“Nuclear renaissance and financial stability in the
age of crisis”
The return of Italy to nuclear power
Davos, 18 February 2011
“World Forum for Communication”
Enel SpA
Vittorio Amedeo Alessio
1
Part 1
…What we are saying…
2
Enel: a major European nuclear player
”Our assets and projects speak for us”
Slovakia
Operational: 4 VVER units, 1,896
MW
Under construction: 2 VVER units
of Mochovce 3&4, 880 MW
France
Potential development of new
capacity:
•Russia: Kaliningrad, two
1,117MW VVERs. Agreement with
Rosatom
•Romania: consortium led by
Nuclearelectrica to build
“Cernavoda 3&4” (1,500 MW)
Under construction: participation
in 1 EPR unit in Flamanville, 1,630
MW
Spain
Operational: 7 Units (6 PWR
Westinghouse units and 1 BWR GE
unit), 3,640 MW
Italian Nuclear Program:
agreement with EDF for the
joint development of at least
4 EPR units
5.5 GW of installed capacity and additional 1 GW under
construction
3
European Generation Mix
“Italians buck the trend..Could they be wrong about energy strategy?”
27%
14%
13%
32%
5%
5%
1%
COAL *
28%
46%
36%
22%
51%
23%
6%
13%
7%
12%
4%
1%
10%
NATURAL GAS
22%
75%
3%
18%
28%
23%
NUCLEAR
41%
32%
26%
Enel Worldwide Enel Italy
Italy
17%
Germany
26%
Spain
14%
19%
France
EU27
12% of Enel global power production comes from nuclear fuel. Italy
is the only large industrialized country without nuclear assets
*
OIL
Coal, lignite
Source: Enerdata; Terna; Enel; Year 2009
4
RENEWABLES
Nuclear power plants in the world
”Italy is surrouned by nuclear power plants but can’t rely on cheap
nuclear energy”
200 km
441 reactors in 29 countries with total
capacity of 374,000 MWe – or 14% of global
power production
Within 200 km from Italian border, there are
26 reactors with 24,000 MWe
Nuclear is safe: power plants have reached 14,000 reactor years
of operating experience
Source: International Nuclear Safety Center (INSC) - U.S. Department of Energy (DOE)
5
Nuclear power plants under construction
“Fast-growing economies go for it”
MWe
26
China
Russia
11
6
India
5
Korea
26.230
9.153
3.786
5.560
Bulgaria
2
1.906
Slovak Rep
2
782
Ukraine
2
1.900
Taiwan
2
2.600
2
2.650
Japan
1
692
1
1.600
1
1.600
Iran
1
915
Pakistan
1
300
USA
1
1.165
1
1.245
Argentina
Finland
France
Brazil
Enel developed or co-developed projects
Source: International Atomic Energy Agency
• 65 power plants are being built
in 16 countries
• 62,000 MWe additional capacity
• Several countries have started
specific programmes to revamp
nuclear energy, including the U.S.,
UK, France, China.
6
Enel goes nuclear in Slovakia
”25 years after Italy banned nuclear, Enel is back to nuclear”
Lay-out of the plant
Description of the project
Under
development
Operating units
• In Slovakia Enel’s Slovenske
Elektrarne is in the construction phase
of two VVER 440 MW units in
Mochovce plant
• Investment: around 3 Bln EUR
• The site was opened on Nov 2008;
construction works are on-time:
- Sep 2010: reactor vessel has been put
in place in EMO3
next milestones will be:
- Ott 2012: first fuel charge in EMO3
- Dec 2012: first synchronization of EMO3
In Slovakia Enel is constructing two units with Russian VVER technology
7
Building first III Generation Unit in France
”Enel joins forces with EdF and builds Flamanville EPR reactor”
Flamanville lay-out
(render and actual)
• Enel is participating in the
construction of a III Generation EPR
Unit (1630 MW) in Flamanville with
Plant under
EdF
construction
Agreement
with EdF
• Flamanville3 is based on the same EPR
technology chosen by Enel for Italian
Program
• Enel is participating in the investment
with a 12,5% share
• Enel’s engineers are integrated in the
EdF project structure, in order to
participate to the design, realization
and operation activities of the EPR
series reactors
• Enel has also an option for other EPR
in France, and in particular will
participate in Penly project
Flamanville project is a training experience for Enel, in sight of the Italian
Nuclear Program development
8
The EPR technology
The origin of the European technology for 3rd generation NPP
French and German
experience …
• France: 58
operational
units
… the most advanced
technologies …
• Germany:
17
operational
units
… III+ generation reactor
EPR
• N4
(Chooz B)
• Konvoi
(Emsland)
EPR benefits of the decennial experience of realization and operation of
PWR reactors in France and Germany: it is an evolutionary project based on
French technology N4 and German technology Konvoi
9
9
The EPR technology
Safety features
Containment
4 redundant systems
Containment for core melt
EPR projects integrates the most advanced safety systems to reduce
accident probability to not significant values and to eliminate any possible
consequence for external environment
10
Part 2
...What is happening…
11
The Italian Nuclear Program
Italian Government strategic guidelines
Italian consumptions1)
[TWh/y]
Target [TWh/y; %]
Required nuclear
power3) [MWe]
CAGR:
+1.2%
400
100
(25%)
350
2008
2020
300
(75%)
 13,000 MWe
2)
Nuclear
Others
1) Covered by national production and import with import decrease by 2020 with respect to 2008
2) 17 years required to complete the program (2025) – 2020 used as reference point
3) Load factor equal to 90%
8 units
1,600 MWe
each
12
The Italian Nuclear Program
Enel/EdF cooperation agreement
Program details
Program
Technology
• Development of a series
of at least 4 Nuclear Units
in Italy
• Definition of at least 2-3
suitable sites for the
Program
• EPR technology is the
base for the whole
Program
• Flamanville3 is the
reference project
• Enel and EDF are the
Architect-engineers for
Construction
the project
model
• A multi-contract
approach will be utilized
Development and ownership
First
development
phase
• Enel-EdF Joint Venture on
equal basis (50/50) for the
Feasibility study 
Sviluppo Nucleare Italia
S.r.l. has been established
on the 31st of July 2009
• Dedicated Special Purpose
Company for the
Ownership and Operation:
Plants
ownership
- Enel to be the majority
shareholder for the Plant
ownership
- Enel Leadership for
Plant operation
- Investment will be open
to the participation of
third parties
Development of at least 4 Nuclear Units based on the EPR
technology and Flamanville 3 model
13
The Italian Nuclear Program
Costs and timing
Costs
• Realization of one EPR Unit will require an investment of about
– 4.5 Bln EUR worth (actual cost base is Flamanville3, this estimate
should be better defined in consideration to site characteristics,
materials and construction costs)
• The construction of the NPP units will require an overall
investment of about 18 Mld EUR
Timing
• Site selection process will end by 2011
• Final investment decision will be taken in 2013, after the
assignment of the Construction and Operating License
• Qualification activities for engineering, supplies and erection
already started, in the next year first Requests for Offer will be
issued, in three years first contracts with suppliers will be
signed
• 60 years of commercial operation
It is an infrastructural program with few precedents
in Italy for investments extent
14
The Italian Nuclear Program
How Enel is structuring to cope with the program
Nuclear skilled resources [n.]
Actions
1.700
• Strong increase of skilled personnel
dedicated to the Nuclear Program
• Participation in Flamanville3 and
Mochovce3&4 projects as training
experiences (60 resources in France,
400 involved in Slovakia, 10 in Spain)
• Technical training program dedicated
to operations and engineering profiles
410
• Reinforcement of the network with
european “nuclear” universities:
masters and scholarships
200
30
2006
Beginning of
the program
2010
2013
2020
Today
Early works
at site
Start of
operations
15
The Italian Nuclear Program
Legislative framework
Steps achieved
Next steps
• Implementing Decree approved in March 2010, it provides rules for
localization, licensing and operations of new NPPs:
- Nuclear Energy Strategy
- Licensing procedures for localization and authorization of NPPs, nuclear
fuel fabrication plants, spent fuel and radioactive waste storages, final
disposal for radioactive waste
- Decommissioning fund
- Compensative measures
- Information campaign
• Appointment of Nuclear Safety Agency (pending parliamentary
approval)
• Decrees to be approved for:
- Technical parameters for site selection
- Accepted technologies
- Operators requirements
- Criteria for Consortium composition
- Financial coverage
Our program is progressing but can be affected by delays in
regulatory framework definition
16
16
Part 3
…What people think…
17
Nuclear power and the Italians
Polls show the NIMBY syndrome is spreading, but…
Fonte: GPF Monitor 3SC November 2010
“I am in favour of nuclear power
production”
We are telling them:
61%
Somewhat
“Nuclear energy is cheap, competitive
and it can be produced at stable
costs”;
“Nuclear energy isn’t dependent on oil
volatility and it’s key to the security of
supply by allowing diversification”;
“Italian consumers need a balanced mix
of energy sources, split between coal,
nuclear, natural gas, renewables”;
“Nuclear energy is key to cut CO2
emissions, is well-established and
safe, after 14,000 reactor years of
operating experience”.
Not so much
Yes
Not at all
Highilghts:

