Steffie Schwillens’ Post

The EU Commission has published its annual State of the #EnergyUnion Report which suggests that despite a challenging year, the EU has made positive progress on its energy security and decarbonisation goals.   From a #nuclear perspective, the report notes the critical role of nuclear in energy diversification and emissions-free electricity generation and we welcome its emphasis on the importance of bolstering nuclear fuel cycle services and related infrastructure within the EU.   The report also details the success of the Euratom Supply Agency (ESA) in its pursuit of integrating nuclear fuel into the European energy grid and we echo the report’s call on the urgent need to address dependency on foreign nuclear fuel imports.   Urenco is committed to working with the new European Commission and Parliament to build on these recommendations.

The European industrial strategy and green deal is now truly making progress with nuclear energy to meet demand for electricity, hydrogen and SAF. I'm really looking forward to having Rolls-Royce SMR lean forward in the EU SMR Alliance together with Nuward. Margrethe Vestager: "We approved today a €300 million measure which enables France to support Nuward’s research and development project on innovative small modular reactors. This project will contribute to the decarbonisation of energy systems and to the EU’s open strategic autonomy, while limiting possible distortions of competition." https://lnkd.in/dK7_stQd #nuclearenergy is #cleanenergy

Commission opens in-depth State aid investigation into Belgian support for lifetime extension of two nuclear reactors "While the Belgian measure appears justified, at this stage, the Commission has doubts as to its compatibility with EU State aid rules and has therefore decided to open an in-depth investigation. In particular, the Commission will further investigate: - The necessity of the additional financial support mechanisms on top of the CfD, in particular the creation of the joint-venture and its financing, as well as of the operating cashflow guarantee and the €580 million loan; - The appropriateness of the CfD design and the combination of financial and structural arrangements as they may unduly relieve the beneficiaries from too big a share of the market and operational risks; - The proportionality of the combination of financial and structural arrangements and of the €15 billion lumpsum; Compliance with relevant EU sectoral legislation, in particular concerning the design of the CfD mechanism; and - The impact of the measure on the market in light of the CfD design and the selection and independence of the agent selling the nuclear electricity. The opening of the in-depth investigation gives Belgium and interested third parties an opportunity to submit comments. It does not prejudge the outcome of the investigation". #nuclear #stateaid #publicconsultation #energypolicy #energylaw https://lnkd.in/ea2ESaCp

The European SMR Industrial Alliance has been announced on 6.2.2024. Small and Advanced Modular Reactors (SMRs and AMRs) are important for Europe, because they can contribute to low carbon energy production and strategic autonomy of Europe. 🔑SMRs and AMRs are smaller-scale, more flexible versions of nuclear reactors. They can deliver electricity, hydrogen and process heat for energy-intensive industrial applications, district heating and cooling, and water desalination. They are complementary to renewables and integrate well in future energy systems. 💡Already 15 European countries are developing SMR projects. They are interested in their flexibility, efficiency, affordability and advanced safety features. 🔬At the European Commission-Joint Research Centre we are delivering a wide range of scientific expertise on SMR-relevant technologies. Small modular reactors - European Commission (europa.eu) 🤝Together with the new SMR Industrial Alliance, we are ready to accompany the development and deployment of SMR projects in the EU. https://lnkd.in/efhkGsTC EU Science, Research and Innovation https://lnkd.in/eKvUgTaD

The European Commission has approved, under EU State aid rules, a Czech support measure for the construction and operation of a new nuclear power plant in Dukovany in Czechia. In March 2022, Czechia notified the Commission of its plan to support the construction and operation of a new nuclear power plant in Dukovany, with an electricity generation capacity of up to 1200 MW. The nuclear power plant is expected to be commissioned in 2036 for trial operations, while commercial operations are planned to commence in 2038. The plant will have an operating lifetime of 60 years and is planned to be decommissioned in 2096. Dukovany is already the site of an existing nuclear power plant. The beneficiary of the measure is Elektrárna Dukovany II (‘EDU II'), a fully owned subsidiary of the ČEZ Group, the only nuclear power plant operator in Czechia. Czechia plans to grant direct price support in the form of a power purchasing contract with a State-owned Special Purpose Vehicle (‘SPV'). The contract will ensure stable revenues for the nuclear power plant for a period of 40 years. The beneficiary will also benefit of a subsidised State loan to cover a majority of the construction costs and a protection mechanism against unforeseen events or policy changes that may make the realisation of the project impossible. https://lnkd.in/dU-ZjcMD

