The estimated energy resources are shown in Table 3. The historical data on energy supply and demand are given in Table 4.

TABLE 3. ESTIMATED ENERGY RESERVES

* eg. Mtoe, Btu, Mt,TWh.

(*) Sources: 20th WEC Survey of Energy Resources, 2004 and Uranium 2005: Resources, Production and Demand ("Red Book")

(1) Coal including Lignite: proven recoverable reserves, the tonnage within the proven amount in place that can be further recovered under present and expected local economic conditions with using existing available technology

(2) Crude oil and natural gas liquids (Oil Shale, Natural Bitumen and Extra-Heavy Oil are not included): proven recoverable reserves, the quantity within the proven amount in place that can be further recovered under present and expected local economic conditions with using existing available technology

(3) Natural gas: proven recoverable reserves, the volume within the proven amount in place that can be further recovered under present and expected local economic conditions with using existing available technology

(4) Reasonably Assured Resources (RAR) under < USD 130/kgU

(5) Hydropower: technically exploitable capability, the amount of the gross theoretical capability that can be exploited within the limits of current technology

TABLE 4. ENERGY STATISTICS

* Latest available data

** Energy consumption = Primary energy consumption + Net import (Import - Export) of secondary energy.

*** Solid fuels include coal, lignite

The energy policy of Ukraine and its top priorities are established in the “Energy Strategy of Ukraine for the period until 2030” (Energy Strategy). This document, approved by the Cabinet of Ministers on 24 July 2013 (#1071-r), sets the following objectives:

• Setting-up the conditions for reliable and proper satisfaction of the demand for energy products at the lowest total costs that also has to be economically justified;

• Improving the energy security of the country;

• Enhancing the effectiveness of consumption and use of energy products;

• Reducing the human impacts on the environment and securing the public protection in the area of industrial safety of the FEC (Fuel and Energy Complex).

Guided by these objectives, the main tasks and areas of implementation of the Energy Strategy of Ukraine are as follows:

1. Formation of an integral and effective system of management and regulation in the Fuel and Energy Sector, fostering of competitive relations in the energy resources marketplace;

2. Gradual liberalization and development of competitive relations in the energy resources markets and the related services markets;

3. Creation of the preconditions for significant reduction of energy consumption of the economy by incorporating new technologies, advanced standards, innovative systems of monitoring, control and accounting, transportation and consumption of energy products, and development of market-driven tools to incentivize the energy saving;

4. Increase in output and production of domestic energy resources having regard to the economics of mining, along with the increase in volumes of electricity and energy products resulted from renewable and non-conventional energy sources;

5. Diversification of external sources of energy products supply;

6. Achieving a proper balance of the economically justified pricing policy for energy products that has to ensure reimbursement of costs of their production and delivery to end-consumers, as well as establishing of appropriate conditions for reliable functioning and development of the FEC’s enterprises;

7. Setting of the conditions for attracting private investments, new innovative technologies and state-of-the-art best operating practices;

8. Legal and regulatory support for implementation of the FEC development objectives being in line with the national legal framework, numerous commitments set forth in the international agreements and the European Energy Laws.

According to the Energy Strategy of Ukraine for the period until 2030 (the CMU’s Resolution No. 1071-p of 24.07.2013 on Approval of the Energy Strategy of Ukraine for the period until 2030) the state control and regulation shall facilitate the economic growth of Ukraine based on the harmonized development and functioning of energy markets. Besides the need for structural reforms, one of the most important pre-condition of sustainable development of the FEC is determining and unbundling the functions of the state control and regulation, and also avoiding the natural monopolies’ impact on the decisions approved by the state authorities. Therefore, securing the independence of actions of the state regulatory body in the energy sector is the essential factor of sustainable development of the FEC.

The following main changes in the role the State in electric power sector include:

• Liberalization of the electricity marker;

• Privatization of several assets group of the sector;

• Promotion of modernization and improvement of effectiveness of the electric power sector;

• Construction of new generating capacities and electric networks.

One of the key pricing changes in the electric power sector is elimination of cross-subsidizing in the electricity consumption market. Liberalization of prices for electricity for all groups of customers will be followed by the transition to a new market model that should comprise the following main components, such as: a bilateral contract market, a day ahead market, a balancing market and an auxiliary services market.

