Nuclear Energy Construction Programme UK 2008-2018

SUMMARY

On the 14th July 2008, AMA Research will publish the 1st Edition of the UK Nuclear Energy Construction Programme Report. Following the UK Government's decision in early 2008 to support investment in nuclear energy, the report should be of particular interest to companies and institutional investors, and provides a comprehensive and easy to use review of the nuclear energy construction sector.

Key areas in the Report :

• An overall review of the nuclear energy market in the UK and analysis of reactors still in operation.
• A review of the UK's programme of decommissioning and clean-up of nuclear power stations.
• An in-depth analysis of the nuclear new-build programme including the estimated costs and timetable for construction, key players involved and an overview of the four reactor designs already submitted for approval
• A review of the key issues affecting the nuclear new-build programme including the planning system, siting of new reactors, costs involved, project timescales procurement issues etc.

Areas of particular interest:

• The £15+ billion nuclear new-build programme will make the nuclear sector potentially the fastest growing construction sector and create a wide range of opportunities.
• With nuclear energy back on the Government's agenda, the report explores the market opportunities ahead for the construction industry and the wider supply chain.
• The decommissioning market in the UK alone is worth an estimated £73bn over the next 100 years over 20 civil nuclear sites.
• Overview of risk factors surrounding the construction of a new generation of nuclear power plants include: combating climate change and ensuring secure energy supplies; safety and security of plants; the management of waste and the risk of cost over-runs.
• Forecasts of project timescales and costs for both new build and decommissioning.

Key areas covered in the report include:

OVERVIEW OF NUCLEAR ENERGY MARKET IN THE UK

• History of nuclear energy provision in the UK - current provision, mix of systems.
• Current energy supplies in the UK - current role of nuclear and alternative fuels.
• Future of nuclear power in the UK.
• UK's decommissioning and nuclear waste programme and the future of decommissioning in the UK - market size and split by operators, timescales forecasts etc.

NUCLEAR POWER STATION BUILD PROGRAMME IN THE UK

• Background to the Programme - political, alternative sources etc.
• Government energy strategy and the need for new nuclear reactors - decision in early 2008 to commit to a major programme of development, factors underpinning the decision to proceed.
• Estimated timetable for the Programme - Phases 1-3 from 2006-18 - Preparation, Planning and Construction.
• Key players involved in the Programme and an overview of the four new reactor designs submitted for regulatory approval.
• Estimated costs of the Programme - plant and equipment, civil engineering, project management.

FACTORS AFFECTING THE NUCLEAR ENERGY MARKET

• The planning system and available land and sites for the new reactors - analysis of proposed changes to the planning system as outlined in the Planning White Paper to facilitate the development and construction of new nuclear power stations.
• Legislative drivers - a review of the Nuclear Power White Paper.
• Procurement Issues and the formation of PFI-style consortia to deliver the new nuclear stations.
• Skill shortages and the capability of UK industry to deliver the new nuclear reactors.
• Overview of key risk factors surrounding the Programme - Risk of accident, safety aspects of modern nuclear power stations, flood risk management, cost overruns etc.

CONSTRUCTION MARKET SUPPLY IN THE NUCLEAR ENERGY SECTOR

• Value of the nuclear energy sector to the construction industry and future market opportunities for construction and engineering companies and the wider supply chain.
• Analysis of the nuclear market supply chain - key Tiers and players in the sector.
• Available construction experience and capability in the nuclear power sector.
• Key contractors operating in the nuclear power market.
• Forecasts of market growth - timescales, costs, planning, etc.

TABLE OF CONTENTS

1. INTRODUCTION

2. EXECUTIVE SUMMARY AND FUTURE PROSPECTS

3. THE NUCLEAR POWER MARKET IN THE UK

• 3.1 HISTORY OF NUCLEAR POWER PROVISION IN THE UK
• 3.2 CURRENT NUCLEAR POWER PROVISION
• 3.3 CURRENT ENERGY SUPPLIES IN THE UK
• 3.4 THE FUTURE OF NUCLEAR POWER
• 3.5 DECOMMISSIONING AND NUCLEAR WASTE PROGRAMME
  • 3.5.1 Nuclear Decommissioning Authority (NDA)
  • 3.5.2 Future of Decommissioning in the UK

4. NUCLEAR POWER STATION BUILD PROGRAMME

• 4.1 BACKGROUND TO THE PROGRAMME
• 4.2 GOVERNMENT ENERGY STRATEGY AND THE NEED FOR NEW REACTORS
  • 4.2.1 Energy Needs
  • 4.2.2 Closure of Coal-fired Plants
  • 4.2.3 Climate Change and Carbon Emissions
  • 4.2.4 Security & Availability of Future Energy Supplies
• 4.3 ESTIMATED TIMETABLE FOR THE PROGRAMME
• 4.4 KEY PLAYERS INVOLVED IN THE PROGRAMME
  • 4.4.1 AREVA
  • 4.4.2 Atomic Energy of Canada Ltd (AECL)
  • 4.4.3 BNFL
  • 4.4.4 British Energy
  • 4.4.5 EDF Group
  • 4.4.6 E.ON.
  • 4.4.7 General Electric
  • 4.4.8 UKAEA
  • 4.4.9 Westinghouse
• 4.5 ESTIMATED COSTS OF THE PROGRAMME
  • 4.5.1 Capital and Operating Costs

