1. Funding for new build and
decommissioning
Fiona Reilly
Nuclear Lead - Capital Projects and Infrastructure,
PwC
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Presentation title - edit in the Master slide

2. • Funding nuclear new build
• Decommissioning and waste funding
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3. Money!
• New Build Investment
• Government – cash and guarantees
• Mankala/ Exceltium
• BOO (D)
• Equity
• Debt
• ECAs
• Revenue
• CFDs
• PPAs
• Funds
• Waste and decommissioning funds
• Security packages
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4. Role of Government
• Historically government funded
• Move toward private sector development
• Costs so high need equity partition/ various debt options
• Continued government involvement – policy maker, rule of law, owner,
insurer of last resort, guarantor of debt, support mechanism etc.
• UK – CFD and IUK Guarantee
• Decommissioning and waste management solution
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5. Sharing risks
Balancing regulatory and financing
requirements
Commercial
Government
ECA
Debt
Developer
Equity
Owner Co
Offtaker
Operator Co
EPC , FSA , LTSA etc
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6. Payment cascade
• Operating costs
• Decommissioning funds
• Debt repayments
• Profits – dividends
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7. Decommissioning funds and fund
management

Prepayment – money deposited in separate
account to pay for decommissioning
 External sinking funds (Nuclear Power Levy) –
built up from a percentage of rates charged to
consumers, held in trust fund.
 Surety fund, letter of credit or insurance – to
cover the decommissioning even if utility
defaults
 Japan: Payments into external fund for disposal of HLW –
administered and managed by Radioactive Waste
Management Funding and Research Centre – levy 200
yen/Mwh on sales; each power company must establish its
own reserve fund for decommissioning
 Sweden – Swedish Nuclear Waste Fund (Kärnavfallsfonden):
State controlled fund, paid into by Operators
 Belgium: Internal funds managed by utility
 Germany: Provisions made into internal funds managed by
each utility
 Finland: National Nuclear Waste Management Fund, managed
by Ministry of Trade and Industry
 EBRD support funds established by EC and
governments to support the closure and
decommissioning of reactors where safety
concerns – Bulgaria, Slovakia and Lithuania e.g.
Kozloduy International Decommissioning
Support Fund 1-4, also Chernobyl funds
 France: EDF provisions in its accounts for funding, based on
percentage of kWh sold
 USA: Trust funds, funded by payment from ratepayers 0.1 to
0.2 cents/kWh, reporting to NRC
 UK – FDPs: Operator established, ring-fenced, Nuclear
Liabilities Funded Assurance Board
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8. UK New Build Decommissioning
Nuclear site licensee must implement a Funded Decommissioning
Programme (FDP) containing:
•
A decommissioning and waste management plan (DWMP); and
•
A funding arrangement plan (FAP)
Must be approved by the SoS
Audited initially and periodically by the Nuclear Liabilities Financing
Assurance Board
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9. Nuclear New Build - DWMP
•
Clear structure
•
Full decommissioning and waste management plan
•
Robust cost estimates
•
Conservative
•
Contingency
•
Risks
•
Uncertainty
•
Roles and responsibility set out
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Durable
•
Updated
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10. Nuclear New Build - FAP
• Establishing/ creating the Fund
• Structure and ownership
• Role
• Contributions waterfall over the life of the plant
• Management strategy
• Administering including making payments
• Winding up of the Fund and excess funds
• Tax and accounting analysis
• Other security packages available to deal with insufficiencies.
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11. Nuclear New Build - Fund
• Fund independent of the owner/operator
• Insolvency remoteness
• Trust fund
• Managed
• Ensure sufficiency
• Restrictions on use of fund assets
• CNE security package
• Shortfalls covered by Operator
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12. Conclusions
• Complicated/ no one size fits all
• Equity
• Debt
• Role of government (guarantees/ PPAs/ CFDs ….)
• Revenue
• Funds
• One think for sure – without all of the above coming together there will
be no new build project
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13. Understanding of the nuclear market
•
•
We advise on nuclear new-build,
operational nuclear issues and on
decommissioning and waste management
We understand policy, regulatory and
financing issues associated with the
nuclear sector and why certain solutions
are not universally applicable.
Mining
Reactor
construction
Conversion
Storage
Reprocessing
Power
generation
Enrichment
Fabrication
Vitrification
Decommissioning
Disposal
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•
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We know participants and stakeholders
across the globe
We understand the risks faced by
participants in different countries and
different parts of the value chain

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15. Fiona Reilly
PwC | Lead on nuclear for Capital Projects and Infrastructure
Office: +44 (0) 20 7804 7266
Email: fiona.j.reilly@uk.pwc.com
For over 17 years Fiona has been involved with projects in the nuclear industry. She remains a highly regarded
specialist, particularly by industry, in the nuclear market. She is familiar with and has worked on all aspects of the
nuclear cycle from new build and licensing to decommissioning, fuel storage and waste management.
She has a detailed understanding of the international regulatory framework within which the nuclear industry works
and frequently advises on liability regimes and nuclear insurance, regulatory and reporting requirements, the
development of regulatory regimes, feasibility studies and structuring as well as the financing, development,
construction, operation and maintenance of nuclear stations and the fabrication, reprocessing and storage of nuclear
fuel and waste.
During her early career , while at an engineering company, she worked at a nuclear power station in the UK
She is recognised as an expert in the development and financing of nuclear projects by the International Atomic
Energy Agency (IAEA) and has served as a designated expert on the financing, development and structuring of
nuclear projects at special meetings of the IAEA.
She is co-author of the chapter on the resolution of disputes in the nuclear industry in “Dispute Resolution in the
Energy Sector: A Practitioner’s Handbook.”
She is a Non Practising Solicitor Advocate (civil) and is a Member of the International Bar Association, member of
the International Nuclear Lawyers Association, member of Women in Nuclear among other organisations.
Fiona has worked on nuclear new build projects in the UK, Central Europe, Russia and the Middle East and has
worked for the Nuclear Decommissioning Authority and International Nuclear Services in the UK.
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