The dedicated ownership structure of sector’s assets provides for a full privatization of thermal power plants, co-generation plants and distribution networks and for preservation of the state control of large hydro- and nuclear power plants, transmission networks and the operator of the Unified Energy System of Ukraine. The state-owned companies, which have energy assets, have to be corporatized. It is the very structure of ownership in the sector that will contribute to improving the effectiveness and attracting private investments provided that national interests will be respected and strategic tasks of the sector development will be accomplished.

The important tasks that the state performs in the area of regulation of electricity generation operations are the promotion of modernization and building-up of capacities to meet the growing electricity demand. When accomplishing the tasks, we should take account of the transition to a new electricity market introducing the market-based pricing of producers’ electricity.

The regulations of electricity transmission and distribution networks have to stimulate the development, upgrading, improvement of efficiency of networks operation and assurance of appropriate quality level of energy supply services. To that end, it is necessary that the tariffs for electricity transmission be determined using the model of regulation of the rate of return on investments which would take account of the factor of effectiveness improvement and the service quality factor.

The Unified Energy System of Ukraine (UES) is the foundation of the energy sector. The UES performs a centralized electricity supply to domestic consumers, interacts with energy systems of neighboring countries and secures electricity export and import. It unifies the energy generation capacities, distribution networks of Ukraine’s regions, which are interconnected by the system-forming 220–750 kV electricity transmission lines. The centralized UES operation and process management as well as the centralized control of energy system modes are provided centrally by the State Enterprise NEC “Ukrenergo”. The State Enterprise NEC “Ukrenergo" is under control of the Ministry of Energy and Coal Industry of Ukraine. The company has been structured based on a regional principle and now it incorporates 8 electric power systems (Dniprovska, Donbaska, Zakhidna (Western), Krymska, Pivdenna (Southern), Pivdenna-Zakhidna, Pivnichna (Northern), and Tsentralna (Central) systems).

Back in 1996 the Wholesale electricity market (WSEM) of Ukraine was established, being patterned after the electricity pool of England and Wales. The market operates within the legal framework established by the Verkhovna Rada, President of Ukraine and the Cabinet of Ministers of Ukraine. All energy sectors’ entities – licensees (generating companies, distribution companies, suppliers of electricity) form the Wholesale electricity market (WSEM). The Market Board is the executive body of the Wholesale electricity market. The State Enterprise “Energorynok” (Energy Market) is the WSEM operator and the market pool (sole buyer). NEC “Ukrenergo" (owner and operator of transmission lines) fulfills dispatching functions of the technical operator of the WSEM. Produced by power generating companies, electricity is physically delivered to consumers through the electricity transmission and distribution networks as specified in the contracts concluded between the respective WSEM entities for electricity supply.  

The current trends in the electric power sector development as accumulated outstanding issues require the transition from the pool-type market to a more effective consumer-oriented electricity market model. Ukraine has approved the concept of gradual phased transition from the current market model to a more advanced competitive model of bilateral contracts with a balancing market.

TABLE 5. ELECTRICITY PRODUCTION AND INSTALLED CAPACITY

(1) Electricity transmission losses are not deducted.

* Latest available data

Source:

TABLE 6. ENERGY RELATED RATIOS

(1) Net import / Total energy consumption.

* Latest available data

Source:

Nuclear energy in Ukraine had started its development in the early 70s with the construction of the first nuclear reactor at Chernobyl. The first RBMK-type unit with a capacity of 1000 MW(e) commenced operation in 1977. The Ukrainian nuclear energy programme had been developed as a part of the nuclear energy programme of the Soviet Union. Close co-operation had been set up between research centres and relevant industries to encompass all the areas needed for the use of nuclear energy, including geology, ore mining and processing industry, metallurgy, chemistry, among others. A significant part of the technical and scientific nuclear complex was based in Ukraine: 15 power reactors, uranium ore mining and processing enterprises, facilities for production of metallic zirconium and hafnium, several S&R and R&D institutes. The reactors were built on 5 sites: Chernobyl (ChNPP), Rovno (RNPP), South Ukraine (SUNPP), Zaporozhye (ZNPP) and Khmeltnitski (KhNPP).

