Malaysia’s Nuclear

Stakeholder
Lecture 3
Overview of lecture 3 – Malaysia’s
Nuclear Stakeholders

1. International Atomic Energy Agency (IAEA)

2. History of NPP development in Malaysia
3. Atomic Energy Licensing Board (AELB)
4. Malaysia Nuclear Power Coorperation (MNPC)
5. Malaysia NUCLEAR ENERGY PROGRAM IMPLEMENTATION ORGANIZATION (NEPIO)
1.3.1. International Atomic Energy
Agency (IAEA)
International Atomic Energy Agency
(IAEA)

4
The "Atoms for Peace" Agency

The IAEA is the world's center of cooperation in the nuclear

field. It was set up as the world´s "Atoms for Peace" organization
in 1957 within the United Nations family. The Agency works with
its Member States and multiple partners worldwide to promote
safe, secure and peaceful nuclear technologies.

5
 History of the International Atomic
Energy Agency ( IAEA)

 The IAEA was proposed to

set up by the US President.
Dwight Eisenhower in his
famous speech, “Atoms for
Peace” on 8 December 1953
and established in Vienna,
Austria on 29 July 1957 when
the Statute of the IAEA was in
effect.

6
7
8
 The IAEA at a Glance (1)
 144 Member States

 49 years of international service, since 1957

 2307professional and support staff

 67 agreements with intergovernmental organizations

and NGOs

 Around 130 Coordinated Research Projects (CRPs)

performed annually

 About 200 publications and newsletters issued annually

9
 The IAEA at a Glance (2)
 262 million Euro regular budget for 2006, supplemented
by extra-budgetary contributions in 2006 amount to 29
million Euro.
 $77.5 million Technical Cooperation Fund, voluntary
contribution in 2006 to supporting T/C projects for 3041
expert and lecturer assignment; 3229 meeting and
workshop participants; 2477 participants in training
courses; and 1697 fellows and visiting scientists.
 Offices :
 Headquarter in Vienna; 2 liaison offices (in New York and
Geneva); and 2 safeguards regional offices (in Tokyo, Japan
and in Toronto, Canada).
 237 safeguards agreements in force in 162 States (and
with Taiwan, China), involving about 2142 safeguards
inspections performed in 2006.
10
- Safeguards costs in 2006 amounted to 92 million Euro in regular
budget and 8.4 million Euro in extra-budgetary resources.
IAEA MANAGEMENT TEAM (1)

DIRECTOR GENERAL
Yukiya Amano

DEPUTY DIRECTOR GENERAL

Janice Dunn Lee
Head, Department of Management

DEPUTY DIRECTOR GENERAL

Daud Mohamad
Head, Department of Nuclear Sciences and Applications
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IAEA MANAGEMENT TEAM (2)
DEPUTY DIRECTOR GENERAL
Kwaku Aning
Head, Department of Technical Cooperaton

DEPUTY DIRECTOR GENERAL

Tero Varjoranta
Head, Department of Safeguards

DEPUTY DIRECTOR GENERAL

Alexander Bychkov
Head, Department of Nuclear Energy

DEPUTY DIRECTOR GENERAL

Denis Flory
Head, Department of Nuclear Safety and Security
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Department of Nuclear Energy

13
Department of Technical
Cooperation

DG

DDG-MT DDG-NA DDG-SG DDG-TC DDG-NE DDG-NS

Dir. Dir. Dir. Dir.

Africa (36) Asia (28) Europe (32) L.A. (21)

SH- SH- SH-

West Asia East Asia+ Pacific Exp. & Training

RCA
Coordinator
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15
 IAEA Regular Programs
 Program Structure
 Major Program (MP)
 Program
 Sub-Program
 Projects
 Activities
 Result Based, Biennial Program
 Objective
 Performance Indicator
 Outcome

• Based on Medium Term Strategy (MTS) since 2001

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17
 Three Pillars

 Promoting Sciences and Technology

 Radioactive Isotopes (RI) applications in food, agriculture, water

 Nuclear power / non-power

 Nuclear fuel cycle

 Nuclear knowledge management

 Technical cooperation

 Promoting Safety and Security

 International safety conventions
 International safety standards / guides
 Radiation protection
 Promoting Safeguards & Verification

