Energoatom Dear Friends, Colleagues and Partners

NATIONAL NUCLEAR ENTRGY GENERATING COMPANY

ENERGOATOM DEAR FRIENDS, COLLEAGUES AND PARTNERS,

President of NNEGC “Energoatom” Yuriy Nedashkovskiy

kraine is in the top ten of the states with the developed industry but for Ukraine in whole marked the end of 2010 and nuclear power industry. Four nuclear power plants was extension of the operating life of units 1 and 2 of Rivne Uoperate 15 power units to the total capacity of 13 835 NPP by 20 years. On November 28, 2013 the State Nuclear MW, providing for almost half of the electricity produced in Regulatory Inspectorate of Ukraine (SNRIU) authorized life Ukraine. The nuclear power industry will retain its key role in extension for Unit 1 of South Ukraine NPP. the energy sector of Ukraine in the future. In summer 2011, Today SE NNEGC “Energoatom” is facing an the Ukrainian nuclear power industry joined the European unprecedented challenge of life extension for 9 units within Atomic Forum (FORATOM), enabling, in joined efforts with 6 years, by 2020. It is for the first time, that these programs the European colleagues, protection and promotion of the are sufficiently financed, with all our safety-related activities interests of Ukraine in the European market. in support of life extension being incorporated in the tariff The main task of the Company is the increase of electricity for electricity. At present, the Company is implementing production under continued improvement of the operational life extension activities for South-Ukraine NPP Unit 2, and safety. The Company has seen different times making its Zaporizhzhya NPP Units 1 and 2 simultaneously, thus allowing way through political and economic reforms. However, the Ukraine to keep its nuclear capacities at the existing level. nuclear power industry has not only survived, but also has Moreover, the Company continues its activities within demonstrated sustainable functioning and development. new build projects. “Energoatom” is now reviewing options The years of independence have seen construction and for financing, and is searching for new engineering solutions commissioning of three 1000 MW nuclear power units, and feasibility studies for construction of Units 3 and 4 two pumped storage units at Tashlyk, almost complete of Khmelnytskyi NPP. Other sites are also considered as implementation of K2R4 Safety Upgrades Programme. potential sites for deployment of new power units (particularly, An event outstanding not only for the nuclear power the site of South-Ukraine NPP).

