Nuclear Energy for New Europe 2009

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No: 905

Conference: Nuclear Energy for New Europe 2009

Title: Preliminary analysis of the costs in the new revision of NPP Krško Decommissioning, Radioactive Waste and Spent Fuel Management Program

Theme: Radioactive Waste Management

Author(s): Nadja Železnik, Irena Mele, Vladimir Lokner, Ivica Levanat

Contact : Nadja Železnik

E-mail: nadja.zeleznik@gov.si

Address: Agencija RS za radioaktivne odpadke
1000 Ljubljana

Country: Slovenia

The preparation of the new revision of the Decommissioning and Spent Fuel (SF) and Low and Intermediate level Waste (LILW) Disposal Program for the NPP Krško started in September 2008 after the acceptance of the Term of Reference for the work by Intergovernmental Committee responsible for implementation of the Agreement between the governments of Slovenia and Croatia on the status and other legal issues related to investment, exploitation, and decommissioning of the Nuclear power plant Krško. The responsible organizations, APO and ARAO together with NEK started with elaboration of all new technical and financial data and relevant inputs for the new revision. In the last 5 years, since the previous Program revision, besides new developments in the area of LILW disposal, various conditions influencing nominal costs of dismantling and decommissioning as well as expenses related to the management of LILW and SF have significantly changed. Also, there were major changes in economical environment, strongly influencing selection of parameters to be used in discounting modeling.

Both types of changes will affect estimates of annuities – the amounts to be paid each year by the owners of Krško NPP to the two decommissioning funds established in Croatia and Slovenia. Therefore preliminary analysis of impacts of boundary conditions and financial parameters on annuity was prepared to help in forming financially efficacious decommissioning scenarios involving management of LILW and SF. In this phase of the project (while still waiting for the supporting studies) the aim of such analysis is to test: (1) the influence of new assumptions regarding the LILW management including compensations to the local communities; (2) the sensitivity of the financial model to fiscal parameters variations within the range of presently reasonable values; and (3) the impacts of potential NPP Krško life extension and extended periods for annuity payments. The study compares costs estimates of potential new scenarios to the reference scenario costs from the 1st DP revision, which was adopted in both countries in 2004.

The results of the study indicate sharp increase of the calculated annuity for comparable reference scenarios, due to: reduced discounted factor, increase of LILW disposal expenses, and higher amounts for compensations to local communities taken from the new Slovenian regulation. Several realistic possibilities for reduction of the calculated annuities are evaluated and proposed to the competent bodies.

No:	905
Conference:	Nuclear Energy for New Europe 2009
Title:	Preliminary analysis of the costs in the new revision of NPP Krško Decommissioning, Radioactive Waste and Spent Fuel Management Program
Theme:	Radioactive Waste Management
Author(s):	Nadja Železnik, Irena Mele, Vladimir Lokner, Ivica Levanat
Contact :	Nadja Železnik
E-mail:	nadja.zeleznik@gov.si
Address:	Agencija RS za radioaktivne odpadke 1000 Ljubljana
Country:	Slovenia

The preparation of the new revision of the Decommissioning and Spent Fuel (SF) and Low and Intermediate level Waste (LILW) Disposal Program for the NPP Krško started in September 2008 after the acceptance of the Term of Reference for the work by Intergovernmental Committee responsible for implementation of the Agreement between the governments of Slovenia and Croatia on the status and other legal issues related to investment, exploitation, and decommissioning of the Nuclear power plant Krško. The responsible organizations, APO and ARAO together with NEK started with elaboration of all new technical and financial data and relevant inputs for the new revision. In the last 5 years, since the previous Program revision, besides new developments in the area of LILW disposal, various conditions influencing nominal costs of dismantling and decommissioning as well as expenses related to the management of LILW and SF have significantly changed. Also, there were major changes in economical environment, strongly influencing selection of parameters to be used in discounting modeling. Both types of changes will affect estimates of annuities – the amounts to be paid each year by the owners of Krško NPP to the two decommissioning funds established in Croatia and Slovenia. Therefore preliminary analysis of impacts of boundary conditions and financial parameters on annuity was prepared to help in forming financially efficacious decommissioning scenarios involving management of LILW and SF. In this phase of the project (while still waiting for the supporting studies) the aim of such analysis is to test: (1) the influence of new assumptions regarding the LILW management including compensations to the local communities; (2) the sensitivity of the financial model to fiscal parameters variations within the range of presently reasonable values; and (3) the impacts of potential NPP Krško life extension and extended periods for annuity payments. The study compares costs estimates of potential new scenarios to the reference scenario costs from the 1st DP revision, which was adopted in both countries in 2004. The results of the study indicate sharp increase of the calculated annuity for comparable reference scenarios, due to: reduced discounted factor, increase of LILW disposal expenses, and higher amounts for compensations to local communities taken from the new Slovenian regulation. Several realistic possibilities for reduction of the calculated annuities are evaluated and proposed to the competent bodies.