Regina Cunha

Q&A with Regina Cunha, U.S. Commercial Service, Brazil

By Felicia Strong-Persaud and Curt Cultice, U.S. Commercial Service, U.S. Department of Commerce

Brazil is Latin America’s largest economy and ranks among the top 10 largest economies in the world. Brazil is the United States’ 11th largest export market, accounting for $31.7 billion in U.S. merchandise exports last year. Although Brazil’s annual growth has slowed recently, U.S. firms in the nuclear energy sector-particularly small and medium-sized suppliers-would be remiss not to consider potential opportunities in Brazil’s civil nuclear energy market. In the below Q&A, Regina Cunha, Senior Commercial Service Specialist, U.S. Embassy, Rio de Janeiro, Brazil, discusses these opportunities. Cunha is part of the global U.S. Commercial Service network of 108 offices across the United States and in U.S. embassies and consulates in more than 75 countries that help U.S. companies export.

Q: Why should U.S. companies position themselves to do business in Brazil’s civil nuclear market if they aren’t already?

Cunha: U.S. companies should position themselves now in anticipation of a possible decision by Brazil’s government and its Congress to increase the number of new nuclear power plants (NPPs). While there is no clear indication that such a decision will be made in the short term, U.S. companies should consider monitoring developments in Brazil, and start surveying this market for potential Brazilian partners. U.S. companies like Westinghouse and General Electric-Hitachi, for example, already have a presence in Brazil.

Approximately 1 percent of Brazil’s energy is supplied by two pressurized water reactors at the Angra dos Reis NPP near Rio de Janeiro. According to the International Atomic Energy Agency’s PRIS Database, Angra 1 and 2 have 640 megawatt (MWe) and 1,350 MWe gross generating capacity, respectively. A third 1,350 MWe reactor, Angra 3, is under construction and expected to come online in 2020. Eletronuclear (ETN), a subsidiary of Eletrobras, is responsible for building and operating NPPs in Brazil.

Most significantly for U.S. suppliers, ETN recently indicated that it will invest about US $3.4 billion from 2016 to 2020. The investments include safety and other plant upgrades, work-related to the extension of Angra 1’s operation license for an additional 20 years, plant design modifications, equipment replacements, modernization of instrumentation and control systems, and upgrade of radioactive waste handling systems, including a new spent fuel dry storage facility.

Foreign suppliers do not need to preregister to participate in international tenders. Suppliers can check ETN’s Web site for tender announcements. If a foreign supplier has a Brazilian distributor, dealer, or legal representative, which is advisable, then they will register on behalf of the foreign supplier and be considered a domestic company. In this case, they will be paid in Brazilian Real currency when they win a tender. Information on how to register with ETN is available here.

Q: What kind of supply chain opportunities are there for U.S. small and medium-sized businesses?

Cunha: It is important to think regionally when considering supply chain opportunities as a small or medium-sized business. Brazil has two existing NPPs and one under construction, so opportunities for U.S. small and medium-sized companies are somewhat limited when compared to other countries in the region. However, since other Latin American markets have a nuclear operating fleet of five reactors (three in Argentina and two in Mexico), they have served as a good platform for U.S. companies to do business in Brazil as well. Westinghouse, for example, provides nuclear technologies to all three markets by providing technical services to these plants.

These companies may also rely on small- and medium-sized companies as part of the supply chain for their projects. All three countries are also involved in the development of new nuclear plants. Argentina started operation of its third nuclear plant in 2015 (Atucha 2), and Mexico’s government recently confirmed its plans to expand nuclear generation (Laguna Verde 3 and 4) by 2030, while Brazil is building its third reactor. Hence, there are opportunities for U.S. companies in the nuclear sector to participate in the growing demands of the region.

Q: What types of advantages might U.S. civil nuclear technology have over other foreign competitors?

