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BULGARIA

(updated on July 2009)

1.  ENERGY, ECONOMIC AND ELECTRICITY INFORMATION

1.1.  General Overview

Bulgaria is a country situated in the south-eastern Europe and it occupies the biggest part of the Balkan peninsula. The northern border of Bulgaria continues for 470 km on the Danube River and later in south-eastern direction to the Black Sea for about 139 km on land. In eastern direction, Bulgaria borders the Black Sea while to the south there is a 752-km long border with Turkey and Greece. To the west, the country has a border with the Former Yugoslav Republic of Macedonia and Yugoslavia. Within these borders, Bulgaria has 110 975-km² surface, including an altitude correction.

The demographic situation in the country is characterised with a clear tendency of decrease in the population (Table 1). For the period between 1990 and 2000, the population has decreased by 550 000 people (6.32%). At the end of 2008, the population of the country numbered 7.61 million people and population density of 68.6 persons per square kilometre. There exists a negative trend in the change of the population, which was for 2008 -0.43%; see Figure 1, which shows the birth and death rates from 2000 to 2008. According to the National Institute of Statistics, the total number of the population is expected to decrease by another 469,000 people around the year 2020, compared to 2008 .

TABLE 1. POPULATION INFORMATION

FIG. 1. Birth and Death Rate of the Bulgarian Population

Bulgaria has four distinct seasons, which create changes in the demand for energy and in particular for electricity. The annual fluctuation of Bulgarian's electric power demand has one peak period in winter, which has been identified to be the result from using electricity for space heating. The average temperature of 12^oC, below which space heating is necessary, lasts about 200 days. The average temperature in November is 5.1^oC, in December – 0.0^oC, in January –1.8^oC, in February –0.3^oC, in March 4.6^oC.

TABLE 2. POPULATION OF BULGARIA (2000 - 2008)

Source: Statistical Yearbook, National Institute of Statistics, Sofia

1.1.1.  Economic Indicators

Table 3 shows the historical Gross Domestic Product (GDP) data from the IAEA Energy and Economic Database (EEDB) in USD. GDP in 1998 was 21 577 billion levs at current prices, which amounts to 112 325 million levs at 1991 prices. The economic crisis of 1996 and 1997 led to a decline in real GDP, which dropped by -10.1% and -7.0% respectively. The economy picked up again in 1998, with real growth estimated at 3.5% and remained on that level. Figure 3 shows the real GDP index for 1990 through 2008, where 1990 was taken as the base year.

TABLE 3. GROSS DOMESTIC PRODUCT (GDP)

1.1.2.  Energy Situation

TABLE 4. ESTIMATED ENERGY RESERVES

(*) Sources: 20th WEC Survey of Energy Resources, 2004 and Uranium 2005: Resources, Production and Demand ("Red Book")
(1) Coal including Lignite: proved recoverable reserves, the tonnage within the proved amount in place that can be recovered in the future under present and expected local economic conditions with existing available technology
(2) Crude oil and natural gas liquids (Oil Shale, Natural Bitumen and Extra-Heavy Oil are not included): proved recoverable reserves, the quantity within the proved amount in place that can be recovered in the future under present and expected local economic conditions with existing available technology
(3) Natural gas: proved recoverable reserves, the volume within the proved amount in place that can be recovered in the future under present and expected local economic conditions with existing available technology
(4) Reasonably Assured Resources (RAR) under < USD 130/kgU
(5) Hydropower: technically exploitable capability, the amount of the gross theoretical capability that can be exploited within the limits of current technology
Source: IAEA Energy and Economic Database.

Current status

Bulgaria has very few domestic energy resources. Data in Table 4 indicate the national provision with domestic primary energy source. Proven oil and gas reserves for the country have declined for a number or years and are only about 5 million tons of oil equivalents. In fact, it is less than six months normal hydrocarbon consumption for Bulgaria. Hydropower potential is also limited since most of Bulgaria's rivers are small and the only large river, the Danube, has a small drop in altitude where it forms Bulgaria's northern border with Romania. Largely because of this constraint, hydro capacity accounts for about 17,6% (HPP – 15.1% and PSHPP – 6.5%) of the country's total installed generating capacity and an even smaller percentage of generation. The thermal power is 50.0%, and nuclear power is 28.4% of the country's total installed generating capacity.

TABLE 4. ENERGY INDEPENDENCE OF THE COUNTRY

                                                                                                                Per cent (%)

                                        Source: Statistical Yearbook, National Institute of Statistics, Sofia.

* Preliminary data

The country has significant but very low-grade coal reserves (Table 5). The mineable reserve amount to about 2.2 billion tons including lignite, of which 2.1 billion tons are situated in the Maritsa East deposit. The production in 2005 amounted to about 24.62 million ton per year , which is 6.9% less than in 2004. (Table 6 and Figure 4). About 90% of these reserves have a heating value of about 1500-1600 kcal/kg, which is 20-25% of the heating value of internationally traded, steam coal. In addition, these lignite reserves have very high sulphur content. Consumption of coal in Bulgaria reached its historically highest level in 1987. In that year, 40.5 million tons of coals were consumed.

TABLE 5. BULGARIA COAL RESERVES

Source: Country Information.

TABLE 6. Structure of the coal production in Bulgaria

                                                        (in thousand tons)

Source: Statistical guide, 2002, National Institute of Statistics, Sofia.

FIG 3. Structure of the coal production in Bulgaria

Bulgaria imports almost all of its petroleum since domestic production is negligible, for example in 1997 domestic production was 27.800 tons of oil and 35 million cubic meters of gas and in 2005  domestic production of petroleum was 27.200 tons. Imported petroleum is in the form of crude oil and is being refined in Bulgaria or directly imported as products. Typically, about 90% of petroleum are imported as crude and most of the rest is imported as heavy fuel oil. In 2007 the imported quantities of petroleum and mazut are respectively 7.1mil. tons of petroleum and 0.273 mil tons of mazut. The import of petroleum increased with 0.6% and that of the mazut decreased with 33.7%.  Bulgaria has three refineries located respectively at Burgas, on the Black Sea Coast, and at Pleven and Ruse on the Danube plain in the northern part of the country. The Burgas refinery accounts for about 85% of the country refining capacity with the other two refineries being very small with insertion economics. 5.6 mil. tons of petroleum and 0.2733 mil.tons of mazut are processed at Burgas refinery in 2007.

The average annual consumption of natural gas for the years 1997-2001 was around 3.5 bcm, which represents a considerable decrease compared to the highest demand in the country in 1989 and 1990 (6.8 bcm). In 2007 the domestic production of natural gas amounted to 295.3 mcm which is 50% less that in the previous year due to the production from “Galata” gas field.  The import of natural gas in 2007 amounted to 3,427 bcm. The only import source is Russian Federation.

In 2008 the consumption of natural gas decreased by 1% compared to 2007 and amounted to 3,349 bcm.

 In order to fulfil Decree No 162, August 20, 1992, and Decree No 56, March 29, 1994 of the Council of Ministers, the technical liquidation of the uranium mining sites have been completed. The liquidation of the processing plants has been finalised. By 2002, the projects of technical and biological re-cultivation of the uranium mining regions shall be completed, and by 2005 - sanitary treatment and safeguarding of the tailings ponds of the processing plants. Special attention is paid to the regions of Buhovo, Eleshnitza and Sliven, where the damages to the environment are most markedly pronounced, and where their effect on the population is the most direct. In parallel to performance of the re-cultivation and sanitary treatment projects, the required treatment facilities for purification of radionuclide polluted waters and monitoring networks will be built in the uranium mining regions. For performance of the projects in these regions, Bulgaria depend on the co-operation and assistance of the European Union and the PHARE Programme, especially to avert the danger of cross-border water pollution. A project for engineering works for closing of uranium mines in Eleshnitza and Dospat under PHARE CBC 1999 Bulgaria-Greece programme is under implementation. Two other projects –regional monitoring network for radio-ecological monitoring in Mesta river valley and Smolian and feasibility study for the status of the uranium mines in Southern Bulgaria are going to be implemented under PHARE CBC Bulgaria-Greece programme 2001.

 The energy intensity of Bulgarian Gross Domestic Product (GDP) does not appear to have decreased, with energy consumption and output roughly at the same rate. However, this pattern should start to change as the economic restructuring occurs and as relative energy prices continue to increase. Reduction of energy consumption and, therefore, of net energy imports is likely to be an important component of any improvement of Bulgaria's balance of trade. Table 7 shows the national primary energy data (production, primary energy balance and consumption) in their typical units and Table 9 and Table 10 the Energy statistics.

TABLE 7. ENERGY STATISTICS

TABLE 9. Consumption of energy sources for electricity production (thousand of TOE and percentage)

Final consumption of  electric energy amount to 29895.1GWh,which is 1.9% more then 2007.In 2008 the gross electricity production amounts 44987GWh,which is 4.3% increase compared to 2007.In 2008 the produced heat amounts to 17 657,1 GWh which is 1.2% more than in 2007. Energy sources used for heat generation  amount to 2455.6 toe, which is 2.7% increase  compared to 2007.

The structure of the heat generated by type of energy source is shown in percentage in the figure 4 below:

Figure 4. Structure of the heat generated by type of energy source, %

The share of gas fuel for heat generation in 2008 is lower then 2007 – 47.5% with 2.2 % compared to 2007, followed by the share of imported coal – 27.6% with 0.2% decrease. For the rest of the energy sources used for heat generation no significant  change is established.

 The pattern of energy use in Bulgaria is significantly different from the West. The main area of difference is in the direct use of gas. In most western industrial countries, households and the service sector use gas. In Bulgaria, gas is almost entirely used in the industrial sector and in power generation, including district heating plants (many plants being combined heat and power or CHP plants), with a negligible amount being used in services and households. Furthermore, this pattern of usage will not change rapidly since Bulgaria lacks a distribution network for gas so that it cannot currently be supplied to most households and commercial establishments. Indirectly, of course, the household and service sectors use some gas since a small part of the electricity they consume and most of the heat supplied by district heating plants, comes from gas. Even considering this indirect use, however, the use of natural gas in Bulgaria is still heavily skewed towards the industrial sector.

1.1.3. Bulgarian National Energy Development Strategy

The main objectives guiding the energy development are:

–        through competitive energy to competitive economy;

–        continuous and safe coverage of the national energy needs with minimum public cost;

–        providing energy independence for the country;

–        reduction in specific energy intensity per GDP unit in economy;

–        ecologically oriented development;

–        establishment of competitive internal energy market;

–        integration of the Bulgarian energy system and energy market with that of the EC;

–        maintaining the nuclear safety at the acceptable level;

–        maximum utilisation of local renewable energy sources (RES);

–        maximum utilisation of co-generation energy sources for heat and electricity generation.

However, the establishment of an up-to-date and market-oriented energy sector, calls for a series of prerequisites that have been missing up to this date, namely:

–        Normalisation of energy prices in line with the justified full economic costs and phasing out of the subsidies for generators;

–        Financial recovering and establishment of energy companies operating on a commercial basis;

–        Properly functioning regulatory authorities and mechanisms;

–        Market rules and structures;

–        Appropriate legal framework.

Concurrent actions should be undertaken, mainly in the following areas:

–        financial restructuring: establishment of financially viable commercialised companies;

–        institutional changes: enhancement of the role, autonomy and influence of the regulatory body (SERC);

–        commercial restructuring: transition from administration to regulation and introduction of clear regulatory rules for the market players;

–        deregulation: introduction of clear and sustainable market rules and a clear schedule for the opening of the internal and external market to competition, including delegation to SERC of the powers to enforce market rules; 

–        legal changes: discussion and adoption of a new energy law which would ensure a legal framework for the successful implementation of the above areas of the reform;

–        privatisation: transfer of ownership aiming to attract investments and to bring the management practice in line with up-to-date standards.

The government policy in the area of energy will be based on the following principles:

–        Introduction of market relations, based on cost-reflective tariffs and free contracting;

–        The active role of the state in the creation of a clear and stable legal and regulatory framework for investments, commercial activity and protection of public interests;

–        Creation of a legal, regulatory and market environment prior to the implementation of new large-scale investment and privatisation projects;

–        Pro-active energy efficiency policy as a means for improving the competitiveness of the economy, security of energy supply and environmental protection;

–        Efficient social protection through shifting government subsidies from the producer to the consumer, through energy efficiency measures and introduction of socially-oriented tariffs;

–        Positioning of Bulgaria as a reliable country for the provision of future transit of oil, natural gas and electric power and as a dispatching and market centre in the region.

The government policy in tender procedures will continue the good traditions and will rely on two main sources:

–        Nuclear energy and

–        Local lignite coal

The pattern of energy use in Bulgaria is significantly different from the West. The main area of difference is in the direct use of gas. In most western industrial countries, households and the service sector use gas. In Bulgaria, gas is almost entirely used in the industrial sector and in power generation, including district heating plants (many plants being combined heat and power or CHP plants), with a negligible amount being used in services and households. Furthermore, this pattern of usage will not change rapidly since Bulgaria lacks a distribution network for gas so that it cannot currently be supplied to most households and commercial establishments. Indirectly, of course, the household and service sectors use some gas since a small part of the electricity they consume and most of the heat supplied by district heating plants, comes from gas. Even considering this indirect use, however, the use of natural gas in Bulgaria is still heavily skewed towards the industrial sector.

1.1.3.  Bulgarian National Energy Development Strategy

The main objectives guiding the energy development are:

• through competitive energy to competitive economy;
• continuous and safe coverage of the national energy needs with minimum public cost;
• providing energy independence for the country;
• reduction in specific energy intensity per GDP unit in economy;
• ecologically oriented development;
• establishment of competitive internal energy market;
• integration of the Bulgarian energy system and energy market with that of the EC;
• maintaining the nuclear safety at the acceptable level;
• utilisation of local renewable energy sources (RES).

However, the establishment of an up-to-date and market-oriented energy sector, calls for a series of prerequisites that have been missing up to this date, namely:

• Normalisation of energy prices in line with the justified full economic costs and phasing out of the subsidies for generators;
• Financial recovering and establishment of energy companies operating on a commercial basis;
• Properly functioning regulatory authorities and mechanisms;
• Market rules and structures;
• Appropriate legal framework.

Concurrent actions should be undertaken, mainly in the following areas:

• financial restructuring: establishment of financially viable commercialised companies;
• institutional changes: enhancement of the role, autonomy and influence of the regulatory body (SERC);
• commercial restructuring: transition from administration to regulation and introduction of clear regulatory rules for the market players;
• deregulation: introduction of clear and sustainable market rules and a clear schedule for the opening of the internal and external market to competition, including delegation to SERC of the powers to enforce market rules;
• legal changes: discussion and adoption of a new energy law which would ensure a legal framework for the successful implementation of the above areas of the reform;
• privatisation: transfer of ownership aiming to attract investments and to bring the management practice in line with up-to-date standards.

The government policy in the area of energy will be based on the following principles:

• Introduction of market relations, based on cost-reflective tariffs and free contracting;
• The active role of the state in the creation of a clear and stable legal and regulatory framework for investments, commercial activity and protection of public interests;
• Creation of a legal, regulatory and market environment prior to the implementation of new large-scale investment and privatisation projects;
• Pro-active energy efficiency policy as a means for improving the competitiveness of the economy, security of energy supply and environmental protection;
• Efficient social protection through shifting government subsidies from the producer to the consumer, through energy efficiency measures and introduction of socially-oriented tariffs;
• Positioning of Bulgaria as a reliable country for the provision of future transit of oil, natural gas and electric power and as a dispatching and market centre in the region.

The government policy in tender procedures will continue the good traditions and will rely on two main sources:

• Nuclear energy and
• Local lignite coal.

TABLE 10. EXPECTED ENERGY CONSUMPTION (million kW-h)

Sources: NEK Information

TABLE 11. RATIO OF EXPECTED ENERGY CONSUMPTION AND GDP

Sources: NEK Information

A  forecast until 2025 on the development of the primary energy sources consumption is made taking into account loses in the process of transfer and distribution of energy, energy generators own needs and the efficiency of the transformation processes. Two scenarios are taken into account – minimum and maximum energy consumption. The structure of the energy sources consumed is shown on Table 12 and Table 13.

TABLE 12 STRUCTURE OF THE PRIMARY ENERGY SOURCES USED – MINIMAL SCENARIO, % 

Fig. 5. Structure of the primary energy sources – minimal scenario

TABLE 13 STRUCTURE OF THE PRIMARY ENERGY SOURCES USED – MAXIMUM SCENARIO, %

Fig. 6. Structure of the primary energy sources – maximum scenario

TABLE 8. EXPECTED ENERGY CONSUMPTION

TABLE 9. RATIO OF EXPECTED ENERGY CONSUMPTION AND GDP

1.2. Energy policy

The energy strategy of the Republic of Bulgaria is based on the national priorities and corresponds to the new lasting positive political and economic trends in the country as well as to the requirements of the European guidelines, the principles of market mechanisms and the Government’s Programme. It is determined by the requirements for ensuring sustainable economic growth, and raising the living standard. The strategy has been updated in 2008 in conformity with the natural and geographic factors determining the inherent role of the country in this region, and the optimal mix of energy resources used in accordance with the specific conditions.

The main goals of the Bulgarian energy industry are focused in

1. energy efficiency improvement,

2. sustainable development through combating the negative climate changes,

3. security of supplies by limiting the Bulgarian external dependence on imported energy sources and providing diversification of the energy mix,

4. development of the national energy system and energy market as a part of UCTE,

5. maintaining of a high level of nuclear safety already achieved and establishment of a competitive domestic energy market.

The Bulgarian energy sector is a stable functioning system within the restructuring and adapting to the market conditions Bulgarian economy. Bulgaria is in possession of production capacities, which by the end of 2008 covered a great part of the electric power deficit in the Balkan region.After the shut down of Units 3&4 of Kozloduy NPP this electric power deficit created serious negative consequences not only for Bulgaria but  for  the security of energy supply for all the region. For the region suffering constant energy deficit, the forthcoming serious problems  in the security of energy supply in the period 2009-2015 is  a serious issue, which has to be resolved urgently, taking into account  the UCTE forecast for significant increase of the energy deficit  in the region for 2010-2012.