4 EENERGOATOMNERGOATOM 22014014 The Company has approached the leading vendors in Ukrainian nuclear power engineers are facing the task the nuclear new build market. Under primary consideration of mastering, by 2017, the load-follow mode for operation is involvement of the Czech company Skoda that has of nuclear power units, now operated solely under the base production facilities to supply the so-called nuclear island load. This will permit the Company to enter the market of (the primary circuit, reactor, pressurizer etc.). Moreover, bi-lateral contracts, once the national power industry has the Czech scientific and technical organizations have the moved to a new market model. required documentation package for a nuclear installation of The Company is also investigating the possibility of a required type. electricity export from power unit 2 of Khmelnytskyi NPP to Poland and Hungary. The scope of supply might amount to 7 SE NNEGC “Energoatom”, inter alia, is considering other bln.kW-h/year. sites for the construction of new power units, specifically, the We have signed a Memorandum of Understanding with site of South-Ukraine NPP. It is the most suitable site from the our Polish partners and a Non-Disclosure Agreement. The standpoint of utilization of Western technologies, since it is parties now discuss the prospects of extension of the so-called most convenient for deliveries of large-size equipment by sea “Burshtyn Island” and potential operation of one of the power vessels. Moreover, there is no need for additional transmission units of Khmelnytskyi NPP disconnected from the energy lines from South-Ukraine NPP to permit additional power system of Ukraine using two transmission lines, 750 kV each. output, unlike the remaining three sites, which imply a The electricity export will permit the Company to attract significant scope of activities on establishment of transmission significant funds in support of modernization and life extension lines. activities at power units. To improve the investment attractiveness, the SE NNEGC Among other priority investment projects being “Energoatom” has initiated activities on corporatization. implemented by the SE NNEGC “Energoatom” are the Although the Company has sufficient opportunities to attract following: reconstruction of the 750kV outdoor switchgear investments and loan capital, the corporatization will make (OSG) intended for connection of the “RNPP – Kyiv the Company more flexible in its choice of opportunities to Substation” transmission line; establishment of the National expand its activities. Training Center for Maintenance and Management Personnel As for administration, SE NNEGC “Energoatom” has set at Zaporizhzhya NPP; reconstruction of the service water the goal to comply with the highest domestic and international supply system at South-Ukraine NPP, reconstruction of 750 standards with respect to accommodating the interests of its kV OSG of ZNPP. Activities are underway at NPP sites on employees, partners and the state. In our activities we strive construction of solid radioactive waste treatment facilities. The to make sure the interrelations between the employees and Comprehensive Safety Upgrade Program for Nuclear Power contractors are clearly regulated, any acts of corruption and Plants is also under implementation. abuses are impossible during procurements, business-related Safe operation of NPPs is a priority for NNEGC «Ener– activities, cost and management accounting. goatom». Owing to a number of upgrades, safety and Since combatting corruption has become nearly the reliability enhancements at NPPs, as well as to the existing most crucial issue for Ukraine today, in September 2014 operating experience accounting system, the dynamics of the Company made a decision on enforcement of the NPPs' operational events has tended to decrease in the last Compliance Policy, which is a voluntary statement of decade. compliance, by all employees, with legal norms, where The State Enterprise (SE) NNEGC «Energoatom» has been violation can trigger administrative and criminal sanctions. implementing measures to prevent accidents similar to that at Thus we have made a resolute statement that any kind of Fukushima Daichi in Japan. In cooperation with the Ukrainian corruption in the company is unacceptable. All possible state regulatory authority, Energoatom has developed the displays thereof shall be proactively prevented, while prompt Action Plan on targeted extraordinary reassessment of action upon and independent investigation of the alleged safety margins and further safety improvement of Ukrainian cases shall become routine practice. NPP power units. Additional activities on safety upgrading of power units have been developed. Executive reviews of Adoption of the Compliance Policy is merely the initial NPPs' safety and security («stress-tests») involving international step on the path to overarching anticorruption efforts and a experts were held at all Ukrainian nuclear power plants to foundation for further rooting of efficient mechanisms and eventually confirm operational reliability of the NPPs. instruments for eradication of this phenomenon. The management of Energoatom pays significant attention Today, Energoatom is a guarantor of the safe use of to the spent fuel management. In early March 2012 the nuclear assets, an important agent in the market whose Law was enacted on Construction of the Central Spent Fuel significant contribution in economic, social and geopolitical Storage Facility intended for the fuel to be transported from development of Ukraine ensures its energy independence. three Ukrainian NPPs, namely: Rivne, Khmelnitsky and South Ukraine. This will enable our state not only to spare hundreds of millions US dollars avoiding transportation of the spent fuel to Russia, but also to preserve energy resources for the future generations.

EENERGOATOMNERGOATOM 22014014 5 NNEGC «ENERGOATOM»

tate Enterprise «National Nuclear Energy Generating NNEGC «Energoatom» is subordinate to the Ministry Company «Energoatom» was established by Decree of Energy and Coal Industry of Ukraine. The Ministry S#1268 of the Cabinet of Ministers of Ukraine formulates the state policy in the industry field, represents of October 17, 1996. and promotes interests of Ukraine regard-ing nuclear power The main task of the State Enterprise «National Nuclear industry performance in the IAEA and other international Energy Generating Company «Energoatom» is to ensure safe organizations. operation of nuclear power plants, improve energy supply Four nuclear power plants, «Atomremontservice» and to the national economy and population, finalize market «Atomenergomash» are the largest separated entities reforms in the electric power sector and improve nuclear (structural units) of SE NNEGC «Energoatom». The other power plants' performance under conditions of the wholesale separated entities of the Company are: «Scientific and electricity market. NNEGC «Energoatom» is entrusted with Technical Center», «Atomproectengineering», «Donuzlav functions of the operating organization responsible for the Wind Power Plant», «Atomkomplekt», «Warehousing», safety of all Ukrainian NPPs, in line with the Law of Ukraine «Administrative Department» and “Atompribor” Design «On Nuclear Power Use and Radiation Safety». Bureau».

6 EENERGOATOMNERGOATOM 22014014 2012 and 44,4% – in 2013. For the 9 months of 2014 the NPPs’ share in electricity generation in Ukraine increased to 49%, having amounted to almost 60% at some time intervals. The main tasks of Energoatom today is construction of new power capacities and lifetime extension of the existing ones, purchase of fresh and removal of spent nuclear fuel, establishment of the national infrastructure for irradiated fuel management, physical protection of nuclear power facilities, retraining and professional development of the employees, resolution of social issues of the Company's employees etc. Completion of units 3 and 4 of Khmelnitsky NPP is among the top priorities of NNEGC «Energoatom». The Company's experts also work on lifetime extension of Ukrainian power units, construction of the central spent fuel storage facility and on other important issues.

