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“Regulating the nuclear sector. Nuclear law” is an article in the #AtomInAction series, which we write together with energy experts from Deloitte. Together, we will present the subject of atomic energy in terms of technology, implementation and occupational safety.

In the introduction of the article reads: “The nuclear sector, understood as an activity involving exposure to ionizing radiation, is subject to strict regulation because the risks it entails are very specific and nuclear technologies often have dual civilian and military applications. It is therefore recognized that the conduct of activities involving exposure to ionizing radiation requires specialized regulation to take advantage of the advantages of nuclear technologies (nuclear medicine, production of isotopes for medicine, diagnostics, energy production and many others) while safeguarding the potential risks of dual use and the danger of these technologies or the products produced by their use being taken over by undesirable persons or entities. In Poland, a draft law on the preparation and realization of investments in nuclear energy facilities and accompanying investments has recently been reviewed, resulting in an amendment to the so-called the nuclear special act, which entered into force on 13 April 2023.”

“Given the scope of the analyses, which overlap in many areas in the case of location studies (for the location decision) and environmental studies (for the environmental decision), their conduct takes place in parallel and is closely linked. In practice, the first more important administrative process for a nuclear power plant is to obtain an environmental decision, followed by a location decision. The impact report and the environmental decision have to be obtained earlier and are attachments to the application for a decision on the location of the construction of a nuclear power plant” – writes Dr Przemysław Żydak.

The full article is available on Deloitte website.

In recent days, our team participated in a quick and short, but intensive project involving the preparation of a Livelihood Restoration Framework in connection with the construction of offshore wind farms in the Baltic Sea. The work took into account the requirements of EBRD (PR 5), IFC (PS 5) and EIB (Standard 6) policies. It was commissioned by Baltic Power and was carried out by Frédéric Giovannetti, an expert in the field, with measurable support from the Sotis Advisors team.  
We hope to have contributed to the development of wind farms in the Baltic Sea with due respect for the local fishing community. There is an opportunity for the project – the EBRD is considering participating in co-financing this investment.

There has been a very strong interest in SMR reactors in Poland for some time. Much of the published information and declarations are greatly exaggerated, it’s fair to say that there is something to it. So what and why? 

SMRs, or small modular nuclear reactors. These are reactors of up to 300 MWe, although no one strictly sticks to this limit. They have a modular design, which allows them to be manufactured in factories, and assembled on location more quickly than traditional technology. In addition, reactors of this type use passive safety systems, which are less expensive than their active counterparts.

But still…

Everything would be great if it weren’t for the fact that no reactor of this type has been built in the world (de facto there are two, but one in Russia and the other in China). What’s more, no nuclear regulator overseeing reactor operations has issued a construction permit (de facto construction is underway in Argentina, but that’s a whole other topic). There are also no factories to manufacture the modules.  

So why such interest in the subject?

SMR reactors hold a lot of promise. Their main advantage is that they can produce electricity without emitting greenhouse gases or air pollution. In addition, heat production for municipal and industrial purposes is also possible. With the need to move away from coal and gas and the unstable operation of renewables, nuclear power appears as a solution to decarbonization. However, it has so far been reserved for large entities because it was very expensive. SMR reactors will be cheaper because of their much smaller capacity, and therefore available to more customers. Our work indicates that reactors of a few to a few tens of MWe in particular are of great interest to smaller energy consumers.
Also of significance is the fact that new business models for using nuclear power are emerging. Instead of building the expensive organizational structure necessary to ensure nuclear safety and radiological protection, small entities can sign a PPA with a company that will build the plants, operate them, then decommission them. And the energy consumer will be guaranteed a supply of energy at defined prices, and regardless of potential power shortages in the electricity system.

Is it worth launching an SMR reactor project?

SMR reactors are a novel solution that is at the threshold of entering the market. True, there are no operating power plants of this type yet, and much work still needs to be done to launch their commercial operation. And it is true that SMR reactor projects today are very risky. But, as is the case with innovative solutions, it’s worth keeping your hand on the pulse.

If you don’t take your place in line today, the day these reactors are deployed, it will be too late to quickly acquire this carbon-free and stable energy source. The process of preparing for construction, production and installation is quite long. Our experience suggests that the waiting list of entities will get longer and longer, and that first deliveries will be made to those who lined up at the beginning of the list. All these factors lead to a great interest in the construction of SMR reactors, not only in our country. Nowadays, the preparation for the realization of SMRs is being talked about more and more loudly in England, Finland, Romania…

So, as always, whoever is first is wider…

Przemyslaw Zydak 

photo: USNC