The manner of implementation of the fuel-energy balance is of particular significance for the economy of the country as well as what the technical and economic indicators of the transformation process during the production of the electric and heat power are.

The attained generalised technical and economic indicators of the energy transformation processes during the electric and heat power production outline the establishing tendencies of the energy consumption in the various sectors of the economy of Bulgaria during the past years and provide for an answer to the question to a what degree the national pursuit for conduct of a policy for energy efficiency results in the anticipated stabilisation and revival of the economic and public sector in our country.

The share of the imported energy resources referred to the general primary energy resources consumption is 49.8% for Bulgaria, compared to 52.7% for EU15. for the year 2007.

The energy sector is a determinative section of the Bulgarian industry, especially taking into account that its structure and development are based predominantly on imported energy sources and the domestic low-quality lignite coal. Moreover, the development of the sector is highly dependent on our geopolitical location on the Balkan Peninsula and in Europe. In this complicated stage of its development, Bulgaria unambiguously proves the willing to conform to the priorities of European Union and make the needed steps for technical and political integration with these structures.

As a country with limited energy resources, the basis of the energy sources of Bulgarian Energy Sector is well balanced - solid fuel, nuclear power, natural gas, hydro resources and utilisation of the new energy sources.

Bearing in mind that the future development of nuclear power is now more a political and societal issue than a purely technical one, Bulgarian strategy are aimed to advise citizens of the possible energy solutions in a dispassionate way, and should seek their involvement in the decision-making process.

Bulgarian energy strategy integrated the technical, political and economic considerations specific to our country and to the region, leading to definition of the preferred solution by the Bulgarian Government, through the normal democratic processes.

The possibility of using nuclear energy to improve security of energy supply and curb greenhouse gas emissions is causing more and more countries to re-evaluate their positions towards the current and potential role of nuclear power. Although the nuclear contribution is often taken for granted, all our 'clean energy' options will have to be seriously considered if we are to meet our future energy needs in a way that is both sustainable and climate-friendly.

Electricity is a clean energy carrier, but to a large extent coal, oil and gas are burned to produce it. In the future, the emphasis in the power generation sector will have to be on cleaner production methods, such as wind, solar, biomass, hydro and nuclear energy. This change in emphasis will be needed to meet future electricity demand in a way that is low on greenhouse gas emissions and compatible with sustainable development. Nuclear power also generates electricity with no emission of sulphur dioxide or nitrogen oxides, key agents for acid rain and photochemical air pollution.

Nuclear energy is – and will continue to be – part of the solution to meet our energy needs and to mitigating climate change.

Nuclear power in Bulgaria contributes significantly to meet the need of electric energy of the economy and the population of the country, as well as in the region.

For the last 10 years Kozloduy NPP has been providing 40-47% of the average annual electricity produced in the Republic of Bulgaria., in particular in 2007 – 34%, 2008 – 35%.

The national responsibility for the safety of nuclear installation is the fundamental principle. In this context the adequate legislation for the nuclear installations safety and the management of radioactive wastes is primary responsibility of the Republic of Bulgaria and the Government.

The Republic of Bulgaria acknowledges that International Atomic Energy Agency’s (IAEA) standards and approaches, as reflected notably in the IAEA Safety Fundamentals and Safety Requirements Series, constitute an internationally recognised framework which national safety requirements use as a reference level.

The important factors for Nuclear Power development as Safety based on proven and verified technologies, Spent Fuel and Waste Management, Proliferation Resistance, Environment Protection, Existing Infrastructure, Human Resources, Political Acceptance and Public Acceptance which are adequately addressed.

The supporting factors for Nuclear Power development are as follows:

–       The nuclear electricity cost is lower than for other major alternatives except hydropower, including Spent Fuel and RAW Management Costs and Decommissioning costs;

–       Low fuel cost make nuclear electricity costs more stable and less sensitive to swings in fuel prices;

–      Any productivity increases translate directly into profit in deregulated electricity market, in contrast to previous market operations under regulation;

–        Nuclear fuel price has the advantage of being stable and predictable in the long term;

–        Nuclear fuel has the advantage of being a highly concentrated source of energy, cheap and easily transportable;

–       In contrast to conventional fuels, transportation, supplies, storage and refuelling take place during the spring-summer period and NF Supply is not weather dependent;

–        Nuclear power emits virtually no greenhouse gases;

–        Of particular importance is the new Emissions Trading Scheme (ETS) due to start in the enlarged EU on 1st January 2005.

For the last years Republic of Bulgaria established the new legal basis and adopted completely new Bulgarian primary and secondary nuclear legislation in accordance with the good internationally recognised world-wide practices, and the same principles of containment and safety are applied, in conformity with the international standards and conventions of the IAEA. This heavy work already done is good real basis for the future development of the nuclear sector as an inherent part of Bulgarian energy mix.

1. 2.1. Energy Related State Institutions:The national energy policy of Bulgaria is implemented by the Minister of Economy and Energy (MEE). The MEE has obligations to elaborate the Energy Strategy of the Republic of Bulgaria and lay the said energy before the Council of Ministers for adoption. 

The Minister of Economy and Energy has the responsibility to: adopt the national forecast energy balances in accordance with the adopted strategy; lay a list of energy works of strategic national importance, including ones extracting local hard fuel, before the Council of Ministers for endorsement; define, by an order, the mandatory parameters of the level of reliability of electricity supply, as well as minimum safety standards for natural gas supply; approve restructuring programs and strategies for the energy sector; determine an overall annual quota for mandatory acquisition of electricity from producers utilizing primary local energy sources (of fuel), of up to 15 per cent of the combined primary energy required for the generation of electricity that is consumed in the country during each calendar year, for reasons of security of supply; elaborate national long- and short-term programs for the promotion of the utilization of renewable energy sources and lay the said programs before the Council of Ministers for adoption; make proposals for establishment and maintenance of national energy reserves and wartime energy reserves; approve standard levels for the stocks of fuels necessary for secure energy supply.

State regulation in the field of energy is carried out by the State Energy and Water Regulatory Commission (SEWRC) and has obligations to regulate energy-sector and water-supply and sewerage activities. The Commission is an independent specialized State body. The activities of the Commission, the structure and organization of the administration thereof are determined in Rules of Organization adopted by the Council of Ministers. The Commission has obligations for developing instruments and takes the required steps to issue the permits and licenses provided by the Energy Act. The SEWRC issues licenses for generation of electricity and/or heat; transmission of electricity, heat and natural gas; distribution of electricity or natural gas; storage of natural gas; trade in electricity; organizing an electricity market; public delivery of electricity or natural gas;  transit transmission of natural gas; electricity or natural gas supply from end suppliers; electric power grid management; pulling power electricity distribution over the railroad transportation distribution networks.

According to a methodology or adopted instructions SEWRC sets the permissible allowances for technological losses of electricity in the process of its generation, transmission and distribution, in the process of generation and transmission of heat, and in the process of natural gas transmission, distribution and storage. Also the SEWRC provides the competent authorities of the European Communities all information under the law of the European Communities. In the process of performing its regulatory functions under the Act, the Commission is guided by several basic principles:

o       prevention and preclusion of limitation or distortion of competition on the energy market;

o       balancing the interests of energy companies and consumers;

o       ensuring non-discrimination between the various categories of energy companies and between groups of consumers;

o       providing incentives for efficient operation of regulated energy companies;

o       providing incentives for development of a competitive market for energy sector activities, where conditions so permit.

The State Energy Efficiency Agency is an executive agency to the MEE. It implements the state energy efficiency policy and develops effective measures for the improvement of energy efficiency, and promotion of the utilization of renewable sources of energy.

The Energy Efficiency Agency is set up in 2002 as a successor of the following institutions:  section, created in 1992 within the Ministry of energy for implementation of projects on the program PHARE of the EU, related to the energy efficiency, National energy efficiency agency at the Council of Ministers and State energy efficiency agency.

State regulation of the safe use of nuclear energy and ionizing radiation, the safety of radioactive waste management and the safety of spent fuel management is implemented by the Nuclear Regulatory Agency (NRA). The Agency is an independent specialized authority of the executive power and is vested with competencies, as specified by Safe Use of Nuclear Energy Act.

The NRA has the responsibility and/or authority to: grant, amend, supplement, renew, suspend and revoke licenses and permits (authorizations) for safe implementation of the activities under Safe Use of Nuclear Energy Act; control the fulfillment of safety requirements and standards related to the safe use of nuclear energy and ionizing radiation, the radioactive waste management and the spent fuel management, as well as the conditions of the licenses and permits granted;
issue and withdraw individual license to work at nuclear facilities or with sources of ionizing radiation and etc.

1.3. THE ELECTRICITY SYSTEM AND STRUCTURE OF THE BULGARIAN ENERGY SECTOR

1.3.1. Electricity Sector

Electricity is generated by energy companies licensed for generation according to the procedure established by the Energy Act. Electricity producers are obligated to maintain stocks of fuels, including local hard fuels, in quantities guaranteeing sustained and reliable generation. The terms and procedure for the building, maintenance of stocks of fuel and control are established by an ordinance of the Minister of Economy and Energy.

Bulgarian Energy Holding EAD (BEH EAD) was incorporated on 18.09.2008 with Minister of Economy and Energy Decision, after renaming Bulgargaz Holding EAD.

BEH EAD subject of activity is acquisition, management, assessment and sale of participations in trading companies, carrying out business activity in the fields of generation, production, transmission, transit, storage, management, distribution, sale and/or purchase of natural gas, electricity, thermal power, coals, as well as any other type of energy and raw materials for the production.

BEH EAD is a shareholding company with 100% state owned participation. The Holding includes Mini Maritsa Iztok EAD, Maritsa East 2 TPP EAD, Kozloduy NPP EAD, NEK EAD, Electricity System Operator EAD, Bulgargaz EAD, Bulgartransgaz EAD and Bulgartel EAD.

All companies, brought together in the holding structure, preserve their operational independence and licenses, as they are all owned and directly subordinated to the corporate centre BEH EAD.

After the consolidation of the energy companies, Bulgaria already has one of the largest energy company in the region and establishes a national energy leader, whose assets amount to some BGN 8.5 billion, consolidated revenue totals to some BGN 3.6 billion, the number of employees sums up at some 21 thousand people.

The structure of BEHAD is shown below:

 In 2007 Bulgaria had a total of 11 215 MW installed power generation capacities consisting of:

 Most of the power plants generation capacity is state owned – NPP Kozloduy (2000 MW), TPP Maritsa East 2 (1450 MW) and TPP Bobov Dol (630 MW). Others as TPP Maritsa East 1, TPP Maritsa East 3, TPP Varna, TPP Maritsa 3 Dimitrovgrad are 100% (or majority) private.

Part of the DHCs are private utilities and three more are still state owned (namely – Pernik, Shoumen and Sliven). DHC Sofia (the largest DHC in Bulgaria) is majority owned by Sofia Municipality with minority share holder – MEE.

  Electricity Transmission

The transmission of electricity is implemented by a transmission company which owns the transmission network and which has been licensed for transmission of electricity. The Licensee may assign, through an agreement, the transmission operation and maintenance only to the electric system operator, who has obtained an electric power grid management license. The transmission company ensures the expansion, reconstruction, and modernization of the transmission network, in accordance with the long-term electric power industry development forecasts and plans.

The high-voltage power transmission network with length of 14 610 km is property of NEK EAD and consists of 2 356 km of 400 kV, 2 692 km of 220 kV and 9 562 km 110 kV Overhead Power Lines.

NEK EAD

Pursuant to paragraph 15 of the Energy Act Transitional & Final Provisions, no later than the effective date of the act based on which Bulgaria will be recognized as a full member of the European Union the restructuring of NEK EAD should take place so as to satisfy the provisions of EU Directive 2003/54.

To ensure equal access to the grid system of all participants in the free power market, the EU Directive 2003/54 provides for the legal, functional and accounts separation of the Electricity  Transmission System Operator where it is a part of a vertically integrated enterprise from non-transmission-related activities that could compete on the market, in particular trading and generation.

In line with the provisions of the Energy Act and Directive 2003/54 in the beginning of 2006 the Board of Directors of NEK EAD took a decision to restructure the Company. The model of unbundling of NEK consist of establishment of a new subsidiary company, 100% owned by NEK EAD, which performs the functions of Electricity  Transmission System Operator, Balancing Market Administrator and operation and maintenance of the transmission system that remains property of NEK EAD.

The new company is independent in terms of:

• legal status – separate legal entity as per the Commerce Act;
• organizational form – it has a structure of its own and produce a balance sheet and income statement to be consolidated by NEK EAD;
• decision making capability – there is an independent Board of Directors as per the Commerce Act.

Following its restructuring NEK EAD performs the functions of Public Provider, hydro generator and electricity trader. 

Pursuant to the Energy Act NEK EAD will continue to purchase the electricity under the existing long-term PPAs with TPP Maritsa East 2 and TPP Maritsa East 3 and, in the future under the PPA with TPP Maritsa East 1 when commissioned, as well as the electric energy produced by renewable energy sources and CHP plants at preferential prices. Upon resolution by the Council of Ministers, NEK EAD will proceed with the development of the NPP Belene Project.

The NEK unbundling model so adopted was submitted for approval by the Minister of Economy and Energy in his capacity as sole owner of the capital.

The model was implemented to the end of December 2006 following effectiveness of the amendments to the Energy Act.

Electricity Distribution Companies (+ Supplier of Last Resort functions as of July 1, 2007)

As a result of the successfully completed privatization procedure in 2004, three strategic investors were attracted as majority shareholders of 67% of the Electricity Distribution Companies’ (EDC) capital: E.ON AG (Northeast package – EDC Varna and EDC Gorna Oryahovicsa), EVN AG (Southeast package – EDC Plovdiv and EDC Stara Zagora) and CEZ a.s.(West package – EDC Stolichno, EDC Sofia oblast and EDC Pleven).

Regarding to the implementation of the European Electricity Directive 2003/54/EC requirements and §17 from the Transitional and Final Provisions in the Energy Act, the seven Electricity Distribution Companies successfully completed restructuring models aiming to achieve compliance with the regulations  from the European and the Bulgarian energy legislation concerning the legal and organizational unbundling of the activities related with electricity distribution and distribution networks operational management from the electricity supply and other activities of the electricity distribution companies within the framework of  December 31, 2006.

• Restructuring of Electricity Distribution Company – Gorna Oryahovicsa AD and  Electricity Distribution Company Varna AD, with majority shareholder E.ON AG

The model includes the execution of a method envisaged in the Commercial Act - unbundling through acquisition, in this case:

¡       Part of the property of EDC Gorna Oryahovicsa AD (all assets and the liabilities related with the electricity supply) is be transferred to EDC Varna AD and

¡       Part of the property of EDC Varna AD (all assets and the liabilities related with the electricity distribution) is be transferred to EDC Gorna Oryahovicsa AD.

Thus after the restructuring, EDC Gorna Oryahovicsa AD is the company completely engaged with the electricity distribution on the territory of Northeast Bulgaria and EDC Varna AD only with the electricity supply functions on the same territory of the country. 

• Restructuring of Electricity Distribution Company – Stolichno AD, Electricity Distribution Company Sofia oblast AD and Electricity Distribution Company Pleven AD with majority shareholder CEZ a.s.

The model includes establishment of a new electricity supply company (CEZ Electro), the distribution and the network operational management stays as a function of the present three electricity distribution companies. The legal form of the restructuring is realized regarding the regulations of the Commercial Act - unbundling through acquisition.

• Restructuring of Electricity Distribution Company – Plovdiv AD and Electricity Distribution Company – Stara Zagora AD with majority shareholder EVN AG

The model includes the execution of a method, envisaged in the Commercial Act - unbundling through acquisition, in this case:

¡       Part of the property of EDC Plovdiv AD (all assets and the liabilities related with the electricity supply) is transferred to EDC Stara Zagora AD and

¡       Part of the property of EDC Stara Zagora AD (all assets and the liabilities related with the electricity distribution) is transferred to EDC Plovdiv.

Thus after the restructuring, EDC Plovdiv is the company completely engaged with the electricity distribution on the territory of Southeast Bulgaria, and EDC Stara Zagora only with the electricity supply functions on the same territory of the country. 

Introduction of a new subject in the energy sector – Supplier of Last Resort

The introduction of the Supplier of Last Resort as a new subject in the sector results from the regulations of the European Commission Directive 2003/54/EC, concerning the necessity of common minimum standards, respected by all Member States, are specified in this Directive, which take into account the object to protect the interests of vulnerable customers and their security of supply. The Supplier of Last Resort presents the mechanism which guarantees the household consumers and small business consumers, which have not used their right of distributor change after the full opening of the market, the possibility of guaranteed natural gas distribution, with transparent terms and prices.

The end suppliers are licensed to sell electricity and natural gas to home consumers and companies with less than 50 employees and less than 19.5 mil. BGN annual turnover.  According to the Energy Act licenses for the activity of electricity supply by Supplier of Last Resort within the respective areas shall be issued proprio motu by the Commission to existing public electricity suppliers by July 1, 2008.

Until the date the newly-issued licenses become effective, public electricity suppliers shall perform the activities of Suppliers of Last Resort within the respective areas, arising under the Energy Act and the public electricity supply licenses held by them.

The new licenses shall be issued for the remaining term of validity of existing public electricity supply licenses.

The Suppliers of Last Resort shall ensure electricity supply at freely negotiable prices to any consumers connected to the transmission network, when these consumers have obtained the eligible consumer status, but have not selected another provider, until the time when they have exercised this right.

1.3.2. DISTRICT HEATING SECTOR

17 district heating companies operates in Bulgaria  – 3 of them are still state owned (namely – Pernik, Shoumen and Sliven). DHC Sofia (the largest DHC in Bulgaria) is majority owned by Sofia Municipality with minority shareholder – MEE. As the cogeneration is very efficient process for generation of heat and electricity, most of the Bulgarian DHCs run combined cycle of generation or are implementing projects for providing it.

