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Impact of Nuclear Industry on the Development Of ANALYTICAL REPORT IMPACT OF NUCLEAR INDUSTRY ON THE DEVELOPMENT OF UKRAINE20201 IMPACT OF NUCLEAR INDUSTRY ON THE DEVELOPMENT OF UKRAINE 2 ANALYTICAL REPORT IMPACT OF NUCLEAR INDUSTRY ON THE DEVELOPMENT OF UKRAINE 3 TABLE OF CONTENT Introduction 4 Research methodology 11 Economic impact of the nuclear industry on the development of Ukraine 18 Social impact 26 Environmental impact of nuclear energy 30 Nuclear industry impact on the Sustainable Development Goals 38 Appendices - Tables of indicators 43 4 ANALYTICAL REPORT IMPACT OF NUCLEAR INDUSTRY ON THE DEVELOPMENT OF UKRAINE 5 Keeping the current share of nuclear generation generation exceeded 50% in the country’s energy INTRODUCTION combined with a gradual deployment of renewable mix and achieved even 65% in certain periods. energy sources is the most optimal and balanced In 2019, National Nuclear Energy Generating solution. It will facilitate the fastest transition to Company (NNEGC) «Energoatom» generated a low-carbon economy, which will help not only 83 billion kWh of electricity that was more than Ukrainian Nuclear Society, one of the largest development a new energy strategy of Ukraine. to mitigate climate changes but also to achieve half of its total consumption in Ukraine. Secure entities in the Ukrainian nuclear industry, has The primary goal is to decrease the amount of other sustainable development goals, providing performance of the nuclear industry became the conducted a study on the impact of the nuclear greenhouse gas (GG) emissions so as to ensure access for all consumers to affordable, reliable, primary factor for stable operation of the unified power complex on the development of Ukraine. the transition to a climate neutral economy of sustainable and modern energy sources, decent Ukrainian power system and the absence of The purpose of the study was to perform a Ukraine in 2070 in a socially acceptable way. work, jobs and economic growth, innovations mass blackouts. Besides, execution of its social comprehensive assessment of the activities of and infrastructure development, sustainable function by Energoatom, operator of Ukrainian the companies involved in the Ukrainian nuclear To achieve this goal in the power generation development of cities and communities. nuclear power plants, by supplying electricity at industry and their overall impact on economic sector it is proposed to decommission all coal- low fixed price 57 kopecks/kWh to meet people’s development, social area and the environment fired power plants by 2050, increase the share of In fact, nuclear power and nuclear power complex demand (Public Special Duties) allowed Ukrainian of our country. The first report was prepared renewables up to 70%, and decrease the nuclear are the most important components of economic, consumers not to suffer from significant growth of jointly with Ukrainian Nuclear Forum Association share, the largest source of low-carbon cheap energy and environmental security of our country. the electricity bills. and presented in 2019. The methodology for the energy in Ukraine, down to 20% to 25%.It should During the last 5 years the share of nuclear research was developed by UNF Association with be noted that the current amount of greenhouse the support of UkrNS. gases emitted in Ukraine is lower than that specified under the Paris Agreement. This is primarily due to In January 2020, the Ministry of Energy and a large share of nuclear generation that does not Environmental Protection of Ukraine presented the release harmful emissions into the atmosphere Concept of «Green» Energy Transition of Ukraine (for further details see Chapter 5 Environmental until 2050, which should become the basis for Indicators of Nuclear Industry). 6 ANALYTICAL REPORT IMPACT OF NUCLEAR INDUSTRY ON THE DEVELOPMENT OF UKRAINE 7 It should be noted that a discriminatory low tariff At the same time, the study shows that the highest Nuclear Power Sector» developed jointly by When comparing these data with the for generated electricity was valid for Ukrainian contribution of Ukrainian nuclear power is made the Nuclear Energy Agency at Organization for corresponding items of the Ukraine national NPPs for many years until July 1, 2019, when a new in the economy. Moreover, the financial stability Economic Cooperation and Development (OECD/ budget, it can be claimed that that nuclear power market started operating. The tariff was of the operator of all NPPs ensures continued NEA) and International Atomic Energy Agency. industry makes significant contribution to the established by the National Energy and Utilities activities and development of companies national economy. For example, the net profit of Regulatory Commission and barely covered supplying goods and services to the