Update on Nuclear Energy Projects and Plans in Ukraine Meeting Report
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REPORT Update on Nuclear Energy Projects and Plans in Ukraine Meeting Report [Held via Webinar: May 12, 2021] NOTICE This report was prepared as an account of work sponsored by the Sandia National Laboratories (SNL). Neither Kraft-Contente, LLC, USA Nuclear LLC, nor any of their principles, employees, or consultants make any warranty, expressed or implied, or assume any legal liability or responsibility for the accuracy, completeness or usefulness of any information, apparatus, product, or process disclosed in this report, or represent that its use would not infringe privately-owned rights. REPORT Update on Nuclear Energy Projects and Plans in Ukraine USA Nuclear Report May 12, 2021 Developed and Authored by USA Nuclear for the NNSA’s Office of International Nuclear Security Engineering Copyright © 2021 USA Nuclear, All Rights Reserved Sandia National Laboratories is a multimission laboratory managed and operated by National Technology SAND#2021-7121 R and Engineering Solutions of Sandia LLC, a wholly owned subsidiary of Honeywell International Inc. for the U.S. Department of Energy’s National Nuclear Security Administration under contract DE-NA0003525. 1. Observations Ukraine has developed a civilian nuclear enterprise based on IAEA standards of safety and security. Ukraine wants to expand its nuclear energy sector to further gain energy independence particularly from Russia and as part of Europe’s goal to make its economy sustainable. Ukraine is surrounded by threats to its economy and security. 2. Overview Following the 1986 disastrous accident at Chernobyl, gaining independence following the fall of the former Soviet Union, two revolutions, and on-going Russian intervention, Ukraineᵃ is seeking to expand its use of commercial nuclear energy and to further reduce its dependence on Russia for energy. Nuclear energy in Ukraine has made a significant contribution toward achieving sustainable development and social goals.ᵇ Ukraine is very vulnerable to the effects of climate change1 and nuclear is a cornerstone of the country’s effort to combat the effects. With broad support from the U.S. government, Ukraine is cooperating with the U.S. on fresh nuclear fuel supply, civilian nuclear security, outage optimization, spent fuel storage, and future nuclear technology. And is looking to tap U.S. expertise on plant management, and electric grid operations and expansion. NEIᶜ hosted this virtual event to provide an update on nuclear energy projects and plans in Ukraine. Featured speakers included Yaroslav Demchenkov, Deputy Minister of Energy, Taras Kachka, Deputy Minister – Trade Representative, Petro Kotin, CEO, Energoatom,ᵈ and Ann K. Ganzer, Senior Bureau Official, Bureau of International Security and Nonproliferation, U.S. Dept. of State. Maria Korsnick, NEI CEO, moderated the discussion. About forty individuals attended representing the Ukraine and U.S. governments, and U.S. suppliers. 3. Ukraine and the EU While not a member of the European Union (EU), Ukraine has benefited from significant engagement between the two since the 2014 Ukrainian Revolution, which resulted in the overthrow of the government clearing the way for Ukraine signing an Association Agreement with the EU including a “Deep and Comprehensive Free Trade Area.” Since then, the EU and the Financial Institutionsᵉ have provided more than €16B in grants and loans to support reforms.2 ᵃУкраїна (Ukraina) is the second largest country in Europe covering 233,000 sq. mi. with a population of about 41.5 million. ᵇSuch as poverty reduction, health and well-being, education, decent work and economic growth, innovation, infrastructure, reduced inequities among population segments, sustainable cities and communities. ᶜNuclear Energy Institute (NEI) is the policy organization of the nuclear technologies industry, based in Washington, D.C. ᵈНаціональна атомна енергогенеруюча компанія (Енергоатом) National Nuclear Energy Generating Company (Energoatom), established in 1998, is the state enterprise that operates Ukraine’s nuclear power plants. ᵉEuropean Central Bank, European Central Bank System, Economic and Financial Committee, Euro Group and Economic and Financial Affairs Council Page 3 of 10 Ukraine has embarked on a pilot project known as the Ukraine-European Union Energy Bridge.3 The integration of the Ukraine energy system into the unified energy system of Europe is a key priority for Ukraine energy independence.4 Ukraine shares borders with four members of the EU.