The Energy Strategy of Ukraine for the period up to 2035 “Safety, Energy Efficiency, Competitiveness” (ESU), outlines strategic benchmarks for developing the fuel and energy sectors of Ukraine for the period through2035 (under the CMU’s Resolution No. 605-? "On Approval of the Energy Strategy of Ukraine for the Period up to 2035 ‘Safety, Energy Efficiency, Competitiveness”, dated as of 18.08.2017). The objective of ESU is to manage the society’s and economy’s needs for fuel and energy resources in a safe, technically reliable, cost-effective and environment-friendly way in order to guarantee the enhancement of the livelihoods of Ukraine’s citizens.

The influence of decarbonization of the energy sector on the formation of the energy generation capacity mix has increased due to the goal of preventing climate changes. The Paris Agreement requires the international community to undertake consolidated vigorous steps in mitigating the effects of climate change and global warming. It is nuclear energy that will play a key role in fulfilling that mission along with hydropower, wind power and other renewable energy sources to ensure the smallest amount of greenhouse gases is generated. Ukraine’s steadfast position regarding the feasibility of using nuclear energy will contribute to dealing with de- greenhouse gases.

The ESU implementation is coordinated and controlled by the Cabinet of Ministers of Ukraine and the National Security and Defence Council of Ukraine within their responsibilities and competences.

Ministries, departments and regulatory bodies, the activity of which is related to legal relations in the energy field, participate in policy-making and ensure the ESU implementation in the respective areas. The state authorities and local self-government bodies, as well as economic entities, also consider the ESU provisions while developing their operation plans.

The estimated energy resources are shown in Table 1. The historical data on energy supply and demand are given in Table 2.

Table 1. 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 2. ENERGY CONSUMPTION

Source: IAEA RDS-1

The formation and implementation of the governmental policy in electric power sector is carried out by the Cabinet of Ministers of Ukraine, the central executive authority which ensures the formation and implementation of the national policy in the electric power complex, the central executive authority which implements national policy in the field of supervision (control) over the electric power sector, and other state authorities in accordance with the laws.

For electric power sector policies to be properly adjusted, all economic entities, which produce, transmit, distribute, supply, export, import the electricity, provide the data on their activities to the state statistical authority that regularizes the energy statistics and publishes them in annual energy balance surveys.

Law of Ukraine No. 2019-VIII "On Electricity Market”, dated as of 13.04.2017, sets out legal, economic and organizational principles of the operation of the electricity market and regulates relations associated with production, transmission, distribution, sale, purchase, and supply of electricity in order to provide reliable and secure supply of electricity to consumers with due account and consideration for customers’ interests, development of market relations, minimization of electricity supply costs and mitigation of a negative environmental impact.

In the Ukrainian electric power sector, there is a Unified Energy System for on-line technological control of production, transmission, distribution and consumption of electric power. The Unified Energy System of Ukraine (UESU) is the foundation of the energy sector. National Energy Company Ukrenergo (Ukrenergo) serves as a guarantor of the integrity and reliable operation of the Unified Energy System of Ukraine. Ukrenergo is a private joint stock company (the state owns 100% of the stock) that is subordinated to the Ministry of Finance of Ukraine, where the Company provides:

• real-time balancing of electricity production and consumption in regions and nationally;

1. operation and development of main and cross-border electric networks;

2. parallel (synchronised) functioning of UESU and energy grids of neighbouring countries;

3. export of electricity. 

The state supervision (control) in electric power sector is exercised by the central executive authority implementing the state policy in the sphere of supervision (control) in electric power sector, the activities of which are guided and coordinated by the Cabinet of Ministers of Ukraine through the respective Minister under the Laws.

Economic activities related to the electric power production, transmission and distribution as well as the use of electricity by market participants (except for consumers) to cover their own needs during technical operation of electric power plants, networks and electrical equipment, testing and maintenance of electrical facilities and networks, as well as works on designing of electrical facilities and networks, are the subject to the state energy supervision in the electric power sector.

TABLE 3. ELECTRICITY PRODUCTION

Latest available data, please note that compound annual growth rate may not be representative of actual average growth

**Electricity transmission losses are not deducted.

Source (s): IAEA RDS-1

TABLE 4. ENERGY RELATED RATIOS

*Latest available data.

Source: IAEA RDS-2

The Ukrainian nuclear energy programme had been developed as a part of the nuclear energy programme of the Soviet Union, where Ukraine had started development of nuclear energy in the early 1970s with the construction of the first nuclear reactor at Chornobyl. The first RBMK-type unit with a capacity of 1000 MW(e) commenced operation in 1977. 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, 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: Chornobyl (ChNPP), Rivne (RNPP), South Ukraine (SUNPP), Zaporizhzhia (ZNPP) and Khmelnytskyi (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 Ukraine. The civil works at unit 6 of Zaporizhzhia NPP were suspended and the construction of 4 new reactors at Khmelnytskyi and Rovno NPPs was also halted.

In the second part of 1991, the breakdown of the Soviet Union deeply affected the structure of the energy complex, resulting in the separation of its various enterprises and loss centralized management. Under these circumstances, 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’s nuclear power plants for receiving permission for the operation. All these documents had been submitted to the regulatory body GOSATOMNADZOR.

In December 1991, all nuclear power enterprises were incorporated into the Ukrainian State-owned Concern for Operation of Nuclear Power Engineering and Industry (as per the Cabinet of Ministers’ Decree #354 dated 2 December 1991). In January 1993, the State-owned Concern was 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 9 December 2010, according to the 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 industries, 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.

