POLAND DELEGATION PARLAYS MDEP MEETING TO

UNCLAS PARIS 001447 FROM USOECD PARIS STATE FOR EUR/ERA STATE FOR ISN/FO/RSTRATFORD NRC FOR OIP/BWITTICK, MDOANE, CROSALES-COOPER, CABRAMS, CMILLER DOE FOR NE/PLYONS, EMCGINNIS, CWELLING, RBOUDREAU E.O. 12958: N/A TAGS: ENRG OTRA TRGY TECH OECD FR SP IO SUBJECT: POLAND DELEGATION PARLAYS MDEP MEETING TO CONVEY INTENTIONS FOR NUCLEAR ENERGY -------------- SUMMARY -------------- ¶1. The Nuclear Energy Agency (NEA) Multinational Design Evaluation Program (MDEP) held a conference in Paris, France on September 10 and 11. MDEP core members had decided to expand their reach and organize a formal exchange with national regulators from MDEP non-member countries, industry representatives and standards development organizations. As a result, the MDEP conference attracted more than 170 attendees from 23 countries and 10 international organizations ? certainly a wider audience than that provided by the core MDEP members. Of particular note, Poland sent a high- level representative to the meeting: Ms. Hanna Trojanowska, Deputy Minister for the Economy and Government?s Plenipotentiary for the Development of Nuclear Power in Poland. The Polish delegation organized briefings, lunch and dinner meetings for Deputy Minister Trojanowska, providing an opportunity for the Deputy Minister to convey Poland?s desire to restart their nuclear energy program, their desired cooperation with the United States in this endeavor, and desired membership to the Nuclear Energy Agency (NEA). Deputy Minister Trojanowska also met with Nuclear Regulatory Commission (NRC) Chairman Jaczko to discuss cooperation between the NRC and the Polish National Atomic Energy Agency. END SUMMARY -------------- BACKGROUND ? POLAND AND NUCLEAR ENERGY -------------- ¶2. Poland does not currently have nuclear power, although they have several active nuclear energy research facilities. In August 2009, a roadmap for nuclear energy was unveiled by Poland ? announcing the steps it will take with the aim of generating nuclear power before 2021. The introduction of nuclear power is part of a plan to reduce exposure to volatility in imported energy sources and reduce dependence on fossil fuels. ¶3. A 2006 feasibility study suggested that 11.5 GWe of nuclear capacity would be optimum for Poland but possibly unaffordable in the medium term, so the figure of 4.5 GWe by 2030 was then targeted. A 2007 draft energy policy proposes 10 MWe of indigenous nuclear capacity by 2030, providing 10 percent of electricity then, and an interim 7.5 percent by ¶2022. ¶4. State-owned Polska Grupa Energetyczna SA (PGE), Poland's largest power group by generating capacity, in January 2009 announced plans to build two nuclear power plants, each with a capacity of 3,000 MWe, one in the north and one in the east of the country. PGE estimates that the cost would be EURS 2500- 3000per kilowatt of nuclear power. The energy security strategy approved by the Polish government in January 2009 aims at one or two nuclear power plants to be built by PGE, the first by 2020. PGE would hold 51 percent of the projects as part of a consortium with foreign partners. A four-stage plan envisages legislation by 2010, site, technology and construction arrangements by 2011-13, technical plans and site works by 2014-15, and construction between 2016-20. ¶5. Poland relies heavily on fossil fuel, specifically coal, as its primary source of energy. Poland has the largest reserves of coal in the EU (14 billion tonnes) ? providing 93 percent of their electricity needs. They have very high emissions of green house gases and will likely have difficulty meeting decreased greenhouse gas emission scenarios for the EU. Poland is a net electricity exporter ? 11 billion kWh in 2006, mostly to Czech Republic and Slovakia. Poland?s own electricity consumption is forecast to grow by 90 percent by 2025, but the EU has placed stringent restrictions on CO2 emissions. About half of the country's gas supply comes from Russia. -------------- THE NEED TO ADJUST THE VARIABLES -------------- ¶6. The equation for decreased carbon emissions is not in their favor: high emission coal plus growing demand plus looming EU restrictions on emissions. ¶7. The Polish cabinet decided early in 2005 that for energy diversification, and to reduce CO2 and sulfur emissions, the country should move immediately to introduce nuclear power, so that an initial plant might be operating soon after 2020. In July 2006 the new Prime Minister reaffirmed the need to build nuclear power plants, and mentioned French technology. -------------- -------------- BACKGROUND ? POLAND AND THE NUCLEAR ENERGY AGENCY -------------- -------------- ¶8. (SBU) Poland has previously shown an interest in joining the (NEA). However, the NEA and a few of its member countries have exhibited some hesitancy with respect to having new members without a substantive nuclear power program (including research programs). There are two reasons behind this hesitancy of NEA, which is a predominantly technical organization. a) NEA wants to ensure that members at the table provide substantive