Localization of Nuclear Power Plant Technology

Abstract

Asia, and particularly China, has an enormous need for power and must deal with the practicalities of building large base load units. In China, as in other countries, there are limitations on the use of large quantities of fossil fuel. This raises the possibility of turning to nuclear power to satisfy their energy needs. Other issues tend to point to the nuclear option for these growing economies, including economic considerations, environmental concerns, energy independence and raising the technological capabilities of the country. When a country embarks on a nuclear power program with the intention of localizing the technology, a long-term commitment is necessary to achieve this objective. Localization of nuclear technology is not a new phenomenon. The nature of the industry from the early beginnings has always involved transfer of technology when a new country initiated a nuclear power construction program. In fact, most previous experiences with this localization process involved heavy governmental, political and financial support to drive the success of the program. Because of this strong governmental support, only the receiving nation's companies were generally allowed to participate in the local business operations of the technology recipient. What is new and different today is the retreat from heavy financial support by the receiving country's government. This change has created a strong emphasis on cost-effectiveness in the technology transfer process and opportunities for foreign companies to participate in local business activities. ABB is a world-wide company with two parent companies that have been very active over many years in establishing cost-justified local operations throughout the world. Today, ABB has become the largest electrical engineering company in the world with respected local operations in nearly every country. Lessons learned by ABB in their world-wide localization initiatives are being applied to the challenge of cost-effective localization of nuclear power in Asia. Nuclear power is more capital intensive than most other power generation options. This results in the electricity cost to the end user being more influenced by the initial cost than fuel, and other operations and maintenance expenses. Because developing nations typically have lower wages, it's a natural conclusion to maximize local capabilities to drive the capital cost as low as possible. To facilitate localization, new approaches to expediting the formation of a credible nuclear technology infrastructure in these emerging commercial nuclear power nations is discussed.This paper will examine localization of nuclear technology as one of the most promising methods to make nuclear power more affordable to the emerging markets in Asia. Localization will allow for the utilization of lower cost, local labor in the design, manufacture and construction of new nuclear power plants. ABB's practical localization philosophy is discussed with reference to previous experience and future expectations.