Nuclear power industry is among the leaders of the Ukrainian economy. The industry employs 36 thousand people. For the recent years, the nuclear power plants have been generating almost a half of the country's electricity while having only a quarter of the total installed capacity in Ukraine. Meanwhile, the share of nuclear electricity generation in the Electricity market is persistently high: 43.8 % in 1996, 47.9 % – in 2009, 47,4% – in 2010, 48.2 % – in 2011, 47,1% – in

EENERGOATOMNERGOATOM 22014014 7 NUCLEAR POWER INDUSTRY OF UKRAINE

Rivne NPP Head Office of NNEGC «Energoatom»

Khmelnitsky NPP

Zaporizhzhya NPP South Ukraine NPP Company meets almost 50% of Ukraine’s needs for electricity

power units of NPPs 15 13835 MW 8 EENERGOATOMNERGOATOM 22014014 Type of Installed electric Beginning of Startup of the NPP Unit № reactor capacity (MW) construction unit 1 ВВЕР-1000/320 1000 04.1980 10.12.1984 2 ВВЕР-1000/320 1000 04.1981 22.07.1985 Zaporizhzhya 3 ВВЕР-1000/320 1000 04.1982 10.12.1986 NPP 4 ВВЕР-1000/320 1000 01.1984 18.12.1987 5 ВВЕР-1000/320 1000 07.1985 14.08.1989 6 ВВЕР-1000/320 1000 06.1986 19.10.1995 1 ВВЕР-440/213 420 08.1976 22.12.1980 2 ВВЕР-440/213 415 10.1977 22.12.1981 Rivne NPP 3 ВВЕР-1000/320 1000 02.1981 21.12.1986 4 ВВЕР-1000/320 1000 08.1986 10.10.2004 1 ВВЕР-1000/302 1000 03.1977 31.12.1982 South-Ukraine 2 ВВЕР-1000/338 1000 10.1979 06.01.1985 NPP 3 ВВЕР-1000/320 1000 02.1985 20.09.1989 Khmelnitsky 1 ВВЕР-1000/320 1000 11.1981 22.12.1987 NPP 2 ВВЕР-1000/320 1000 02.1985 07.08.2004 Total 15 13 835

storage pumps of Tashlyk Pumped Storage Power Plant 2 302 MW

Total installed capacity of the SE NNEGC Energoatom’s generation equipment is 14 160.1 MWe hydroelectric units of Oleksandrivska Hudro Power 2 Plant 11,5 MW EENERGOATOMNERGOATOM 22014014 9 ZAPORIZHZHYA NUCLEAR POWER PLANT

Zaporizhzhya NPP is a state-of-the-art high-tech enterprise, a powerful electricity supplier in Ukraine. The plant generates 40-42 billion kWh which accounts for one fifth of the average annual electricity production in Ukraine and for almost 47% of electricity generated by Ukrainian NPPs. ZNPP was the first among Ukrainian nuclear power plants with VVER design reactors to construct an on-site spent fuel dry storage facility (SFDSF). The facility was put into commercial operation on August 10, 2004. The design capacity of the SFDSF is 380 casks intended to store all spent fuel assemblies to be generated within the overall

tart of construction – 1979 Start-up of unit 1 – 1984 Number of power units – 6 Reactor type – VVER- S1000 Total capacity – 6000 MW NPP satellite town – Energodar, Zaporizhzhya region Zaporizhzhya NPP is the largest nuclear power plant not only in Ukraine, but also in Europe. It is located in the steppe zone of Ukraine, on the bank of the Kakhovka water reservoir. The decision on its construction was taken in 1977. 1980 was the start of stepwise construction of the plant power units. In the period from 1984 to 1987 four power units had been put into operation. Unit 5 was started up in 1989 and unit 6 – in 1995.

10 EENERGOATOMNERGOATOM 22014014 plant service life. The SFDSF is the first nuclear facility to have passed all the design review and approval stages required by the national nuclear legislation of Ukraine. ZNPP was the first in the CIS to introduce the Information and Measuring System «Kiltze», intended for continuous radiation monitoring of the nuclear power plant industrial site, the sanitary protection and 30-kilometers radiation control zones. In 2008, as estimated by WANO Moscow Center, ZNPP was recognized as the best among the NPPs affiliated with the Moscow Center for the eleven widely-accepted performance indicators. The expert review mission invited within the EU-IAEA-Ukraine memorandum and intended to evaluate the safety of Ukraine's power units reaffirmed high levels of safety