In view of the state policy for encouragement of highly efficient generation, the new Energy Act provides for: “The public provider and the public suppliers, respectively, shall be obliged to purchase from producers, connected to the respective network, the entire quantity of electricity from high-efficiency combined generation of heat and electricity, registered by a certificate of origin”

1.3.3 COAL MINING SECTOR

In 2007 the coal mining companies in the energy sector are about 20, state owned - 3: one of them is the opencast coal mining company Maritza East Mines. The Company prospects and exploits the East-Maritza coal field that is the biggest lignite coal deposit in the country with geological reserves of 2149 million tons out of which 1192 million tons are proven.

Maritsa East Complex

Power Plants in  Maritsa East coal field: TPP Maritsa East 1 – capacity 640 MW (construction to be started), TPP Maritsa East 2 – capacity 1450 MW (in process of rehabilitation)  and TPP Maritsa East 3 – capacity 670 MW (in process of construction) and the only briquette company in the country Brikel – capacity up to  1500 thousand tone per year.

1.3.4. NATURAL GAS SECTOR

The gas sector plays a key role in the economy of Bulgaria.  A large share of natural gas is used for energy purposes mainly by thermal power plants and cogeneration units, and as raw material by the industry.  Unlike in all other European countries, in Bulgaria the use of natural gas for household purposes is negligible. 

Transit gas pipelines going through Bulgaria’s territory supply natural gas to the increasingly expanding market in Greece, Macedonia and Turkey. The local production is limited and for now Russia remains the only supplier. There are prospects for construction of gas pipelines from the Caspian region and Iran to Europe.

The facilities and installations for performance of the activities comprehended in the transmission, storage and distribution of natural gas within the national territory, which is interconnected, shall function within an integral natural gas transmission system with a common mode of operation.

Gas supply is a totality of activities comprehended in the transmission, transit transmission, storage, distribution and delivery of natural gas for the purpose of meeting the demand of consumers.

Natural Gas Production

Natural Gas Production is produced mainly by two companies - Petreko SARL and Petreko Bulgaria ЕООD, witch have concession for production of natural gas from Galata field in the coastline of Black sea.

Gas extraction companies may conclude natural gas delivery transactions with the public provider of natural gas, with the public supplier of natural gas, with storage operators, with natural gas traders and with eligible consumers.

Natural Gas Import

Bulgaria mainly imports natural gas for meeting its consumption. Long-term contracts for natural gas import with a clause “take or pay” define supply of natural gas. The only supplier is the Russian Federation.

Under concluded long-term contract natural gas is transited via the territory of the country to Turkey, Greece, Macedonia.

Bulgargaz EAD

In pursuance of the requirements of the Energy Act in force in the Republic of Bulgaria (paragraph 22 of the Energy Act Transitional & Final Provisions) and Directive 2003/55/ЕС of the European Parliament and of the Council concerning common rules for the internal market in natural gas, Bulgargaz EAD was restructured both legally and organizationally.

In order to ensure efficient and non-discriminatory network access, the EU Directive 2003/55 provides that the transmission and distribution systems are operated through legally separate entities where vertically integrated undertakings exist. It is also appropriate that the transmission and distribution system operators have effective decision making rights with respect to assets necessary to maintain and operate and develop networks when the assets in question are owned and operated by vertically integrated undertakings.

The EU Directive 2003/55 said that if the transmission system operator is part of a vertically integrated undertaking, it shall be independent at least in terms of its legal form, organization and decision making from other activities not relating to transmission. These rules shall not create an obligation to separate the ownership of assets of the transmission system from the vertically integrated undertaking.

On 15th January 2007, in compliance with the requirements of Directive 2003/55/EC of the European Parliament and of the Council Concerning common Rules for the Internal Market in Natural Gas, Sofia City Court entered Bulgargaz EAD restructuring into BULGARGAZ – HOLDING EAD through unbundling of newly established sole owner trading companies– BULGARTRANSGAZ EAD and BULGARGAZ EAD. One year after that the bulgarian government created a “Bulgarian energy holding “EAD

IN this new company Bulgargaz  EAD still working as Gas Public Provider (who carries out the natural gas functions of sale and trade).

The integrated holding company structure model includes:

• (BULGARGAZ – HOLDING EAD) -management in the area of the supply, storage and public supply of natural gas, carrying out the communication between the companies with a view to implementing a uniform policy in the field of the natural gas, information services, analytical and control activities, participation in outside investment projects and performance of any own production or trading activity.
• Combined Gas Transmission, Storage and Gas System Operator (BULGARTRANSGAZ EAD) – is a newly established company, 100% owned by Bulgarian Energy Holding, performs the storage, transit transmission and transmission of natural gas; maintenance, operation, management and development of underground gas storage; development of programmes and activities on compliance of gas transmission activities with the European Union requirements. The company operates with its own activity assets and licenses.
• Gas Public Provider (BULGARGAZ EAD) –company owned also by BEH.AD that is responsible (under the issued license) for the public supply of natural gas and the related purchase and sale.
• Communication Services (BULGARTEL ЕАD) – owned also by BEH.AD that is company operated activities infrastructure and acting in the area of communication technologies and data transmission, involved in telecommunications, construction, use and maintenance of telecommunication networks and information systems and provision of telecommunication and information services.

Licenses

Consequently to the unbundling, BULGARTRANSGAZ EAD takes over all rights and obligations, connected with the licenses, issued by the State Energy and Water Regulation Commission on transmission, transit transmission and storage of natural gas.

BULGARGAZ EAD (Public Provider) acquires all rights and takes over all obligations, associated with the natural gas supply, in accordance with the license on public supply of natural gas issued by the State Energy and Water Regulation Commission.

Natural Gas Distribution Companies Restructuring

Regarding the distribution network operator, there is a regulation in the Gas Directive in order to avoid imposing a disproportionate financial and administrative burden on small distribution companies, Member States should be able, where necessary, to exempt such companies from the legal distribution unbundling requirements.

That possibility is transferred in the Bulgarian Energy Act, according to which the activities associated with natural gas distribution shall be separated in legal and organizational terms from natural gas supply to end consumers and from the other activities of the natural gas distribution companies when not fewer than 100,000 final consumers of natural gas are connected to the relevant distribution network. Since on the territory of the country there is not a licensed company with clients total reaching the defined in the Energy Act, the Natural Gas Distribution companies at present are not engaged with restructuring. 

Natural Gas Sector - Supplier of Last Resort

The Supplier of Last Resort shall be any person, licensed for its activity, providing natural gas supply to household consumers and companies with less than 50 employees and less than 19.5 million BGN annual turnover.

According to the regulations of the Energy Act, licenses for the activity of natural gas supply by Suppliers of Last Resort within the respective areas shall be issued proprio motu by the Commission to existing public gas suppliers by July 1, 2008. Until the date the newly-issued licenses under Paragraph 1 become effective, public gas suppliers shall perform the activities of Suppliers of Last Resort within the respective areas, arising under this Act and the public gas supply licenses held by them.

The introduction of the Supplier of Last Resort as a new subject in the sector results from the regulations from the Gas Directive, concerning the necessity of common minimum standards, respected by all Member States, are specified in this Directive, which take into account the objectives of consumer protection and security of supply. The Supplier of Last Resort presents the mechanism which guarantees the household consumers and small business consumers, which have not used their right of distributor change after the full opening of the market, the possibility of guaranteed natural gas distribution, with transparent terms and prices.

TABLE 10. ELECTRICITY PRODUCTION AND INSTALLED CAPACITY

Source: IAEA Energy and Economic Database  

Electric power production meets the electric power requirements of the country and for export. Electric power output in 2003 was 42,5 TWh and is among the highest in 1990-2003 notwithstanding the disconnection from the grid of 880 MW nuclear capacities in the end of 2002. Kozloduy NPP reached relatively high electricity output during the period considered with most efficient loading of the generating units.

The growth of electric power production after 1999 is due mainly to increased export of electric power. The average annual growth of electric power export in 1999 – 2003 was 20.7%, the relative share of export for 2003 being 15.9% of the gross electric power output in the country. In the same period electric power demand in the country increased by 2, 1%.

After the commissioning of Kozloduy NPP, Unit 6 in 1993 the imports gradually decreased and exports increased. As a result of that process, after 1997 Bulgaria became one of the leading exporters of electric power in the region. At the same time domestic demand was reduced and more efficient energy utilisation was achieved.

                                FIG 8. Electricity import-export, GWh

                              FIG 9. Generation and demand, GWh

Forecast

Since 1991, the energy consumption in the Republic of Bulgaria is characterised by large fluctuations determined by the unstable and dynamic social and economic conditions. The prognosis for development of the energy consumption is based on the policy for economical stabilisation and development. The forecast was elaborated according to two scenarios: maximum and minimum, which correspond to the maximum and minimum scenarios of GNP forecast, energy efficiency measures implementation, energy demand, and export capacity in the region. The 2007 forecast, based on the Least Cost Plan developed by the National Electric Company, define the area (green area) of most probable power generation and demand forecast with planned export or technological exchange (Figure 10).

                                FIG 10. Energy Consumption Forecast

2.  NUCLEAR POWER SITUATION

2.1. Historical Development and current nuclear power organisational structure

The nuclear development of Bulgaria started after the Geneva conference "Atoms for peace" in 1956 and was the favoured strategy of the political leadership ever since. The first step was the construction and the start of operation of IRT-2000 research reactor and a large programme of isotope applications and scientific research. Later, in 1966, an agreement was signed with the Soviet Union to deliver commercial reactors for electricity production. This agreement laid down the foundations of the Bulgarian nuclear power programme. The main articles of this agreement described the role of the reactor manufacturer and designer as well as the participation of the Bulgarian organisations and industry.

The Soviet nuclear industry was designing and supplying the nuclear island as well as the conventional part of the plants, while the architect engineer of the conventional plant and the auxiliary systems was the Bulgarian Company "Energoproekt". The Soviet safety rules and norms were supposed to be used as long as there was no special Bulgarian legislation available. During the construction and start up period, the Russian representatives at the site adopted the role of supervisors, but later they have only taken the position of manufacturer and supplier representatives. A number of Russian organisations also carried out all of the important assembly operations.

The first two units, which are a typical WWER 440/230 model, were built and put into operation for a period of less than 5 years. The second pair of reactors was completed and connected to the grid in 1980 and 1982 accordingly. By that time, the model 230 developed towards model 213, which is the reason why Units 3 and 4 incorporate many of the safety characteristics of the 213's. The further increase in the demand for electricity resulted in the construction of additional two units of 1000 MW each from the model known as WWER-1000/320. A second site was chosen in the early eighties near the city of Belene. The site was prepared with the entire necessary infrastructure to host six 1000 MW units. Completion of the first unit reached about 40% on view point construction, and 80% on delivery of equipment, in 1990, when due to lack of financial resources and some opposition from the near by communities the construction was frozen.

In 2002 Bulgarian Government took the decision for preliminary researches and two years later the Council of Ministers decided to recommence the Belene NPP project. After all the legislative requirements had been fulfilled, on April 8, 2005 the Government enacted the official Decision for the erection of a new nuclear power plant on the Belene site with total rated electric capacity of 2000 MWe. After public discussion performed in March 2004 it was concluded that the construction of the second NPP in Bulgaria has very strong political and public support at local (more than 97%) and national level (more than 76 %).
 

Pursuant to the above-mentioned decision, on May 10, 2005, the National Electric Company (NEK) launched a procedure for selection of a Contractor for the engineering, procurement, and commissioning of Belene Nuclear Power Plant, Units 1&2. On October 30, 2006 Russian company Atomstroyexport was chosen as a main contractor and Areva NP / Siemens was chosen as a main foreign subcontractor. The rest of the subcontractors (30%) will be Bulgarian companies. An Agreement with the Contractor was signed on November 29, 2006. The EPC contract was signed on January 18, 2008.
 

The preliminary activities which are presently being performed at the site of Belene NPP include the removal of all old structures which cannot be integrated into the new project. All the structures related to the nuclear safety of the new NPP will be built anew. Presently they are under design and they are intended to be built in accordance with all modern technologies and approaches. Old structures will be integrated into the new construction only when they completely match the modern design requirements and criteria. During the next months 8780 t of metal structures and 150 298 m³ of concrete and reinforced concrete structures will be dismantled. 150 923m³ of soil will be excavated as well.

2.2. Nuclear Power Plants: Status and Operations

2.2.1. Status of nuclear power plants

Bulgaria has six nuclear power units in operation at Kozloduy of which operation started between 1974 and 1991 comprising four WWER-440 units, net capacity 408 MW(e) and two WWER-1000 units, net capacity of 953 MW(e), all imported from the former USSR (Table 14).

TABLE 12. STATUS OF NUCLEAR POWER PLANTS

According to the implementation schedule, the project already began in 2008 and Belene NPP Unit 1 commercial operation to be started in 2013-2014.

2.2.2 Performance of NPPs

For the last 10 years the electricity share of KNPP in Bulgaria has been 40÷46 %. In 2006, only four of the six nuclear units on Kozloduy NPP site were in operation. As compared to the record – breaking 2002 production of 20 221 719 MWh with six working units, the electricity generation in 2006 was original record - 19 493 219 MWh. Kozloduy NPP production in the 2006 gross electricity generation growth by 4.5% as compared to the previous year.

During the last few years, the generation has been in compliance with the predicted demand of the country. Despite the dispatch limitation for the plant output imposed in the period from the end of April to the middle of June, in 2006 Kozloduy NPP over-fulfilled its production targets by delivering 107.35% of the planed amount. All units produced more electricity than planned.

During the last two years, the generation has been in compliance with the predicted demand of the country and real energy export possibility for the region. Despite the dispatch limitation for the plant output imposed in the middle of May, 2008 Kozloduy NPP over-fulfilled its production targets by delivering 111.45% of the planed amount (In 2007 Kozloduy NPP over-fulfilled planned production with 109.59%. despite planned overhaul outage). For 2007 the electricity production from NPP is 14 643 081 MWh, In 2008 NPP”Kozloduy” has a peculiar record– 15 765 105 MWh. achieved whit only two units.  Unit 5 has made 7,858 bilion. KWth, which is 10 % more than 2007, and unit 6 – 7,907 bilion KWth ,or 5,3% more than 2007г..

Amount 60,5% of electricity production NPP”Kozloduy” sold out on NEK EAD on regulatory price from State Energy and Water Regulatory Commission (SEWRC) The other  39,5% NPP sold out on the free market.

        FIG 11. Nuclear Power Share in Bulgarian Energy Sector

For the last 13 years the availability of Kozloduy NPP units was increased up to average world-wide values. The Unit Capability factor reflects the effectiveness of plant programs and practices in maximising available electricity generation and indicates how plans are operated and maintained.

In 2008, 111.45% (15 765 105 MWh ) of Kozloduy NPP’s maximum planned availability was provided to the National Electricity Distribution Company. This is result from good operational performance without scrams and shortest outages for units 5&6.  In 2006Unit capability factor values of Kozloduy NPP are comparable with the average indicators of the very best nuclear plants world-wide.

                        FIG 12. Unit Capability Factor                                                                  FIG 13. Unit Capability Factor world-wide

The Unit Capability Loss factor reflects the effectiveness of plant programs and practices in maintaining systems available for safe electrical generation.

After implementation of the modernisation program of Kozloduy NPP the capability loss factor was sufficiently decreased below the average world-wide values.

 FIG 14. Nuclear Power Capacity Loss Factor                            FIG 15. Nuclear Power Capacity Loss Factor world-wide

The Unplanned Automatic Scram per 7000 Hours Critical indicator monitors progress in reduction the number of unplanned reactor shutdowns. It provides an indication of success in improving plant safety by reducing the number of undesirable and unplanned transients requiring reactor scrams, as well as an indicator of how well a plant is maintained. Taking into account the hours that a plant was critical indicates the effectiveness of scram reduction efforts while the plant is operating.

The Kozloduy NPP Units 6 has been operating without unplanned automatic scram since 1996 year.

FIG 16. Unplanned Automatic Scram per 7000 Hours Critical         FIG 17. Unplanned Automatic Scram per 7000 Hours Critical world-wide

The Collective Radiation Exposure monitors the efforts to minimise the total radiation exposure at each unit and in the nuclear industry as a whole. It is a measure of the effectiveness of the radiation protection programs in minimising radiation exposure to plant personnel.

Optimal staff radiation protection is one of the main applied management principles, which ensures the lowest possible levels of radiation for the personnel. The Bulgarian radiation protection standards are strictly observed. In recent years there has not been any recorded case of exceeding the annual radiation dose limit of 20 mSv for exposure to radiation at work. The comparison of the personnel collective dose data averaged per unit of Kozloduy NPP, against the same WANO indicator shows that a level comparable with the best results in the world is achieved. Individual dose exposure indicators are compatible and confirm the radiation protection effectiveness.

FIG 18. Collective Radiation Exposure                                 FIG 19. Collective Radiation Exposure world-wide

2.2.3 Plant upgrading and plant life management

2.2.3.1. Kozloduy NPP, Units 1-4 modernisation process

The systematic analyses for compliance of the Units 1-4 with the current safety requirements and the internationally adopted codes and practices began in 1990 and were initiated by IAEA safety review and WANO missions. Considering the results of these first evaluations in 1991 the so-called Short Term Program for implementation of the safety upgrading measures on these units was developed.

The implementation of the program commenced in 1991 and was completed in 1996. A total of over 900 modifications of systems and equipment have been implemented, and many important new safety systems were installed. The total amount of the funds, allocated to the so-called Short Term Program was 145 MUSD.

Continuation of the safety upgrading process initiated by the Short Term Program has been assured by parallel development of a new, Complex Program based on the Periodic Safety Review methodology of IAEA. The review itself was completed within two-year period and with the support of the original designers of the units from Russian engineering organisations. The goal of this assessment was to develop an effective set of measures that would bring the units in conformity with the current safety standards. More than 450 man-months of highly qualified expert efforts were dedicated to this assessment.

 A system of presented here 25 classification categories, developed on the basis of safety functions and conditions to ensure their integrity was used for the analysis.

As a result of the assessment a new comprehensive (so called Complex) Modernisation Program was developed. Altogether 100 million of USD were allocated for implementation of the proposed technical measures and during the period of 1997-1999 more than 460 design changes were implemented.

In parallel, to provide maximum effectiveness of this program, it was subjected to a broad international assessment. Several missions from IAEA and WENRA and expert assessments by EdF and Siemens have been carried out for the purpose in 1998 and 1999. In February 2000 a new revision of the program, named PR-209M was issued in order to reflect the results of these reviews.

