|Site Selection / Characterization||Program planning & Feasibility studies||Prepare Bid / Contract specifications||Contract negotiation||Design Phase / Apply for Construction License||Preparation for operation||Construction oversight / Commissioning|
Prepare Bid / Contract specifications
Managing the risks
The risks related to a newbuild project are considerable and can materialize in delays and cost overruns. However, these risks can be identified and mitigated. It is important to consider them already in the drafting of the bid/contract specifications. This can be a challenge particularly for newcomers with limited experience from newbuild projects.
The traditional approach for contracting a nuclear power plant is based on a large set of complex, country-specific requirements set by the regulator. This may no longer be the most recommended approach. In order to keep cost and risk levels manageable, SMRs and Gen III/III+ nuclear reactors will need to be based on standard designs as far as possible. Still, operation and maintenance related requirements will need to be taken into account and set by the Owner-Operator, considering that the reactors may operate 60+ years.
Dialogue with plant vendors and regulators
In the evolving regulatory environment typical in a newcomer country and when introducing nuclear as a new technology, dialogue with plant vendors and regulatory bodies well before releasing the Request for Proposal is essential. The Owner-Operator will need to ensure that the standard design is mature enough and can be licensed. If the design cannot be licensed as such, the extent of the needed modifications will need to be understood, considering also site and environmental conditions and availability of the related data.
Fortum´s Value Proposition
Fortum has extensive experience in compiling contract specifications for newbuild projects both in Finland and internationally. Based on this,
- We, as an Owner-Operator, fully recognize the significance of EPC contract specifications for the lifetime costs of the plant, with emphasis on operation and maintenance.
- We have experience for conducting dialogue with plant vendors to minimize the risks related to Technical Requirements, which form an essential part of contract specifications.
- We are familiar with most of the alternative large reactor technologies, but also neutral towards any alternative.