Energoatom’s investment projects shall ensure safe and reliable operation of NPPs, extend the service life of power units, and create conditions to ensure the nation’s energy independence.
The Company is implementing 12 key investment projects with the estimated value of UAH 165 billion. In addition, Energoatom allocates €600 million of EBRD and Euratom loans to the Complex (Consolidated) Safety Upgrade Programme of Power Units of Ukrainian NPPs.
In 2019, the Company continued the implementation of a strategically important project, Construction of Central Spent Fuel Storage Facility. During the reporting period, we completed a significant scope of works. Overseas Private Investment Corporation highly appreciated the progress and pace of the Facility’s construction.
The Complex (Consolidated) Safety Upgrade Programme of Power Units of Ukrainian NPPs is one of the most important investment projects. By 1 January 2020, 929 out of 1,295 measures had been completed.
Energoatom continued to build a modern radioactive waste management system at NPPs, which is a prerequisite for extension of the service life of power units. Complex lines for solid radioactive waste treatment are already in place at Rivne NPP and Zaporizhzhya NPP. In 2019, Energoatom bought core equipment for the complex lines at Khmelnytska NPP to be built by 2022. Design works are underway at South- Ukraine NPP.
Cooperation of Energoatom with international financial institutions and leading global companies contributes greatly to attracting investments and receiving R&D, technical and financial assistance. Thus European Investment Bank added the project for completion of Tashlyk Hydroelectric Pumped Storage Power Plant to its credit portfolio in 2019. International experts began project evaluation.
It should be noted that since July 1, 2019, when Ukraine launched the new model of the electricity market, Energoatom has been facing another challenge — insufficient financing for development programmes and new build.
Fulfilling our public service obligations, we fall short on the funds for the supplied electricity sold at a reduced price (for comparison: the TPP rates are 3.3 times higher than those of NPPs). Therefore, it was difficult to finance the investment projects. In 2019, however, our capital investments reached an unprecedented level of UAH 14.67 billion, up by 2.93 billion year on year.
During 2020, the Company plans to continue implementing priority investment projects that will contribute to the achievement of Ukraine’s energy independence and ensure the stability of Ukraine’s grid in general.
TETIANA AMOSOVA,
Director for Investment and Future Growth, Energoatom
Nuclear energy is one of the most sustainable and safe ways to generate electricity. Being the biggest electricity producer in Ukraine and recognising the importance of nuclear energy development, Energoatom takes a responsible and thorough approach to planning long-term investment projects that can potentially ensure stable operation of the nuclear energy sector. The Company invests to develop production, extend the service life of power units, increase safety, and reduce environmental footprint.
Energoatom makes investments in accordance with its short-term and medium-term plans, in particular:
Laws, as well as the government programmes and resolutions prioritise implementation of the following key projects of Energoatom:
Along with these areas, Energoatom develops and implements other major construction projects, primarily new build or construction of replacement capacities, and projects to increase electricity production and supply without the construction of new generating facilities. All the projects are developed and approved in accordance with the current legal framework.
The Directorate for Investments and Future Growth is responsible for the investment management at Energoatom. Its Director reports directly to a Vice President responsible for economic, financial and property relations of the Company. The Directorate has two departments:
NPPs have capital construction units subordinated to deputy CEOs for capital construction. Other subdivisions have units or designated specialists responsible for the capital investment management and record keeping.
The Directorate for Investments and Future Growth consolidates the records of separate subdivisions and directorates, generates overall reports and plans for the Company, and manages projects as a project office.
Headquarters comprising representatives of the Directorate for Investments and Future Growth, capital construction units, the design bureau, and contractor are established for priority investment projects, in particular for the construction of Central Spent Fuel Storage Facility, development projects for South- Ukrainian Electric Power Producing Complex, and complex lines for radioactive waste treatment. HQs meet every month.
In 2019, the list of key priority projects shrank compared with 2018, as three projects were successfully implemented: Building G Training Centre at Zaporizhzhya NPP and complex lines for solid radioactive waste treatment at Zaporizhzhya NPP and Rivne NPP.
In 2019, the Company’s financing of investment projects made UAH 14.67 billion, up by UAH 2.934 billion compared with 2018. Of these, investments of UAH 14.930 billion were actually spent, up by UAH 3.616 billion year on year.
Among the most important investment projects of the reporting period, the construction of the Central Spent Fuel Storage Facility deserves special attention. Its implementation will strengthen Ukraine’s energy independence, as there will be no need to use services of the Russian Federation, where spent fuel is currently taken. In 2019, Energoatom received 89 pieces of equipment out of 99 planned within the first delivery stage under the contract with Holtec International. Manufacturing of the equipment began for the second start-up facility.
In 2019, the Cabinet of Ministers of Ukraine extended the implementation of the Complex (Consolidated) Safety Upgrade Programme of Power Units of Ukrainian NPPs, shifting the deadline from 31 December 2020 to 31 December 2023. As of the end of 2019, 366 measures out of 1,295 planned were still to be completed.
Construction of Tashlyk Hydroelectric Pumped Storage Power Plant continued too. Completion of hydropower unit No. 3 is a priority today.