Cunha: In 2014, as part of Brazil’s nuclear power project sponsor, ETN’s planning for future NPPs, ETN sent a request of information to several PWR suppliers, including U.S. company Westinghouse. While PWR technology will likely be adopted for the next NPPs, the strong U.S. position is constantly challenged by the ability of other state-sponsored vendors (France, China, Russia, and South Korea) to provide government-backed financing terms, which are very competitive in the marketplace. In any case, U.S. nuclear technology advantages include a reduced risk in developing new nuclear projects mostly due to the fact that the U.S. Nuclear Regulatory Commission (NRC) has licensed the technology. The U.S. NRC is considered the gold standard for nuclear safety around the world. Additionally, U.S. companies have unmatched experience in civil nuclear energy through the United States operating the world’s largest reactor fleet and generating the most nuclear power worldwide.

Q: What are some challenges that U.S. companies face in selling to Brazil?

Cunha: Any U.S. company doing business outside the United States will face challenges. The Latin America region has faced economic downturns recently, which have impacted all state-owned nuclear utilities. With reduced budgets, unstable exchange rates, and political instability, these aspects have resulted in additional short-term challenges for U.S. companies to be successful in growing their business in the region. In addition, complex bureaucratic processes, long decision-making processes, and focus on local content are also key factors for U.S. companies to deal with.

Q: What are some key market entry strategies?

Cunha: In anticipation of a possible decision by the Brazilian government and the Brazilian Congress to increase the number of new NPPs, U.S. nuclear power technology suppliers should start looking for potential Brazilian partners. In addition to the complexities of doing business in Brazil, local content regulations will require that foreign suppliers associate with domestic suppliers either to partially manufacture in Brazil or to build a supply chain with local domestic suppliers. Additionally, Brazilian legislation mandates that services can only be provided by a locally established company, and U.S. service suppliers will need to consider joint-venture partners or open their own service branch in Brazil. The U.S. Commercial Service can help U.S. companies with these tasks.

Q: Based on your experience, what are some lessons learned from U.S. companies doing business in Brazil and Latin America in general?

Cunha: In order to be successful in doing business in Latin America, U.S. companies should demonstrate both traditional as well as customized approaches in driving their value proposition. Just as in other global markets, U.S. companies need to offer innovative, competitive technology solutions that can help nuclear utilities in the region continue to provide safe, clean, and reliable electricity with good plant performance. In addition, U.S. companies should also establish a visible and engaged local presence in order to demonstrate full and long-term commitment to the local market. U.S. companies should look to develop strong local partnerships, and, whenever feasible, engage local universities and research institutions.

Q: What are some key export tips that a U.S. business should know?

Cunha: Given the recent economic situation in Brazil, U.S. small and medium-sized companies should be cautious when engaging with local suppliers, including selected EPCs. A due diligence process is highly advisable to avoid problems. The U.S. Commercial Service provides international company profile reports on local companies.

Q: Brazil’s Long-Term Energy Plan has not yet been published. Have you any idea what it might entail?

Cunha: Brazil’s Long-Term Energy Expansion Plan (PNE) is an integrated energy resource planning study that the state-owned Brazilian Energy Research Company (EPE) publishes. It includes strategic planning for the Brazilian power sector as well as other energy sources such as oil, natural gas, and biomass. The last PNE 2030 was published in 2007. EPE is now working on the several chapters that will be part of the PNE 2050. It has recently disclosed a link for the PNE 2050 Economic Scenario Section, one of the five studies of the PNE 2050.

Q: How can the U.S. Commercial Service assist U.S. civil nuclear suppliers?

The U.S. Commercial Service’s global network provides export counseling, market intelligence, business matchmaking, and support to U.S. participants in trade shows, as well as other customized services. For more information, visit www.export.gov. On the site, businesses can locate their nearest U.S. Commercial Service office in the United States, U.S. Commercial Service in Brazil, and Country Commercial Guides. In addition, the U.S. Department of Commerce’s Office of Energy and Environmental Industries (OEEI) provides expertise on nuclear-related energy issues for different global markets. OEEI’s annual Civil Nuclear Top Markets Report discusses key trends, areas of opportunity, and important challenges facing U.S. civil nuclear energy exports through 2028.

The greatest minds in power generation gather once a year for the world’s largest forum for power professionals. It’s called POWER-GEN International, where experts throughout the world have been meeting for 28 years to discuss the mechanics, chemistry, operation and regulation of power generation.