After the accident at the 4th reactor unit of Chernobyl NPP, on 2 August 1990 the Supreme Soviet of Ukraine adopted a moratorium on building new nuclear power units in the Ukraine. The civil works at unit 6 of Zaporozhye NPP were suspended and the construction of 4 new reactors at Khmelnitski and Rovno NPPs was also halted.

In the second part of 1991, the breakdown of the USSR deeply affected the structure of the energy complex, resulting in the separation of its various enterprises and loss of the centralized management system. Because of that situation, the Cabinet of the Minister made the NPP managers personally responsible for the NPP safe operation. Changes were also introduced into the management structure and into the documentation needed by Ukraine NPP for receiving permission for the operation. All these documents had been submitted to the regulatory body - GOSATOMNADZOR.

In December 1991 all nuclear power enterprises had been incorporated into the Ukrainian State-owned Concern for Operation of Nuclear Power Engineering and Industry (as per the Cabinet of Ministers’ Decree #354 dated 02.012.1991). In January 1993 State-owned Concern had been reorganized into the Ukrainian State Committee on Nuclear Power Utilization (Goscomatom of Ukraine) in order to create the State Management System ensuring the safe operation of the nuclear energy in Ukraine (as per Decree# 22 of the Cabinet of Ministers of Ukraine on 16 January 1993).

On 6 May 1997, based on both the former Ministry of Power and Electrification and the State Committee on Nuclear Power Utilization, a Ministry of Power of Ukraine was established in accordance with the Decree of President. This new ministry included the State Department for Nuclear Power which was entrusted with the functions of the state authority responsible for nuclear power sector administration.

On 14 April 2000, according to Presidential Decree #598/2000, the Ministry of Fuel and Power Industry of Ukraine (Mintopenergo) was formed on the basis of the Ministry of Coal Industry of Ukraine, the Ministry of Power Industry of Ukraine, the State Department of Ukraine on Electric Power Issues, the State Department of Ukraine on Oil, Gas and Oil-refining Industry and the State Department of Ukraine on Nuclear Power. The main task of Mintopenergo was the state management of the fuel and energy complex.

On 9 December 2010, the President of Ukraine issued Decree No. 1085/2010 to establish the Ministry of Energy and Coal Industry of Ukraine by restructuring the Ministry of Fuel and Energy of Ukraine and the Ministry of Coal Industry of Ukraine in order to optimize the systems of central executive authorities by preventing the duplication of their powers, reducing the number of managerial staff’s members and cutting costs of their support, and by improving the effectiveness of the state management. The Ministry of Energy and Coal Industry of Ukraine (Minenergovugillya Ukrayiny) is a central executive authority, the activity of which is guided and coordinated by the Cabinet of Ministers of Ukraine. Minenergovugillya is the central body within the system of central executive authorities in charge of forming and securing the state policy implementation in the electric power sector, nuclear industrial complex, coal industrial complex, peat extracting, and oil & gas extracting complexes (hereafter referred to as “Fuel and Energy Complex”). On December 9, 2010 according to the same Presidential Decree No.1085/2010, the State Nuclear Regulatory Committee of Ukraine (SNRCU) was renamed “State Nuclear Regulatory Inspectorate of Ukraine”. The State Nuclear Regulatory Inspectorate of Ukraine (SNRIU) (Derzhatomregulyuvannya Ukrayiny) is a central body within the system of central executive authorities in charge of formation and implementation of the state policy in the area of safety of nuclear power utilization.

The State Enterprise National Nuclear Energy Generating Company “Energoatom” (NNEGC Energoatom) had been set up in accordance with the Decree of the Government, dated 17 October 1996. This company was established with the aim of improving the electricity supply to the population and the national economy, improving the NPPs operation, improving the competitiveness under various market conditions and restructuring the nuclear energy management system in accordance with the requirements of the effective laws and regulations. In May 1997 NNEGC Energoatom joined the World Association of Nuclear Operators-Moscow Centre as an associate member.

The Ukrainian Law on the Use of Nuclear Power and Radiation Safety is the fundamental legal act within the nuclear legislation of Ukraine. This Law sets up the first priority to the safety of a human being and the environment, rights and obligations of citizens in the field of nuclear power utilization, regulates the activities related to the use of nuclear installations and ionizing irradiation sources, and lays the foundations of international commitments of Ukraine with respect to the use of nuclear power.