 World’s nuclear inspectorate 18

 Verification by inspectors
 IAEA Reports & Reviews

Annual Report
Nuclear Safety Review
Safeguards Implementation Summary
Nuclear Technology Review
Technical Cooperation Report

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4. 1997 – 2009
• Mohamed ElBaradei (EGYPT)
5. 2009 - Present
• Yukiya Amano
(JAPAN)

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Employees & Staff: Strength
Through Diversity

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Players in Malaysia
Main Players of Malaysia NPP

• Tenaga Malaysia Berhad (TNB )

• Atomic Energy Licensing Board (AELB)
• Malaysian Nuclear Agency (Nuklear Malaysia)
• Malaysian Nuclear Power Corporation (MNPC)

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Brief History of Malaysia NPP (1)

 1949: Establishment of CEB (later LLN, TNB)

 1972: Establishment of CRANE (later PUSPATI, MINT,

Nuklear Malaysia)

 1973 – 1980: 1st Attempt

Spearheaded by LLN
Aborted for PETRONAS’s discovery of abundant
gas reserve offshore Terengganu
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Brief History of Malaysia NPP (2)

 1981: Four-fuel diversification policy

Oil
Hydro
Natural gas
Coal

 1981 - 1982: Construction of the ONLY nuclear

research reactor in Malaysia
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Brief History of Malaysia NPP (3)

 1985: Establishment of AELB

 1984 – 1991: 2nd Attempt

Spearheaded by LLN and UTN-JPM
Aborted for Tun Dr M’s decision for nuclear as
the last energy option

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Brief History of Malaysia NPP (3)

 2000: Five-fuel diversification policy (all of the

above + 5% target of RE)

 2001: Establishment of Suruhanjaya Tenaga (EC)

 2008 – present: Third Attempt

Target COD @ 2021
PEMANDU identified Nuclear Energy as one of
12 Entry Point Projects (EPP) in 2020
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To Have Nuclear By 2021, The
Government Must Launch
Today

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 If developed, nuclear would be cost This requires for the government to start today
competitive but it takes 10-11 years to build with the preparatory phase
Comparative cost of energy & CO2 emission indicator
Public ▪ Promote public
Levelised cost of energy, RM sen/kWh acceptance
education
51
44

19 19 21 Int’l ▪ Sign/ratify
governance relevant treaties &
conventions
Coa Nuclea Gas Gas Solar
l r CCGT OCGT (centrally
generate Regulatory ▪ Put in place
d) context detailed
Fastest timeline supported by all stakeholders regulations
Months
Plant Site ▪ Acquire approval
Construction & Acquisition for plant sites
commissioning ▪ Obtain public
44 30 60 134 Vendor procurement support in locality
Pre-project activities
2020 Total
Assumptions: General: WACC 7.6%, 1USD = RM3.2 new jobs:
2,600
Coal: CAPEX USD1530/kWe, plant efficiency 46%, coal cost 5 USD/mmbtu, O&M cost of 6.16USD/MWh, load factor 85%
Gas CCGT: CAPEX USD1000/KWe, plant efficiency 53%, gas price 8 USD/mmbtu, O&M cost of 5USD/MWh load factor 85%
Gas OCGT: CAPEX USD700/KWe, plant efficiency 30%, gas price 8 USD/mmbtu, O&M cost of 5USD/MWh load factor 15%
Solar centrally generated : CAPEX 2812USD/Kw O&M 1% of CAPEX, lifetime: 20 years, hours utilization 1,300/year
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SOURCE: OGE lab; TNB data; IAEA data
 Atomic Energy Licensing Board

Nuclear Regulatory Authority

Ensuring Safety, Security & Safeguarding Peaceful Nuclear Activities

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AELB Headquarters

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 AELB HQ and Branches

North Branch

East Branch

East Malaysia Branch

AELB HQ South Branch

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 Radiation And Nuclear Activities
In Malaysia