EENERGOATOMNERGOATOM 22014014 11 RIVNE NUCLEAR POWER PLANT

Start of construction -1973 Start-up of unit 1-1980 Number of power units-4 Reactor type – WER-440 (units 1 and 2) Total capacity – 2835 MW NPP satellite town – Kuznetsovsk, Rivne region

ivne NPP is located іп the West Polissya region, іп the The plant construction started іп 1973. The first two vi¬cinity of Styr river. RNPP is the first power plant іп VVER- 440 power units were put into operation іп 1980 and RUkraine with the VVER-440 design reactors (В-213 1981, and unit 3 with VVER-1000 reactor - іп 1986. Іп 1990 modification). construction of the plant power units was suspended as ruled The plant history dates back as far as 1971, when bу the Ordiпапсе of the Verkhovna Rada of Ukraine «Оп design¬ing of the West-Ukraine NPP started, with the plant Moratorium оп Construction of New NPPs». The construction subsequently renamed Rivne NPP. was resumed іп 1993, with unit 4 put into operation іп October, 2004.

12 EENERGOATOMNERGOATOM 22014014 Since the start-up of unit 4, the annual electricity Regulatory Committee of Ukraine during its session іп produc¬tion has exceeded 17 bіlliоп kWh. Kuznetsovsk adopted а decision оп extending the lifetime of RNPP power units meet today's international Rivne power units 1 and 2 Ьу 20 years. require¬ments and safety standards, while the personnel demonstrates high proficiency and qualification scale. These аге verified during expert and реег reviews bу the International Atomic Energy Agency (ІАЕА) and the World Association of Nuclear Operators (WANO). The European Union has chosen RNPP as а pilot plant for а number of international projects. Rivne NPP operates ап automated radiation monitoring system ASKRO. The continuous automated supervision ргоvides the necessary оп-line information to permit systematic analysis and forecasting. The ASKRO соmрlех, іп terms of quan¬tities, frequency and accuracy of parameter data and characteristics is not опlу unique іп Ukraine but is also опе of the best complexes of this kind іп the world.

EENERGOATOMNERGOATOM 22014014 13 SOUTH UKRAINE NUCLEAR POWER PLANT

Number of power units – 3 Reactor type 1982 -VVER-1000 Total capacity – 3000 MW NPP satellite town – South Ukraine NPP, Mykolayiv region South Ukraine NPP is the core of the South Ukraine power complex that also includes the Tashlyk Hydro Pumped Storage Power Plant and the Olexandrivka Hydro Power Plant on Pivdennyi Buh river. The South Ukraine power complex with its production output supplies the demand for electricity of the southern region of Ukraine with the population of more than 5 million inhabitants, and provides for the decent living environment thereof. The annual contribution of the South Ukraine Nuclear Power In 2012 the plant celebrates its 30th anniversary, Plant to the total electricity production in the country exceeds because the plant history dates back as far as December 10%. Over the period of its existence, the enterprise has 1982, when the first power unit was put into operation. This produced over 500 bln. kW/h of electric power. unit was selected as a pilot unit for preparatory activities SU NPP operates three VVER-1000 power units arranged on long-term reactor operation. On November 28, 2013 in two industrial stages. based on the periodic safety review report the State Nuclear Regulatory Inspectorate of Ukraine authorized life extension of power unit 1. Units 2 and 3 of VVER-1000 reactor type were commissioned in 1985 and 1989, respectively. Today, one of priority tasks the plant is facing is preparation for life extension of unit 2, for which the design service life is expiring on May 12, 2015. To permit extension of the operational life of the second 1000-MW power unit, the nuclear power engineers of South Ukraine NPP will have to complete 85 mandatory activities, including 10 belonging to post-Fukushima activities.

14 EENERGOATOMNERGOATOM 22014014 As estimated by international monitoring organizations, the reliability level of SU NPP power units meets the European safety requirements. In 2009 the South-Ukraine NPP hosted seven missions of the International Atomic Energy Agency, when IAEA experts assessed the operational and design safety of the three power units, reviewed the radioactive waste management process and the decommissioning plan of power units to eventually conclude on their compliance with all international requirements.

