SKODA JS: Contracts for Several Years Ahead

Date: 19. 5. 2009

Source: Technický týdeník

SKODA JS a.s. is engaged in engineering, manufacture of equipment and service for nuclear power plants.

Miroslav FialaThe following questions of TT (Technický týdeník) have been answered by Miroslav Fiala, the General Manager and Chairman of the Board of Directors of the company:

Mr. Fiala, it seems that there are sheet lightings as regards the Czech nuclear power industry. Engineers talk about the necessity to complete and commission at least the two remaining units at Temelin NPP. On the contrary, ecology activists object that Temelin does not dispose of any further production and storage capacities. What is your personal, professional opinion of this issue?

If I am to give you a grave answer, I may only base it on analyses, which have been carried out in this field by state, or eventually independent, institutions. For me, an example of this is the report of the Independent Panel on Energy (so-called Paces Committee), which submitted the results of its analysis in the second half of the last year. According to the above committee, further development of nuclear energy is a significant part of the energy mix in the Czech Republic. Its conclusions lead up to the fact that the political decision on potential completion of Temelin NPP will only be made after its impact on the environment is assessed within the frame of EIA. This report shall be submitted by the Ministry of the Environment of the Czech Republic in the course of 2010. I personally fully agree with the conclusion of the Independent Panel on Energy. The opposite would mean a gradual return to the primitive communal society.

As regards the production capacity of future power units in Temelin, from the studies performed it results that this locality provides enough water for cooling power capabilities with a total power output of 5500 MWe. This implies that it is possible to supplement the two existing 1000 MWe units with another two pressurized-water-reactor units with an output of 1000-1700 MWe. This corresponds to the state-of-the-art commercially supplied types of nuclear reactors – EPR (1600 MWe) designed by French AREVA NP, AP 1000 (1200 MWe) designed by American Westinghouse Electric, VVER1000-ASE (V) 92  (1050 MWe) designed by Russian Atomstroyexport, APWR (1700 MWe) designed by Japanese Mitsubishi Heavy Industries and finally a common design of Areva and Mitsubishi titled ATMEA (1100 MWe).

These companies have preliminary shown interest to participate in the future tender for new units in Temelin. The first three types have already been certified by the European Utility Requirements organization (EUR), which is nowadays a prerequisite for construction of a new unit in Europe. Increasing the capacity of the interim spent fuel storage facility in Temelin, whose construction has just been initiated, shall not – according to the information available – represent a problem, not even in case that another two new units are set into operation. Moreover, CEZ also counts on changeover to a five-year fuel campaign in the Temelin reactors, which will lead to a slower storage capacity utilization.

For many years we have been proud of unique technical as well as human capabilities for production, installation and service of nuclear power equipment. Lately, it is as though this factor has faded away from public consciousness. Actually, there are flashes of anxiety that we will not be able to design, produce or safely install new nuclear power units or their technical equipment anymore. Is such skepticism appropriate? How, in particular, can your company contribute to the renaissance of the Czech nuclear power industry? 

Let me talk about the situation right in our company. The production and supplies for newly constructed nuclear power plants ended at the beginning of the 90s by the production of three VVER 1000-type nuclear reactor sets, two of which were designated for Temelin NPP.  Due to global decrease in the construction of nuclear power plants, SKODA was forced to complete its spectrum of activities by production of spent fuel storage casks and large vessels for refining industry and petrochemistry. Nevertheless, we also managed to maintain production of certain parts of nuclear reactor equipment, both for VVER technology and western types of light water PWR and BWR reactors. Our customers have been and still are, for instance, power companies CEZ, Slovenske elektrarne, Ukrainian NAEK Energoatom or great contractors such as Areva NP.

A very important factor for maintenance of qualified engineering personnel was our participation in the construction of Unit 1 and 2 at Slovak Mochovce NPP in the 2nd half of the 90s and mainly our victory in the biggest Czech nuclear tender in the past decade for the Instrumentation and Control System refurbishment at all four units at Dukovany NPP. SKODA JS obtained this turnkey supply contract in keen competition in 2000.

This project, in phase I amounting to nearly CZK 7 billion, followed by a victory in phase II amounting to another more than CZK 4 billion, guaranteed work to a team of several tens of qualified designers until 2015. At present, SKODA JS is taking part in the tender announced by Slovenske elektrarne for completion of Unit 3 and 4 at Mochovce NPP. I believe there is a great chance for us to be successful. 

To design, construct and furnish a new nuclear power plant is, even in the advanced foreign countries, a task for at least 10-15 years. Prominent research and testing laboratories worldwide have already developed research work on generation III+ and IV reactors. According to nuclear skeptics: wouldn’t it be more beneficial for the Czech Republic not to rush the new phase of construction of new nuclear power resources and wait for technically new and, in many ways, more progressive generation of the technology? 

The development of the latest reactor types has been going on in the last 20 years and required considerable financial resources. At present, construction of their pilot blocks is in progress (or is just being initiated): EPR-type reactors are being erected in Finnish Olkiluoto and French Flamanville. First two AP 1000-type reactors are being constructed by Westinghouse in China and Russia has initiated construction of four units of new AES-2006 type reactors at Novovoronezh and Leningrad NPP. In the following 20 years, all the above contractors plan to construct tens of reactors of the given types. Under these circumstances, waiting for completion of the generation IV reactors development until their commercial use would mean, that we will construct these units in 20 years in the dark.  

Czech expert education in the field of nuclear power did not disappear. On the other hand, not even its internal development did stagnate. What kind of new requirements shall be applied to future Czech nuclear engineers, designers and specialists?

The situation in the past 15 years has been far from easy. Seemingly there has been no perspective in the nuclear power industry and students of technical disciplines have focused elsewhere.

The above-mentioned projects enabled stabilization of experienced professionals and also contraction of young graduates who may, next to the experienced ones, gain necessary experience.  At present, SKODA JS employs nearly 900 staff. One third of the total number are blue-collars. Two thirds consist of technical and economy professions.

Future experts for the Czech nuclear power industry have to, of course, get their degree in technical fields, preferably focused on power industry.  A prerequisite for successful completion of university studies is mastering of mathematics and physics as early as at secondary school. It is taken for granted that, to the new workplace, the graduate brings computer literacy in the field of design, construction and administration work.   

In comparison with previous years, good English language skills are an absolute must, as it is used during business meetings and in most documentation and professional information. In the case of our company, Russian is also important and that in respect of the technology of VVER-type nuclear power units, which represent a fundamental segment of our business activities.  

After a fifteen-year break, the field of Nuclear Power Engineering was restored at the West Bohemian University last year. I am glad that experts from our company have taken part in this process. In the current crisis period, when many companies are forced to discharge even qualified employees due to the loss of markets and lack of orders, the nuclear power renaissance, which brings long-term projects and is not subject to immediate market swings, may become attractive for many young engineers.

At this time, SKODA JS has concluded contracts that will occupy its engineering, production and service capacities for several years ahead.

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