The extended program scope was mainly applied to the modernisation of Units 3, 4 while the implementation of some measures on Units 1,2 were delayed due to the taken decision for early closure. The total amount of funds allocated to implementation of this revision of the program was 66 million of USD.

The implementation schedule has been accordingly updated keeping the approach of continuous safety upgrading of the units. According to this the major part of activities were implemented for unit 3 and 4 till 2002 (a total of 375 design changes) finishing with a total up-date of the units’ SAR. Some long-term activities, mainly oriented to severe accident management, continued.  The design changes implementation by the different programs represents an integrated process, which led to extremely extended changes to the design bases of the respective units.

 The real implementation of the different Modernisation Programs during the years till 2002, brought the safety of Units 1-4 to a different level compared with their original design. Especially for units 3 and 4, the current extended design basis is successfully compared to the safety level of the WWER-440/213 reactors that is internationally recognised as adequate after IAEA in-depth review.  

 In 2002 an updated “Safety Analysis Report” of units 3 and 4 was issued, reflecting the new design status after the finalisation of the Modernisation Program and taking into account the operational experience of the units. It was developed in accordance with the scope and content approved by regulatory body in compliance with current world-wide practice.

The updated “Safety Analysis Report” of units 3 and 4 is the basic document and is a condition for issuing operation licenses to KNPP in compliance with the requirements of the new Safe Use of Nuclear Energy Act (SUNEA) after the expiry of current operation licenses.

Having presented this document and the other necessary documentation as well as a review under SUNEA, at the end of May 2003, the NRA issued long-term licenses for operation of units 3 and 4 for 8 and 10 year term of operation respectively.

Among the others the following extremely important results form the modernisation activities should be highlighted:

·   Extension of the list of postulated events for which the unit’s safety systems can cope with, in line with the commonly accepted design approach.

–        The capacity of the ECCS have been proven sufficient to cope with LOCAs which exceeds more than 80 times the break cross-section of the original design (up to Dn 500), thus resolving one of the main remarks on these units level of safety;

–        The containment leakage was reduced more than 35 times. Together with the rest of technical measures implemented to improve the localisation system performance it allowed to justify that the radiological consequences will be managed well bellow the prescribed limits for all postulated events and even beyond;

·  Significant improvement of the capability and reliability of the last protective barrier against spreading of radioactive products into environment in case of an accident

The necessary technical solutions for the modernisation of the confinement system have been developed and justified. A pressure suppression device (Jet Vortex Condenser) was successfully licensed and implemented in 2001-2002 for units 3 and 4. The condenser reduces passively the containment pressure in case of an accident thus from one side preventing its over pressurisation and from another limiting the uncontrolled releases to the environment bellow prescribed limits.

Other important result is the achieved compliance with current design principles::

–       application of single failure criteria;

–       separation between control and protection functions;

–       testability and operability monitoring;

–       redundancy, separation and other measures to cope with common cause mode failures etc.                                                     

Important assessments on Fire Risk, Environmental Impact, Equipment Classification and Reliability and others have been carried out in parallel to supplement other technical measures.  The development of Rest Lifetime Management Program together with the optimisation of the ISI program creates the necessary basis for steady, safe and efficient operation of the plant.

Complex plant approach allowed significant changes in other safety significant areas.

·  As a complex result, significant reduction of the overall Core Damage Frequency (CDF)is achieved, bellow the target value established for the reactors in operation world-wide

The plant successfully implemented a set of measures to address operational safety issues, identified by IAEA in 1991. Two OSART reviews were conducted in the period 1999-2001 with a third follow-up conducted in 2002. The IAEA experts concluded that all operational safety problems, has been resolved and the plant operational practice corresponds to the international safety standards worldwide

As a result of continuous safety improvement the plant also successfully resolved the design safety issues, identified by IAEA in the document “Ranking of Safety Issues for WWER 440 Model 230 NPPs – TECDOC 640”. A special IAEA mission conducted in 2002 concluded that all safety problems, defined by international experts has been resolved and in some cases the plant efforts went well beyond them, covering other areas with possible impact on the overall units safety. 

A general conclusion on all the efforts was given in the IAEA Annual Report for 2002:

"A Safety Review Mission to Kozloduy, in Bulgaria, reviewed the results of more than a decade of safety upgrades and assessments at units 3 and 4, including a series of actions recommended by various IAEA Review Teams.

The Team concluded that the operational, seismic and design safety at Kozloduy now corresponds to the level of improvements seen at plants of similar vintage elsewhere.

Many of the safety measures adopted for these plants in the design, operation and seismic areas exceeded those that were foreseen.“

In line with the above conclusions was the outcome of the AQG Peer Review, conducted upon a specific Bulgarian request in 2003. In 2001 the AQG, created as an EU advisory body on the nuclear safety issue published a report identifying a set of recommendations to each of the EU accession countries in their striving for high level of nuclear safety. These were recommendations not only in the area of the safety of particular installations but also in the legislative and institutional framework existing in the country to warrant preserving of the nuclear safety level.

First assessment of the achievements of each country was conducted in 2002. In November 2003 a team of 12 experts from Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Spain, United Kingdom and the EC performed new thorough evaluation of the country progress under the leadership of the Italian representative.

During this mission items related to recommendations of AQG reports were discussed with Kozloduy NPP, Nuclear Regulatory Authority (NRA) and Ministry of Energy and Energy Resources (MEER).

Although in accordance with its mandate the review was based on recommendations in the last AQG report, the discussion in many areas went out of these issues, covering all important areas of the plant program especially for Units 3&4. In the same time issues going out of the 2001 AQG report were discussed like the long-term improvements program (up to 2009) and adequacy of their financial provisions, plant and regulatory body commitments in long-term modernization plans and other condition included in the new operational licenses effective until 2011 and 2013 for Units 3 and 4.

 Following the technical evaluation of the information made available before and during the mission several conclusions on the status of the recommendations contained in the 2001 Report on Nuclear Safety in the Context of Enlargement were presented in the AQG/WPNS final official report i.e. the following:

§         There was evidence that all the AQG/WPNS recommendations have been adequately addressed.

§         It was recognised that the personnel from Kozloduy NPP have up-to-date knowledge of international practices and upgrading measures, and related application, in other similar nuclear units in eastern European countries. There was evidence of effective and comprehensive upgrading of the Units 3 & 4 when compared to the status of a few years ago.”

In its report AQG also commented that most of the recommendations, including all requested for units 3 and 4, are already implemented. The remaining are in progress according to established schedules. The actions, which are being carried out, concern units 5 and 6, which large scale modernisation program is underway, or long term projects on units 3 and 4 which are going well beyond AQG recommendations.

All they were assessed as adequate and feasible in terms of human and financial resources.

Based on this AQG/WPNS made the fundamental conclusion that for Bulgaria further monitoring activities by the AQG/WPNS are not considered to be necessary, fully confirming the already recognised capability of the Bulgarian nuclear program in resolution of generic safety issues.

 The conclusions of the team on the specific issues and in general were in full agreements with the other previously available international assessments like the assessment of IAEA SRM 2002 on the results of Units 3 and 4 modernisation program.

 The main conclusion of the reviewing team is that all AQG recommendations to Kozloduy NPP of 2001 and 2002 have been implemented and do not need further monitoring. It was stated that excellent engineering work was performed at Kozloduy NPP concerning the Accident Localisation System, which is in full compliance with the western approaches and good practices. The experts found that the reactor safety of Units 3 and 4 is provided with a considerable reserve up to the end of the term of the licenses issued by the NRA. Concerning the management of severe beyond design basis accidents, the implemented activities were assessed as exceeding the scope of AQG recommendations.

2.2.3.2. Currents status of Kozloduy NPP, Units 1-4

In accordance with the preliminary announced plans, units 1 and 2 of Kozloduy NPP were operated until the end of 2002 and then were consecutively disconnected from the grid and put in cold sub critical state. In the beginning of 2003, the nuclear fuel from the reactors was transferred to the reactor spent fuel pools and the units were brought to the corresponding mode according to the requirements of the Technical Specifications.

In the beginning of 2004, after a review of the fulfilment of the specific requirements prescribed as additional measures for safety during long term stay of the units in such mode, NRA issued licenses with term of 5 years validity. According to the licenses units 1 and 2 cannot be used for the generation of electricity and the activities are limited to the storage and cooling of irradiated and spent nuclear fuel in the reactor pools with no fuel in the reactor core.  By an order of the NRA Chairman, and upon the request of the Kozloduy NPP as of 6 December 2006, the licenses for operation of units 1 and 2 were amended.
The amendment allows the Kozloduy NPP to carry out dismantling works on some constructions and components of the systems of the units prior to the receipt of permission for their decommissioning. The equipment, which will be dismantled, should not be contaminated above the levels of exemption from accounting and control. The same should not be related to the safety of the spent fuel in the reactor spent fuel ponds.

By Decision No. 839 /20.12.2008 Of the Council of Ministers Units 1&2 are separated from Kozloduy NPP Plc. and  are property of the SERAW. It will permit their use as RAW management facilities.

On November 2007 in NPP”Kozloduy” was accomplished an audit from the Europian commission with reference to EUROATOM THREATY./article 35/

The general conclusion of the Commission is that NPP”Kozlaoduy” reach the standart of article 35.

Based on the new design basis of units 3 and 4 and the current operational practice reflected in the updated SAR, operational procedures and other documents, NRA issued long-term operational licenses. The unit 3 license was issued 22 June 2003 with an 8 years term of validity and the license of unit 4 was issued 26 February 2003 with a term of validity of 10 years.

 The conditions of units 3&4 operational licenses contain requirements for the continuation of the implementation of measures, included in other programs as continuation of PRG’97A, aiming for further improvement of the safety level. Main part of these programs has been completed within 2005 with some activities with regard to residual lifetime management scheduled until 2009.

Following an application by the Kozloduy NPP, as of 27th of December 2006, the operating licenses of Kozloduy NPP Units 3 and 4 have been amended, by an order of the NRA Chairman. The order is into force as of 1 January 2007.The amendment limits the activities under the licences to units’ operation in a mode, in which the nuclear fuel has to be taken out of the reactor core and stored in the reactor spent fuel ponds. During licence validity, the Kozloduy NPP is not allowed to use units 3 and 4 for generation of electricity or thermal energy. Regardless of the fact that the units will not be used for energy generation, the presence of nuclear fuel in their installations demands the fulfilment of all requirements for safe operation.Thus, the licences include conditions that determine the requirements to the personnel, the nuclear safety, the radiation and physical protection, the emergency preparedness and other specific conditions.As in the amendment of the licences for Units 1 and 2, the Kozloduy NPP is obliged to carry out all preparation activities for the decommissioning of Units 3 and 4, including the development of the necessary documentation.The amended licences for operation of the two units include new obligations for the Nuclear Power Plant, related to the application of the European Legislation in the field of the Euratom Safeguards.

In September 2008 the licenses to operate in the “E· mode the shutdown Units 1 and 2 were renewed, and their expiry date is 31.12.2011.

In order to achieve an integrated management with regard to the decommissioning activities as well as to the radioactive waste management (RAW) the state strategy on Units 1 and 2 was developed in 2008 that envisages Units 1 & 2 to be written off Kozloduy NPP Plc assets. By a Governmental decree №839 of 20.12.2008 Units 1 & 2 were declared to be facilities subject to management of RAW and altogether with the necessary movables were consigned to the State Enterprise RAW (SE RAW). The Decision determines that Kozloduy NPP Plc shall continue to operate the units in compliance with the granted “E· mode of operation until SE RAW receives the corresponding licenses.

 Currently in line with the conditions of the licenses, Kozloduy NPP is implementing the strategy for severe accident management. The strategy includes development of Severe Accidents Management Guidelines and implementation of technical measures for management of the fuel cooling and radioactive releases in case of core degradation. Installation of hydrogen recombiners and forced filtered venting systems in the units’ accident localisation was impelemented in 2005 and as a result of the accomplished modernization program the safety level of the Units 3&4 of the KNPP  is comparable with this of the modern NPPs , concerning localization procedures and accident management.

2.2.3.3. Kozloduy NPP, Units 5 and 6 modernisation process

The Kozloduy NPP units 5 and 6 are equipped power reactors of the WWER-1000/V320 type. The design of these reactors meets entirely the international requirements for nuclear safety. The main principle for NPP safety is applied: defence-in-depth with several physical barriers, including the redundancy, diversity, independence, protection against failures, and passive elements. The active safety systems have 3x100% capacity, functional independence and they are physically separated. Their large dry containment is designed for full pressure - 0.5 MPa.

The main objective of Units 5 and 6 Modernisation Program is to implement the improvements necessary to meet all international requirements for NPP’s with VVER-1000/V-320 units in terms of safety and reliability, in order to extend the unit lifetime following Periodic Safety Review process, required by NRA. The Program is based on IAEA recommendations described in Safety issues and their ranking for VVER-1000 model 320 NPPs (IAEA-EBP-VVER-05). In this document, the safety issues of VVER-1000 reactors are divided in two main groups – design and operational issues. Units 5&6 Modernisation Program solves these issues and comprises 212 measures, each including one or more issues. The identified measures’ adequacy towards the list of unresolved safety issues was reviewed by IAEA in 2000. The IAEA expert mission concluded that for all safety issues, the process of their resolving was started and relevant measures are completely or partially implemented, in accordance with Safety issues and their ranking for VVER-1000 model 320 NPPs (IAEA-EBP-VVER-05).

 In 2007 all the measures have been implemented. For the implementation of Kozloduy NPP Units 5 and 6 Modernization program 491.5 Million Euro were invested.

In November 2008 an International Atomic Energy Agency mission was held at Kozloduy NPP. This was a follow up expert mission for review of the implementation of the Modernization programme of Units 5 and 6.

The IAEA team acknowledged the impressive and successful effort that was carried out in the last years and particularly after the year 2000 by the KNPP management and staff to complete the modernization program of the Units 5&6. The work done solves the deficiencies that were detected in the past and greatly contributes to improve the safety of the plants. The IAEA team also acknowledged the great effort devoted by KNPP to coordinate the complexity of the various activities performed by different suppliers and financed in the frame of different programs.

It is also recognized that the amount of measures carried out and implemented up to now in KNPP units 5&6 represents a good example of extensive and effective modernization in operating WWER-1000

"The results of our review are excellent. We are impressed by the complexity and the amount of the activities implemented under the Modernization programme. I think you should be proud of what you've done. We have the experience of a large number of reviews at various plants and I can say that you are one of the best in the world" - words of Marco Gasparini - IAEA Team Leader at the Follow-up closing meeting

Units 5 and 6 Modernisation Program is finished as planned in compliance with the approved schedule.. The implementation of the program was successfully by a well organised project management team applying high technologies and engineering solutions that will considerably contribute to the enhancement of safety, reliability and performance of KNPP. This program will give a positive example of high quality modernisation of an NPP with VVER reactors.

2.2.4 Nuclear power development projections and plans

At the end of 2002 Bulgarian Government took a decision to perform a feasibility studies for renewing the construction of the second Bulgarian NPP at the Belene site. In April 2004 Bulgarian Government approved in principal the continuation of the construction activities at Belene site based on Least Cost Plan developed by National Electric Company. In November 2004 the Ministry of Environment and Water approved the Environmental Impact Assessment on Belene NPP. After all the legislative requirements had been fulfilled, on April 8, 2005 the Government enacted the official Decision for the erection of a new nuclear power plant on the Belene site with total rated electric capacity of 2000 MWe.

The most recent generation planning forecasts of electric demands for the period 2004 – 2020 project that Bulgaria needs new electrical generating capacity to replace nuclear assets scheduled for retirement, to satisfy domestic load growth, maintain energy security, and continue with present and expected commitments for electricity export. The generation planning analysis also concludes that an additional 1000 to 2000 MWe of base load units between 2010 and 2015 represent the capacity needed to service the anticipated demand.

Of the available generation technologies, nuclear units in the 1000 MWe range is a viable and convenient option for Bulgaria, considering available alternatives, environmental attractiveness, potential economic returns, and utilisation of strong in-country nuclear engineering support structure.

On 21 December 2004 the Nuclear Regulatory Ageny (NRA) Chairman signed a permit to the NEC for selection of a site for construction of a new NPP. On 21 December 2006 the NRA Chairman  approved by an order the site of Belene for construction of a new NPP. The site was selected by the National Electricity Company (NEC) for the construction of a second nuclear plant. The next step in the licensing process will be issuing of a design permit. The NEC has applied for such a permit in October 2005.

In May 2005 a public procurement award procedure has been started for design, construction, commissioning and putting into operation of units 1 and 2 in Belene Nuclear Power Plant.

Resolution of the Council of Ministers (point 39 of the protocol № 16 from the meeting on 20.04.2006), defines the legal form of the Company to develop and finance the Project – as a part of NEC EAD , respectively the realization of the Project and operation of Belene nuclear power  plant will be carried out within the structure of NEC EAD.

On 30.10.2006 with decision of the Board of Directors of NEK EAD, Atomstroyexport JSC was selected as a winning participant in the tender for construction of two 1000 MW units B 466 type, with a total price up to 3, 997 260 billion Euro and term of construction of unit 1  – 6,5 years and unit 2 – 7,5 years.

On 29.11.2006 Atomstroyexport JSC and NEC EAD, signed an Agreement for construction of Belene NPP which is a part of the Main contract to be prepared. The NPP will have 2 units of 1000 MW each. Construction works are expected to start  by the end of 2007. Expected commissioning of the first unit is in 2013-2014.

 The main advantages of the selected option to construction of two B466 reactors are as follows:

§          Significant margins in the safety characteristics and features, such as secondary containment, 4 train safety channels and extended capacity of the passive safety elements

§          Lower risk of unforeseen extension of the construction schedule, of licensing complications, or of early necessity of safety related improvements

§                              Use of newest technologies and longer operational life-time (60 years)

§                               VVER reactor of third generation being best recognized in the European Union.