 Research Reactor
 Irradiators (Sterilization)
 Industrial Radiography
 Radiation Gauges
 Oil and Gas Industry
 Mineral Processing
 Education and Research
 Traders
 Maintenance

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 Atomic Energy Licensing Board
Governance Framework
Ministry of International
Trade & Industry
• To provide for the
regulation and (ST Controller)
control of atomic
energy technology &
Atomic Energy its trade. Minister of Science, Ministry of Science,
Licensing Act 1984 • For the establishment Technology & Innovation Technology & Innovation
(Act 304) of standards on (Secretary General)
& liability for nuclear
damage. AELB (Board)
Strategic Trade Act • For matters
2010 [1 Chairman + 4 Members]
connected therewith
(Act 708) or related thereto.
Executive AELB Department
Secretary Director General

• Atomic Energy Nuclear Policy, Code &

Licensing Board Sub- Installation Standards
(AELB) was Standing Division Division
standing
established under Safety
Safety
Section 3 of the Act Committee
Regulatory Body Committee Technical Support Licensing
& ST Relevant 304. Division Division
Authority • Ensuring safety,
security and
safeguarding peaceful Enforcement
Nuclear Activities. Administrative
Services Division Division

34
Act 304

35
Proposed Model for Nuclear Regulatory Governance
Non-proliferation
Existing Model New Model

1S
Minister of Science,
Technology & Innovation MOFA MITI

Ministry of Science,
Safety
Technology & Innovation

Safety (Non Security & Strategic

Medical – Trade
Safety delegated power)
Safeguards
2S
AELB (Board) Control
(Medical)
1S
1S AELB (Department)
Executive Director General
DG Health
Secretary
3S
1S

Health & Non-health Licensees Licensees

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 Key Rationale
The Board as a Single Regulatory
Authority for Safety (IAEA requirements)

Powers on Safety of All Activities

Remain Within a Single Nuclear Safety
Authority to Avoid Conflicts of Interest
Where an Authority Self-regulates its
Activities (Violation of IAEA
requirements)

Clear Safety, Security, Safeguards And

Strategic Trade Control Implementation
by a Single Entity 37
 REGULATORY ACTIVITIES (2010-2021)
National and
International Nuclear
Legislation and
Regulations
Assessment Study 2010-
2012 Assessment studies and Implementation
of Strategies and Action Plan 2013-2021

45 international treaties, conventions and

agreements (regulatory instruments) for
consideration by a State

38
 23 November 2010
 Board Approval of Nuclear Regulatory Statement

NUCLEAR REGULATORY STATEMENT

5 Principles
Effective Independence
Openness
Transparency
Efficiency
Reliability

6 Key Strategies
enhancement of an effective legal governmental framework for radiation and nuclear safety, security and
safeguards
effective co-operation and active participation at national and international levels
enhancement of supervision mechanism towards licensees’ compliance to the regulatory requirements
enhancement of effective arrangements for emergency preparedness and response
Building capacity and capability of regulatory infrastructure and human capital.
Protection and assurance of the inalienable rights to develop nuclear technology safely and securely for
peaceful purposes in Malaysia and to foster public confidence in peaceful uses of radiation and nuclear
technology
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Nuclear Regulatory Statement:

An affirmation that the assurance of nuclear safety,

security and safeguards is the highest priority of the
regulatory authority and that such an important role is
performed dutifully to ensure nuclear safety, security and
safeguards to protect the public and the environment.

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Emergency Preparedness and
Response

 The March 11, 2011Fukushima incident-

heightened public concern
 National Radiological Emergency Response
Centre 24 hours daily monitoring
 An important role in public communication and
in handling technical queries
 Coordinates mitigation to ensure impact of
incident does not cause radiological risk to
Malaysia.
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 National Radiation Accident
Plan
Directive 20 of National Security Council
(Prime Minister’s Department) stipulates that
in the event of any radiological and nuclear
incident/accident:
AELB - lead agency
First Responders – Royal Malaysian Police,
Fire & Rescue Department and Medical
Services Department.