The fundamentals of the national policy in the field of the nuclear power utilization and radiation protection are formed by the Verkhovna Rada of Ukraine. In the field of nuclear power utilization and radiation safety the following issues fall within the competence of Verkhovna Rada of Ukraine:

• Determining the fundamentals of the national policy in the field of nuclear power utilization and radiation safety;

• Approving the National Nuclear Power Development Program as a constituent of the National Program of Fuel and Energy Complex Development;

• Making decisions on siting, designing, construction of nuclear installations and facilities intended for radioactive waste management that are of national importance;

• Endorsing the procedure for development and approval of nuclear and radiation safety norms, regulations and standards.

The following issues fall within the competence of the Cabinet of Ministers of Ukraine:

• Ensuring the development and implementation of national programs in the field of nuclear power utilization;

• Making decisions on siting, designing, construction, operation and decommissioning of nuclear installations;

• Implementing the international cooperation in the field of nuclear power utilization;

The state control in the field of nuclear power utilization is exercised by the Ministry, other central executive authority assigned by the President of Ukraine.

The state regulation of nuclear and radiation safety is exercised by an executive authority as specified by the laws of Ukraine. The state body for nuclear and radiation safety regulation is independent on state bodies, agencies, institutions and officials, activity of which is related to the nuclear power utilization, local executive bodies, local self-administration bodies and public associations.

An Operating Organization - Utility (Operator) is a legal entity, assigned by the State, who undertakes the activity related to the siting, designing, construction, operation and decommissioning of nuclear installations or to the siting, designing, construction, operation and closure of a storage facility for nuclear waste repository (burial), assures the nuclear and radiation safety and is held liable for nuclear damage.

An Operator shall:

• get a license, according to the effective laws, to perform the activities at individual stages of the life cycle of a nuclear installation or a radioactive waste storage facility;

• elaborate and implement the measures on safety improvements of a nuclear installation;

• provide the radiation protection of the personnel, the public and environment;

• determine, create and support the continuous functioning of the physical protection system of nuclear installations, nuclear materials, facilities designed for management of radioactive waste, other ionizing radiation sources.

The Technical Specification for Safe Operations is the fundamental document describing safe operation of NPP, which specifies limits and conditions of safe operation, requirements and basic methods of unit's safe operation, as well as general procedure for operations related to NPP safety.

Limits and conditions of safe operation are constantly monitored and adjusted based on the analysis of operational experience, assessment of the current safety level, new scientific and technical information, in connection with equipment upgrading and new systems introduced, as well as in accordance with new regulations that were developed and put into force.

Normative document "General Provisions on Safety Assurance of Nuclear Power Plants" requires the utility notify the state regulatory body about all violation of normal plant operation, limits and conditions of safe operation.

TABLE 7. STATUS OF NUCLEAR POWER PLANTS

*UCF (Unit Capability Factor) for the latest available year (only applicable to reactors in operation).

** Latest available data

As of 2014 there are 15 power units with water-cooled water-moderated reactors in operation at four nuclear power plants in Ukraine. Three power units of SSE "Chernobyl NPP" are being decommissioned. After shutdown of Chernobyl NPP, Ukraine now operates only VVER - type nuclear power plants. The overwhelming majority of reactor installations in operation in Ukraine are VVER - 1000 (V-320 design). Nowadays, there are 11 installations of this type in operation. Besides, there are two power units with VVER - 440 (V-213) at Rovno NPP, and one VVER - 1000 Unit (V-338) and one VVER - 1000 Unit (V-302) at South Ukraine NPP.

Fig: 2 Map of the country indicating the nuclear power plants

ZNPP became the first among the CIS NPPs to build on-site dry storage facility of the spent fuel (DSFSF). Commercial operation of Dry Spent Fuel Storage Facility started on August 10, 2004. Today two stages of ZNPP DSFSF are in operation.

SOUTH UKRAINE NPP is the first Ukrainian NPP to implement the project for diversification of the nuclear fuel supply.

KhNPP site is the most promising in terms of expansion of the nuclear power facilities in Ukraine. Construction of KhNPP Unit#3 and Unit#4 according to initial design (each reactor’s capacity is 1000 MW, having reactor installation VVER-1000/V-320) started in 1986, but it was suspended in 1990 by the moratorium for NPP construction. Today, the construction availability of the power units is assessed at the level: 75% for Unit#3 and 28% for Unit #4.

