investigations lasting up to 24 months consisting of

meteorological, archeological, (hydro) geological as well as natural environment studies

• envelope boundary conditions for the nuclear technology (Gen III reactors)

• analysis and modelling of environment impacting factors, e.g. air pollutants dispersion calculations from conventional (combustion) and unconventional (radionuclides) sources, noise mapping, landscape and natural environment impact, water quality and cooling water plume, wastes management

• application for the environmental permit including the EIA report (first stage, conceptual design) preparation and submission to the relevant authority (General Directorate of Environmental Protection [GDOŚ])

EIA and the site selection process for NPP – #1 EIA Requirements

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Continued…

• the EIA report review as a part of administrative procedure, including:

 opinions of Director of Maritime Office, Ministry of the Environment, State Sanitary Inspector and State EIA Commission

 transboundary procedure coordinated by the General Directorate of Environmental Protection (GDOŚ) (+ Espoo Convention)

 necessary for the environmental decision of investment

 can be repeated (if necessary)

• environmental decision by GDOŚ after EIA (but before the site and construction/building permissions)

• national and local EIA commissions (which advise GDOŚ)

• the EIA report (second stage at the construction permit issuance) preparation and submission to the relevant authority (GDOŚ)

• EIA report review as a part of administrative procedure, following the same steps as at the first stage

• opinion of the President of National Atomic Energy Agency (PAA) – the Polish nuclear regulatory body

EIA and the site selection process for NPP – #2

EIA Requirements

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Agenda

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 General description of the project and general plan of the site

 Schedule for construction and exploitation phases including start-ups

 Description of the construction phase and impact zones with materials and utilities requirements - balance sheet

 Description of the natural environment

 Geological, hydrological and geotechnical site relevant conditions

 Surface and underground water conditions (quality, levels, flow velocity and direction etc.)

 Population distribution and living conditions including archeology

 NPP safety and emergency plans and procedures

 Climate change (and associations) and adaptation measures

 Technological aspects of NPP exploitation and impacts analysis

including technological and location variants – impact assessment and minimization measures implementation (if exceedances reached)

The proposed scope of the EIA Report for the first Polish NPP

EIA Report

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 Description of different options expected by the Investor

 Accident scenarios

 Nuclear and non-nuclear impacts

 Dispersion of radioisotopes in air, water and ground

 Description of assessment methods

 Description of all other activities

 Restricted use area around NPP

 Social aspects and local community support

 Plans for future monitoring of the environment

 Attachments

 Maps and figures

 Abstract

 References

The proposed scope of the EIA Report – continued #2 EIA Report

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