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Czech Republic: AREVA submits its offer for the construction of two EPR™ reactors for the Temelin 3 and 4 project

OPERATIONS / REACTORS AND SERVICES

July 02, 2012

© AREVA - Luc Oursel, AREVA’s Chief Executive Officer

AREVA is pleased to announce that it has submitted today its official bid to the Czech utility CEZ for the construction of two EPR™ reactors, units 3 and 4, on the Temelin nuclear power plant site. The scope of the bid covers the design, engineering, procurement, construction and commissioning of the complete two-unit nuclear power plant.

AREVA is deeply committed to supporting CEZ in its plans to expand the Temelin nuclear power plant and to making Temelín 3 and 4 Europe’s next major infrastructure success story”, said Luc Oursel, AREVA’s CEO. “With four EPR™ units under construction in Finland, France and China, AREVA has a unique extensive licensing and EPC contract experience from which the Temelin project will fully benefit, offering to CEZ a high level of confidence for competitive, on-time and on-budget project delivery”, continued Oursel.

Our EPR™ reactor is the reference technology for advanced safety and is the only generation III+ reactor to be licensed and under construction in Europe”, added Oursel. “We are therefore confident that our proposal for two EPR™ reactors is the most suitable solution for the Czech Republic and will fully meet CEZ’s needs and requirements for generating safe and competitive energy”.

AREVA’s Republic Czech offer team with the 40+ binders which constitute the proposal submitted to CEZ today

© AREVA - AREVA’s Republic Czech offer team

Based on proven technologies and designed through a collaborative approach with European utilities and regulators, the EPR™ reactor offers the highest levels of safety and performance, making it the most robust design on the market to date.

The reactor’s specific safety features, notably the core-catcher and the airplane crash double-walled protection shell, offer a unique in-depth resistance to both internal and external hazards. The high safety level of the EPR™ design has been confirmed by the post-Fukushima safety checks conducted in several countries.

The EPR™ reactor also allows utilities to maximize plant economics. Its high output combined with its high availability offers up to 20% savings on operational costs as compared to other next-generation designs.

In line with Czech grid and water related requirements, studies have confirmed that the two EPR™ reactors are the best solution for a stable and competitive electricity price over the long term, offering to CEZ and the Czech Republic a large source of competitive and low-CO2 power.

AREVA’s bid submission, Prague, Czech Republic. July 2nd, 2012

© AREVA - AREVA’s bid submission, Prague, Czech Republic. July 2nd, 2012

Competitiveness and confidence in execution and schedule are also ensured thanks to AREVA’s strong global supply chain continuously strengthened through the group’s proactive localization and qualification strategy which leverages local expertise and industries.

Key aspect of its offer, AREVA is keen on pursuing the regionalisation of the group’s supply chain. Having built strong ties with the Czech industry over the past 20 years, AREVA signed in the first half of this year no less than 25 cooperation agreements with Czech companies to participate in the Temelin project as well as in the group’s other projects worldwide. Having awarded more than 1 billion Czech Crowns (around €40 million) worth of equipment and service contracts to Czech companies in the last three years, AREVA plans, in addition to its commitment in the extension of the Temelin power plant, to double its investments in the Czech Republic and to award its Czech partners new orders for industrial equipment and services. 

Computer-generated 3D image of the 2 EPR™ reactors on the Temelin site, Czech Republic.

© AREVA/IMAGE and PROCESS - Computer-generated 3D image of the 2 EPR™ reactors on the Temelin site, Czech Republic.

Up to 70% of the work on our EPR™ projects is open to procurement by local companies, and it is anticipated that well over 10,000 jobs will be created during construction at Temelin”, said Thomas Epron, director of AREVA’s branch office in the Czech Republic. “Localisation is a key element of our business strategy on all markets where we build new projects, which brings delivery confidence to utilities and fosters the local economy’s growth”.

AREVA has frequently praised the transparency and professional management of the CEZ tender process.  Offers will be evaluated via a Q&A process that is to last until the end of 2012, whereupon an initial evaluation will be made and negotiations will start. The winning bidder is to be selected in 2013.

In addition to the proposal to CEZ, AREVA is today engaged in several tender and upcoming project processes already launched or in preparation in Finland (with Fennovoima and TVO), Jordan, the UK, China, India, Poland, Saudi Arabia and South-Africa.

Field Report #9 : Project Delivery

Field Report #9: Project Delivery

On October 23, the Taishan 1 EPR™ reactor built in China by TNPJVC reached a major milestone with the successful dome lifting.

Find out how this achievement is a good illustration of AREVA’s ability to convert lessons learned captured from Olkiluoto 3 and Flamanville 3 into solid results.

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