The situation which has become usual in the Nuclear Power Sector, on the one hand, corresponds to the general tendencies to manufacture stagnation, and, on the other hand, has its specific features. Taken as a whole, the condition of Nuclear Power Sector can be characterized as the following:

1. Growth of a share of NPP electricity generation in the overall energy mix from 25.5% up to 48.6% for the period from 1990 to 2014.

2. 39.0% reduction of total electricity production for the same period.

The reduction of total electricity production was not connected either with the reduction of NPP installed capacity or with decrease in operational reliability. Actually, the Capacity Factor (or Load Factor) even grew in 2014 (72.9%) as compared to 1990 (62.9%). Even taking into account the basic-mode operation of NPP, the above stated figures demonstrate a high stability of NPP operation.

Activities on extension the NPP units operation beyond the design lifetime are carried out in compliance with the "Comprehensive Program for Lifetime Extension of Operating Nuclear Power Units" approved by Resolution No. 263-r the Cabinet of Ministers of Ukraine, dated 29 April 2004.

On 12 December 2010, the SNRCU’s Board extended the design lifetime of RNPP power units: RNPP Unit 1 – until 22.12. 2030; RNPP Unit 2 - until 22.12.2031.

On November 28, 2013 the SNRIU’s (the State Nuclear Regulatory Inspectorate of Ukraine) Board extended the design lifetime of SUNPP Unit 1 until 02.12.2023.

On December 9, 2015 the SNRIU’s Board extended the design lifetime of SUNPP Unit 2 until 31.12.2025.

At present, the preparatory works are conducted concurrently for lifetime extension of the next three power units. The activities are carried out to extend the design lifetime of ZNPP Units 1 and 2 (as a top priority); ZNPP Unit 3 and RNPP Unit 3.

Main investment projects of SE NNEGC Energoatom

• Implementation of the Comprehensive (Integrated) Program of Safety Improvement of Power Units of Nuclear Power Plants

• Rehabilitation of out-door 750 kV switchyards of ZNPP (Project has been approved by the CNU’s resolution No. 734-p, dated 13.08.2014. The objective of the Project is secure reliable power supply to the south of Ukraine; robustness of the energy system and dynamic stability of ZNPP units in case of cascading (sequential) failures of two 750 kV overhead lines; upgrading the ZNPP connection circuit to make it compliant with the engineering design solutions and eliminate the limitations of the plant’s installed capacity)

• Rehabilitation of outdoor 750 kV switchyards of KhNPP and RNPP (Projects approved for KhNPP as per the MECI’s order No. 969 (dated 19.12.2013); for RNPP as per the CMU’s resolution No. 733-p dated 13.08.2014. The objective of the Project is to provide the power flows from Rovno NPP and KhNPP to the Central region which is short of electricity.

In 2013, the integrated management System (IMS) of SE NNEGC Energoatom successfully passed a certification audit. Based on its results, the representatives of the Certification Authority TUV NORD CERT (Germany) and the group of auditors from TUV NORD UKRAINE, Ltd. awarded the ISO 9001:2008 Certificate (Quality Management System) and the ISO 14001:2004 Certificate (Ecological Management System) to the top management of SE NNEGC Energoatom and executives of the Company’s separated entities.

According to the Energy Strategy of Ukraine for the period till 2030, it is envisaged to keep the share of the NPP generation in the electricity production mix at the level NPP have attained that means that nuclear power plants will keep accounting for about a half of the total electricity production in the country. The share of nuclear power sector in the total energy mix of electricity production shall be subject to revision based on the micro-economic indicators of the Ukraine’s economy, the conditions of global energy resources markets and the extent of development and implementation of innovative technological solutions in the energy sector.

Development of nuclear power generation over the period till 2030 will include:

• Enhancing the safety of NPP in operation;

• Improving the operational reliability and effectiveness of NPP in operation;

• Extending the lifetime of NPP beyond their design life term;

• Constructing and commissioning, by 2030, new nuclear power units that involves:

• Getting approval of the inventory list of industrial sites for construction of new NPP power units;

• Making the decision on construction of power unit of new NPPs and power units replacing the current capacities of NPPs in operation;

• Construction of Khmelnitski NPP Units 3 and 4;

• Construction of power units on new sites;

• Construction of new power units on sites of existing NPPs in operation (including those replacing the power units to be decommissioned);

• Implementing the works for preparation of power unit for decommissioning at the expiration of their extended life-time.