More than 21,000 industry professionals from around the world will be gathering in Orlando, Florida, for POWER-GEN International 2016, Dec. 13-15 at the Orange County Convention Center. During the three-day event, the most innovative and cost-effective solutions for maintaining, operating and building new power generation will be shared with attendees.

More than 1,400 exhibiting companies from every sector of the industry will be showcasing their products and services on the exhibit floor. The exhibition opens at 11:30 a.m. Tuesday following the keynote session.

Nearly 4,000 people are expected to attend the POWER-GEN International’s keynote session on Dec. 13.

POWER-GEN International offers a wealth of networking opportunities with leading professionals and key decision makers. More than 200 speakers will share their thoughts on trends, technology and project development in 43 conference sessions. A wide range of topics, from data analytics to gas turbine design, will be discussed by high-ranking regulators, developers, power producers and industry representatives.

The keynote session on Dec. 13 will feature four high-ranking executives, including Alex Glenn, president of Duke Energy Florida; Rick Halil, senior vice president and general manager of Energy at Burns & McDonnell; and Willi Meixner, chief executive officer of the Power & Gas Division at Siemens AG.

This year, POWER-GEN is coming to Orlando with four co-located events: Nuclear Power International 2016; COAL-GEN 2016; Renewable Energy World International 2016; and the GenForum. That’s five conferences and four exhibitions under one roof. Altogether, more than 300 speakers will be featured in nearly 80 conference sessions during the week.

Altogether, more than 300 speakers will be featured in nearly 80 conference sessions during the week of POWER-GEN International.

At POWER-GEN, 36 conference sessions will be held under eight tracks: Emissions Control; On-Site Power; Plant Performance; Gas Turbine Technologies; Energy Storage; Industry Trends/Competitive Power Generation; The Digital Power Plant; and Power Project Financing.

“This year, we see a lot of papers on inlet conditioning,” said Bonnie Marini, director of Power Plant Product Line Management at Siemens Energy and co-chair of the Gas Turbine Technologies track at POWER-GEN. “We’re really expanding the scope of the track and covering a lot of different topics addressing changes in the market.”

Here’s a sample of some of the sessions that will be offered: “Energy Storage Trends and Case Studies;” ELG Compliance Strategies, Options and Technologies;” “Small and Medium Gas Turbines;” “Applications in Combined Cycle; “Advancements in O&M Practices;” “Latest Combined Cycle Designs;” “Making CHP Work for You;” “Boiler Operation & Performance;” Risk Management in Modern Project Financing;” and “Data Analytics and the Plant of Tomorrow.”

More than 21,000 power professional are expected to attend POWER-GEN International 2016, Dec. 13-15 at the Orange County Convention Center in Orlando, Florida.

Six mega-sessions are also scheduled. “Large Frame Gas Turbines,” “The Digital Power Plant is Disrupting Traditional Power Generation. What is it and Where is it Going,” “Operating Generation Assets in the New Variable Renewable World,” “Coal-Hybrid Power for Resilient Generation,” “On-Site Power Trends,” and “Power Project Financing.”

POWER-GEN International is the largest gathering of power professionals in the world. Attendees will see or hear about new technologies that promise to change the way the industry generates power. Several sessions will center on the promise of energy storage, an emerging market driven by new mandates and demands for cleaner energy.

“We’re going to be talking about case studies around what people have done, what did they learn and what was the value?” said Raj Chudgar, president of Viridity Energy and co-chair of the Energy Storage track at POWER-GEN. “We’re going to have a session around financing and policymaking. The two big issues around energy storage are how much does it cost and how do I actually operate under the parameters of the regulatory bodies. We’re going to have a whole session around different technologies and uses. All energy storage is not the same. It’s key for us to provide this breadth and depth of orientation”

Here are some of the things you’ll learn if you attend POWER-GEN this year:

• Why Reciprocating engines are becoming increasingly popular for utility-scale power projects.
• How more sensors and new analytics software are going to help power plants reduce costs, increase sales and boost efficiency.
• How heavy-duty gas turbines, in combined cycle mode, are going to achieve 65 percent fuel efficiency, up from 61 percent today.
• Advancements in energy storage technologies and how close they are to commercial viability.
• The benefits and drawbacks of hybrid power pants.
• Clean Power Plan compliance challenges and the likely or unlikely scenarios surrounding this controversial rule.