5. FACTORS AFFECTING THE NUCLEAR POWER MARKET

• 5.1 PLANNING
  • 5.1.1 Available Land & Sites for New Reactors
  • 5.1.2 Planning Delays
• 5.2 LEGISLATIVE DRIVERS
  • 5.2.1 Nuclear Power White Paper
• 5.3 SKILL SHORTAGES
• 5.4 PROCUREMENT ISSUES
• 5.5 MAJOR CONCERNS SURROUNDING THE NEW BUILD PROGRAMME
  • 5.5.1 Risk of Accident
  • 5.5.2 Safety Aspects of Modern Nuclear Power Stations
  • 5.5.3 Flood Risk Management

6. CONSTRUCTION MARKET SUPPLY IN THE NUCLEAR POWER SECTOR

• 6.1 VALUE OF THE NUCLEAR POWER SECTOR TO THE CONSTRUCTION INDUSTRY
  • 6.1.2 The Nuclear Market Supply Chain
• 6.2 AVAILABLE CONSTRUCTION EXPERIENCE & CAPABILITY IN THE NUCLEAR POWER SECTOR
• 6.3 KEY CONTRACTOR PROFILES
• APPENDIX 1

TABLES AND CHARTS

• TABLE 1 NEW NUCLEAR POWER - THE 4 CONTENDING REACTOR DESIGNS CAPACITY, DESIGN LIFE, CONSTRUCTION TIMES AND MANUFACTURERS
• TABLE 2 NUCLEAR POWER STATIONS CURRENTLY OPERATING IN THE UK - CAPACITY AND PLANNED CLOSURE DATES
• CHART 3 ELECTRICITY GENERATION MIX - SHARE BY FUEL TYPE 2007
• CHART 4 DOMESTIC ELECTRICITY MARKET SHARES - MARCH 2006
• CHART 5 GROWTH IN ESTIMATED LIFETIME COSTS OF DECOMMISSIONING NDA SITES (£BN) 2003-2007
• CHART 6 MARKET SIZE FOR DECOMMISSIONING TO 2100 - BNFL, UKAEA AND MAGNOX SITES
• TABLE 7 CLOSED NUCLEAR POWER STATIONS IN THE UK (CAPACITY/CLOSURE DATES)
• CHART 8 POSSIBLE FUTURE ELECTRICITY GENERATION MIX BY FUEL TYPE 2025 (GAS, NUCLEAR, RENEWABLES, COAL, OTHERS)
• CHART 9 EXISTING COAL FLEET DECLINE 2007 TO 2025
• TABLE 10 CARBON EMISSIONS OF GENERATING TECHNOLOGIES - NUCLEAR, WIND, BIOMASS, NATURAL GAS, COAL AND LIGNITE
• CHART 11 FOSSIL FUEL RESERVES-TO-PRODUCTION RATIOS (YEARS) - BY FUEL AND REGION
• TABLE 12 ESTIMATED TIMEFRAME FOR BUILDING NEW NUCLEAR REACTORS - PHASES 1-3, 2006-2018
• CHART 13 ROUTE TO POSSIBLE NEW NUCLEAR POWER STATIONS 2007 - 2020 (PLANNING AND CONSTRUCTION)
• CHART 14 BREAKDOWN OF PROFESSIONAL SERVICES NEEDED FOR NUCLEAR PLANT CONSTRUCTION
• TABLE 15 ESTIMATED CONSTRUCTION COSTS OF NUCLEAR POWER STATIONS - BREAKDOWN BY KEY ELEMENTS
• CHART 16 COST PROFILE OF NUCLEAR POWER VS. GAS-FIRED GENERATION (%) - MIX BY CAPITAL, O&M, FUEL AND 'BACK-END'.
• TABLE 17 IMPACT OF FUTURE EXTREME WATER LEVELS AT MAJOR NUCLEAR SITES
• TABLE 18 MEASURES REQUIRED FOR FUTURE FLOOD DEFENCE AND COASTAL PROTECTION AT BRITISH ENERGY SITES
• CHART 19 NUCLEAR WORK - MARKET VALUE TO THE CONSTRUCTION INDUSTRY TO 2035
• TABLE 20 ESTIMATED MARKET OPPORTUNITIES FOR CONTRACTORS IN THE NUCLEAR INDUSTRY TO 2035
• TABLE 21 CONSTRUCTION SUPPLY CHAIN IN THE NUCLEAR SECTOR - KEY TIERS AND PLAYERS
• TABLE 22 NUCLEAR POWER SECTOR - GLOSSARY OF TERMS