European Commission approves national State Aid for construction of nuclear power plant in Czechia... "The Court of Justice has clarified that, in line with Article 194(2) TFEU, Member States may determine the conditions for exploiting their energy resources, their choice between different energy sources and the general structure of their energy supply, which does not preclude that choice from being nuclear energy." "Under EU State Aid rules, the Commission analyses the compatibility of the measure under Article 107(3)(c) TFEU, which enables Member States to support the development of certain economic activities. The support should remain necessary and proportionate and not adversely affect trading conditions to an extent contrary to the common interest..." "The beneficiary of the measure is Elektrárna Dukovany II (‘EDU II'), a fully owned subsidiary of the ČEZ Group, the only nuclear power plant operator in Czechia. Czechia plans to grant direct price support in the form of a power purchasing contract with a State-owned Special Purpose Vehicle (‘SPV'). The contract will ensure stable revenues for the nuclear power plant for a period of 40 years. The beneficiary will also benefit from a subsidised State loan to cover a majority of the construction costs and a protection mechanism against unforeseen events or policy changes that may make the realisation of the project impossible..." [All of these elements could be evaluated using transfer pricing techniques against arm's length benchmarks.] Interestingly the approved State Aid package also includes i) an OTC long term fixed-floating electricity price swap derivative (styled as a Contract for Difference or CfD) with c.40 years of annual payments and ii) some form of excess payment claw-back mechanism (e.g. a dynamic cap applied in arrears) and iii) a commitment for at least 70% of open market sales and the rest sold through transparent auctions. (N.B. Of course the history of derivatives disputes shows that such long term swaps can be highly prone to derivatives mis-selling and mis-pricing, and the history of competition disputes shows that high value auctions can be inherently vulnerable to manipulation and bid-rigging, so due care will need to be taken by all parties going forwards.)

❗ Yesterday, the Net-Zero Industry Act (NZIA) was adopted. This is a crucial step to set the EU on track to enhance its domestic production capabilities for key clean technologies. NZIA sets a target for the manufacturing capacity of strategic net-zero technologies, aiming to fulfil at least 40% of the EU's annual deployment needs by 2030. 🌱💡 These are some key measures: ✔ Public procurements will be accelerated and simplified to improve investment conditions.  ✔ Strategic projects in solar, wind, nuclear, heat pumps, hydrogen, batteries and grid technologies will receive priority status and streamlined procedures.   ✔ Support for energy-intensive industries investing in decarbonisation.  ✔ Net-Zero Industry Academies to train 100,000 workers in three years.  ✔ Regulatory sandboxes to test innovative technologies under flexible regulatory conditions.  ✔ The Net-Zero Europe Platform to coordinate efforts and gather stakeholder input. The Act will enter into force 1 day after the publication in the Official Journal which is expected towards the end of June. Find out more here: https://lnkd.in/es2cs7Cy

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Build Fusion energy generators Your talk as Nuclear (meaning only Fission) and fails to talk about fusion. https://lnkd.in/ge_aeX7M You are, as the nuclear fission industry is, ignorant of what's happening around you. Pull your uranium heads out, start adjusting your industry to fusion energy and start preparing to enter the commercially growing fusion energy industry. As it dawns on Earth like the sun. Great Headline Guardian on Nuclear fission. https://lnkd.in/g8sMZtpR Fission is moving towards obsolescence at an accelerated pace, as it is "out of step, out of time, out of place," and merely a temporary industry globally. https://lnkd.in/gbd_mZqk Commercial fusion electrical generation is a promising and innovative method of producing sustainable and clean energy. By 2028, Helion is expected to start producing electricity from its first fusion commercial power plant, which will provide electricity to Microsoft. The plant will produce at least 50 MWe after an initial ramp-up period. https://lnkd.in/gY9J3MQY Now see what news is happening in the Fusion industry in the world. https://lnkd.in/g9hMBD7a As fission trebles, fission fuel shortage is increasingly real, as linked below. https://lnkd.in/gze5rwpr