FOUR TECHNICAL TOURS

Technical tours of four power generation facilities will be offered to attendees on Monday, Dec. 12:

• The Sanford Power Plant, a combined cycle plant north of Orlando near Lake Monroe, features four combustion turbines with a capacity of 170 MW each. Altogether, the four HRSGs recover enough waste heat to produce a nominal 320 MW.
• Cane Island Power Park, a 710-MW natural gas-fired plant near Intercession City, is equipped with four gas turbines from GE, including an aero-derivative simple cycle turbine used primarily as a peaking unit.
• The Wind Service Training Center Orlando features the latest wind turbine technologies from Siemens. The equipment is used for hands-on safety, technical and professional development training.
• Orange County Convention Center PV Solar Installation, a 1.1-MW photovoltaic array on the roof of the North-South Building of the convention center. The $8 million project was placed online in February 2010.

PRE-CONFERENCE WORKSHOPS and CEU Credits

Attendees of POWER-GEN International can also choose from 31 Competitive Power College pre-conference workshops on Sunday Dec. 7 and Monday Dec. 9.

Some of the workshop topics include: “Effective Project management for the Power Project professional,” “Gas Turbine Fundamentals,” “Turbine Generator Failures and How They Can be Prevented,” “Cogeneration Power Plants: Case Studies of Successes and Failures,” “Power Project Opportunities in Brazil,” “Asia Pacific Power Generation Market: Strategic Review & Forecast,” and “HRSG Fundamentals.”

In addition, POWER-GEN attendees can earn CEU credits through exclusive training courses on valve installation, boiler control systems, boiler burner management, and thermal spray coating methods. For a complete list of CEU training courses: http://www.power-gen.com/conference/training.html?cmpid=abmaemail.

Several sessions at POWER-GEN will be devoted to the industry’s transition to power fueled with natural gas and renewable resources. In 2015, renewable resources accounted for almost two thirds of new generation placed into service in the U.S. This trend will continue, which means gas-fired plants must be faster and more flexible to effectively offset the inherent fluctuations of renewable power.

In addition to speed and flexibility, POWER-GEN speakers will be exploring new methods and strategies for maximizing net fuel efficiency. Air quality control system upgrades for existing coal-fired plants and operation and maintenance practices for nuclear plants will continue to be chief staples of our conference program in 2016. What’s more, we will be taking a closer look at the technologies driving the digital transformation of power generation.

See you in Orlando!

By Sharryn Dotson, Editor

Q: Considering the unique environment in which these nuclear plants are being built, what are some of the challenges you have had to overcome? Do you have to have different or special equipment or plant parts that can withstand the conditions (i.e., special cranes, modified reactor designs, or other equipment)?

A: The UAE is home to some of the world’s most advanced energy projects and, as such, has unique expertise in constructing large-scale energy projects in the climatic conditions of this region, while delivering them in line with the highest standards of safety and quality.

Building a nuclear energy facility anywhere in the world is a significant venture and a commitment to safety, first and foremost, is of the utmost importance. Here in the UAE, we’re striving for the gold standard, a high benchmark of operational transparency and excellence, for our peaceful nuclear energy program.

For the Barakah Nuclear Energy Plant, the Emirates Nuclear Energy Corporation (ENEC) selected the highly advanced APR-1400 reactor, designed by the Korea Electric Power Corporation (KEPCO) – the Prime Contractor on this project. Taking into account our nation’s expertise in constructing energy projects in these climatic conditions, we opted to make several upgrades to the design in order to counter the effects of higher temperatures, drier air and high volumes of airborne sand and dust.

These modifications include:

• Larger pumps, heat exchangers and pipes to increase the water flow rate of the cooling systems to deal with the higher seawater temperatures in the Gulf;
• A modified breakwater to ensure that the discharge and intake structures are at an increased distance from each other to avoid recirculation of warmer water;
• Seawater intake and plant cooling systems designed to ensure compliance with the Environment Agency – Abu Dhabi’s (EAD) standards for changes in Gulf water temperature near the plants;
• More ventilation and air conditioning to counter the effects of higher temperatures, drier air and high volumes of airborne sand and dust; and
• A refined intake screen design to help protect local fish populations during operations.