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 AELB - National Radiological
Emergency Centre
DATA SEAPORT
AELB HQ
TRANSMISSION TO
AELB HQ

AIRPORT

BORDERS
 Will respond to the detection alarm and environmental
monitoring; preview and interpret data
 Response team
 Search, locate and identify material
ERMS
 Recover and remove material

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 EMERGENCY/MONITORING VEHICLES

 Search and identification monitors

 Air/water monitoring and sampling
 Communication systems

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 Securing Nuclear
Materials

 In co-operation with international partners,

state and local governments and the private
sector
 Installation of Radiation Portal Monitors (RPM) at
major ports- online monitoring system that
enables real data monitoring
 Installation of radiation detection systems at
entry points
 Establishment of AELB Nuclear Security Support
Centre (NSSC)
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 The IAEA & MALAYSIA

• Malaysia joined IAEA in 1969

• Enforcing nuclear safeguards under NPT
• Malaysia signed Comprehensive
Safeguards Agreement in 1972
• Signed Additional Protocol to the CSA
in November, 2005
• Safety standards, security guidelines

46
Malaysia Nuclear Agency (MNA)
Malaysian Nuclear Agency (1)

• The establishment of Malaysian Nuclear Agency (Nuclear Malaysia)

was mooted from idea of the then Malaysia’s Deputy Prime
Minister, Tun Dr. Ismail Dato’ Abdul Rahman, that Malaysia should
play a role in the development of nuclear science and technology
for peaceful purposes.
• The Centre for Application of Nuclear Energy (CRANE) was the
entity to mark the of Malaysia’s nuclear programme, focussing on
manpower development for a nuclear power programme to
provide an option for energy source, following the worldwide oil
crisis of the early 1970’s.
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 • The Cabinet officially approved the
establishment of the Tun Ismail Atomic
Malaysian Nuclear Agency (2)
Research Centre (PUSPATI), under the Ministry
of Science, Technology and the environment
on 19 September 1972.
• The era of nuclear research in Malaysia began
with the historic event signified by the Reaktor
TRIGA PUSPATI reaching its first criticality on 28
June 1982.
• The institute was name Malaysian Institute for
Nuclear Technology Research (MINT) on 10
August 1994.
• To reflect its vision, mission, objectives and
activities in the challenging world, a new
identity was established, and was officially
49
named as
Malaysian Nuclear Agency (3)

50
Malaysian Nuclear Agency PUBLICATIONS

ANNUAL REPORT GENERAL REPORT JOURNAL

51
1.3.4. Malaysia Nuclear Power
Coorperation (MNPC)
Malaysian Nuclear Power Corporation
• The government is studying the possibility of
deploying nuclear energy to meet future demand
and diversify the energy mix for Peninsular
Malaysia.
• To spearhead the initiative, the Malaysia Nuclear
Power Corporation has been formed to lead the
planning based on the current development
timeline of 11 to 12 years, from pre-project to
commissioning.
• Dr Mohd Zamzam bin Jaafar has been appointed
the Chief Executive Officer of this newly
53
established entity.
1.3.5. Malaysia NUCLEAR ENERGY
PROGRAM IMPLEMENTATION
ORGANIZATION (NEPIO)
 Malaysia NUCLEAR ENERGY PROGRAM
IMPLEMENTATION ORGANIZATION (NEPIO) (1)
 On 26th June 2009, the Government decided for nuclear energy to be one of the
fuel options for electricity generation in post 2020, particularly for Peninsular
Malaysia.