From 1980s onward several programs have been implemented at Ukraine NPP with the aim of improving their operational safety level. Based on the conclusions made by the State Nuclear Regulatory Inspectorate of Ukraine and international experts, this level corresponds to the international safety level of NPPs of the same generation. However, the potential for continued upgrading of the safety level of domestic NPPs has not yet been exhausted. Further activities to be conducted in this area shall be completed under the Comprehensive (Integrated) Program on Safety Improvements of Ukraine NPPs, which was enacted by Decree 1270 of the Cabinet of Ministers of Ukraine on December 7, 2011, along with additional measures that were recommended according to the conclusions by the Ukraine’s National Report on outcomes of the target safety re-assessment of nuclear facilities located on NPP sites (“stress-tests”), taking into account the lessons learned from the accident occurred at Fukushima Daiichi NPP in Japan in March 2011. The combination of measures has been specified proceeding from the needs to:

• Assure a full compliance with the requirements and provisions of the national legal and regulatory framework;

• Meet the national safety requirements;

• Take into consideration the recommendations issued by international expert organizations so as to meet the international safety standards;

• Implement the measures recommended and set forth in Safety Analysis Reports;

• Secure the functioning of the physical protection systems of nuclear facilities and materials;

• Consider the domestic and international operating experience and best practices.

It is planned to improve the reliability and effectiveness of NPP operation, also by replacing certain obsolete equipment, implementing relevant actions to reduce the outage duration, enlarging turnaround cycles, switching over to the operation at increased (uprated) capacity, cutting the costs of electricity production at NPPs

By 2030, for power units of running NPP, an average annual load factor is expected to be raised up to 78-80% and for new power units an average annual load factor is expected to reach 82-85%.

During the period until 2030 it is necessary to ensure that the measures will be implemented and the decisions will be made concerning the life-time extension of the running 11 power units for 20 years provided that approving positive conclusions of the Periodic Safety Reassessment will be issued. Based on the experience of life-time extension of Rovno NPP units 1 and 2 as well as international experience of VVER-440 and VVER-1000 type power units, it is envisaged to implement the measures of programs on service-life extension, obsolete equipment replacement and the measures of national programs on safety improvements and stress tests.

In 2008 the Regulatory Body put into force the regulatory document "General Provisions on Safety Assurance of Nuclear Power Plants" (NP 306.2.141-2008) that take into account IAEA recommendations specified in the General Provisions of Nuclear Power Plants Safety (INSAG-12). The designs of all nuclear installations constructed in Ukraine after the implementation of this and other regulations were subjected to revision regarding their compliance with the established requirements. Upon discovered inconsistencies, measures have been developed and implemented to remove these inconsistencies. Project on modernization and reconstruction of NPP are elaborated according to requirements of new safety regulations.

Pursuant to the regulatory document "General Provisions on Safety Assurance of Nuclear Power Plants" the technical and organizational decisions made to upgrade and improve the safety level incorporate scientific and technical achievements and are implemented in accordance with the established requirements, namely: they should be proven by the experience or by trial operation. Pursuant to regulations and rules on nuclear and radiation safety, the licensing procedure provides for the need to introduce at first a technology at a "pilot" power unit and then, after having acquired favorable results of trial operation, to adapt this measure to other power units. This procedure fully complies with the international experience and permits implementing the measures on the basis of the operating experience and proven practice.

The total length of electricity transmission lines of Ukraine is 22.9 thousand km, including the 400–800 kV lines stretching over 4.9 thousand km; 330kV lines with a length of 13.3 thousand km; 220 kV line with a length of 4.0 thousand km; and 35–110 kV lines stretching over 0.7 thousand km.