Q: How are the nuclear plants progressing?

A: We are continuing to make progress toward delivering all four units at the Barakah Nuclear Energy Plant by 2020, and I am proud of the significant milestones that we have achieved to date. With four identical nuclear reactors under simultaneous construction, we are celebrating significant achievements on a regular basis.

As of August 2016, Unit 1 is 90 percent complete and Unit 2 is 75 percent complete. Units 3 and 4 are 59 percent and 30 percent complete, respectively. Thanks to our structured approach to project management, the development of an agile organization and our close collaboration with KEPCO, we have delivered all project milestones in adherence to the highest standards of safety and quality.

Q: How do you mitigate issues with cooling water supply?

A: We are building our nuclear energy facility based on the best practices and expertise of the global industry, as well as the unique expertise of the UAE in large-scale energy projects. This approach has been vital to the success of our project and played an important role in identifying and implementing the enhancements that needed to be made to the reactor design to accommodate the climate in the UAE and the specifications of the Barakah site.

Several of the modifications that we made to the design are to adapt to the higher temperature of the water used for cooling. We are using seawater, which provides us with an inexhaustible supply, but also creates its own challenges. To ensure the seawater is properly cooled upon its release from the plant, we are using larger pumps, heat exchangers and pipes that increase the flow rate of the cooling systems. EAD has specified the environmental requirements for the Barakah Nuclear Energy Plant and we are committed to constructing and to operating our plant in adherence to their regulations.

Q: Are there any plans for other nuclear power plants?

A: The development of a peaceful nuclear energy program in the UAE represents an ambitious and exciting undertaking. We are currently focused on delivering the four units at the Barakah Nuclear Energy Plant with the goal of providing nearly a quarter of the UAE’s electricity needs by 2020 with almost no greenhouse gas emissions.

The investment that the UAE is making in this nuclear energy facility is helping to drive the growth of a new major, high-tech, knowledge-based industry and the development of a qualified chain of local suppliers. We look forward to sharing the insights and experience we are gaining with other countries that are interested in exploring their energy options and building peaceful nuclear energy facilities.

Q: Have you been able to apply lessons learned from the first unit to construction of subsequent units?

A: Nuclear energy facility construction around the world builds on operating experience. This extends beyond simply taking the lessons learned from building Barakah Unit 1, but also those learned from the project’s reference plant in South Korea. In fact, the construction license application for Units 3 and 4 at Barakah is around 1,000 pages longer than the application for Units 1 and 2, reflecting the experience and knowledge gained throughout the process of answering requests for further information and clarification that we receive from the UAE’s Federal Authority for Nuclear Regulation.

More importantly, Unit 1 is the first nuclear reactor in the UAE and the Gulf Cooperation Council (GCC) region. It serves as a basis and sets the benchmark for the other three units we are building and they have benefited greatly from the lessons learned while constructing it. Our focus on ensuring the highest quality standards at Unit 1 also means that ENEC is setting the standard for all future nuclear energy projects in the region and perhaps even around the world. Our aim is to have more than a functional nuclear reactor – we want to have the most reliable energy plant for the entire duration of its operational lifetime.

Q&A: South Africa’s Plans for More Nuclear

By Sharryn Dotson

South Africa relies heavily on coal-fired generation, but an increase in power demand coupled with a need to lower emissions is pushing officials to explore many types of baseload power to keep the lights on. The country is part of the Southern African Power Pool, which has a total installed generating capacity of 54.7 GW, with 80 percent of that in South Africa, according to information from the World Nuclear Association. State utility Eskom supplies about 95 percent of South Africa’s electricity and about 45 percent of Africa’s, WNA said. Coal-fired generation accounts for 34.3 GW and nuclear for 1.8 GW. The utility says the country needs 40 GW of new generation by 2025, with about half of that coming from nuclear, but financial troubles led to delays in building any new power generation.

Figure 1 – South Africa’s Integrated Resource Plans Calls for 9.6 GW of Nuclear by 2030.

Two nuclear reactors, the 930-MW Koeberg 1 and the 900-MW Koeberg 2, have been in operation since 1984 and 1985, respectively. They are scheduled for closure in 2024 and 2025, respectively.