Belene is approved by the NRA as the most suitable site for the new NPP, offering location advantages and ability to meet current regulatory requirements for nuclear sites, as well as the opportunity to finish the partially completed Unit 1.   Bulgaria possesses strong capability and more than 30 years (131 reactor years) experience in building, operating and maintaining nuclear power plants. This capability is a valuable resource that can be maintained and used in the development, design, construction and safe and reliable operation of a new nuclear power plant. The latest forecasts of in-country consumption, export sales, reserve and peak load requirements have been combined with estimates of the available and planned generation capacity to yield the following projection:

Remark: 100% of Installed Capacity = base load +  peak load

Using internationally accepted generation planning methods, the optimal solution for meeting capacity requirements is the commissioning of 1000 to 2000 MWe of new capacity starting in 2010. Confirmation that nuclear technology as the optimum generation type to supply this needed capacity is based upon the following:

–        There is insufficient hydro potential within Bulgaria and that other renewable technologies are not capable of providing a sufficient quantity of power;

–        Thermal coal-fired (including indigenous lignite and imported fuel) generation is feasible, but conflicts with the requirement to meet international commitments to reduce air emissions, including SO2 and CO2;

–        Gas-fired plants are planned for cogeneration, and will comprise an appropriate part of the energy mix; however, it will not satisfy all energy needs due to concerns related to excessive levels of primary energy imports and anticipated gas price uncertainty, and reliance on gas imports will compromise the security of the energy supply;

–        Bulgaria has significant capability and experience in the nuclear field;

–        Low Nuclear plant lifecycle costs will ensure their base load status and help ensure a stronger competitive position for selling electricity in the region; and

–        Based on the preceding benefits, the Ministry of Economy and  Energy has adopted nuclear power in their energy strategy.

 Therefore, to satisfy domestic load growth, maintain energy security, satisfy environmental objectives, and continue with present and expected commitments for electricity export, the clear way forward for Bulgaria is to proceed with the addition of two 1000 MWe nuclear units between 2010 and 2015.

The Feasibility Study also addresses the history of the Belene site, new requirements for site selection, any excluding or limiting factors, and vicinity information. The main conclusions of the study are:

–       Numerous site-related studies and evaluations have concluded that the Belene site is the preferred location, and is suitable and eligible for licensing for the construction of nuclear power plants capable of supplying the needed generation capacity.

–       The site was independently evaluated by IAEA experts who concluded that the site has no excluding factors.

–       The demonstrated suitability of the site, combined with the opportunity to use the partially completed project at Belene, not only supports the nuclear option decision but also the selection of the Belene site.

 The technical and economic evaluations resulted in the identification of the optimal two-unit variants. The final selection between the variants described in the Feasibility Study was based on firm vendor cost information obtained through a open tender procedure. . The final selection was based  on the criteria, listed in the tender documentation, modern technical and economical assessment methods, developed by the IAEA and risk assessment software.

The socio-economic aspects of construction of Belene and project execution approach were also analysed. The major socio-economic conclusions are:

–       The completion of Belene will result in significant decrease in unemployment in the region;

–       The investment required to complete Belene will have a substantial positive impact on the both regional and national Gross Domestic Product (GDP) and income levels; and

–       Public opinion polls indicate strong local and national support for nuclear power and completion of Belene.

In addition to the above, completion of Belene will allow Bulgaria to continue as a key regional energy supplier.

2.2.5 Decommissioning information and plans

The Law on the Safe use of Nuclear Energy stipulates that licensees must have adequate financial and material resources to maintain safety at all stages of the plant’s life. This includes decommissioning and the subsequent management of radioactive waste.

The legal provisions for financing the management of radioactive waste and nuclear facilities decommissioning were developed in 1999 with the establishment of the Nuclear Facilities Decommissioning Fund and the Radioactive Waste Management Fund.

The real functioning of the Funds started in 1999 after approval of the corresponding Regulations. The Funds proceeds are formed from payments by nuclear facilities operators, users of ionising sources, state budget resources, etc. The National Electric Company and later Kozloduy NPP have started with payments since 2000. The national radioactive waste management enterprise was established in 2004.

The KNPP contributions are specified by the Council of Ministers and since January 2007 these are 7.5% of electricity sales return for decommissioning and 3% for Radioactive Waste Management.

With Decisions made by the Councils of Ministers of the Republic of Bulgaria, KNPP units 1&2 were shut down at the end of 2002, and units 3&4 at the end of 2006.

In June 2006 Updated strategy on decommissioning of KNPP Units 1-4 was adopted.  This strategy is based on so called “permanent dismantling concept” where equipment is dismantled at all phases of the decommissioning. Thus optimal distribution of the dismantling activities is achieved, keeping working places and experience in the decommissioning process. Financial resources, manpower and existing radioactive waste processing facility are used in the most effective way.

Following the conceptual schedule of the strategy during the current phase of the decommissioning of the Units 1& 2 dismantling of equipment not related to nuclear safety and radiation protection is foreseen. By an order of the Chairman of the Nuclear Regulatory Agency the licence for operation of the Units 1&2 was changed  since December 2006, permitting dismantling activities of equipment  not related to the safety of the units.

Units 1 and 2 are free of nuclear fuel since November 2008. The Bulgarian Government has taken the decision to separate units 1 and 2 from units 3 and 4. The reason is their commercial and technical separation. The first two units without nuclear fuel are declared as Waste Treatment Facilities and with a Decision No 839 from 20 December 2008 of the Council of Ministers they belong  to State Enterprise for Radioactive Waste. SERAW is only the owner of the assets of units 1 and 2 until the decommissioning license is granted. 

The updated strategy foresees by the end of 2010 all preparatory activities to be accomplished and permission for the decommissioning of Units 1& 2 to be issued. During this preparatory period several activities are planned:

-          preparation of the documentation on decommissioning;

-          radiological inventory of the equipment;

-          investigation and implementation of infrastructural and technical projects related to the decommissioning process;

A Program on preparatory activities for decommissioning of Units 1&2 is developed and a schedule for implementation of the different tasks is adopted, according to the Updated strategy. All the necessary documentation for obtaining permission for decommissioning will be prepared under this program.

A Program for radioactive waste management of Units 1 to 4  is developed  to deal with the problems of operational RAW.

 After the Updated strategy was adopted, preparatory activities for the update of the decommissioning plan for Units 1&2 started.  The decommissioning plan for units 1&2 was developed and sent to BNRA in March 2008.

 The updated schedule for the implementation of the strategy at the current stage foresees:

-          working plan for dismantling

-          Dismantling of equipment not important for the safety.

 Several activities started in 2006:

-          Identification of the equipment installed and fulfilment with necessary data for the information sheets of the decommissioning project;

-          Radiation monitoring of the site and the equipment, dosimetry  survey of the potentially contaminated areas;

-          Input data to database DeMans;

-          Cut off/switch off of electrical connections;

-          Removing of thermal isolation sheets, dangerous and flammable materials;

-          Preparation of areas and buildings for temporary storage of dismantled equipment.

 Currently the following projects are under implementation:

–        Construction of the Dry Spent Fuel Storage Facility (DSFSF)

The Dry Spent Fuel Storage Facility (DSFSF) is located inside the existing Kozloduy Nuclear Power Plant site. The project is financed by the EBRD in the frame of the Grant for the Kozloduy International Decommissioning Support Fund (KIDSF).

The initial design of the DSF approved by KNPP envisages storage of 8000 spent fuel assemblies from WWER-440 and 2500 spent fuel assemblies from WWER-1000. The implementation of the project is planned in two stages. The project was initiated in May 2004 with deadline June 2010. The delivery of the first 10 CONSTOR Casks and the building construction is foreseen for August 2009.

 Currently the EBRD is financing Stage 1 of the project for 2800 spent fuel assemblies from WWER-440.

 Contractor for the design, construction and commissioning of Stage 1 of the Dry Spent Fuel Storage Facility is Consortium NUKEM Technologies/GNS mbH.

        The Facility is cask-type.  The spent nuclear fuel assemblies will be stored in licensed metal-concrete casks, situated in a controlled and closed Facility within the Kozloduy NPP operational site.

        The technology of dry storage implements the principle of defence in depth based on passive safety systems (triple-barrier closure system of the casks), for which no environment releases are expected during the storage period.

- Liquid Radioactive Waste Treatment Facility

The project includes supply of the liquid low level radioactive waste treatment facility. The facility shall be installed in Auxiliary Building-1, where the water decontamination and conditioning of the secondary radioactive waste shall be performed. The project provides methods to concentrate the radioactive wastes for storage. The Contractor is Atomstroyexport, Russia. The deadline for completion is May 2010. Currently, the detailed design and Safety Analysis Report is being approved.

           - Delivery of Equipment for Decontamination and Treatment for Cleaning of Emergency Feed Water Tank (EFWT)

Currently a Tender procedure is on going.

- Facility for Retrieval and Stabilization of Spent Ion Exchange Resins

This project provides complete characterization and equipment to perform the retrieval and conditioning of the spent ion exchange resins from the operation of Units 1-4 which are stored in tanks at Auxiliary Building 1 and 2.The Project is at the phase of Technical design.

The Contractor for the project is ENSA/Soluziona S.A. The deadline for completion is May 2011.

       - Facility for conditioning of Solid Radioactive Wastes with a High Volume Reduction Factor

This project is for the provision of design technological solutions, equipment manufacture, construction and commissioning of a facility for the treatment of solid low level radioactive waste generated during the operation and decommissioning activities of units 1-4.

The Contractor is IBERDROLA&belgoprogress. The deadline for the project is June 2015

       - Safety Analysis Report for Facility for Treatment and Conditioning of Radioactive Waste with a High Reduction Factor

The project is at the state of a Tender procedure.

          -   Equipment   for Draining   the   Liquid   Phase   from   Evaporator Concentrate Tanks

The project includes supply of materials and equipment for installation of the system for draining the liquid phase from the evaporator concentrate tanks in Auxiliary Building -1 before starting to retrieve the solid phase. The project is at the state of a Tender procedure.

         - Facility for Retrieval and Processing of the Solidified Phase from Evaporator Concentrate Tanks

This project is for the provision of solidified phase characteristics, design, equipment manufacturing, construction and commissioning of a facility for retrieval and processing of the solidified phase from evaporator concentrate tanks.

The Contractor is ONET technologies. The deadline for the project is June 2010.

          - Optimization of the Monitoring System for Liquid and Gaseous Releases

The project is to provide upgrading of the gaseous release monitoring system from the vent stacks of Units 1-4 and liquid releases from Auxiliary Building-1 and Auxiliary Building -2 in compliance with the recommendations of the European Commission 2004/2/EURATOM. The Projects involves equipment delivery and installation, personnel training and elaboration of the corresponding documentation. The Contractor is VF, Czech Republic. A Technical design is being implemented.

Deadline for completion is December 2009.

        - Optimization of the Conditioning and Packaging of the Radioactive Waste

An analysis for delivery of containers required for equipment dismantling activities is being performed.

        -Evaluation of the Material Backlog and Radiological Inventory of KNPP Units 1-4

The project includes the evaluation of the operational material backlog and radiological inventory of the equipment, structures, compartments and radioactive waste.

        - Material Fragmentation and Decontamination Plant

The project includes the design, construction, equipment delivery and installation of the plant for size reduction and decontamination of dismantled materials from Turbine Hall, Auxiliary Buildings at Units 1-4 and Reactor Building.

 A Tender procedure has been initiated.

        - Delivery of equipment for Size Reduction Areas in Turbine Hall

The design and supply of equipment for primary and secondary cutting of the large size dismantled equipment, air cleansing equipment for manual cutting and laboratory for monitoring of the surface contamination. A buffer area and two cutting areas equipped with manually controlled machines and remote controlled machines for size reduction shall be arranged in Turbine Hall.

           - Supply of Dismantling and Decommissioning Tools and Equipment of Technological Equipment for Turbine Hall, Auxiliary Buildings and Reactor Buildings at Kozloduy NPP, Units 1-4

The Project is at the phase of Tender procedure.

           - Separation of the infrastructure of Units 1-4 from Units 5&6. Supply of equipment for heat, fluid flow and electricity metering

The project is divided into several subprojects at different stages of development.

         - Construction of a Heat Generation Plant

A steam and hot water generation plant as a back-up source of steam and central heating water to town of Kozloduy and the consumers of Units 1 to 6 at the site of Kozloduy NPP is required after the closure of Units 1-4.

The project includes design, construction and commissioning of a steam and hot water generation plant as a back-up source of steam and central heating water in case both Units 5&6 are shut down. The plant will use gas as its only source of fuel and shall provide:

•           Continuity of supply of central heating water to the town of Kozloduy.

•           Continuity of steam supply to Kozloduy NPP to assist with restarting the operational units as quickly as possible.

The Project is at the phase of a Tender procedure.

         - Environmental Impact Assessment Report for Decommissioning of Units 1-4 at KNPP

 A Tender procedure for selection of the Contractor has been initiated. 

By Decision No. 839 /20.12.2008 Of the Council of Ministers Units 1&2 are separated from Kozloduy NPP Plc. and  are property of the SERAW. It will permit their use as RAW management facilities

2.3. Supply of Nuclear Power Plants

 Bulgaria does not supply nuclear power plants and/or equipment for nuclear power plants. The equipment for the existing plants have been purchased from Russia, but some parts and systems have been supplied from western suppliers like Siemens, Westinghouse, Sempel, Sebim, Framatome and others.

2.4. Operation of Nuclear Power Plants

The Council of Ministers of Republic of Bulgaria adopted Resolution No.70 dated 20 February 2001, according to which all nuclear power plants and other equipment on “NPP Kozloduy” PLC are defined as one nuclear installation and “NPP Kozloduy” PLC is its operator according to the Vienna Convention on Civil Liability for Nuclear Damage.

“NPP Kozloduy” PLC as “nuclear installation operator” according to the Vienna Convention on Civil Liability for Nuclear Damage is the bearer of the corresponding civil responsibility. As “license holder” according to Nuclear Safety Convention, the company bears the responsibilities for nuclear safety. This is reflected in the NPP “Kozloduy” PLC Statute (art.2, para 2 and para 3) and in Corporate Structure and Activities Code (art. 5 and art. 6). In this respect, the company holds a license, given by the State Energy Regulation Committee on production of electrical and thermal energy (Verdict No. 049 dated 11.12.2000 of SERC).

As the operating organisation is responsible for ensuring fulfilment of safety requirements, “NPP Kozloduy” PLC rights and obligations are defined in the Statute, Corporate Structure and Activities Code, company structural subdivision and sections activity organisation regulations, as well as in the personnel job descriptions for the whole hierarchy managing chain.

“NPP Kozloduy” PLC responsibilities and obligations are summarised in art. 7 of Corporate Structure and Activities Code and are performed through “implementation of activities for nuclear safety maintenance and enhancement, radiation protection, physical protection, emergency preparedness, technical safety, preserving the health of personnel and population and environment.”

In “NPP Kozloduy” PLC Corporate Structure and Activities Code” (art.8) the implementation of overall company activity, the following principle is of top priority: “Following the requirements for nuclear safety, radiation protection, as well as preserving the life and health of personnel, population and environment has priority over operational and other public needs.”

“NPP Kozloduy” PLC is a separate corporate body, registered according to Commercial Law, which has an independent balance and bank accounts. General Meeting and Board of Directors manage the Company. “NPP Kozloduy” PLC organises and manages its commercial activities in accordance with the Statute and “NPP Kozloduy” PLC Corporate Structure and Activities Code”.

For ensuring safe operation, the Kozloduy NPP management:

–    develops and implements an administrative structure, assigns responsibilities and powers within the structure and exercises the overall management;

–       develops, introduces and supervises the implementation of the programmes for administrative control (guiding documents for systematic implementation of planned works-schedules. procedures, inspections and revisions provided with adequate resources for their implementation);

–    establishes a system for the accomplishment and control of the license conditions and terms of duration;

–   establishes and maintains openness and correctness with the Regulatory Body, other state control bodies, organisations and the public, concerning the supervision, inspections and discussions on the fulfilment of the prescribed and universally accepted safety requirements;

–    for exchange of experience and information, keeps in contact with the design, engineering, maintenance, mantling and construction organisations, and the manufacturers of equipment for nuclear power plants;

–    ensuring the necessary resources and services for safe operation.

2.5. Fuel Cycle and Waste Management

The Kozloduy NPP Fuel Cycle includes all inherent stages as Uranium purchase, Conversion, Enrichment, Fabrication, Interim Storage, Spent Fuel transportation, Reprocessing and VHLW disposal based on the agreement between Republic Bulgaria and Russia and following long term commercial contracts for fuel supply and spent fuel reprocessing.

Kozloduy NPP has been sufficiently increasing the burn-up and achieved a reduction of spent fuel generation during transition from 2 year to 4 year fuel cycle length. These design changes also lead to decreasing of specific consumption of natural uranium up to 28%.

FIG 20. Burn-up and Spent Fuel generation variation during transition from 2 year to 4 year fuel cycle length.

 The new Strategy for spent fuel management and radioactive waste have been developed. Two options of spent fuel management were analysed – spent fuel reprocessing and spent fuel disposal. The levelled fuel cycle cost was used as a criterion for decision making.

The results indicate that there is a small cost difference between the prompt reprocessing option compared with the long-term storage and direct disposal option. Based on best estimate data, the reference cases show a difference of less than 20 per cent of the total nuclear fuel cycle cost taking into account all spent fuel accumulated at the Kozloduy site, the cost of the direct disposal option being lower. In light of the underlying cost uncertainties, this small cost difference between the reprocessing and direct disposal options is considered to be insignificant, and in any event, represents a negligible difference in overall generating cost terms. It is likely that considerations of national energy strategy including reactor type, environmental impact, balance of payments and public acceptability will play a more important role in deciding a fuel cycle policy than the small economic difference identified.

 Kozloduy NPP target is to minimise the impact on the population and environment of the radioactive wastes and spent nuclear fuel stored at the plant site. The management of these activities is in compliance with the requirements of the Vienna Convention on Safety of Spent Nuclear Fuel Management (SNF) and on Safety of Radioactive Wastes Management (RAW).

 During the operation of the nuclear power plant liquid and solid radioactive wastes are generated. Compared to the unit of produced energy the RAW quantities generated by NPP are over 10 000 times lower than the wastes from coal-fired power plants.