input ? and substantive input for a technical agency requires experience and expertise that would come from an operational program. b) Governments change with elections. A nuclear-issues friendly government of today could be nuclear energy-opposed after the next election. The change might not be so dramatic in a country that currently relies on nuclear energy ? but in a country currently without nuclear power on the grid ? such a policy change might leave no choice for the member state other than to send naysayer delegates to the meetings. This would be disruptive to strategic planning for any organization. ¶9. (SBU) Poland expressed interest in joining the NEA in 1999. At that time the U.S., Japan and UK decided they wanted (as NEA member states) substantive nuclear energy-users that could bring something to the table. They essentially blocked Poland from joining by never reaching a final decision. ¶10. NEA suggested to Poland that in an effort to forge a closer relationship to NEA and member states, that they join some of the technical committees to "prove" their interest and competency over time. Poland followed this advice and has been very active. In 2007 they joined the Radioactive Waste Management Committee and the Nuclear Science Committee (NSC) and are active in two NSC working parties. Poland?s contributions are very welcome. ¶11. Poland?s interest in NEA membership is due to their belief that this will be one way to help guide them along their path to developing the infrastructure to support a domestic nuclear power program and to help them win public confidence. ¶12. Poland is not new to the Organization for Economic Cooperation and Development (OECD) community. They have been a member of the OECD since 1996. In 2008, Poland joined the International Energy Agency (IEA),a sister agency to the NEA - specializing in coal, oil, gas, renewable and emergency response. Poland is also a member of the U.S. Global Nuclear Energy Partnership. -------------- MEETING WITH NRC CHAIRMAN JACZKO -------------- ¶13. The NRC Chairman and delegation met with Deputy Minister Trojanowska; Jan Woroniecki, Poland?s Ambassador to the OECD; and Maciej Jurkowski, Vice President, National Atomic Energy Agency (PAA) on September 10, 2009 while in Paris, France. The U.S. delegation consisted of Chairman Jaczko; Margaret Doane, Director of International Programs (OIP); Angela Coggins, Policy Advisor; and Brian Wittick, International Relations Officer. ¶14. During the meeting Ms. Trojanowska said that she is responsible for preparing Poland to launch their nuclear power program. ¶15. Poland?s National Atomic Energy Agency (PAA) is responsible for developing the safety authority and regulatory framework. The Ministry of Economy is responsible for the promotional aspect of the nuclear program. ¶16. Ms. Trojanowska said one of her big concerns is the large generation gap between when nuclear power was last pursued and present day. ¶17. Ms. Trojanowska expressed a strong desire to continue cooperation efforts with the U.S. and in particular between the NRC and PAA. Chairman Jaczko provided that he also desired to continue, and further develop our cooperative relationship with Poland. ¶18. Mr. Jurkowski stated they have reviewed the draft agreement between regulatory agencies that was provided to the Polish Embassy in DC earlier this spring. They have only to insert the correct name of their regulator to proceed with the agreement. (Side note: The U.S. will also need to have the agreement translated to Polish; if opportunity presents there could possibly be a signing by the end of year, or more likely in conjunction with the Regulatory Information Conference (RIC) next spring). Chairman Jaczko provided that he would like to finalize the agreement, and NRC OIP staff would work with PAA to do so. Mr. Jurkowski said the Polish Minister has discussed the agreement with our Secretary of Energy when they met. Ms. Trojanowska stated that they had no comments on the agreement and emphasized the agreement should be between regulators. ¶19. Mr. Jurkowski stated that they have a nuclear law from 2000 (last nuclear law was 1896) they would be using as the basis to proceed with their new program. ¶20. Ms Trojanowska indicated that Poland desires to join the Nuclear Energy Agency (NEA),and that they had applied 10 years ago for membership, but it did not come to fruition. Poland believes they can be a contributor to the Nuclear Energy Agency?s programs. -------------- NEA Steering Committee -------------- ¶21. The NEA Steering Committee (SC) meets this October 29th and 30th in Paris. Poland is listed on the agenda (?Participation of Poland in NEA Committees and Working Parties?) and member states will be able to weigh in on whether they consider Poland?s participation has been valuable. Poland is likely, in the not-too-distant future, to formally express interest in joining the NEA. ¶22. During the Deputy Minister?s brief stay in Paris, Poland hosted several other events to highlight their intent to develop a nuclear power program and also their interest in joining the NEA. KORNBLUH