Knox Msebenzi, managing director of the Nuclear Industry Association of South Africa (NIASA), discussed the next steps to potentially building new nuclear plants, any plans to restart development of the pebble bed reactor, and nuclear cooperation agreements with international companies.

1. Why is South Africa looking to potentially build nuclear power plants compared to natural gas or coal to help meet electricity shortages?

The South African Department of Energy conducted a study to determine the optimal way to make the country have adequate electrical power supply. A study was done and the results were published in the IRP 2010-2030. The approach that was adopted by the government was to have an energy mix, consisting of all forms of energy available to South Africa. There was emphasis on increase in both renewable energy and nuclear and target reduction of coal to mitigate against climate change in terms of SA’s commitment to the reduction of carbon emissions, in terms of the COP21 commitments. Coal will continue to play a role in power generation as ‘clean coal’. Gas explorations in the Karoo are underway and the department has stated that this could be a game changer if the harvesting of it can be done economically and sustainably. The approach taken by the government is that of a basket of energy sources rather than just one form.

2. Do you think the country will restart development of the pebble bed reactor, or will another advanced reactor technology be used, such as small modular reactors?

The decision about what technology to use lies with the government officials based on the research they did and at this point in time, there is no indication that the Pebble Bed Modular Reactor will be resurrected. There are also big picture considerations in terms of government policy. The government has made it very clear that it wants to strengthen the nuclear industry and maximise localisation so that even if the technology is outsourced from outside the country, the revival of the nuclear industry is facilitated. Small modular reactors will most likely play a role in the future as the technology is proven. The nuclear regulator has made it clear that it will not recommend a first of a kind technology deployment and since there are no reference plants at this stage, it is highly unlikely that these new technologies will be considered.

3. The Koeberg nuclear plant is set to operate until 2024 and 2025. Are there plans for an operating life extension?

Decisions of this nature are influenced by a number of factors and the operator of Koeberg Nuclear Power plant would need to make a business case first to the shareholder then submit a safety case to the nuclear regulator. Other factors that may come into the picture are the comparative costs of new build versus operating life extension of Koeberg. This question is best answered by ESKOM, the operator.

4. France and South Africa extended a long-term cooperation agreement. Is anything in the works with other countries to either assist in the development of nuclear or to build the plants themselves?

The inter-government agreements between countries are common in many industries. Indeed, other agreements with other countries were signed regarding cooperation in nuclear technology. Our understanding is that the Department of Energy will make the call as to how to do the procurement, as there are many models out there. Towards the end of 2014, the Government conducted what they called a ‘vendor parade’ where all the vendors interested in participating in the nuclear build took part on a one on one basis. So far, all the nuclear vendor countries have signed agreements with the South African Government.

China will lead other countries in nuclear growth, alone comprising 54 percent of global nuclear expansion in the reporting period. Countries that are not part of the Organization for Economic Cooperation and Development will account for 86 percent of new nuclear, the report says.

As of 2015, China had 34 operating nuclear reactors, with a total capacity of 27 GW. China has an additional 20 reactors under construction, which if completed will add more than 22 GW to its existing capacity. At China’s current construction rate, one reactor comes online every five months. According to both China’s State Power Investment Corporation (SPI) and the World Nuclear Association’s assessment of China’s 13th Five-Year Plan, unveiled in March 2016, the Chinese Energy Fund Committee is expected to approve six to eight new nuclear reactors each year through 2020. This represents an additional 34 to 45 GW, increasing China’s nuclear capacity to nearly 90 GW by 2025. By 2032, China is expected to surpass the United States as the country with the most electricity generation from nuclear power, the report says.

Small Module Nuclear Reactors Could Power the UK by 2030

Small module nuclear reactors (SMR) could move from concept to operating reality in the United Kingdom by 2030, a new report indicates.

The analysis, issued by the Energy Technologies Institute, lays out a timeline for development of the technology, but warns that it’s dependent on gaining investor confidence early on.

“Our analysis shows that it is possible to have a first-of-a-kind SMR operating by 2030 if SMR developers, SMR vendors, Government and regulators work together in an integrated program,” said Mike Middleton, the ETI’s Nuclear Strategy Manager and the author of the report.