ᶠ This will require development of interstate electric network infrastructure to the EU. The Energy Bridge is the first step toward synchronization of the Ukraine transmission system and EU network of system operators. Ukraine adopted a new Law on the Electricity Market in 2017ᵍ that, among other things, introduced non-discriminatory tariff setting, free supplier choice, independent regulation and transparency, and created a guaranteed buyer in the new electricity market.5 This resulted in a significant uptick in distributed renewable generation causing electricity grid instability, such as frequency fluctuations. Ukraine sees using small modular reactors (SMRs) strategically placed along transmission lines for voltage support. Ukraine is committed to future nuclear energy growth but recognizes that the EU countries are divided on the question. Ukraine relies heavily on EU for financial support and market structure and agrees with the goals of the European “green deal.”6 In energy/environment policies, Ukraine is aligned with those European countries that see nuclear energy as a way to achieve those goals. 4. Nuclear Energy in Ukraine Ukraine nuclear power plants produce 51% of its electricity at 15 units on four sites: Khmelnitsky, Rivne, South-Ukraine, and Zaporizhzhya, with a total installed generating capacity of 13,835 MWt.ʰ Two units are under construction at Khmelnitsky. All units are pressurized water reactors.7 As is well known, Chernobylⁱ Unit 4 was the site of the 1986 accident widely considered the worst nuclear disaster in history both in terms of cost and casualties.8 The three unaffected units continued to operate until 2000. 4.1 Looking Forward Energoatom is planning on spending about $6B in capital programs to improve and expand its facilities: complex safety upgrades,9 increasing capacity factors,ʲ,10 life extension,11 central interim spent fuel storage,12 construction of new units at Khmelnytska.13 Additional plans include completing the Tashlyk Pumped-Storage hydropower plant, which is located at South Ukraine Nuclear Power Plant, and developing a solar power plant (Sonechko-1).14 Energoatom is seeking international financial partners on top of internal funding. Khmelnytska 3 & 4 began construction in 1986 and 1987, respectively. With completion at 75% and 28%, construction was halted in 1990. Following a series of decisions, tenders, and proposals beginning in 2008, Ukraine settled on an intergovernmental agreement with Russia to complete the plants, but the annexation of Crimea by Russia in 2014 put pain to that plan. ᶠPoland, Slovakia, Hungary, and Romania ᵍConsistent with the requirements of the European Energy Community to which Ukraine acceded in 2011. ʰ8th largest capacity in the world; 3rd in Europe ⁱChernobyl Nuclear Power Plant (officially the Vladimir Ilyich Ulyanov Lenin Nuclear Power Plant) ʲFrom 62% in 2021 to 77% in 2025, which is the world fleet average for 2019. (See, https://pris.iaea.org/PRIS/WorldStatistics/WorldTrendinAverageLoadFactor.aspx) Page 4 of 10 In 2016, Energoatom signed an agreement with Korea Hydro & Nuclear Power to complete the units. Skoda JSᵏ was signed in 2017 to modify designs, and provide engineering services and many components.7 The plan is to complete construction and place both in service by 2026. The current estimate is $2.6B. In addition, Energoatom is investing about $1.8B, made up of internal funds as authorized by the Cabinet Ministers of Ukraine (₴26.9B)ˡ and a loan from EBRDᵐ and Euratom (€600M), in improving operational safety of all its nuclear plants.ⁿ,14 Plans are to expand nuclear energy to combat climate change, advance energy independence, replace the current reactor fleet as units reach their end-of-life, and to serve an expanding economy. As in many countries, including the U.S., the expectation of much greater market penetration by electric vehicles is altering views on future electricity demand. Ukraine is also considering developing hydrogen energy use, which could increase the use of nuclear.15 Energoatom has several ambitious goals to reach by 2025 that would continue to reduce Ukraine’s dependence on Russia for energy supplies while increasing its reliance on nuclear energy and improving company financial performance: optimize plant operations, improve supplier relationships, seek new suppliers, behave more like a private corporation than a state agency,ᵒ build new nuclear, expand into supply and export businesses, Ukrainian nuclear unit design, create its own “ecosystem,” including energy storage, electric vehicle charging network, hydrogen production, nuclear R&D, and nuclear medicine. 4.2 Small Modular Reactors Since 2019, the Ukrainian Module Consortium (Energoatom, Ukraine’s State Scientific and Technical Center for Nuclear and Radiation Safety, and Holtec) has been working to advance Holtec’s SMR-160 design for deployment in Ukraine. Energoatom announced plans to build six SMR-160 units at Rinve nuclear power station and is considering deploying such plants more widely. 4.3 Nuclear Fuel Supply Essential to any nuclear