 The generally accepted principles for RAW management define the requirement the RAW to be collected, treated, conditioned and stored in a way that provides protection of human health and environment protection now and in future without being a burden to the future generations. At Kozloduy NPP site, a facility was constructed for treatment, conditioning and storage of low-level and intermediate-level liquid and solid radioactive wastes. The commissioning of this facility gave a permanent solution of the issue for reliable storage of RAW and is also a significant contribution to environment protection. Since 2006 the RWM facility at Kozloduy NPP site is a part of a different legal  entity , The State Enterprise “Radioactive Waste”.

As a result of the commissioning of this facility and the program applied during the last years to minimise the radioactive wastes, the speed of treatment and conditioning of RAW for long term storage has increased.

The spent nuclear fuel (SNF) is stored at the plant site under conditions which provide safety for the environment and population. After storage in special at-reactor spent nuclear fuel pools, the fuel is removed to a specially constructed Wet Spent Fuel Storage Facility for storage of spent nuclear fuel for all units.

The capacity of the facility allows storage of all spent nuclear fuel assemblies being discharged now and for the future years until the commissioning of the new facility.

The conditions created for safe storage of SNF at the plant site, together with the fact that part of the fuel is transported for reprocessing and long term storage in Russia, provide a mid-term solution of the SNF safe management issue. Together with the Ministry of Energy and Energy Resources (MEER), NRA and other national institutions implementation is prepared applying the best practices for long term safe storage of radioactive wastes and spent nuclear fuel.

2.5.1. Management of the Spent Fuel at the Kozloduy site

The SF removed from the reactors is stored in pools situated near by the reactors. In 1990, the construction of a pool type spent fuel storage facility (SFSF) on the site of the Kozloduy NPP was accomplished. It is situated in a separate building on the territory of the Kozloduy NPP, nearby units 3 and 4. According to the design, the SFSF is to be filled in 10 years and the assemblies can be stored in it for a period of 30 years. After 3-5 years storage in the near reactor pools, the SF is transported to the SFSF. In 1991, a programme for enhancement of the SFSF safety was elaborated which is now being updated. In 1992, the new seismic characteristics of the Kozloduy NPP site were taken in account in the Programme.

Two independent ecological assessments of the SFSF were carried out: an expertise made by a team from the Risk-Engineering company as well as a complete report of the impact on the environment made by a group of specialists from the Sofia University "Kliment Ohridski". The results of these assessments do not show any considerable negative impact on the environment from the SFSF operation.

 In March 2001, the NRA has licensed the SFSF.

 In 2007 240 spent fuel assemblies from WWER-440 and 96 from WWER-1000 were transported to Russia for reprocessing.

In 2008 480 spent fuel assemblies from WWER-440 and 96 from WWER-1000 were transported to Russia for reprocessing.

The spent fuel inventory at the near reactor pools and SFSF by 31.12.2008 is shown in Table 17.

TABLE 17: spent fuel inventory

 In 2008 the fuel from the reactor pools of Units 1 and 2 was removed. It is planned to transport 480 spent fuel assemblies from WWER-440 to Russia in 2009

2.5.2. Management of Low and Intermediate Level RAW

State Enterprise “Radioactive Waste” (SE RAW) was established in 2004 under the conditions of the Act on the Safe Use of Nuclear Energy to meet the requirement for the State responsibility for guaranteeing the safe management of the radioactive waste.

SE RAW is entrusted with management of the radioactive waste outside the site of their generation. The radioactive waste becomes state property from the time of its acceptance by SE RAW. The conditions and procedures for transferring the radioactive waste to the SE “Radioactive Waste” are defined by the corresponding Regulation of the Bulgarian Nuclear Regulatory Agency (BNRA).

SE RAW is responsible to carry out the activities during the whole life cycle of radioactive management facilities - site selection, design, construction, commissioning, operation, rehabilitation and reconstruction, decommissioning and closure/postclosure of the facilities for radioactive waste management. It also can perform transportation of radioactive waste out of the site of the waste generation or transportation of radioactive materials in general.

SE RAW implements the above mentioned activities only pursuant to a permit or license for siting, design, construction, commissioning and operation of a radioactive waste management facility and in compliance with nuclear safety and radiation protection regulations.

For implementing its activities SE “Radioactive Waste” consists of two Specialized Divisions for processing and storage of radioactive waste.

 1. Specialized Division “RAW Kozloduy” is located on the site of Kozloduy Nuclear Power Plant and is processing the radioactive waste generated from the operation of the plant. It consists of:

-          Radioactive waste treatment facility;

-          Storage for conditioned radioactive waste; and

-          Site “Varovo stopanstvo” for temporary storage of solid radioactive waste.

The conditioning process includes:

• Extraction of the liquid RAW from the tanks for liquid radioactive concentrate;

• Transport to the RAW Processing Plant;

• concentrating of the liquid radioactive concentrate (when necessary) by evaporation;

• pH correction;

• dosing of the liquid radioactive concentrate, the cement and the supplements;

• Mixing, homogenization and filling of the cement radioactive mixture into reinforced concrete container;

• sealing the package (placing and closing the cover, sealing up the cover's hole)

The regulatory body has licensed the reinforced concrete container for transport and storage of the conditioned RAW. Thereby the conditioned RAW are stored on the site of Kozloduy NPP and are subject of further disposal without additional treatment.

1.1 RAW Processing Plant consists of:

1.1.1 Line "Solid RAW"

It is designed for sorting and treatment by compaction of solid RAW in order to reduce the volume and to prepare them for further conditioning. The line includes:

• Centre for receiving and uploading of solid RAW;

• Sorting table;

• Two presses with 50 t force;

• Mechanism for sealing of 210 liters tanks;

• System for measuring of wastes' activity;

• Super-compactor with 910 t force;

• Two depots for tanks;

• Roll conveyors;

• Crane-manipulator;

• 20 tonnes transport carriage;

• Two cranes with load capacity of 40 t.

 1.1.2 Line "Liquid RAW"

It is designed for treatment and conditioning of liquid RAW including RAW packaging. The line includes:

• Specialized tank truck for transport of the liquid RAW from the temporary storage facilities;

• Centre for receiving and uploading of liquid RAW;

• Two receiving tanks for liquid RW with 40 m3;

• Two-stages evaporator with receiving tanks for distillate and condensate;

• Two tanks for concentrated liquid RW with 12 m3;

• Receiving bins for cement and chemical supplements;

• Batcher for the cement and the supplements;

• Mixer;

• Pumps, tanks, etc.

 Solid compactable RAW is treated using pre-compaction and compaction technology (910 tones supercompactor) achieving average volume reduction factor of 7,8. Currently, under development is a design for construction and installation of incineration facility which will be used for treatment of combustible solid RAW.

Solid non-compactable RAW is basically sorted and conditioned without any special treatment. Currently, an installation for deactivation of metal RAW is at experimental stage.

Liquid RAW is treated using evaporation and cementation technology. Liquid RAW (evaporator concentrates) accepted for treatment in the facility should be up to 7.2.Е+7Bq/l specific β-activity.

For conditioning of all type treated RAW is used reinforced concrete containers (RCCs). The reinforced concrete container is licensed for transport and storage of solid RAW 2-I and 2-II class. It is with overall dimensions 1,95х1,95х1,95 m and net volume of 5 m³. Its walls ensure bio-protection in a way, that the power of the equivalent dose does not exceed 2 mSv/h in any point its external surface, and 0.1 mSv/h at 1 m distance from the surface.

The package is in conformity with Technical Specification RAW TR-02/11.07.01.

TABLE 18. RAW treated and conditioned in Specialized Division “RAW Kozloduy” for 2008

1.2 Storage facility for conditioned RAW

It is designed for temporary storage (prior to disposal) of conditioned RAW from Kozloduy NPP. It is a surface ferroconcrete facility which provides the necessary engineering barriers between the stored RW and the personnel and the environment. Its capacity is 1920 reinforced concrete containers with conditioned RAW (960 in each field “A” and “B”, in 4 rows one on top of the other). Two bridge cranes of 25 t load capacity each (one for each field) perform all transport operations in the storage facility. They are provided with grip devices for arranging and positioning of the containers with RW.

1.3. Site “Varovo stopanstvo”

A site where the following sub-sites for RW management are separated:

1.3.1. Storage facility of trench type for storage of solid RAW

It is designed for temporary storage of solid RW of class 2-I and 2-II and serves all nuclear facilities at the Kozloduy NPP site. The storage facility is surface ferroconcrete construction facility of vault-type. It is separated on forty cells with upper hatch, each with dimensions 2.7 x 5.9 x 6.0 m and volume 96.5 m³.

1.3.2. Storage facility for temporary storage of processed solid RAW.

It is designed for temporary storage of processed solid RW of class 2-I and 2-II from all nuclear facilities at the Kozloduy NPP site. The storage facility is of building type, reinforced concrete panel structure with transport aisle. The processed solid RW are stored in metal pallets, arranged in three rows in height.

1.3.3. Sites (№1 и №2) for temporary storage of solid RAW in reinforced concrete containers.

It is designed for temporary storage of processed solid RW of class 2-I and 2-II, packed in reinforced concrete containers. It serves all nuclear facilities at the Kozloduy NPP site. The site is with capacity for placing of 2000 reinforced concrete containers.

1.3.4. Site for temporary storage of solid RW in heavy weight containers.

It is designed for temporary storage of low-active solid RW class 2-I and 2-II class. It serves all nuclear facilities at the Kozloduy NPP site. The site is with capacity for placing of 14 heavy weight containers. The heavy weight container with side door is with overall dimensions 5,8х2,2х2,4 m and net volume of 30 m³.

                            TABLE 19. RAW stored in Specialized Division “RAW Kozloduy”

2. Specialized Division “Final Repository for RAW - Novi Han”  is located near the village of Novi Han in Losen Mountain. It was originally established as disposal facility for radioactive waste from nuclear applications. Currently the disposal vaults are out of operation (closed but not sealed) and the radioactive waste are stored in temporary storage facilities. Specialized division “Novi Han” consist of the following facilities:

 2.1 Disposal vault for non conditioned solid low and intermediate level short-lived RAW (2a class)

The storage facility is with capacity of 237 m³. It consists of three identical cells, with dimensions 5 x 4.5 x 3.5 m. It is constructed bellow ground level as a reinforced concrete multi barrier facility with 15.7 m length, 5.83 m width, and height of the aboveground part 1.2/1.6 m. It is constructed of reinforced concrete with 300 mm thickness, two-sided hydro-insulated with 20 mm bituminous insulation, with lining of 4 mm stainless steel sheets. The internal walls are additionally strengthened with supporting brick walls with 120 mm thickness. The storage facility is filled up from the surface through 7 hatches with external diameter 100 cm and 120 cm. According to the design, after the fulfilling of the cells, they will be grouted with concrete.

 2.2 Disposal vault for conditioned biological RW, low and intermediate level short lived wastes (2a class)

The capacity of the disposal vault is 80 m³. Its construction is analogical to the above described one with smaller dimensions – 8.35 m length, 4.00 m width, 2.5 m depth, and 0.5 m height of the overground part (roof construction). The vault is filled from the surface through 8 hatches with dimensions 80 x 80 cm.

2.3 Disposal vault for unconditioned low and intermediate level spent sealed sources (2a category)

Its capacity is 1 m³. The reinforced concrete facility, with lining of stainless steel is situated in 5.5 m depth under the ground surface. The sources are received through serpentine of stainless steel with 5 mm diameter. The heavy concrete and 5 lead plates with 10 mm thickness, situated between the storage facility and the surface provide the protection against ionizing radiation. The storage facility is additionally protected with heavy roof construction.

2.4 Engineering trench for solid RW for raw solid low and intermediate level short lived solid wastes (2a category)

The trench is with capacity of 200 m³ and dimensions 29 m length and 4.1 m width. It consists of 8 cells built up of ready made reinforced concrete elements with 300 mm thickness, bituminous hydro-insulation and supporting brick wall. It is provided with a drain system. It is filled from the ground surface through hatches with diameter 130 cm. Three of the cells are completely filled, stabilised with cement grout, and covered with temporary protective coating.

2.5 Tanks for temporary storage of low-active short lived liquid RW

Four tanks of stainless steel type 1X18H9T with 4 mm thickness, constructed in reinforced concrete cells with dimensions 5.7 x 7.4 x 4.3 m on concrete supports at 0.5 m above the cells’ floor. The cells are completely bellow the ground level. The capacity is 48 m³.

2.6 Site for temporary storage of low-active short and long lived wastes (2a and 2b class) in railway (ISO) containers.

Smoke detectors in transport packages, solid RW and β,γ-disused sealed sources with low specific activity, which do not require additional protection, neutron sources and α-sources in transport packages are stored on the site. The railway containers are with dimensions 6.00 x 2.35 x 2.4 m. The site capacity is 14 railway containers with 462 m³ total volume. Currently 11 containers are loaded with radioactive waste with total volume 288.75 m³.

2.7 Site for temporary storage of medium-active short- and long lived RW (2a and 2b class) in concrete storage units “PEK” type, reinforced containers “StBKKUB” (RCC) and reinforced concrete containers “StBKGOU”

On the site are stored spent sealed sources in transport packages in concrete storage units “PEK” type, spent sealed sources in reinforced concrete containers StBKKUB and gamma-irradiation devices in reinforced concrete containers StBKGOU. The site capacity is 171 StBKKUB with 248 m³ total volume, 6 “PEK” with 74 m³ total volume and 18 StBKGOU. Currently 45 storage units StBKKUB contain waste with total volume 55.3  m³. The storage units PEK are fully loaded with waste. 12 storage units StBKGOU are fully loaded with SHARS (spent high activity radiation sources).

 2.8 Site for storage of low-active RW

RW are stored in 200-liters drums and in euro-pallets. The site capacity is 400 drums and 100 euro-pallets. The total volume of waste is 68.4 m³.

2.9 Facility for RW treatment

2.9 Facility for RW treatment

It is designed for RW entry check and identification, sorting out, partial re-packing, RW preparing for storage, decontamination of equipment and vehicles, treatment of low-active water from the operation of the site.

Current status is given bellow.

Volume of RAW in: (1) disposal vault for solid RW; (2) disposal vault for biological RW ; (3) spent sealed sources disposal vault; (4) engineered trench for solid waste; (5) storage for liquid waste; (6)railway containers; (7) StBK and PEK storage units; (8) storage site for low active RW

The Hot Cell Facility is constructed on the site and it is expected to be commissioned in 2010. A reconstruction of the Treatment Facility is going on Equipment for RAW treatment and conditioning is purchased. A Storage Facility is under construction.

3. Another considerable project currently on-going is the construction and commissioning of a National Disposal Facility for Low- and Intermediate Level Short-lived Radioactive Waste. It is outlined as a high priority task in the Strategy for Spent Fuel and Radioactive Waste Management. The Council of Ministers took a decision for construction of a National Disposal Facility for Radioactive Waste on July 25, 2005. It is regarded as a starting point for putting in action the Plan for Management of the Project and the Schedule for Activity Implementation. After this decision was taken, SE RAW submitted an application to BNRA for issuing a permit for site selection of national disposal facility and subsequently obtained it on 05.05.2006.

The National Disposal Facility for RAW (NDF) is a facility for radioactive waste management in terms of both the national legislation and the international agreements. The Disposal Facility is intended for disposal of short-lived low and intermediate level radioactive wastes generated by the nuclear power plant and the nuclear applications. Currently, low and intermediate level radioactive waste (LILW) generated during the Kozloduy NPP operation is treated, conditioned and stored on-site. NDF will be organizational structure of SERAW and it will be differentiated as a Specialized Division.

Currently, NDF is at stage for site selection. This stage includes four important steps, which NRA follows strictly. Those are development of concept and planning, area survey, site characterization and site confirmation.

During last 20 years more than 40 sites have been investigated for possibility to accommodate a National Disposal Facility for RAW in Bulgaria. The possibilities for site selection near the NPP have been studied in all investigation with regard to public acceptance, cost, and risk of waste transportation. Expanded studies in the area of Kozloduy NPP were carried out in 1998-1999. An assessment of the potential sites has been performed using 22 criteria combined into four groups:

-Geological safety criteria

-Engineering safety criteria

-Environment impact criteria

-Socioeconomic acceptability criteria.

System analysis was used to set up a site-selection procedure and establish a rating of the potential sites. The investigated area is located south of the Kozloduy NPP and covers about 150 km². Five potentially suitable zones were identified during the regional-mapping phase. Ultimately, four sites were identified as preferable (after screening all sites using exclusionary criteria). Two of this sites are located next to the Kozloduy NPP on the one loess-covered Danube terrace, the third site is located on a high Danube terrace south of the NPP, and the fourth site is located about 1 km south of the Kozloduy NPP, in the Marichin valog tributary valley.

It is planned that in 2007 the activities for site characterisation stage will be finished and activities for site confirmation will be started.

2.6. Research and Development Activities

In the field of nuclear R&D, Bulgaria is in co-operation with international organisations like: the Joint Institute of Nuclear Research in Dubna, Russia; the Institute of Theoretical Physics, Trieste; OECD Halden Reactor Project, CERN and other foreign institutes. NRA pays the membership fee in these organisations.

Nuclear research and development activities in Bulgaria are carried out in several institutes, the most important of which are:

–       The Institute of Nuclear Research and Nuclear Energy at the Bulgarian Academy of Sciences;

–       The University of Sofia Department of Nuclear Physics, Dept of Nuclear Technology and Nuclear Power Engineering and the Radiochemical laboratory;

–       Technical University of Sofia, Department of Power and Nuclear Engineering;

–       Plovdiv University, Department of Nuclear Physics; and

–       Other smaller Institutes and research organisations.

   All these organisations are financed by the national budget. Each year the Government donates them with the Act of the State Budget.

2.7. International Co-operation

One of the major challenges Kozloduy NPP faces is to maintain and further develop international cooperation to strengthen its position, for the plant is reputed to be a secure and effective producer of ecologically friendly, clean energy.

Within the context of accomplishing its mission to be a safe, efficient, secure and environment friendly electricity and heat power supplier, Kozloduy NPP’s international activities are directed to create conditions to develop, familiarize with and apply latest tendencies, methods, approaches and good practices in the operation of nuclear facilities as well as to comply with the international obligations related to the use of nuclear energy for peaceful purposes.