CABINET COMMITTEE ON ENERGY

NUCLEAR POWER DEVELOPMENT STEERING COMMITTEE

Ministry of Energy, Green Technology & Water

PROGRAM DEVELOPMENT PROJECT DEVELOPMENT

WORKING COMMITTEE WORKING COMMITTEE
Malaysia Nuclear Agency Tenaga Nasional Bhd. (TNB)

REGULATORY DEVELOPMENT COORDINATION

WORKING COMMITTEE
Atomic Energy Licensing Board (AELB)
& Energy Commission (EC)
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Source: Nuclear Malaysia - TNBR Report, 2009
 Malaysia NEPIO (2)

NUCLEAR POWER DEVELOPMENT

STEERING COMMITTEE

NUCLEAR POWER PROGRAM NUCLEAR POWER PROJECT

WORKING COMMITTEE WORKING COMMITTEE
• Educational Program and Public • Site Identification
Awareness • Nuclear Fuel Procurement Planning
• Human Capital Development • Nuclear Power Plant Conceptual
• Technology Assessment Design (including Project Management
and Quality Assurance)

REGULATORY DEVELOPMENT COORDINATION

WORKING COMMITTEE
• Regulation and Licensing of Electricity Generation
• Regulation and Licensing of Nuclear Power Plant
 Malaysia NEPIO (3) – Malaysia Nuclear Power Corporation (MNPC)

No. Preparatory Activities (2010-2012)

(i) Awareness and Capacity Building

(ii) Comprehensive Feasibility Study:

 Feasibility
 Public Acceptance
 National Industry Preparedness
 Technology Development Plan
 National Human Capital Readiness
 Determination of Nuclear Power Plant Location(s)
(ii) Dissemination of Public Information

57
 IAEA MILESTONE
Nuclear power option
MILESTONE 1
Included within the national MILESTONE 2 MILESTONE 3
Ready to make a
Energy strategy Ready to invite bids Ready to commission and
knowledgeable commitment
for the first NPP Operate the first NPP
To a nuclear programme

Infrastructure development programme Maintenance and continuous

Infrastructure improvement
PHASE 3

PHASE 2
Activities to implement
a first NPP
PHASE 1
Preparatory work for the
Construction of NPP after
A policy decision has
Consideration before a
been taken
Decision to launch a nuclear
power programme
is taken
1st NPP project

Pre-project Project decision making Construction Operation/decommissioning

Feasibility Study Bidding process Commissioning

?10-15 years

Source : IAEA – TECDOC – 1555 Managing the First Nuclear Power Plant Project.
58
 NUCLEAR ROADMAP FOR MALAYSIA
MILESTONE 0 MILESTONE 1 MILESTONE 2 MILESTONE 3
Nuclear power is Ready to include
Ready to make Ready to invite Ready to
considered as a nuclear as realistic
commitment to a bids for the first commission and
possible option national energy
nuclear NPP operate first NPP
strategy option

PHASE 0 PHASE 1 PHASE 2 PHASE 3

Infrastructure development programme

Maintenance and continuous

infrastructure improvement
Activities to
Preparatory
implement first
work for
NPP
construction of
Consideration a NPP after a
s before policy
decision to decision has
Readiness to been taken
launch
include
nuclear power
nuclear as a
program is
national
taken
energy
strategy
option
Pre- Pre- Project Constructi Op
policy project definition on s

Policy Investment Procureme Commissionin

decision feasibility nt process g
study

2009 2013
Investment 2016 2018 2025
analyses
NPP Project Timeline 59
59
Source: TNB,Nuclear Roadmap For Malaysia, 2009
 NUCLEAR POWER WORKING PLAN

Five step plan for the development of the nuclear power

option (based on recommendations in the Energy Master Plan 2010-2030 Study
by the Economic Planning Unit)

Pre-Policy
Pre-Project
Construction of Unit
Project 1
Definition
Operation

Construction of Unit
2
2020 2027

60
 PROPOSED SPV STRUCTURE
B (other
TNB Government Inc EPC
Equity Investment interested parties)

Equity Investment

O&M Agreement PMC Agreement

SPV (Operator) SPV (Developer) PMC
Technical Support

EPC Lenders TNB Authorities TNBF

Financing Agreement Power Purchase Agreement Licence & Fuel Supply

EPC Agreement &
Regulatory Requirement Agreement
Long Term Service
Agreement

Government 61
Guarantee & Insurance Liabilities
Thank You

62