nuclear According to the study, nuclear power sector the nuclear industry in 2019 was about 4.4 % of the required production expenses of the NPP industry saving dozens of thousands of jobs and and nuclear industry provide 136 thousand jobs the Ukraine real GDP1. operator. It also caused lack of funds to implement paying billions UAH as taxes. at average. The whole production cycle, from investment projects targeted to enhance safety construction of NPP to its decommissioning and and replace obsolete equipment that decreases This research was carried out to assess the above- radioactive waste treatment throughout its entire The amount of paid taxes was almost 6 % of all national budget revenues2. NPP performance. Despite this situation, Ukrainian mentioned indicators of total contribution of operating lifecycle, creates about half a million To compare, the 2020 budget assigns NPPs continue ensuring one of the highest nuclear power in the development of the country, jobs. UAH 64.6 billion to combat COVID-19 records of operational safety performance in the its impact on Ukrainian economy, social aspects acute respiratory disease caused by world, which has been repeatedly confirmed by and the environment. The impact of the nuclear In 2019 the industry’s total net profit was SARS-CoV-2 coronavirus and its after- international peer reviews of the WANO and IAEA industry was, in particular, assessed by direct and UAH 162 billion; UAH 64 billion taxes were paid effects. This amount is comparable with experts. In particular, the first-ever cross-centre indirect economic indicators, such as the number in different budgets; labour costs were about the amount of taxes paid by the nuclear review was carried out by the WANO Paris Centre at of jobs, volume of commodity output, paid taxes, UAH 40 billion; capital investments amounted industry in 2019 (UAH 64.3 billion). RNPP and proved high safety of Ukrainian nuclear gross domestic product (GDP), investments, to UAH 70 billion. Nuclear companies allocate power plants. Besides, to ensure the highest labour costs, social contributions. almost UAH 9 billion for social actions, including safety of NPP operation, Energoatom became unified social security tax, insurance payments and the first power-generating company in Ukraine, The total economic contribution of nuclear costs for rehabilitation treatment of Energoatom’s which certified the management system by three power complex was calculated using the Total employees and members of their families. international standards EN ISO 9001:2008; EN Value methodology and a modern methodology ISO 14001:2004; BS OHSAS 18001:2007. on «Measuring Employment Generated by the 1 State Statistics Service of Ukraine - http://www.ukrstat.gov.ua/ 2 State Treasure Service of Ukraine - https://www.treasury.gov.ua/ua/file-storage/richnij-zvit-pro-vikonannya-derzhavnogo-byudzhetu-ukrayini-za-2019-rik 8 ANALYTICAL REPORT IMPACT OF NUCLEAR INDUSTRY ON THE DEVELOPMENT OF UKRAINE 9 SDG №1 SDG №2 The nuclear industry is not only among the No. 7 (Clean and Affordable Energy) and No.13 and Storage (CCS) technologies at thermal and SDG № most important components of the Ukrainian (Combating Climate Change). High results combined heat and power plants. Owing to low SDG №4 Index score of 3 economy, it promotes sustainable development achieved by Ukraine in attaining these goals greenhouse gas emissions and large share in Ukraine of the society in the long run in its all social and SDG №5 are confirmed by the Sustainable Development the national power generation, nuclear power environmental aspects that form the basis for Report updated and published annually4. dominates Ukrainian power sector in terms of 72,8 SDG № UN Sustainable Development Goals (SDG). 6 prevention of man-induced impact on climate By Decree of the President of Ukraine On the SDG № Implementation of the best global NPP operating change. In 2019, NNEGC «Energoatom», the Sustainable Development Goals of Ukraine until 7 experience and application of state-of-the-art Ukrainian NPP operator, entered the top five of 2030, Ref. No. 722 as of 30.09.20193, our country and environmentally-friendly technologies yields the rating «Top Green Power Generators: Carbon- SDG №8 accepted Global Sustainable Development Goals positive results, which makes operating Ukrainian Free Generation Capacity». The rating of 20 largest proclaimed by the UN General Assembly. The SDG №9 100 0 NPPs a model of safe, high-tech, and reliable power-generating companies in the world was aim of achieving the above goals is ensuring the power generation. prepared by international information-analytical 0 5 balanced economic, social and environmental SDG №1 agency Energy Intelligence Group under EI New sustainable development of Ukraine. The research Ukrainian
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