International cooperation development gives priority to the necessity of following and applying the latest trends in the quickly evolving nuclear industry. The aim of Kozloduy NPP Management is not only to adhere to modern trends worldwide, but also to take an active part in their development through cooperation with leading organizations in the field of nuclear energy.

A continuous process of exchange of information and operational experience is in place at Kozloduy NPP through its active participation in the most renowned world organizations of the nuclear community– WANO, IAEA, EURATOM, FORATOM, ENS, WNA etc.

In 2007 and 2008 the Plant was visited by a number of foreign delegations, high ranking representatives of various international organizations and diplomats

Within the technical cooperation framework Kozloduy NPP experts took part in missions to foreign nuclear power plants such as the OSART mission in Balakovo NPP - Russia, the Peer review in Tianwan NPP - China,  Peer review in Higashi-dori - Japan, Technical support and training mission in Darlington - Canada and Seabrook -  the USA, etc.

A series of specialized conferences and seminars were conducted with the support and most active participation of KNPP experts.

2.8. Human Resources Development in NPP “Kozloduy”

Human resources management is amongst the main strategic activities in the policy of Kozloduy NPP. It is focused on the establishment of high professional standards and working environment that result in competent, responsible and motivated employees. Joining a solid team, proven throughout the years and having established values, evolves the personal potential, encourages initiatives in search of the best results in order to achieve successfully the Company goals. 

   The gradual reduction of the number of personnel (by approximately 20% after the closure of Units 1 and 2 in 2002) was achieved after a detailed analysis and optimization of the payroll, separation of activities and encouragement of early retirement, without dismissing personnel.

By means of analysis of the need of the vacant positions, re-structuring of organizational units and separation of cleaning activities, at the end of the year the number of the pay-roll staff was 4 485. Compared to the end of 2007, the number of workers employed by KNPP has been reduced by 169.

As a member of the world community of nuclear operators, Kozloduy NPP maintains a continuous process of information and operational experience exchange with the International Atomic Energy Agency (IAEA), the World Association of Nuclear Operators (WANO) and other international organisations and leading companies in the filed of nuclear energy.

Through participation in the international peer review process, Kozloduy NPP obtains assessment and support of its efforts in operational safety enhancement. In 2003 the plant was a host of two major reviews:

·         June 02-13 – WANO Mission to units 3&4;

·         November 16-19 – Expert Mission of the EU Council’s Atomic Questions Group (AQG).

Both expert teams acknowledged the exceptional efforts invested by the plant during the last several years and the high motivation of people working at KNPP.

The plant participated in a number of regional projects and technical assistance programmes of IAEA, WANO, Euratom/EBRD (KIDSF), Nuclear Safety Programme of UK Department of Trade and Industry (DTI) and in different bilateral co-operation programmes. Also Kozloduy NPP took part in the activities of the largest international and European forums and organisations such as World Nuclear Association (WNA), European Nuclear Society (ENS), Global Nuclear Energy partnership (GNEP) and  European Nuclear Forum – FORATOM (through BULATOM). This enabled the KNPP specialists to be in line with nuclear energy news and to present before the international science community and bodies of EU the achievements of Bulgarian nuclear industry.

In 2008 the Foutrh National Report of the Republic of Bulgaria on implementation of the obligations under the Nuclear Safety Convention and in 2009 the Third National Report of the Republic of Bulgaria on implementation of the obligations under the Joint Convention for Safety of Radioactive Waste and Spent Fuel Management were presented. Bulgarian nuclear leading experts participated in the development of the reports and answers to additional questions posed to Bulgaria by the Conventions countries.

In 2008 the Third National Report on the implementation of the obligations under the Joint Convention on the Safety of Spent Fuel Management and on the Safety Radioactive Waste Management was prepared and submitted to IAEA.

2.8. 1. Human Resources Development

 The personnel of Kozloduy NPP responsible for the safe operation of nuclear facilities have a high educational status. In 2003, 80% of the KNPP employees had a university degree and high technical education. This was achieved through a system for recruitment of new personnel with higher education and qualifications as some employees reached the retirement age, and who had lower educational qualifications.

The measures for personnel number optimisation (down-sizing) undertaken after the detachment of Kozloduy NPP plc as an independent commercial company in 2000, have given good results. In the last three years the staff number has been reduced by 20% at the end of 2003. It should be noted that both output and safety levels have increased over the same period. The good performance indicators in the last several years have given the opportunity to keep a good salary level at Kozloduy NPP, as compared to the average salary in the country.

One of the most important factors of the safe, reliable and effective operation of Kozloduy NPP is the availability of well-trained and qualified personnel. The overall training process and personnel qualification control are conducted in accordance with the Systematic Approach to Training implemented in all nuclear power plants. For improving the qualification of NPP personnel, two basic forms of training are applied – theoretical training (lectures, self-training and computer-based training) and on-the-job training. The plant Training Centre is equipped with modern simulator facilities, ensuring adequate training for licensed operators and line managers as well as the performance of a number of engineering tasks and analyses. At present two simulators, VVER-1000 Full Scope Simulator (FSS-1000) and VVER-440 Multi-Functional Simulator (MFS) are used for training. Current modernisation programmes are also implemented on the simulators aiming to maintain their conformity with the reference units. All training courses are annually upgraded based on analysis of events in other plants, feedback from the training sessions, unit design modifications and other reasons, including changes of the regulatory requirements.

Provision of a safe and healthy working environment through elimination or maximum limitation of the existing hazards is one of the basic goals of Kozloduy NPP plc Management. In compliance with Bulgarian legislative requirements, which were harmonised with the European requirements for the working environment, a risk assessment of the work place was made and corrective measures were implemented. The data from the last few years proved the effectiveness of the efforts made in this direction. The trend for reducing the industrial safety accident rate is very clear and this indicator is comparable with the world’s best NPP indicators according to WANO database.

All Kozloduy NPP workers and employees benefit from a wide social package, including additional voluntary health insurance, additional voluntary pension security, high quality health services, possibilities to recover in a recreation centre etc.

Considerable is the care that Kozloduy NPP takes for the quality of health prevention, adequate recreation, varied cultural life and up-to-date sport conditions for the plant employees as well as for their families. Special attention is paid to the establishment of different possibilities for children to express their creativity.

The social responsibilities undertaken in the policy of Kozloduy NPP is focused not only its own staff, but also to all young people in Bulgaria. As an expression of it we entered the Students' Summer Training Program for the fourth time. The social commitments of Kozloduy NPP towards underprivileged children was substantiated by providing fuel to homes for children deprived of parental care through the support of the Bulgarian Christmas initiative etc.

The long-term tradition of active support public significant projects of the local government was continued in 2007 and 2008 with the participation of Kozloduy NPP in the urban development of the housing estates by establishing recreation areas, playgrounds, landscaping etc.

3. NATIONAL LAWS AND REGULATIONS

3.1. Safety Authority and the Licensing Process

The National Regulatory Authority in the field of safe use of nuclear energy is the Nuclear Regulatory Agency (NRA). The legal framework in respect of the NRA is provided for in the Act on the Safe Use of Nuclear Energy (ASUNE - in force from July 2002). According to Article 4 (1) of the Act, “State regulation of the safe use of nuclear energy and ionising radiation, the safety of radioactive waste management and the safety of spent fuel management is implemented by the Chairman of the Nuclear Regulatory Agency”.  Article 4 specifies: “the Chairman is an independent specialised authority of the executive power” and “The NRA Chairman shall be designated by a decision of the Council of Ministers and shall be appointed by the Prime Minister for a mandate of five years and may be selected for one more term of office (mandate)”. The functions of the NRA are effectively separated from those of the bodies and organisations involved in promotion or use of nuclear technology.

 3.1.1.  Safety Authority responsibilities

 Pursuant to Article 5 of the ASUNE, the Nuclear Regulatory Agency shall have the following powers:

-          Grant, amend, supplement, renew, suspend and revoke licences and permits;

-          Control the fulfilment of safety requirements and standards, as well as the conditions of licences and permits granted;

-          Issue and withdraw individual licenses;

-          Undertake enforcement measures and impose administrative penalties;

-          Assign (contract) nuclear safety and radiation protection related external expertise, researches and studies;

-          Implement the interactions with other competent authorities of the executive power vested with some regulatory and control functions and propose to the Council of Ministers measures for co-ordination of the activities;

-          Implement the international co-operation of the Republic of Bulgaria in the field;

-          Provide individuals, legal persons and state bodies with objective information referring to nuclear safety and radiation protection;

-          Submit annually to the Council of Ministers a report on the status of nuclear safety and radiation protection, as well as on the operation of the Agency;

-          Organise and co-ordinate the drafting process and submit to the Council of Ministers the reports for implementation of country obligations under the Convention on Nuclear Safety and the Joint Convention on the Safety of Spent Fuel Management and on the Safety of Radioactive Waste Management;

-          Organise and co-ordinate implementation of the obligations of the Republic of Bulgaria arising from the Agreement Between the People's Republic of Bulgaria and the International Atomic Energy Agency for the Application of the Safeguards in Connection with the Treaty on the Non-proliferation of Nuclear Weapons, as well as from the Additional Protocol to the Agreement;

-          Perform the functions of a competent authority and a contact point for notification of an accident and for provision of assistance according to the Convention on Early Notification of a Nuclear Accident and the Convention on Assistance in the Case of a Nuclear Accident or Radiological Emergency;

-          Develop and submit for adoption to the Council of Ministers regulations for the application of the ASUNE;

-          Exercise other powers as may be entrusted thereto by the national legislation.

An administration helps the NRA in implementation of its authorities, assures technically its activity, and performs activities on administrative service provided to legal persons and citizens. In its activities, the NRA and its administration is guided by the adopted by the Council of Ministers Organisational Rules of Procedure. The administration is organised in a general department and 4 departments, distributed into general and specialised administration.

3.1.2. Organisational Structure of the NRA

A Chairman supported by two Deputy Chairmen and an Executive Secretary governs the NRA. The permanent number of the NRA staff is 102 persons (4 – management team, 19 positions in the general administration and 79 experts and inspectors). Six inspectors work permanently at the Kozloduy NPP site. 95% of inspectors have university education and more than 60% of them have over 15 years of experience in the nuclear field. Six NRA employees have Ph.D. degree, including the Chairman and one of the deputies. The organisational structure of the NRA is shown in Figure 19.

 The NRA is forming its own budget within the overall state budget. In accordance with Article 10, p. 1 of the ASUNE, the Agency operation is financed by the national budget and by income from the licensing fees collected under the Act provisions. Each year, the incomes and the expenditures at NRA budget and its relations to the central state budget, subsides or donations are defined by the annual Act of the State Budget. The draft budget is developed by the Agency following the Act on the State Budget Organisation. The Ministry of finance considers the budget, proposed by NRA and defines the final version, which is included in the bill of the Act on the State Budget (ASB) for the next year. The ASB is passed in accordance with the order of the Acts passing in the Republic of Bulgaria.

 The organisational structure and duties of the NRA structural units are described in the Statute of the NRA (Rules of Procedure), adopted by the Council of Ministers Decree No.199 dated 29 August 2002, as shown in Figure 19.

                                                                        FIG 21. Organisational Structure of the NRA

3.1.3.  Licensing Process

The main legal provisions for the licensing of nuclear installations in Bulgaria are outlined in the ASUNE. The Act specifies the conditions, the order, terms and time limits for issuance of licenses and permits. The NRA Chairman based on a written application by the applicant shall issue licenses and permits for utilisation of nuclear energy. According to ASUNE Article 20 (1), a licence shall be issued for a term of validity not exceeding ten years.

All documentation submitted in respect of requested license issuance shall be in Bulgarian language. Submission of the original documents in a foreign language is permissible if a notarised translation into Bulgarian language is thereto attached.

3.2. Main National Laws and Regulations in Nuclear Power

The new Nuclear Law (the Act on Safe Use of Nuclear Energy - ASUNE) entered into force in the middle of 2002 (2 July 2002). According to the ASUNE, the NRA Chairman has no power to issue regulations. The NRA Chairman develops and submits regulations for the application of the Act to the Council of Ministers for adoption (Article 5, item 14 of the ASUNE), through the Deputy Prime Minister.

The ASUNE specifies areas, which have to be regulated by the regulations and submitted to the Council of Ministers on a motion of the NRA Chairman or other State Authority. The Transitional and Final Provisions of the ASUNE require that within two years after the entry into force of the ASUNE, the Council of Ministers adopts new regulations and until then the old regulations are valid if they are not in conflict with the ASUNE.

After entry into force of ASUNE, the NRA initiated a large-scale legislative program for development of a comprehensive set of regulations. The programme included the responsible persons and the deadlines for the development of 19 secondary legal documents (18 Regulations and 1 Rate Schedule) in the area of the safe use of nuclear energy and ionising radiation, safe management of RAW and SNF, physical protection, emergency planning and preparedness, etc. The IAEA IRRT mission and the Peer Review of AQG expressed a high opinion of the programme. As the NRA objective is to establish exact and clear regulatory requirements, the program was based on:

-          existing regulations and practices;

-          full compliance with the national legislation and the international treaties;

-          full compliance with the EU Directives – related to the future membership of Bulgaria in the EU;

-          internationally recognised requirements - IAEA Safety Standards;

-          international good practice – practices in leading nuclear countries (European), WENRA (reference levels);

-          experience of countries in transition with similar nuclear programs – Check Republic, Hungary, Slovak Republic, etc.

The regulatory practice of the NRA has been build up and developed during a long time by taking into account of the legislative requirements, Agency’s own experience and the good international practices. The NRA continuously improves its regulatory practice by conducting self-assessment, inviting well known international experts as management consultants, inviting independent external reviews, as well as by making use of the vast potential of the IAEA, WENRA and the leading regulators of the world scale.

During development of the secondary legislation (regulations), the systematic approach was applied in accordance with the national legislation, the importance of the legislative document and the resources available. All NRA employees participated actively in the development of the secondary legislation, as well as representatives of Ministries and other organizations concerned. An internal procedure, part of the QM system (IN QMS-RG-P1/0), has been developed by the NRA and has been used in the process of regulations drafting and adoption.

In September 2003, the Council of Ministers approved two of the 19 normative documents – Rate Tariff for the Fees Collected by NRA under the ASUNE and Regulation for the Fees Payment Procedure. The Regulation and the Rate Schedule guarantee the stable financing of NRA within the framework of the national budget.

At the beginning of 2004, all remaining regulations, included in the programme, except the Transport regulation, were submitted in one package for co-ordination with the ministries and the national institutions concerned. Thus, synchronisation and interrelation between the secondary legislation, its simultaneous entry into force and standardisation of the specific terminology have been achieved. Also, in the development of the regulations, the NRA used the advice and opinion provided to the Chairman by the Advisory Councils on nuclear safety and radiation protection.

At the middle of 2004, the Council of Ministries adopted all regulations under the ASUNE. All regulations should be translated into English and published at the NRA web site to facilitate foreign users and the NRA international partners.

The following fundamental acts of legislation are currently applicable in the matter of safe utilisation of nuclear energy and in respect of nuclear material procurement, accountability, storage and transport:

-          Act on the Safe Use of Nuclear Energy (Promulgated in the Official Journal No. 63 of 28 June 2002);

-          Tariff for the fees collected by the NRA in accordance with the provisions of the ASUNE;

-          Regulation on the procedure for paying the fees ensuing by the ASUNE;

-          Regulation on the procedure for the issuing of licenses and permits for safe use of nuclear energy;

-          Regulation on the terms and the procedure for notification of and provision of information to the Agency;

-          Regulation on providing the safety of nuclear power plants;

-          Regulation on providing the safety of research reactors;

-          Regulation on radiation protection in activities with sources of ionising radiation;

-          Regulation on the safe decommissioning of nuclear facilities;

-          Regulation on the safe management of radioactive waste;

-          Regulation on the safe management of spent fuel;

-          Regulation on the conditions and procedure for acquiring professional qualification and for the procedure for issuing licenses for specialised training and individual license for use of nuclear energy;

-          Regulation on the terms and procedure for accounting for nuclear material and for application of the Safeguards;

-          Regulation on the terms and procedure for radioactive waste delivery to the Radioactive Waste State-Owned Company;

-          Regulation on the terms and procedure for exclusion of small quantities of nuclear material from the application of the Vienna Convention;

-          Regulation on the basic standards for radiation protection;

-          Regulation on the terms and procedure for determination of  special-statute areas around nuclear facilities and facilities with SIR;

-          Regulation on the terms and procedure for the provision of the physical protection of nuclear facilities, nuclear material and radioactive material;

-          Regulation on the emergency planning and preparedness;

4. CURRENT ISSUES AND DEVELOPMENTS ON NUCLEAR POWER

4.1. Energy policy

 The efficient functioning of the energy sector is vital for any economy. Energy is present as an essential component in any end product of industry or services. For this reason, the implementation of the strategy for economically viable, secure and environment-friendly energy supply is a fundamental prerequisite for the attainment of national objectives aimed at a significant and sustainable economic growth and eradication of poverty. Failure to undertake timely actions in this sector leads to the risk of turning it into a heavy burden for the economy as a whole.

On 26 November 2003, the National Assembly adopted the new Energy Act. The Act is in full compliance with the new Electric Power and Gas Directives of the EU with regard to the production, the operation of the systems for transfer and distribution, the separation and the transparency of the accountancy balance sheets and the access to the transfer and distribution systems.

A new market model of regulated access of a third party to the networks is introduced with the new act, which shall replace the model of the "single buyer". The liberalised share of the electric energy market is gradually expanded, following the model of "bilateral contracts with a balancing market." The new act anticipates that the monopoly over the import and export of enteric energy will drop off after the date of the accession of Bulgaria to the EU. The creation of a liberalised gas market with a new market model of regulated equally treated and non-discrimination access of a third party to the networks is regulated as well.  Legal separation of the operators of the transfer and distribution systems from the activities relating to production and delivery is introduced. The new Energy Act renders an account of the rules for accelerated opening of the market of electric energy and natural gas. The final goal of the development of the internal energy market is the creation of a competitive retail market, at which all the users will have a possibility of selection of a supplier. The act creates stimulus for promotion of the production of electric energy from renewable energy sources (RES) and of the combined production of heat and electric energy.