30% of those polled is a strong opponent

Strong supporters reach only 9% of total

A large number of people is still undecided or hasn’t yet
reached a firm decision on whether nuclear is good or bad
for them.
61% of Italians haven’t made up their mind
18
We are teaming up with industry, university, groups. “We
have a 20 bln euro plan to jump-start the economy”
INSTITUTIONS
INDUSTRY
“We want to set up a
strategic alliance to help
Italy reduce oil
dependency and secure
an independent energy
supply”
“Hundreds of Italian
companies have a unique
chance to access nuclear
know-how and join the global
nuclear reinassance”
ENVIRONMENTAL
GROUPS
UNIVERSITY, RESEARCH
“A balanced energy
mix will cut CO2
emissions. Nuclear
waste can be stored
safely”
“Enrico Fermi invented the
reactor before Italy quit nuclear.
Today you have another chance
to help mankind to a better
living”
19
Going public…
20
Italian Nuclear Forum ad campaign: “And You?”
BLACK: “I am against nuclear because I am worried by the past”; WHITE: “I am in
favour of nuclear because I am worried by future”; WHITE: “I am in favour of
nuclear because I care about the environment”; BLACK: “I am against nuclear
because I care about the environment”.
On air on tv, cinema, billboards, newspapers, Internet, since
19 December 2010
21
I guarantee it won't be easy. Suggestion box:
vittorioamedeo.alessio@enel.com
22