TASHLYK HYDRO PUMPED STORAGE POWER PLANT

Utilization of highly capable load-follow capacities of Tashlyk HPSPP improves reliability and stability of the Unified Power System of Ukraine. At present, works are underway to complete construction of the third hydraulic power unit of Tashlyk HPSPP.

onstruction of the hydro pumped storage power plant started in 1981. The first hydraulic Indicator Start-up complex Completed HPSPP Cpower unit was put into operation late in Downstream pond level 2006. THPSPP is intended to accommodate peak (Oleksandrivka water 15,7 m 16,9 m loads in the south-western region of the Unified reservoir) Power System of Ukraine, and to secure safe base load operation of South Ukraine NPP. Maximum pressure 89,5 m 89,5 m For more than 20 years of construction Number of units 2 6 history, the Tashlyk HPSPP design has survived significant modifications. Its current version has Installed capacity: passed all expert reviews envisaged by the turbine mode 302 MW 906 MW Ukrainian legislation. Based on conclusions of pumping mode 433 MW 1494 MW expert reviews, the design was approved by the Cabinet of Ministers of Ukraine. The design-related Operation, hours per day: activities are implemented with due regard to the turbine mode 1,5 hours 2,7 hours environmental legislation. pumping mode 2,3 hours 2,8 hours Annual electricity output 169 mln. kWh (Actual) 507 mln. kWh

EENERGOATOMNERGOATOM 22014014 15 KHMELNITSKY NUCLEAR POWER PLANT

The construction started in 1981, with the first power tart of construction – 1981 Start-up of unit 1 – 1987 unit put into commercial operation in late 1987, and the site Number of power units – 2 Reactor type -VVER-1000 prepared to deploy another three power units. Construction STotal capacity – 2000 MW NPP satellite town – of unit 2 started in 1983 with the plans of grid connection by Netishyn, Khmelnytskyi region the end of 1991. By the time the Moratorium on construction Khmelnitsky Nuclear Power Plant (KhNPP) is located in of new nuclear power plants was effected, the major process the central part of Western Ukraine, on the border of three components had already been installed and personnel had regions, namely: Khmelnitsky, Rivne and Ternopil regions. been trained.

16 EENERGOATOMNERGOATOM 22014014 Construction of Khmelnitsky Unit 2 was resumed in 1993, with its connection to the Unified Energy System of Ukraine falling on August 8, 2004. Since commissioning of Unit 2 of KhNPP the annual electricity production has exceeded 15 billion kWh. During the start-up of unit 2 of Khmelnytskyi NPP, in addition to the existing radiation control and environment monitoring system an automated radiation control system was introduced. Owing to modernization activities, KhNPP unit 2 gained recognition as the best VVER-1000 power unit in Ukraine in terms of its safety level. A series of peer and expert reviews by international, state and independent experts from IAEA, Riskaudit, TACIS, WANO reaffirmed the level of its environmental, nuclear and radiation safety as corresponding to the international standards. Since the start-up of unit 2 of Khmelnytskyi NPP the key focus of NNEGC «Energoatom» has been switched to finalization of construction of units 3 and 4 of KhNPP. The plant site remains the most attractive to deploy extension of nuclear power generating facilities of Ukraine.

EENERGOATOMNERGOATOM 22014014 17 ATOMREMONTSERVIS

he main task of SE Atomremontservis (SE ARS) is to provide complex and non-conventional maintenance and Trepairs at Ukrainian NPPs in a safe an effective manner, including dismantling, repair, reconstruction and upgrading Owing to the comprehensive engineering and of nuclear power plants' equipment. Moreover, SE ARS is technological support for maintenance campaigns the involved in international projects at Chornobyl NPP. overall repair time has been reduced while implementation Comprehensive engineering and technological support of advanced diagnostic systems and technologies improves of maintenance campaigns helps to reduce the overall repair quality of the maintenance work. time while implementation of advanced diagnostic systems At present, SE ARS employs 805 persons and expects to and technologies improves quality of the maintenance work. increase its staff up to 1100 persons.

SE ARS has a training facility to permit personnel retraining and professional development. To ensure technical and information support to structural units of the emergency response system of NNEGC «En– ergoatom», SE ARS incorporates an Off-Site Emergency Response Center. Back in May 2006, SS ARS certified its Quality Assurance System against the requirements of the international ISO 9001:2000 standard. SE ARS confirms through annual TUV SUD audits that its quality management system is compliant with ISO 9001 requirements.

18 EENERGOATOMNERGOATOM 22014014 ARS has the following activity licenses and rights: • for civil works; • for utilization of ionizing radiation sources • for designing of engineering tools intended for physical protection of nuclear facilities, nuclear materials, radioactive wastes and other sources of ionizing radiation. • for installation, adjustment, maintenance and repair of engineering tools intended for physical protection of nuclear facilities, nuclear materials, radioactive wastes and other sources of ionizing radiation. • for designing, installation, maintenance of fire protection facilities. • for activities in the area of reprocessing, storage and disposal of radioactive wastes (designing and construction of facilities, designing and manufacturing of radioactive waste handling equipment) and so on.

