SMR Deployment Enablers
Decision Analysis Services Ltd
Nuclear South West
Developing strategy...
…delivering certainty
30th November 2016
Kris MacCrory
Head of New Nuclear Development
[email protected]
www.das-ltd.co.uk
ENERGY | GOVERNMENT | DEFENCE
A Critical Journey Point and an Essential Skillset
Investor Confidence
Integrated Delivery
The phase of increasingly complex integrated project
The phase of developing investor confidence and
delivery, delivering against a mature baseline to meet the
stakeholder engagement, moving to secure strategic finance
expectations of programme stakeholders.
which aligns with unique demands.
Final
Underpinning Motives:
Credibility – Robustness – Readiness
Investment
Decision
Underpinning Motives:
Pace – Promises – Optimisation
Insight into foresight
Predicting the forward trends of a business problem, helping to aid decision making.
Cost and investment case development
Establishing a clear whole life financial case, to support investment decisions.
Risk and opportunity management
Identifying, quantifying and communicating key delivery opportunities and risks.
Commercial management
Establishing contractual delivery frameworks, commercial negotiations and supply chain management.
Programme and project management
Aiding and organising the delivery of projects on time and on budget.
Safety and regulation
Finding clear practicable solutions to complex issues.
www.das-ltd.co.uk
ENERGY | GOVERNMENT | DEFENCE
[email protected]
2
A Case Study: SMR Deployment Enablers Project
• The Energy Technologies Institute (ETI) concluded that there is a need to take action now if the
option to deploy SMRs as part of the UK’s low carbon transition is not to be closed off.
• The SMR Deployment Enablers Project was initiated by the ETI to explore the answer to a
critical question:
“What are the enabling activities in the first five years of an SMR programme
necessary to support potential operations of a first UK SMR by 2030?”
…what to do today?
Source and Acknowledgement: Energy Technologies Institute SMR Deployment Enablers Project Summary Report
www.das-ltd.co.uk
ENERGY | GOVERNMENT | DEFENCE
[email protected]
3
Case Study: Project Tools and Approach
Project Tools
Market
Market Led
Led
Baseline
Baseline
Schedule
Schedule
FINAL
DELIVERABLES
Detailed
Detailed Work
Work Breakdown
Breakdown Structure
Structure
Single
Single Scope
Scope Description
Description
Sheet
Sheet per
per WBS
WBS Item
Item
Risks
Risks
Assumptions
Assumptions
Evidence
Evidence
Integrated
Integrated Schedule
Schedule
for
2030
for 2030 FOAK
FOAK
Organisational
Organisational
Design
Design
Project
Project Reports
Reports
First 5 Years
Source and Acknowledgement: Energy Technologies Institute SMR Deployment Enablers Project Summary Report
www.das-ltd.co.uk
ENERGY | GOVERNMENT | DEFENCE
[email protected]
4
Case Study: Work Breakdown Structure
• The range of activities that must be undertaken over the first 5 years of the SMR development
programme.
WBS
UK SMR FOAK
Development
Programme
WBS 1
Facilitative Action by
UK Government
WBS 3
Establish Credible
Nuclear Operator
2020
2021
2021
preparation)
ion understood)
rict heating2022
WBS 2
Understand and
2023Negotiate Business
Case
WBS 5
Accelerate
Technology
Development
2022
2022
WBS 7
Obtain Assessments,
Permitting and
Consents
WBS 9
Initiate Supply Chain
Development
2023
2023
2023 WBS 4
Select and Acquire
Site(s), Seek Consent
for Preliminary Works
Government
Government
Assumed investment trigger:Regulator
WBS 6
Establish Approved
Government
Funded
Decommissioning
Regulator
Programme
Operator
Government
WBS
8
Identify and Engage
withRegulator
FOAK
Stakeholders
Operator
Vendor
Issue of iDAC, iSoDA
Source and Acknowledgement:
Energy Technologies
Enablers Project Summary Report
Vendor
OperatorInstitute SMR Deployment
Regulator
estment trigger:
ENERGY | GOVERNMENT | DEFENCE
www.das-ltd.co.uk
[email protected]
C, iSoDA
Operator
Vendor
5
Case Study: Organisational Design
• An SMR developer and organisational design of the associated operator.
Provider of
Finance
Provider of
Sites
Provider of
Technology
Provider of
People
Provider of
Experience
Creator of investor
and stakeholder
confidence
Developer
Licensee
UK corporate body or legal entity
Company board and associated structures
Company Executive
Supporting functions
Corporate
structural features
Internal organisational
capabilities
Organisational design combined with experienced resource to
deliver licensee capability and capacity
Source and Acknowledgement: Energy Technologies Institute SMR Deployment Enablers Project Summary Report
www.das-ltd.co.uk
ENERGY | GOVERNMENT | DEFENCE
[email protected]
6
Case Study: The Critical Path for 2030 Deployment
• By working back from a 2030 target for operation, the basic logic of a critical path can be
established.