In 2019, Rivne NPP began implementing a project to build the Technical Centre for Automated Remote Metal Control. The new modern facility will be the only place where all high-tech and unique remote metal control systems will be concentrated, which, in turn, will contribute to better efficiency and productivity of the service staff. The estimated project cost is UAH 177 million covered out of the Company’s own budget.
Zaporizhzhya NPP commissioned the first stage of the gas building, a nitrogen-oxygen plant No. 2.
Nitrogen and oxygen plant No. 2 in the gas building (Stage 1) at Zaporizhzhya NPP
Reconstruction of the service water supply system at South-Ukraine NPP (Stage 1)
Construction of the Central Spent Fuel Storage Facility (the first start-up facility)
Reconstruction of a 750 kV outdoor switchgear at Zaporizhzhya NPP
Technical Centre for Automated Remote Metal Control at Rivne NPP
Electrolysis plant No. 2 in the gas building (Stage 2) at Zaporizhzhya NPP
Reconstruction of the service water supply system at South-Ukraine NPP (overall)
Completion of Tashlyk Hydroelectric Pumped Storage Power Plant; Launch of hydropower unit No. 3
Complex lines for radioactive waste treatment at Khmelnytska NPP
Complex lines for radioactive waste treatment at South-Ukraine NPP
Completion of the Complex (Consolidated) Safety Upgrade Programme of Power Units of Ukrainian NPPs
Energoatom’s cooperation with international financial institutions and global nuclear industry leaders is key to the implementation of investment projects. The purpose of such cooperation is to maintain the competitiveness of the nuclear power generation, attract scientific, technical and financial assistance, raise investments, and adopt international practices in the Company’s projects. In 2019, Energoatom continued to work closely with the International Atomic Energy Agency8, the European Bank for Reconstruction and Development9, the European Commission10, Euratom11, and EUR Group12.
To secure funding for completion of Tashlyk Hydroelectric Pumped Storage Power Plant, the Company is taking action to secure a loan from the European Investment Bank. In 2019, Energoatom received a letter from the EIB proposing an action plan for a project to finance the completion of Tashlyk Hydroelectric Pumped Storage Power Plant. In turn, the Company sent a letter to the EIB and the EBRD requesting the credit funding. Finally, the European Investment Bank included the Completion of Tashlyk Hydroelectric Pumped Storage Power Plant into its current project portfolio.
Following the Fukushima Daiichi accident in 2011, the IAEA and European regulators radically revised the requirements to designs of safe nuclear power plants. A list of initial measures to be accounted for in the design of a nuclear facility has been significantly extended for new and operating NPPs. Strong safety margins have been established for NPP designs. Taking into account the recommendations of the joint project of the European Commission, IAEA, and Ukraine on improving the safety and implementation of post-Fukushima measures at nuclear power plants, Energoatom approved the Complex (Consolidated) Safety Upgrade Programme of Power Units of Ukrainian NPPs.
To implement it, the Company raised the largest loan from European institutions in the history of Ukraine’s energy sector: €600 million from the European Bank for Reconstruction and Development and the European Atomic Energy Community.
2012–2023. In 2019, the Cabinet of Ministers of Ukraine extended the implementation period from 31 December 2020 to 31 December 2023.
Increased safety of power units at Ukrainian NPPs to the highest European standards, full implementation of Ukraine’s international commitments to enhancing the safety of operating NPPs.
The approved amount of funding is UAH 32,271.6 million and €600 million. In 2019, the Company financed capital construction to the amount of UAH 8,536 million, including UAH 3,833 million in own funds of Energoatom. €125.769 million was covered by an EBRD loan and €95.593 million, by a Euratom loan.
Replacement of equipment with modern, more reliable and better facilities. As of 31 December 2019, 929 out of 1,295 measures had been completed.
To pursue the National Strategy for Radioactive Waste Management at Operating NPPs, the Company continues to minimise generation of radioactive waste. A key measure in this domain is to build complex lines for radioactive waste treatment at all NPPs, using state-of-the-art equipment and proven technologies such as incineration, high-pressure compaction, and decontamination. When choosing treatment technologies, Energoatom took into account the international practices and recommendations of the IAEA and the European Commission. In 2018, we completed construction works at Zaporizhzhya and Rivne NPPs, launching the complex lines there.
Introduce RAW management technologies to prepare radioactive waste for the long-term storage and burial.
Khmelnytska NPP: 2019-2022.
South-Ukraine NPP: 2021-2024.
The launch of complex lines for radioactive waste treatment at Ukrainian NPPs will help significantly reduce the RAW build-up.
Khmelnytska NPP: From the beginning of the project to 31 December 2019, financing reached UAH 282.7 million (UAH 265.8 million in 2019), with UAH 20.6 million actually spent (UAH 12.9 million in 2019).
South-Ukraine NPP: From the beginning of the project to 31 December 2019, financing amounted to UAH 40.2 million (UAH 17.4 million in 2019), with UAH 42.7 million actually spent (UAH 30.2 million in 2019). Fixed assets worth UAH 25.2 million were put into operation, including a RAW certification kit purchased in 2018 as part of Stage 1 of the project.