-          Mandatory purchase of the produced electric energy at preferential prices,

-          Introduction of a system for issuance and trade with green certificates.

At the end of 2003 a Draft of an Ordinance on the Issuance of Certificates of Origin of Electric Energy Produced by Renewable Energy Sources and/or in a combined manner was published for public discussion, for the issuance of green certificates and trade with them. In September 2003, the Council of Ministers adopted a bill of the Energy Efficiency Act. The following measures were anticipated:

-          Introduction of an obligation for the conduct of energy management;

-          Regulation of the possibility for the rendering of energy effective services;

-          Requirements for "labelling" and "markings",

-          Tax concessions.

4.2. Privatisation and deregulation

 The energy sector needs significant investments for the improvement of the existing infrastructure whose current status is a result of low levels of investments during the past decade. Privatisation represents a powerful instrument through which this goal can be achieved. In the main energy sectors – electricity sector, heat supply, gas supply and coal mining – partial privatisation has been carried out, mainly of companies providing secondary or ancillary activities. Successfully implemented reforms are a mechanism to gain confidence of foreign investors and to ensure the needed especially large investments in energy at low risk premiums and under diversified risk. Privatisation transactions in the energy sector were finalised from July 2001 to December 2003 with total revenues for the budget of 219 million BGN. 

 The privatisation of hydro power plants, differentiated parts of NEK EAD commenced in 2000. 34 HPP were sold out for the time period 2001 - 2003. The proceeds in the budget add up to over 138 million BGN.

 The coal output branch comprises 15 companies with 100 % state participation, which are in a procedure for privatisation. 6 coal output mines and one colliery, a differentiated part, were privatised from July 2001 by the end of 2003. The proceeds in the budget add up to 51 million BGN.

 On 5 July 2003, the Council of Ministers adopted Strategy for the Privatisation of Electricity Distribution Companies, which was approved by the National Assembly on 29 July 2003. The consultant for the privatisation was a Consortium, led by BNP - Paribas. The strategy anticipates simultaneous sale of the seven companies, differentiated in three packages:  

-          First package - Western Bulgaria, including:

-          Second package - South-Eastern Bulgaria, including:

-          Third package - North-Eastern Bulgaria, including:

The Privatisation Agency adopted the decisions for selection of a privatisation method on 24 October 2003. The sale was performed through a publicly announced two-stage tender without a preliminarily determined minimal price.

By Resolution No 485 of the Council of Ministers dated 15.07.2002 an Annual List of the Trade Companies with State Participation in the Capital was adopted, the shares of which (up to 49% of the capital) were anticipated for trading at the Bulgarian Stock Exchange. Energoremont Holding EAD - Sofia, Energoremont Bobov Dol AD - Bobov Dol, Energoremont Varna AD - Varna, Energoremont Rousse AD - Rousse and TPP Maritsa 3 - Dimitrovgrad were included in the List. In 2003 the companies were successfully traded at the Bulgarian Stock Exchange, after their transformation in public ones. The initially offered 49% of the shares were sold out against non-monetary payment means - compensatory notes with a nominal of 33,8 million BGN, (or 8 million BGN real price). The remaining 51% shares of the companies were traded at the second stage, at the total value of 3 million BGN.

The revenues in the budget from the privatisation of servicing and repair companies add up to 30 million BGN. 9 companies were sold in the time period March 2002 - December 2003 through competitions and tenders, conducted by the Privatisation Agency.

4.3.   Role of the government in the nuclear R& D

·         The Institute of Nuclear Research and Nuclear Energy at the Bulgarian Academy of Sciences;

·         The University of Sofia Department of Nuclear Physics, Department of Nuclear Technology and Nuclear Power Engineering and the Radiochemical laboratory;

·         Technical University of Sofia, Department of Power and Nuclear Engineering;

·         National Centre of Radiobiology and Radiation Protection, at the Ministry of Health;

·         Plovdiv University, Department of Nuclear Physics;

All these organisations are financed by the national budget. Each year the Government donates them with the Act of the State Budget. In addition, in the nuclear R&D, Bulgaria is in co-operation with international organisations like: the Joint Institute of Nuclear Research in Dubna, Russia; the Institute of Theoretical Physics, Trieste; OECD Halden Reactor Project, CERN and other foreign institutes. NRA pays the membership fee in these organisations.

 4.4. Nuclear Energy and Climate Change

The energy sector is a major source of carbon dioxide and sulphur oxide emissions in the country. The thermal power plants are also a large source of nitrogen oxides and non-toxic dust. Coal-fired TPP release about 80% of the national emissions of sulphur oxides and about 60% of the national emissions of carbon dioxide.

Bulgaria ratified the UN Framework Convention on Climate Changes in 1995. According to the Kyoto Protocol signed in connection with the Convention in December 1997 it undertook the commitment to reduce the anthropogenic emissions of greenhouse gases by 8% per year within 2008-2012 compared to the emissions in 1988. The same joint commitment to reduce the emissions of greenhouse gases was also undertaken by the EU countries.

Emissions of 1 012 752 tons of sulphur dioxide, 36 182 tons of dust, about 52 758 tons of nitrogen oxides and 23 676 261 tons of carbon dioxide were saved in 2003 as a result of the production of electricity and heat from nuclear power, hydro power and co-generating capacities. The emissions were calculated as compared with the adopted reference TPP, burning lignite coal.

TABLE 20.       Structure of the avoided emissions as a result of electricity and heat generation in 2003,

FIG 22. Estimated emissions of CO₂

Nuclear power generates electricity with virtually none of the greenhouse gas emissions that cause climate change. Nuclear power generates electricity with hardly any emission of sulphur dioxide or nitrogen oxides, key agents for acid rain and photochemical air pollution.

The impact of Kozloduy NPP operation upon the environment components is subject to detailed and systematic studies since the plant commissioning in 1974. The electricity production technology at Kozloduy NPP in practice does not generate any greenhouse gases and considerably contributes to the environment protection. In June 2002, the Kozloduy NPP was awarded by the Ministry of Environment and Water of the Republic of Bulgaria for the significant contribution to the protection of the environment reproduction and natural resources.

4.5. Safety and waste management issues

The radioactive waste management activities are carried out in compliance with the requirements of the Joint Convention on Safety of Spent Nuclear Fuel Management and on Safety of Radioactive Waste Management, the IAEA radioactive waste management principles being applied.

At Kozloduy NPP site, a facility was commissioned and licensed for treatment, conditioning and storage of low-level and intermediate-level liquid and solid radioactive waste. This facility is unique in Eastern Europe in terms of purpose and technology. The commissioning of this facility gives a long-term solution of the RAW reliable storage issue and significantly contributes to the environment protection. The achieved reduction factor of the solid radioactive waste volume is about 7.

The RAW generated from the use of radioactive substances in medicine, industry and research is stored at the Novi Han Permanent Radioactive Waste Repository (NHRWR), which was reconstructed and upgraded.

The safety upgrading of the NHRWR was supported by an IAEA Technical project. For the period 2003-2004, the project focused on the development of the necessary documents for the NHRWR licensing as well as studies of the "Gabra" site. The NRA actively participates in the process through review of the developed licensing documents, expert missions, etc.

REFERENCES:

[1]   Nuclear Regulatory Agency, Annual Reports 2007, 2008.

[2]    Kozloduy NPP, Annual Reports 2007, 2008.

[3]    National Electric Company Annual Reports.

[4]    Report No.116110, Bulgaria - Power Demands and Supply Options, WB.

[5]    National Statistic Institute – Statistical Yearbook, 2007

[6]    Concept of the bulgarian energy strategy till 2020

[7]    Strategy for Development of the Energy Sector, Committee of Energy December, (1995).

[8]    Tariffs for Electricity and Heat Energy Bechtel Int. Inc., prepared for USAID, (June 1996).

[9]    European Bank for Reconstruction and Development, Annual Reports 1994, 1995.

[10]Collection of Bulgarian Nuclear Regulatory Documents, Balbok ltd. Sofia, (1994).

[11]Social and Economic Development of Bulgaria 1990 -1993, National Institute of Statistics, Sofia, (1994).

[12]Additional unpublished materials have also been used, like:

a)      Reports of NEK prepared for the Commission for State Energy Regulation.

b)      Materials prepared for the Council of Ministers concerning the Association procedure of Bulgaria in the European Union.

[13]Data & Statistics/The World Bank, www.worldbank.org/data.

[14]IAEA Energy and Economic Data Base (EEDB).

[15]IAEA Power Reactor Information System (PRIS).

Appendix 1.

International, Multilateral and Bilateral Agreements

AGREEMENTS WITH THE IAEA

OTHER RELEVANT INTERNATIONAL TREATIES, etc.

BILATERAL AGREEMENTS

·         Agreement between the Government of the Republic of Bulgaria and the Government of the United States of America on Co-operation in the Field of Peaceful Uses of Nuclear Energy.

-      By way of this Agreement the Contracting Parties reaffirmed their commitment that they would ensure international development in the peaceful utilisation of nuclear energy in compliance with all agreements which to the maximum possible extent contribute to the objectives of the Treaty on non-proliferation of Nuclear Weapons

·      Agreement between the Government of the Republic of Bulgaria and the Government of the Russian Federation on Co-operation in the Field of Peaceful Uses of Atomic Energy.

-      The Agreement reaffirms the Republic of Bulgaria's membership to the United Institute of Nuclear Research in the city of Dubna, regulates the mutually advantageous co-operation of the Parties in the field of peaceful utilisation of atomic energy. The Parties guarantee their strict adherence to their obligations in respect of the Treaty on non-proliferation of Nuclear Weapons and the continued endeavours towards nuclear safety amelioration.

-      The Agreement covers a rather broad scope of possible joint research domains, such as nuclear physics, controlled thermonuclear fusion and plasma physics, condensed-matter physics (physics of the solids), radiochemistry, radiation chemistry, atomic energy engineering, inclusive of safe and reliable operation decommissioning of nuclear power plants, fuel cycle management, control and issuance of licences, betterment of nuclear fuel storage and transport technologies, prospective nuclear energy sources, nuclear safety and radiation protection, radiological protection from nuclear irradiation, normative and technical documentation, etc.

·      Agreement between the Government of the People's Republic of Bulgaria and the Government of the Republic of Greece on Early Notification of a Nuclear Accident and Exchange of Information on Nuclear Facilities.

-      This Agreement governs the technical aspect of extended operational reporting and notification between the Contracting Parties in case of a nuclear accident after the Convention on Notification in Case of a Nuclear Accident, signed in Vienna on 26 September 1986.

·       Financing Protocol between the Government of the Republic of Bulgaria and the Government of the French Republic.

-      To the end of strengthening the friendly relations that have traditionally linked them, the Government of the Republic of Bulgaria and the Government of the French Republic have agreed to conclude this Protocol with the purpose to contribute to the economic development of Bulgaria. 21/2 million French francs shall be lent to assist financing of the purchase from France of full-scale nuclear power plant simulators and the installation thereof.

·      Agreement between the Committee for the Use of Atomic Energy for Peaceful Purposes with the Council of Ministers of the Republic of Bulgaria and the Federal Ministry of the Environment, Protection of Nature and the Reactor Safety of Germany on Issues of Mutual Interest Relating to Nuclear and Technical Safety and Radiation Protection.

-        The Contracting Parties shall notify and inform each other forthwith and directly of accidents under Article 1 of the Convention on Notification in Case of a Nuclear Accident, signed in Vienna on 26 September 1986. The Agreement also provides for the exchange of information and experience in nuclear and technical safety and radiation protection, favourable co-operation between the Parties and also provides that the Federal Ministry of the Environment, Protection of Nature and the Reactor Safety of Germany shall, upon request, endeavour within the limits of possibilities available under the national law to provide assistance on technical aspects of safety by way of attracting German consulting and expert organisations.

·      Agreement between the Government of the Republic of Bulgaria and the Government of Romania on Early Notification of a Nuclear Accident and Exchange of Information on Nuclear Facilities.

-      The Agreement governs the technical aspect of extended bilateral operational reporting and notification to the Parties in case of a nuclear accident following the Convention on Notification in Case of a Nuclear Accident, signed in Vienna on 26 September 1986.

·      Agreement between the Government of the Republic of Bulgaria and the Government of the Argentine Republic on Co-operation in the Field of Peaceful Use of Nuclear Energy.

-      The Contracting Parties shall collaborate in the development of scientific research and practical utilisation of atomic energy for peaceful purposes. Specific fields of co-operation are listed. Co-operation shall be based on agreements between institutes, organisations and legal entities of the Parties in compliance with the national law.

·      Agreement between the Government of the Republic of Bulgaria and the Government of the Republic of Turkey on Early Notification of a Nuclear Accident and Exchange of Information on Nuclear Facilities.

-    The Agreement shall apply in respect of activities on the subject of notification in case of a nuclear accident after Article 1 and Article 3 of the IAEA Convention.

·      Agreement between the Nuclear Regulatory Agency of the Republic of Bulgaria and the Federal Nuclear and Radiation Safety Authority of the Russian Federation on Co-operation in Nuclear and Radiation Safety.

-The Agreement provides for exchange of information on the organisation of activities of the regulatory authorities, exchange of regulatory documentation as well as experience in conducting nuclear and radiation safety inspections, training of inspectors, etc.

·     Agreement between the Nuclear Regulatory Agency of the Republic of Bulgaria and the Ministry of Environmental Protection and Nuclear Safety of Ukraine on Co-operation in the Field of the State Regulation and Control of Safety in the Use of Atomic Energy for Peaceful Purposes.

- The Agreement provides for exchange of information on the organisation of activities of the regulatory authorities, exchange of regulatory documentation as well as experience in conducting nuclear safety inspections, training of inspectors, etc. It also provides for exchange of information on control of the physical protection of nuclear material and facilities and of the system of accounting for and control of nuclear material.

·      Agreement between the Committee on the Use of Atomic Energy for Peaceful Purposes of the Republic of Bulgaria and the Ministry of Economy of the Slovak Republic on Co-operation in the Field of the State Regulation and Control of Safety in the Use of Atomic Energy for Peaceful Purposes.

- The Agreement provides for exchange of information on the organisation of activities of the regulatory authorities, exchange of regulatory documentation as well as experience in conducting nuclear safety inspections, training of inspectors, etc. It also provides for exchange of information on control of the physical protection of nuclear material and facilities and of the system of accounting for and control of nuclear material.

Appendix 2.

DIRECTORY OF THE MAIN ORGANIZATIONS, INSTITUTIONS AND COMPANIES INVOLVED IN NUCLEAR POWER RELATED ACTIVITIES

NATIONAL ATOMIC ENERGY AUTHORITIES

Nuclear Regulatory Agency                                                     Tel:  +359-2-9406800

69 Shipchenski Prokhod Blvd.                                                   Fax:  +359-2-9406919

1574 Sofia, Bulgaria                                                                http://www.bnra.bg/

Ministry of Iconomy and Energy                                               Tel:  +359-2-94-071

8 Slavianska str., 1040 Sofia, Bulgaria                                       Fax:  +359-2 987 2190

                                                                                         http://www.mee,government.bg

OTHER NUCLEAR ORGANIZATIONS  

Bulgarian Academy of Sciences (BAS)                                         Tel:  +359-2-7144616

Institute of Nuclear Research and Nuclear Energy (INRNE)              Fax:  +359-2-9753619

72 Tzarigradsko shosse Blvd., 1784 Sofia, Bulgaria                        http://www.inrne.bas.bg/

Bulgarian Academy of Sciences                                              

 Institute of Metallurgy                                                             Tel:  +359-2-703485

53 Shipchenski Prokhod Blvd.                                                       Fax:  +359-2-703207

1574 Sofia, Bulgaria                                                                 http://www.bas.bg/

National Electric Company                                                           Tel: +359-2-9861819

5 Vesletz Str., 1040 Sofia, Bulgaria                                               Fax: +359-2-9872550

                                                                                               http://www.nek.bg/

Kozloduy Nuclear Power Plant                                                         Tel:  +359-973 7177

3321 Kozloduy, Bulgaria                                                                Fax:  +359-973 80591;

                                                                                               http://www.kznpp.org/

State Enterprise “Belene” NPP                                                        Tel.+359 2 9263635

16 Veslec str, 1040 Sofia                                                              Fax+359 2 9263649

                                                                                                Htt5p://belene-npp.bg

Technical University of Sofia                                                    Tel:  +359-2-623073

8, Kliment Ohridski St.                                                             Fax:  +359-2-685343

Sofia- 1000, Bulgaria                                                                http://www.tu-sofia.bg/

Sofia University St. Kliment Ohridski                                            Tel:  +359-2-62561

Department of Nuclear Physics and Nuclear Energy                         Fax:  +359-2-622028

5 J. Boucher Blvd., 1126 Sofia, Bulgaria                                        http://www.uni-sofia.bg/

Sofia University - Radiochemical Laboratory                                  Tel:  +359-2-62565

1 J. Boucher Blvd., 1126 Sofia, Bulgaria                                        Fax:  +359-2-622127

RISK ENGINEERING LTD.                                                              Tel:  +359-2-9516915

34 Totleben str., 1660 Sofia, Bulgaria                                            Fax:  +359-2-9549100

                                                                                               http://www.riskeng.bg

EQE Bulgaria Ltd.                                                                   Tel:  +359-2-9631951

1 Hristo Smirnensky Blvd.                                                          Fax:  +359-2-9631976

1164 Sofia, Bulgaria                                                                 http://www.eqe.bg/

ENPRO CONSULT Ltd.                                                             Tel:  +359-2-9711416

16 G. M. Dimitrov Blvd,                                                            Fax:  +359-2-9711421

1797 Sofia, Bulgaria                                                                 http://www.enproco.com/

ENERGOPROEKT JSC                                                               Tel:  +359-2-9607800

51 James Boucher Blvd.                                                           Fax:  +359-2-8668951

1407 Sofia, Bulgaria                                                                 http://www.enpro.bg/

ATOMENERGOREMONT JSC                                                      Tel:  +359-973 7 2927

3321 Kozloduy, Bulgaria                                                           Fax:  +359-973 8 0736