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
-14
-13
-12
-11
-10
-9
-8
-7
-6
-5
-4
-3
-2
-1
0
Prepare GDA
Requesting
Party
DAC,
SoDA
GDA
SLA Prep
Site Licence
Grant
Assess
FID
Preliminary works
60
months
Decision Decision
Point
Point
Decision
Point
15
months
Decision
Point
Nuclear Significant Construction
60
months
Decision
Point
Source and Acknowledgement: Energy Technologies Institute SMR Deployment Enablers Project Summary Report
www.das-ltd.co.uk
ENERGY | GOVERNMENT | DEFENCE
[email protected]
7
Case Study: Critical Programme Milestones
Milestone:
Indicative Timescale:
•
Publication of White Paper, setting out Government intent
•
September 2017
•
Initiate Operator / Vendor ‘Bootcamp’
•
September 2017
•
Commence Generic Design Assessment (GDA) and Regulatory
Justification
•
December 2017
•
Nominate site into new Strategic Siting Assessment
•
March 2018
•
Complete site selection / acquisition
•
September 2020
•
2023
August 2020
•
Government
August 2020
Regulator
2020
2021
2022
• Issue of interim Design Acceptance Confirmation (iDAC) and interim
Statement of Design Acceptability
2021
2022 (iSoDA) to Vendor
2023
preparation)
ion understood)
2022
• Commencement
/ acceleration 2023
of site specific
rict heating
Government
licencing/permitting/development
consenting and organisational
2023
development work
Regulator
Government
Government
Assumed investment trigger:Regulator
Operator
Operator
Vendor
Issue of iDAC, iSoDA
Source and Acknowledgement:
Energy Technologies
Enablers Project Summary Report
Vendor
OperatorInstitute SMR Deployment
Regulator
estment trigger:
ENERGY | GOVERNMENT | DEFENCE
www.das-ltd.co.uk
[email protected]
C, iSoDA
Operator
Vendor
8
Case Study: Pre-FID Schedule
First Five Year Programme
2017
2018
2019
2020
2021
2022
2023
· NPS updated (to support DCO preparation)
· Site confirmed (route to acquisition understood)
· CfD principles outlined (inc. district heating
assumptions)
· Regulatory Justification
Government
Regulator
Operator
Vendor
Assumed investment trigger:
Issue of iDAC, iSoDA
Develop interim (Phase 1b) investment case
Management Prospectus
Euratom
Site Licence / Permit compliance
Funded Decommissioning Programme
Preliminary site works
Long Lead Procurement
EA
Operator / Vendor Bootcamp
Issue
ISoDA
Discussions with Requesting
Party
Initial assessment of
application
Detailed Assessment
Issue SoDA
Consultation
Review and Decision
ONR
Issue
IDAC
Requesting
Party
Issue DAC
Step 1
Step 2
Step 3
Step 4
Discussions with Requesting Party
Fundamental design, safety
and security review
Overall design, safety and security
review
Detailed design, safety and security assessment
‘Review of claims’
‘Review of arguments’
‘Review of evidence’
Vendor Preliminary
Safety Report
(PSR)
Prepare GDA required documents
Finalise Vendor Pre
Construction Safety
Report (PCSR)
Vendor Pre
Construction Safety
Report (PCSR)
Update GDA required documents
Development of test evidence (inc. physical / virtual rig work)
Bound claims and arguments (Operator PSR / PCSR)
Source and Acknowledgement: Energy Technologies Institute SMR Deployment Enablers Project Summary Report
www.das-ltd.co.uk
ENERGY | GOVERNMENT | DEFENCE
[email protected]
9
Case Study: Selected Conclusions
A credible integrated schedule demonstrates the potential for
a UK SMR operating by 2030; achieving this schedule depends
on the creation of early investor confidence.
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
Government
Regulator
Operator
Vendor
White paper
Reg Justification
SSA / NPS
CfD principles
CfD negotiations
‘Bootcamp’
Operator &
Vendor
identified
Inv. Case
Legal entity
Stage 2 Investment Case
FID
Develop intelligent operator organisation, inc. nuclear baseline
Develop intelligent operator organisation, inc. nuclear baseline
FDP application
EC liaison
Euratom (A37, 41-44, 78)
Develop Site Licence Application
Early engagement
Criteria
FOAK site
nomination
Operator SLA interaction
Assessment
Licence /
Permit Grant
Regulatory holdpoints and permissions
Site acq’n
Consultations
Local consultations
Local consultations
DCO
Grant
DCO application
Grid Connection
Agreement
Grid enabling works
Prelim’ consents
Requirements
Preliminary works
Nuclear significant construction
FOAK reactor
delivered to site
Supply chain engagement
Prepare GDA submissions
iDAC,
iSoDA
Generic Design Assessment
Technology readiness
Commissioning
FOAK reactor
operational
DAC,
SoDA
Develop test evidence
Supply chain engagement
Long-lead procurement (inc. tender)
Establish manufacturing line
FOAK assembly and testing
Refine m’fr process
NOAK site acquisition(s)
NOAK manufacturing and factory testing
NOAK site preliminary works
The evidence gathered forms the basis of a toolkit which could be used to test or assess the
feasibility of specific scenarios for SMR Deployment in the UK.
Source and Acknowledgement: Energy Technologies Institute SMR Deployment Enablers Project Summary Report
www.das-ltd.co.uk
ENERGY | GOVERNMENT | DEFENCE
[email protected]
10
Interested? Find out more…
“What are the enabling activities in the first five years of an SMR programme
necessary to support potential operations of a first UK SMR by 2030?”
SMR Deployment Enablers Project - Summary Report
'Nuclear – Preparing For Deployment of A UK Small Modular Reactor By 2030’
www.eti.co.uk
www.das-ltd.co.uk
ENERGY | GOVERNMENT | DEFENCE
[email protected]
11
Thank You
Kris MacCrory
Head of New Nuclear Development
[email protected]
07471 356570
www.das-ltd.co.uk
www.das-ltd.co.uk
ENERGY | GOVERNMENT | DEFENCE