[The dismal performance of Areva in delivering its EPR nuclear
reactors and the big question mark over its safety aspect should be
two strong additional arguments, over and above the more fundamental
ones against the intrinsically hazardous and potentially catastrophic
nuclear power, for the government of India to walk away from the
subject deal.

Highly relevant in the current context:
<http://www.theecologist.org/News/news_analysis/2859924/finland_cancels_olkiluoto_4_nuclear_reactor_is_the_epr_finished.html>.]

http://indianexpress.com/article/india/india-others/jaitapur-nuclear-plant-next-stop-safety-assessment/99/

Jaitapur Nuclear Plant: Next stop, safety assessment
Amid red-flags in France, Areva's pact with NPCIL to kick off
licencing process of world's largest nuclear plant.

While Areva's EPR is a new-generation pressurised water reactor, built
to resist the impact of a commercial airline crash, at 1,650 MWe a
reactor unit, it has come under fire for being too big and too
expensive.
Written by Anil Sasi | Published on:May 20, 2015 1:26 am        

For the proposed Jaitapur nuclear power project, touted as the largest
nuclear power generating station in the world by net electrical power
rating, a crucial Pre-Engineering Agreement signed between state-owned
Nuclear Power Corp (NPCIL) and French reactor vendor Areva last month
will set the ball rolling on the detailed safety assessment for the
proposed 9,900 MWe (mega watt electrical) project. It would also set
the stage for commencing the licensing process for the French EPR
reactor-based project with India's nuclear regulator -- the Atomic
Energy Regulatory Board.

This comes in the backdrop of Areva facing regulatory fire over weak
spots in the steel of its EPR (formerly called European Pressurised
Reactor) reactor it is building for French state-owned utility EDF at
the Flamanville site in France, according to findings released by
French nuclear regulator ASN earlier last month. ASN had said Areva
had informed it that tests at 2014-end had shown that in certain zones
of the reactor vessel and the cover of the EPR, there was a
significant concentration of carbon, which weakened the mechanical
resilience of the steel and its ability to resist the spreading of
cracks.

Related

    L&T deal key to viability of Areva's Jaitapur N-plant
    Areva addresses safety concern,closer to nod
    Areva addresses key safety concern

While Areva's EPR is a new-generation pressurised water reactor, built
to resist the impact of a commercial airline crash, at 1,650 MWe a
reactor unit, it has come under fire for being too big and too
expensive. Areva has been forced to book billions of euros in
provisions due to cost overruns at the three sites globally where it
is setting up EPR-based projects.

For the proposed project at Jaitapur project, after the signing of
General Framework Agreement (GFA) and Early Works Agreements (EWA) in
2010, detailed discussions were held with Areva on various technical,
safety and commercial aspects of the projects to arrive at a viable
project proposal. In parallel, pre project activities like land
acquisition, rehabilitation and resettlement (R&R), technology
independent site investigations, infrastructure development at site,
and public awareness activities are being carried out at the site.

"The Pre-Engineering agreement or PEA signed between NPCIL and Areva
on April 10 will help bring clarity on the technical aspects of the
plant, help make a detailed safety assessment and take up the
licensing process with Atomic Energy Regulatory Board, an official
involved in the exercise said. An MoU (memorandum of understanding)
was also signed between L&T and Areva aimed at maximising the
localisation of critical components for the proposed 10,000-MW nuclear
power plant at Jaitapur, which marks a desperate attempt to prune the
cost of each of the six 1,650 MWe reactors to be deployed at the site
in Maharashtra to about $4 billion. This is expected to translate into
a generation cost equivalent of about Rs 7 per unit.

The meeting of this price cap imposed by the government during the
ongoing technical negotiations, officials said, holds the key to the
viability of the Jaitapur project, especially in light of Areva's
chequered track record at implementing EPR reactor-based projects
elsewhere in the world.

Areva's EPRs are being deployed at two sites in Europe -- in Olkiluoto,
Finland, apart from the site Flamanville in France and two reactor
units in Taishan,China. The construction of the Finnish reactor being
built at Olkiluoto since 2005 has repeatedly suffered from serious
delays and cost overruns. The reactor was planned for commissioning by
2009 and five years on, it's still far from ready. Its cost has
doubled and there are doubts on whether it will be ready even by the
revised deadline of 2018.

The targeted cost of $4 billion (approx Rs 25,000 crore) per reactor
is roughly the same as the Areva offer to the Chinese for the two EPR
reactors under construction at Taishan in China, which is believed to
incorporate an engineering joint venture, unlike the Indian project
proposal. The Flamanville EPR reactor in France is also having
problems. Construction was started in 2007 and was supposed to
generate power by 2012. That, too, is delayed and is now scheduled to
start in 2016.

The L&T deal signed earlier last month is expected to get orders for
making heavy and critical components such as pressure vessels and
steam generators and these orders will be executed by L&T Special
Steel and Heavy Forgings, a joint venture between L&T and the Nuclear
Power Corporation of India. This venture has a manufacturing facility
in Hazira, Surat.

"Localisation is the only way to bring down cost, especially as the
NPCIL has been driving a hard bargain on tariffs being capped at Rs 7
per unit (kWh)," a company official said. In India, the cost benchmark
for new imported light water reactors such as the EPR are derived
broadly from the two Russian designed VVER-1000 reactors which are to
be deployed at the Kudankulam site. The two new VVER reactor units
(KKNPP 3 & 4) to be set up in Tamil Nadu, which would come up at the
Kudankulam site where two identical units (KKNPP 1 & 2) are nearing
commissioning, entail a sanctioned project cost of Rs 39,849 crore for
the two new reactors.

-- 
Peace Is Doable

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