We had a talk with Mr. Lyuben Marinov, the executive director of “NPP Kozloduy – New Build” EAD, right after Westinghouse has been awarded a contract for a feasibility study for a new reactor at Bulgaria’s Kozloduy nuclear power plant.  The interview (in Bulgarian language) is also published in the next issue of the Utilities Magazine.

Mr. Marinov, in what time frame could we expect the real start of a new nuclear unit at the NPP Kozloduy site?

- According to the Law for Safe Use of Nuclear Energy, the stages for the construction of a new nuclear unit may be divided as “feasibility”, “design”, and “construction” (engineering, procurement, and construction - EPC), “start of operations” and “licensing for operation”. We should note, that the stages could overlap. In the licensing plan, the obtaining of different permissions and acts of different ministries/agencies and other institutions are also included.

After the decision “in general” for the construction of a new nuclear unit by the Council of Ministers on April 11, 2012, the project company started the preparation for Environmental Impact Assessment and for a Feasibility Study.

If we have the cooperation of all institutions, for which we hope, the feasibility stage – defining the site and first activities, could last between 3 and 5 years.

In parallel with this, in the frame of the activities mentioned above, we may start the organization and the implementation of a tender as well as concluding a contract for Engineering, Procurement, and Construction (EPC), and this stage is also clearly defined in the legislative base. Every license is given by the Nuclear Regulatory Agency in a period of 9 months and this the EPC stage could be implemented in 5 years.

We expect the new build at the NPP Kozloduy site to be operational in 10 years.


How will the project for new build be financed? When could you start attracting new investors in the project company, in addition to NPP Kozloduy?

- We are preparing the project for “A new nuclear unit at the NPP Kozloduy site” as a project finance initiative. The project company will attract funds with project finance instruments, so it will have as collateral the revenues of the future unit, and the risks of the project will be entirely within the new company, which will not affect in any way the financial flows of the investors themselves.

As in every project company, the financial risk in the beginning is higher, and later it reduces significantly. One of the main goals is to have a detailed decision of the Council of Ministers for a new unit. Then we consider that the risk level will be acceptable and the project will be really attractive. Then, as well, the technical-economical analysis, the positive EIA, and the geological research will be a valuable asset of the project company and I really expect strong investors’ interest. And something else – we have a whole year to work on the so called “business case” – the economic and financial models, the marketing research of the regional market for electricity, etc.


What technologies would be considered if we are not going to use the reactor built for Belene NPP project and what will happen to it?

- According to the investment intent, given by NPP Kozloduy to the environmental ministry, the new build will use a PWR (Pressurized Water Reactor) technology, with light water, with two-tier technological scheme of the power unit. The same technology has been successfully used in NPP Kozloduy since 1974 and is the most common technology for production of nuclear energy in the plants all over the world.
The aim of the contract we had is that the executor, following the technical documentation, will present an analysis of the current technological possibilities for the new build, which should be with the preferred technology (PWR), and which should be licensed in the country where it is produced. Also, we expect to receive objective information regarding the level of safety, the technical characteristics and the economic efficiency of the new build project, as we will base on it the decision for the construction of new unit at the NPP Kozloduy site.

A feasibility study of such new build at the Kozloduy NPP has already been made, but I would like to stress it was done in previous years. The conclusion from it is that considering the existing infrastructure and the experienced personnel, the safe and successful operation of nuclear reactors VVER since 1974, it is possible to build two new units at the site.

Considering the state of the generation capacities and the prognoses for the energy market, I think the optimal decision for a new nuclear unit at the NPP Kozloduy site would be for a capacity of 1000-1200 MW.
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Lyuben Marinov graduated from the Mechanical Technical High School in Plovdiv in 1998 and is Bachelor in History from the Plovdiv University. He graduated Economic History in 2004 and in the same year went to Seattle, USA, where he studied for 1 year in the Finance master program. After that he returned to Bulgaria and graduated from the “Financial Analysis” master program in the Plovdiv University with a master thesis “Financial analysis of NPP Kozloduy – 2006-2008”. In 2008 he was appointed for an expert in the “Nuclear energy” department of the “Security of Supply” directorate at the Ministry of Economy and Energy. He was responsible for observation analyses of energy resources markets. He participated in the budget procedure for the Ministry and in the preparation of the Strategy for Management of Spent Nuclear Fuel and Nuclear Waste in its economic part, as well in the preparation and evaluation of tender documents for the construction of the National Storage for Nuclear Waste. Also, he was secretary of the fund for decommissioning of nuclear units at the Ministry. He was active participant in the monitoring of the processes for decommissioning and visited the site of Kozloduy many times. Lyuben Marinov also participated in over 10 work meetings of the IAEA regarding human resources development and financial risk management and participated at meetings of IFNEC.