In April 2015, the UK government began gathering information on SMR for policy development. By November, the UK announced a £250 million program for overall nuclear research and development, including SMRs.

The report noted there’s currently no program or policy that would encourage the private sector to develop SMRs, and the ETI wants to help create investment by 2025.

SMR development is also underway in the United States, as the Small Modular Reactor Research and Education Consortium have funded two research projects.

Dominion’s Heacock to Retire; Stoddard Promoted to Chief Nuclear Officer

Dominion announced that David A. Heacock, president of Dominion Nuclear and the company’s chief nuclear officer, will retire, effective March 1, 2017. Beginning Oct. 1, Daniel G. Stoddard, senior vice president of Nuclear Operations, will become senior vice president and chief nuclear officer. Heacock will remain president of Dominion Nuclear until his retirement.

During the transition, Stoddard will continue reporting to Heacock, but will have a dotted-line relationship as chief nuclear officer to Paul Koonce, CEO of the Dominion Generation Group. Stoddard will begin reporting directly to Koonce on March 1.

“Dave’s knowledge and reputation in the nuclear industry is unparalleled,” Koonce said. “He is an expert on issues facing both the company and the industry as a whole. In the aftermath of the earthquake that struck near North Anna Power Station in 2011, he quickly guided the company and regulators. He also led the industry’s response to the safety analysis following the Fukushima nuclear incident in Japan.

Stoddard, a graduate of the U.S. Naval Academy with a bachelor’s degree in marine engineering, also earned his master’s degree in nuclear engineering from the University of Virginia. He joined Dominion in July 2006 as director-Nuclear Station Safety & Licensing, and was named site vice president-North Anna Power Station later that year. He assumed the post of vice president-Nuclear Operations in February 2010, and was promoted to senior vice president-Nuclear Operations in May 2011.

Fermi 2 Nuclear License Renewal Gets Environmental OK from NRC

The U.S. Nuclear Regulatory Commission (NRC) published its final environmental review on the operating license renewal of the Fermi 2 nuclear power plant in Michigan.

The supplemental environmental impact statement contains the NRC staff’s conclusion that the impacts would not preclude renewing the plant’s license for another 20 years. The NRC published a draft version of the report in November 2015 for public comment. The final report includes the staff’s responses to the comments.

Fermi 2 is a boiling water reactor currently licensed to operate through March 20, 2025. Plant operator DTE Electric Co. submitted the renewal application April 30, 2014.

GE to Provide Conventional Power Islands for Hinkley Point C

GE received approval of a $1.9 billion contract to supply steam turbines and generators as part of EDF Energy’s Hinkley Point C nuclear power project in the UK.

GE’s Steam Power Systems, part of GE Power, will supply two conventional power islands, which includes the ARABELLE steam turbine, generator and other critical equipment. Each steam turbine has a gross generating capacity of 1,770 MW.

GE has been working closely with EDF Energy on Hinkley Point C as part of the Early Contractor Involvement agreement that includes activities like safety classification studies, planning, civil works interfaces, pre-engineering and procurement planning.

TVA Doing Switchyard Repairs Prior to Watts Bar 2 Operation

Since the Tennessee Valley Authority (TVA) experienced an oil fire at the switchyard serving the Watts Bar nuclear station on Aug. 30, the federal utility has decided to do extensive work at the switchyard prior to full commercial operation of Watts Bar 2.

The fire forced the Watts Bar 2 nuclear unit offline not long after it had achieved 99 percent power output as part of increasing generation tests. As a precaution, TVA also took Watts Bar 1 offline temporarily on Sept. 1 so workers could safely inspect de-energized equipment in its switchyard.

Watts Bar 1 has since gotten back to 100 percent power, while Watts Bar 2 remains at zero power.

There is a “dual” switchyard at the Watts Bar nuclear complex and it has both 161-kV and 500-kV facilities, TVA spokesperson Jim Hopson told GenerationHub on Sept. 12.

The fire occurred on the “station side” of the switchyard serving Watts Bar 2, Hopson said. TVA cannot yet give an accurate prediction of either the cost of the switchyard repair or the length of time it will take to complete, he added. Work will be done by TVA’s in-house employees.