Khmelnytska NPP: The plant effectively cooperated with suppliers of the equipment with a long production cycle (the lion’s share of tenders with subsequent conclusion of contracts took place during 2018) to obtain and, if necessary, specify the initial data needed to develop working documentation for the project. Construction works are planned for 2020-2022. Selection of a contractor is underway.
South-Ukraine NPP: The project will be implemented in 2021-2024.
Khmelnytska NPP:
South-Ukraine NPP:
Implementation will significantly strengthen Ukraine’s energy security by depriving the Ukrainian NPPs of their dependence on the Russian Federation in term of the management of spent nuclear fuel.
Energoatom is the only company in the world that has been able to diversify its nuclear fuel supplies for Ukrainian NPPs that operated Russia-made VVER reactors.
Under a contract with the technology developer and equipment manufacturer, Holtec International, special spent fuel equipment and storage systems are being supplied to Central Spent Fuel Storage Facility. It will include 15 start-up facilities, with the first to be commissioned in 2020. This will enable operation of the storage. In the future, its capacity will gradually increase to the design volumes. The capacity of the Central Spent Fuel Storage Facility is 458 HI-STORM canisters that can store up to 16,529 spent fuel assemblies. The project will store only the spent fuel of Rivne, Khmelnytska and South-Ukraine NPPs and will not store any other, including foreign spent fuel.
2020 — Commissioning of the first start-up facility.
Implementation of the Central Spent Fuel Storage Facility project will:
The total estimated cost of construction amounts to UAH 37.22 billion, of which UAH 4.76 billion is needed to construct and commission the first start-up facility. The CSFSF project cost is set out in design documentation approved by Resolution No. 380-p issued by the Cabinet of Ministers of Ukraine on 7 June 2017. The sources of financing are the revenues generated from electricity sales and US$ 250 million borrowed from the Central Storage Safety Project Trust.
Today South-Ukraine Electric Power Producing Complex includes South-Ukraine NPP (three VVER-1000 reactors with a total capacity of 3010 MW), Tashlyk Hydroelectric Pumped Storage Power Plant (two hydropower units of 330 MW and another four units under construction), and Olexandrivska Hydro Power Plant (two hydropower units of 11.5 MW each).
To ensure reliable, sustainable, and efficient operation of the United Energy Systems of Ukraine, Hydropower Development Program 2026 (approved by the resolution of the Cabinet of Ministers No. 552-r dated 13 July 2016) suggests construction of additional load-following capacities. In particular, it entails the completion of construction of HPPs and PSPs.
Currently, Energoatom is implementing the project “Completion of Tashlyk Hydroelectric Pumped Storage Power Plant”. In August 2021, Stage 2 (hydropower unit No. 3) is to be commissioned. Negotiations are underway to raise funds from international financial institutions to implement the project.
Reconstructing the service water supply system at South-Ukraine NPP covers three projects: construction of five spray pools, the installation of a turning vane (deflector) in Tashlyk Reservoir, as well as the construction of facilities to fill and recharge a cooling reservoir.
Lift restrictions on electricity generation by South-Ukraine NPP in summer. The restrictions have been imposed because of the high temperature of water in cooling systems caused by insufficient cooling of Tashlyk Reservoir in summer. As a result, the project will help increase the annual electricity production by 3-15%.
2005−2021 (start-up facilities No. 1 – No. 3 in 2020, start-up facility No. 4 in 2021).
The average annual electricity generation will grow by 700 million kWh without additional generating capacity.
A total estimated cost is UAH 3,448.9 million. The funds are earmarked in Energoatom’s electricity supply tariff.
In 2019, the following equipment was supplied: soft starters (by Termomeccanica Pompe, Italy), pumps (by Sumy-based plant NasosEnergo- Mash, Ukraine), and an overhead travelling crane (by Kyiv-based PTO Plant, Ukraine). A part of electrical equipment was also supplied under the contract (this equipment will be fully received in 2020).
Highlights 2019:
Works on the main pipelines are also underway, while the purchase of water treatment equipment was postponed to 2020.
Complete the construction works of Stage 1 (spray pools No. 1 and 2, additional water pumping station, and Bryzkalna spray substation) and put the facilities into trial operation.
Tashlyk Hydroelectric Pumped Storage Power Plant is a part of South-Ukraine Electricity Power Producing Complex. It is Ukraine’s only company that operates both base load capacities (nuclear power) and load following capacities (hydropower and pumped storage). The plant is designed to regulate peak loads (in evenings and mornings) in the southwestern part of the United Energy Systems of Ukraine.
2005–2025
Reliable operation of Ukraine’s grid: eliminate the shortage of load following capacities and create the operating reserve for peak power consumption and emergencies for South-Ukraine NPP.
An adjusted project cost is UAH 14.25 billion (UAH 3.83 billion is the estimated cost of Stage 2). The funds are earmarked in Energoatom’s electricity supply tariff, with plans to raise additional funds from international financial institutions.