EENERGOATOMNERGOATOM 22014014 19 ORGANIZATIONAL CHART OF SE NNEGC ENERGOATOM

SE ATOMREMONTSERVICE

SE ATOMENERGOMASH

SE ATOMCOMPLECT

SE EMERGENCY TECHNICAL CENTER

SE ATOMPROJECTENGINEERING

SE WAREHOUSING

SE ADMINISTRATIVE DEPARTMENT

SE SCIENTIFIC AND TECHNICAL CENTER

REPRESENTATIVE OFFICE IN BRUXELLES

20 EENERGOATOMNERGOATOM 22014014 MAIN TASKS OF SE NNEGC ENERGOATOM

Safe production of electric power Construction of new power capacities and long –term operation of the operating ones Procurement of fresh nuclear fuel and removal of spent fuel Establishing of the National Infrastructure for Radioactive Waste and Spent Fuel Management Physical protection of nuclear industrial facilities Retraining and advanced refresher training of the personnel Resolution of social problems of SE NNEGC ENERGOATOM’s employees

В работе

EENERGOATOMNERGOATOM 22014014 21 OPERATIONAL LIFE EXTENSION

he design lifetime of Ukrainian NPPs is 30 years, and it of Activities on Lifetime Extension of Operating NPP Units, will have expired for all but five nuclear power units by approved by Resolution №263-p of the Cabinet of Ministers T2019. of Ukraine of 29.04.2004. Based on expert reviews of the electricity production in Within the Comprehensive Program, NNEGC Ukraine, should a decision be made on decommissioning «Energoatom» has established organizational, of NPP power units whose design lifetime has expired with methodological and economic basis to permit activities no replacement capacities commissioned by the time of the on operational life extension of power units. Thus, decision, Ukraine can enter the energy crisis. corresponding subdivisions have been established, standards As shown by the international practice, extending design and methodologies have been developed permitting service life of nuclear power plants in compliance with all implementation of the complete set of works, a preliminary radiation and nuclear safety regulations and standards, is one technical and economical analysis of estimated costs has of the most effective solutions to the problems of generating been conducted, and equipment ageing management capacities replacement. programs have been developed and initiated. All activities in There are provisions for lifetime extension of the Ukrainian this domain are conducted with due regard to international nuclear power plants both, in the Energy Strategy of Ukraine experience and IAEA recommendations on design service life for the period until 2030 and in the Comprehensive Programs extension of NPPs.

22 EENERGOATOMNERGOATOM 22014014 Rivne units 1 and 2, South Ukraine unit 1, and Zapor– NPP (design service life expiring on December 23, 2015 izhzhya unit 1 were chosen as pilot units. For RNPP units 1 and February 19, 2016 respectively), and units 3, 4 and 5 of and 2 all necessary stages of life-time extension activities have Zaporizhzhya NPP, unit 1 of Khmelnytskyi NPP, unit 3 of Rivne been finalized, all scheduled upgrades and replacements NPP and unit 3 of South-Ukraine NPP. have been made for equipment whose service life has Since the design service life of South-Ukraine NPP unit expired; and the RPV of Rivne unit 1 has been annealed. 2 and Zaporizhzhya NPP unit 1 expires in 2015, and of The expert review of periodic safety review reports for Rivne Zaporizhzhya NPP unit 2 – in 2016, the major scope of NPP units 1 and 2 and unit 1 of South-Ukraine NPP has modernization activities related to lifetime extension will be concluded that target safety criteria are met for these power performed at all three power units simultaneously. units and are compliant with the standards requirements, Despite the increase of tariff for electricity produced by while the general provisions of PSR reports comply with the NPPs by UAH 0,0474 (up to UAH 0,2782 per kW/h) in April fundamental principles and safety criteria. 1, 2014, which was intended for funding of all expenses Therefore, on December 10, 2010 the SNRCU Board planned for 2014 in support of lifetime extension-related decided on extension of the operation of Rivne units 1 and activities at power units, the Company is now experiencing a 2 for the period until December 2030 and December 2031, shortage of funds due to dollar and euro rate increase. respectively. On November 28, 2013 the Board of the State Moreover, since the start of the year SE NNEGC Nuclear Regulatory Inspectorate of Ukraine made a decision “Energoatom” under-received significant funding due to a on life extension of Unit 1 of South-Ukraine NPP by 10 years. complicated economic situation. Коллективом To ensure stability and reliability of the power system of Ukraine, NNEGC “Energoatom” has to extend operational Since the start of the year SE NNEGC life of 9 power units within 6 years, by 2020. These are “Energoatom” under-received significant primarily power unit 2 of South-Ukraine NPP (design service funding due to a complicated economic life expiring on May 12, 2015), units 1 and 2 of Zaporizhzhya situation