I’ve subscribed to the NRC Blog for several years now, and I have to say that the agency does a great job selecting interesting topics and explaining them using simple language – while simultaneously reinforcing the NRC’s independent oversight role.

A two-part July post on defense-in-depth got me thinking about nuclear plant safety and how it’s perceived relative to personal security. A prerequisite for such a thought exercise is accepting that the only thing that is perfectly safe in this world is the thing that is never invented or the thing that is never used. Some level of risk – and potential threat to safety – is inherent to any application of technology. For nuclear plants, lines of defense can be implemented to reduce the risks and/or minimize the effects of a technological mishap; in other words, defense-in-depth encompasses both accident prevention and accident mitigation.

The NRC Blog post refers readers to a new report that explores the evolution of defense-in-depth over the past 50+ years: Historical Review and Observations of Defense-in-Depth (NUREG/KM-0009). The report identifies a distinct shift in thinking over time. For the first 30 years of commercial nuclear power, defense-in-depth reflected a deterministic perspective – basically designing our way to safety through multiple barriers that provided diversity and redundancy to address postulated accident scenarios. In the 1990s, risk analysis and an evolving risk-informed regulatory framework recast defense-in-depth in terms of uncertainty. From this “rationalist” perspective, defense-in-depth represents the sum of provisions made to compensate for inadequacies, incompleteness, and uncertainties regarding plant behavior in accident situations.

The yin and yang of the deterministic perspective versus the rationalist perspective continues to evolve. More recent treatments of defense-in-depth blend the two perspectives. The NRC defines defense-in-depth as: “An approach to designing and operating nuclear facilities that prevents and mitigates accidents that release radiation or hazardous materials. The key is creating multiple independent and redundant layers of defense to compensate for potential human and mechanical failures so that no single layer, no matter how robust, is exclusively relied upon…”

Interestingly, in 2012, the NRC pointed out some shortcomings with respect to defense-in-depth, noting that “after decades of use, no clear definition or criteria exist on how to define adequate defense-in-depth protections; that the concept of defense-in-depth is not used consistently, and there is no guidance on how much defense-in-depth is sufficient…” [A Proposed Risk Management Regulatory Framework, NUREG-2150].

So where does that leave us? While recognizing the lack of a perfect understanding of defense-in-depth, NRC by no means disavows its importance, and has routinely reiterated that defense-in-depth is a basic element of its overall safety philosophy. In other words, we may not know everything, but by designing as best we can, by recognizing and accounting for uncertainties – and then adjusting for these uncertainties through design changes, operational procedure modifications, emergency planning capabilities, etc. – we are as prepared as possible to prevent and mitigate accidents.

So does the same defense-in-depth perspective hold true for personal safety and security? Let’s look at two everyday technology examples: vehicles and the internet.

For vehicles, there is clearly some defense-in-depth at play. Our cars are increasingly designed with accident prevention and mitigation in mind, considering everything from antilock brakes and backup cameras to seatbelts, airbags, and bumpers. We’ve even begun factoring uncertainties into vehicle operational safety: collision detection systems, for example, help reduce risks associated with inattentive drivers or overly aggressive drivers. However, until we go so far as to restrict vehicle speed based on terrain, tire condition, weather, pavement, traffic, etc., we can’t say we’re fully accounting for uncertainties and embracing defense-in-depth.

For the internet, there also is some defense-in-depth involved, but implementation is much less rigorous and more user-dependent. Passwords are notoriously weak and most applications only have protection that’s one level deep, limiting the extent of accident prevention. While there is a degree of accident mitigation, such as limited liability if credit card information is stolen, the immediate economic impacts are often the least of your troubles. And while experts routinely emphasize the uncertainties associated with protection devices such as anti-virus software (warning everyone that they can’t catch everything), the bad guys are usually a step ahead. Yet many of us still are not in the habit of performing regular backups.

At the end of the day, I’m comfortable with the defense-in-depth applied to nuclear plant design and operation. It may not be perfect, but it is subjected to thoughtful scrutiny that drives continuous improvement.

In the meantime, I’m going to go back up my hard drive.