How are Nuclear Power Projects in Emerging Markets' Determined' Before the FEED Stage?

Mr. Lee Kyu Sang - Director of Asia Networks PEMS Co., Ltd.

Decisions Lie in Structure, Not Just Technology:

According to Mr. Lee Kyu Sang – Director of Asia Networks PEMS Co., Ltd, a standard nuclear power project typically undergoes several stages: Concept, Pre-FEED, FEED, EPC, and Operation. In this process, Pre-FEED is not merely a technical preparation step, but the phase that shapes the entire project structure.

At this stage, fundamental choices are made:

• First: Selection of technology and plant configuration.

• Second: Project implementation model.

• Third: Contracting strategy and risk allocation.

• Fourth: Supply chain structure.

• Fifth: Localization orientation.

Once these decisions are "locked," the subsequent stages - including FEED and EPC - are primarily about detailed implementation. This explains why many projects encounter difficulties despite applying advanced technology: The issue lies not in the technique, but in the structure designed from the outset.

Pre-FEED: The Only "Strategic Window"

The key point is that Pre-FEED is almost the only "strategic window" where the investor can:

1. Adjust the project structure at a low cost.

2. Optimize risk allocation, and

3. Design the participation of the domestic ecosystem.

After moving to FEED, the level of flexibility decreases rapidly, while the cost of changes increases exponentially. Structural adjustments at that point often lead to major consequences for the schedule and finances. In other words, a mistake at Pre-FEED is a systemic mistake - and very difficult to correct in later stages.

Localization: From Political Goal to Technical Problem

For emerging markets, localization is often set as a strategic goal. However, in the nuclear field, localization cannot be approached as a "percentage."

According to Mr. Lee Kyu Sang: The essence of localization is building an industrial ecosystem capable of meeting nuclear standards, including:

• First: Manufacturing capacity that meets strict quality standards.

• Second: Quality assurance systems and international certifications.

• Third: The ability to integrate into the global supply chain.

If not designed right from Pre-FEED, localization will become a formal requirement that is difficult to implement or increases project risks.

Real Challenges in Vietnam:

In the context of Vietnam, the industrial ecosystem has a certain foundation, but for nuclear power, there are still significant gaps:

1. Lack of experience in nuclear quality standards.

2. Limitations in manufacturing specialized equipment.

3. The absence of an international-standard supply chain.

More importantly, the challenge lies not only in technical capacity but also in the ability to organize and integrate domestic and international entities.

A Different Approach: Design from the Start

To solve this problem, the effective approach is not "adding localization" in later stages, but designing localization capability right from the start of the project.

This includes:

1. Early identification of potential domestic partners.

2. Building a roadmap for participation by levels.

3. Implementing selective technology transfer.

4. Establishing a coordination mechanism between international contractors and local enterprises.

Crucially, it is necessary to build "execution platforms" strong enough to ensure that transferred capacity can be absorbed and maintained.

Success is Determined from the Starting Point:

From international experience, a clear conclusion can be drawn: The success of nuclear power projects in developing countries is not decided at the construction stage, but in how the project is designed from the very beginning.

A reasonable project structure, combined with a feasible localization strategy and appropriate execution capacity, not only helps control costs and schedules but also creates a foundation for safe and sustainable operation in the long term.

Conversely, if these factors are not correctly established from Pre-FEED, risks will accumulate and manifest in later stages - when adjustments have become difficult and costly./.