EENERGOATOMNERGOATOM 22014014 23 COMPREHENSIVE (INTEGRATED) PROGRAM OF THE SAFETY IMPROVEMENT OF POWER UNITS OF UKRAINE NUCLEAR POWER PLANTS (C(I)SIP)

The objective of the C(I)SIP implementation is to: After the Fukushima accident, the status of the CISIP was Upgrade the safety level of Ukraine nuclear power units upgraded up to the state level up to the international level Term – 2011-2017 (extended until 2020) Fulfill Ukraine’s commitments to the international Estimated needs for funding of the C(I)SIP (as of organizations (IAEA, European Union and others) 01.01.2015) – UAH 21.1 billion (incl.VAT) Implement the post-Fukushima actions Requirement by the State Nuclear Regulatory Inspectorate Replace the equipment having its lifetime expired, with of Ukraine: the C(I)SIP implementation is a necessary the advanced one According to Resolution No. 1270 of prerequisite for long-term operation (lifetime extension) of 07.12.2011, the C(I)SIP was approved by the Cabinet of nuclear power units Ministers of Ukraine

Complex (Consolidated) safety upgrade program for / IAEA / Ukraine “Safety Assessment of Ukrainian nuclear Ukrainian NPP (further - CCSUP) has been developed for power plants”; further realization of safety enhancement under a long-term bringing safety of all units up to the level that meets state strategy of safety enhancement of NPPs of NNEGC international safety requirements; “Energoatom” and approved by Government Decree № forming a safety scope to implement a long-term public 1270 of December 07, 2011. NPP safety enhancement strategy, developing long-term The CCSUP objective is: investment programs / schedules to improve safety of each solving issues on eliminating discrepancies between the unit; operated NPP designs and the up-to-date national safety implementing measures to prevent accidents similar to that standards and/or lessening these discrepancies’ safety at the “Fukushima -1” NPP. impact by implementing compensatory measures and by implementing IAEA and other international organizations safety enhancement recommendations; performing obligations in front of international organizations (EBRD, Euratom) on realization of the measures of the so-called “safety improvement package”); implementing IAEA recommendations of joint project EC

24 ENERGOATOM 2014 EENERGOATOMNERGOATOM 22014014 25 CENTRALIZED SPENT FUEL DRY STORAGE FACILITY

n accordance with the Joint Convention on the Safety of fuel from ZNPP to Russia is no longer necessary. The design Spent Fuel Management and on the Safety of Radioactive of ZNPP's spent fuel storage facility is based on the foreign IWaste Management ratified by Ukraine on May 20, 2000, technology of «dry»-type spent fuel cask storage. the ultimate responsibility for ensuring the safe spent fuel (SF) Since Ukraine does not have its domestic technology and radwaste (RAW) management shall rest with the State of long-term «dry» storage of spent fuel, in 2003 NNEGC where spent fuel and radioactive waste are generated. «Energoatom» invited an open tender for design and Nowadays, Ukraine transports irradiated fuel to Russia for construction of a central spent fuel storage facility for VVER further reprocessing, and technological conditioning followed reactors (VVER by reprocessing, under condition that radioactive waste from CSFSF), as well as for supply of technology and equipment spent nuclear fuel reprocessing is returned to Ukraine. The for this storage facility. Holtec International, US-based specific cost of services in spent nuclear fuel reprocessing Company, won the tender and signed a contract in late 2005. rises annually and tends to approach the average worldwide According to the feasibility study for CSFSF construction prices. Specifically, the price for spent fuel reprocessing has developed by the Kyiv Design Institute «Energoproekt», the increased almost twice over the last decade. Central Spent Fuel Storage Facility to accommodate the spent At the same time, Ukraine has experience in construction fuel from South Ukraine, Rivne, and Khmelnitsky NPPs was and operation of the interim spent fuel storage facility proposed to be sited in the Chornobyl exclusion zone located on Zaporizhzhya NPP site. Since 2001 this facility has In 2008 public consultations and public hearings were accepted and stored spent fuel assemblies from six power organized for the representatives of local communities and units of ZNPP. NNEGC «Energoatom» enjoys annual saving public organizations of the town of Slavutych, Ivankiv and of ten millions of US dollars because transportation of spent Polissya districts of Kyiv region.