In accordance with the Energy Strategy of Ukraine for the period until 2030, the top priority projects are as follows:

• Complete formation of two 750 kV transit transmission lines– the southern one (KhNPP – Dnistrovsksa hydro power pumped storage– Prymorska substantion –Kakhovska substantion – ZNPP) and the northern one (Rovno NPP – Kyivska substantion– Pivnichnoukrayinska substantion– Kharkivska substantion – Donbaska substantion), that allow lifting the grid limitation on power output of KhNPP, RNPP, ZNPP and regulating capacities of Dnistrovska hydroelectric pumped storage power plant;

• Full-scope program of modernization of high voltage lines and substation, aimed at and not limited to the reduction of electricity losses;

• Development and extension of 330 kV lines to improve the electric power supply reliability.

The UES of Ukraine, through the electricity transmission lines of interstate importance, is interconnected with the Energy Systems of the Russian Federations, Moldova, Belarus, Poland, Slovakia, Hungary and Romania. Increasing capabilities of export to ENTSO-E (the European Network of Transmission System Operators) countries will require the reconstruction of available high voltage interconnectors (being disconnected as of the end of 2010), namely, 750 kV overhead lines from KhNPP to – Zesuv (Poland) and from SUNPP to Isaktcha (Romania), and reconstruction of the operating 750 kV overhead line – Zakhidnoukrainska - Albertirsa (Hungary) or construction of new high-voltage lines.

Engineering and technological support to the Utility’s nuclear installations is provided by the respective subdivisions of SE NNEGC Energoatom, Ukrainian and Foreign Institutes and specialized organizations. Ukrainian R&D institutes, academic institutions and organizations of the Academy of Science of Ukraine are engaged in engineering and technological support along with organizations of the Czech Republic, Slovakia and other countries. For SE NNEGC Energoatom, the engineering and technical support is provided by respective engineering subdivisions existing on each NPP site, industrial tasks are fulfilled by the SE NNEGC Energoatom’s Head Office’s subdivisions, Separated Entity “Science and Technology Center”.

Separated Entity “Science and Technology Center provides science and engineering support to the nuclear industry in the areas as follows

• Safety analysis of NPP units;

• Science and technology support for development of nuclear energy

• Science and technology support to operation of reactor cores and fuel utilization;

• Science and engineering support to life-time extension, implementation of advances innovative equipment and technology;

• Radiation material science;

• Radiation safety, environmental protection, SF and RAW management, decommissioning;

• Improvement and optimization of water chemistry control;

• System of management and quality, metrology, management and quality systems, metrology, informational technology for NPP engineering support.

International co-operation in Nuclear branch is based on bilateral and multilateral agreements, international programs and projects, memorandums and commercial contracts.

International co-operation intended for:

• the improvement of nuclear safety and safety culture;

• NPP units upgrading;

• diversification of nuclear fuel supplying;

• planning of stability of nuclear power development;

• participation in development of new units construction co-operation.

NNEGC Energoatom is a member of international organizations such as WANO, WNA, EUR and FORATOM.

Of particular importance is the Company's participation in projects of the IAEA, under which provided not only assistance, but also the obtaining of the best world experience of the nuclear energy sector. For instance, INPRO - International Project on Innovative Nuclear Reactors and Fuel Cycles. NNEGC Energoatom joined the Project in 2005. Under the Project, a one-region model of the Ukraine‘s energy system was developed. Based on this model, a forecasting estimate of development of the nuclear power system of Ukraine till 2100 was made, along with the review of concepts of innovative nuclear energy systems, using the INPRO methodology areas, such as, “Economics”, “Infrastructure”and “RAW Management”, followed by the issuance of a reporting document.

IFNEC Program (International Framework for Nuclear Energy Cooperation) was launched by the U.S. Government in 2006. NNEGC Energoatom has been monitoring the IFNEC’s activities focused on development and application of the advanced fuel cycle technologies that would contribute to securing the ecologically-friendly CO2-free development worldwide, enhancing the environmental condition and reducing the risk of proliferation of fissionable nuclear material.

SE NNEGC Energoatom became a full member of the International Group (EUR) in 2007. Experience acquired in evaluating the compliance of EPR design against the EUR requirements, enabled the Company to get a sufficient volume of information on the European Light-water Reactor - EPR (AREVA), as well as the methodology of analysis of European reactor designs compliance with the applicable requirements, and will facilitate the licensing of reactor installations in Ukraine. These efforts contribute into strengthening the public acceptance of the Company in Europe and presenting the Company as a serious business partner for cooperation in the nuclear power sector