26 EENERGOATOMNERGOATOM 22014014 In 2009 the Cabinet of Ministers of Ukraine approved In 2014 the Cabinet of Ministers of Ukraine authorized the feasibility study for investments in SNFSF construction. In elaboration of plans for land development with respect to February 2012, once all legislative procedures were finalized, two land plots to the total area of 45,2 ha in the Chornobyl the Verkhovna Rada of Ukraine enacted the Law of Ukraine Exclusion Zone for construction of the Centralized Spent on Spent Nuclear Fuel Management regarding Location, Fuel Dry Storage Facility (CSFSF) in accordance with the Design and Construction of a Central Storage Facility for Law of Ukraine “On spent fuel management and on siting, Spent Fuel from VVER-type Reactors of the National Nuclear designing and construction of the centralized storage facility Power Plants. for spent fuel from VVER reactors of Ukrainian nuclear power The projected storage facility will be intended exclusively plants”. The ordinance also implies a permit to SE NNEGC for spent nuclear fuel from Ukrainian NPPs. The total capacity “Energoatom” for elaboration of the land planning and of the storage will be more than 16 000 spent fuel assemblies. development project for construction of the CSFSF that would The CSFSF is expected to be put into operation in three years receive spent VVER fuel from domestic nuclear power plants. after the start of construction. The CSFSF permits storage of Construction of the start-up complex is scheduled to be the spent fuel assemblies for at least 100 years. finalized at the end of 2017. The sanitary protection area of the storage facility and Construction of the CSFSF will permit Ukraine to its radiation control area, as defined in the feasibility study, significantly reduce costs for spent fuel management. will not exceed 100 m and 1000 m, respectively. These areas Due to delays in CSFSF construction the Company had to entirely belong to the exclusion zone (the most radioactively look for an alternative solution for spent fuel processing and contaminated area affected by the Chornobyl disaster), storage. Since 2012 we have been negotiating with AREVA. which prevents any impact of the CSFSF on the public, since In 2014 we signed a Conceptual Study to have AREVA the area will remain uninhabited for a long time. Both the conduct an investigation and decide on its capability to feasibility study and the CSFSF design provides substantiation process our fuel at its facilities. разработает проект возмож- of the storage safety. It is to be secured by the double barrier ности принятия нашего топлива на переработку(?????). for confining of radioactive materials in a special container Among the advantages of cooperation with AREVA is the that itself will be enclosed in a special protective cask meeting possibility to receive not only radioactive waste from all national radiation safety requirements throughout all reprocessing but also valuable products; and the possibility to stages of the spent fuel management process. fabricate MOX-fuel for Ukraine or sell such fuel to other customers – to the benefit of our country.

EENERGOATOMNERGOATOM 22014014 27 ИНФОГРАФИКУ ПРИШЛЕМ

28 EENERGOATOMNERGOATOM 22014014 EENERGOATOMNERGOATOM 22014014 29 Head Office of NNEGC «Energoatom» Press Service 3 Vetrova Street, Kyiv 01032 Ukraine Phone/fax: (+380 44) 277 7883 E-mail: [email protected] www.energoatom.kiev.ua Energoatom Representative Office in Brussels Avenue de Tervuren 429 B1150 Brussels +322762467 SE «Zaporizhzhya NPP» Information Center Energodar, Zaporizhzya Region, 71504 Phone: (+380 6139) 62 181 Phone/fax: (+380 6139) 62 127 answering machine: (+380 6139) 56 802 E-mail : [email protected] www.npp.zp.ua SE «Rivne NPP» Press-center Kuznetsovsk, Rivne Region 34400 Phone: (+38 03636) 64 243; (+38 03636) 64 118 Phone/fax: (+38 03636) 35 015 answering machine: (+38 03636) 64 864 E-mail: [email protected] www.rnpp.rv.ua SE «South Ukraine NPP» Mass Media and Public Relations Department Yuzhnoukrainsk, Mykolaiyv region 55000 Phone/fax: (+380 5136) 56 444 answering machine: (+38 05136) 2-29-93 E– mail: [email protected] www.sunpp.mk.ua SE «Khmelnitsky NPP» Information Center Netishyn, Khmelnitsky Region 30100 Phone: (+380 3842) 63 713 Phone/fax: (+380 3842) 40 546; (+380 3842) 63 790 answering machine: (+380 3842) 34 088 E-mail: [email protected] www.xaec.org.ua SE «Atomproectengineering» Center of Information Policy and Public Liaison Center 6 Gaydara Strreet, Kyiv 01033 Phone/fax: (+38 044) 201 0903 E-mail: [email protected] SE «Atomenergomash» Marketing Department 52 Promyslova str. Energodar, Zaporizhzhya region 71503 Phone/fax: (+38 06139) 64 789 E-mail: [email protected]

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