On 2 September 2019, pursuant to the CMU’s Resolution No. 829 ("Certain Aspects of Optimization of the System of Central Executive Authorities"), the Ministry of Energy and Coal Industry was reorganized through its merger into the Ministry of Energy and Environmental Protection. The Ministry of Energy and Environment Protection of Ukraine is the main authority within the system of central executive authorities, which is in charge of making and implementing the governmental policy

1. in the electric energy, nuclear industry, coal industry, pit extraction, oil and gas, and oil refining complexes; 

2. in the sphere of management of the exclusion zone, the area of unconditional (mandatory) resettlement, mitigation of Chernobyl NNP accident, decommissioning of the Chernobyl NPP and transformation of the Shelter Object into ecologically safe system, as well as exercise of the state control in the area of radioactive waste management during its long-term storage and disposal; 

3. in the sphere of effective use of fuel and energy resources, energy saving, renewable energy sources and alternative fuels.

The Ukrainian nuclear safety legislation governs all activity associated with the use of nuclear energy and assurance of nuclear and radiation safety. The Law of Ukraine "On Nuclear Energy Use and Radiation Safety" is a fundamental document in this area, which was adopted in 1995 and further amended and supplemented. This Law establishes that the first priority is the safety of humans and the environment and the 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 (Supreme Council of Ukraine). In the field of nuclear power utilization and radiation safety the following issues fall within the competence of Verkhovna Rada of Ukraine:

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

2. Approving the National Nuclear Power Development Programme as a constituent of the National Programme of Fuel and Energy Development;

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

4. 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:

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

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

3. 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, while other central executive authority is 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 of 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.

In compliance with the Law of Ukraine "On Nuclear Energy Use and Radiation Safety", SNRIU as a state nuclear regulatory authority establishes regulatory criteria and requirements to define safety conditions for operation of nuclear installations and use of radiation sources (rule-making). The same Law determines that national safety requirements and regulations are adopted, taking into account recommendations of international organisations in the field of nuclear energy. Procedures for the development and approval of national requirements and regulations are specified by the Cabinet of Ministers' Decree No. 163 dated 8 February 1997.

An Operating Organization - Utility (Operator) is a legal entity, assigned by the State, who undertakes the activities 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:

1. obtain 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;

2. implement the measures on safety improvements of a nuclear installation;

3. provide radiation protection of the personnel, the public and environment;

4. 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 NPPs, 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 operations are constantly monitored and adjusted based on the analysis of operational experience, assessment of the current safety level, and new scientific and technical information. These limits and conditions are also adjusted based on equipment upgrades and new systems, as well as in accordance with new regulations that are 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 5. STATUS AND PERFORMANCE OF NUCLEAR POWER PLANTS

As of 2019 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, where Unit 4 is considered destroyed by the beyond design basis due to the accident in 1986 (the “Shelter” Object). After shutdown of Chornobyl 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). Currently, there are 11 installations of this type in operation. In addition, there are two power units with VVER - 440 (V-213) at Rivne NPP, and one VVER - 1000 Unit (V-338) and one VVER - 1000 Unit (V-302) at South Ukraine NPP.

Fig1: Map of the country indicating the nuclear power plants

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 53.9% from the period 1990 to 2019.

2. 48.4% reduction of total electricity production in the same period.

The reduction of total electricity production was not connected with the reduction of NPP installed capacity or with decrease in operational reliability. Instead, the Capacity Factor (or Load Factor) grew in 2019 (68.5%) 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 Direction No. 263-r of the Cabinet of Ministers of Ukraine, dated 29 April 2004.

State Specialized Enterprise “Chornobyl NPP” is the only operating organization in Ukraine which is licensed to perform activities at the “decommissioning” phase of a nuclear facility’s life cycle. Under that licence, the following facilities shall be subject to decommissioning:

- power units 1, 2 and 3 of ChNPP (not including unit 4);

- intermediate liquid and solid radioactive waste (RAW) storage facilities ;

- other general-purpose plant facilities.

The strategy of “deferred dismantling” approved for decommissioning of Units 1, 2 and 3 is being implemented in accordance with the “Program of Chornobyl NPP Decommissioning” by the having followed gradual steps:

- “final closure and mothballing” is a phase during which the facility is to be brought to the condition which precludes its utilization for the purpose for which it was originally built, and the parts of facilities and radioactively contaminated equipment, which are subject to long-term holdup, are to be mothballed;

- “Holdup” is a phase during which the facility is to be kept mothballed, thereby providing safe storage of ionizing irradiation sources contained inside that facility;

- “Dismantling” is a phase during which all facility systems and components are to be dismantled and removed, RAW originated at this stage is to be handled, and on-site radioactive decontamination is to be conducted.

In March 2015, the State Nuclear Regulatory Inspectorate of Ukraine conducted activities at the final closure and mothballing phase of ChNPP Units 1, 2 and 3. With this permit issued, the operation closure stage was finalised and the formal decommissioning process of ChNPP Units 1, 2 and 3 actually started.

By its Resolution No 605-? of 18 August 2017, the Cabinet of Ministers of Ukraine approved the “Energy Strategy of Ukraine for the period up to 2035 ‘Safety, Energy Efficiency, Competitiveness” (the “Strategy”). The Strategy is a document that outlines strategic benchmarks for development of the energy complex of Ukraine for the period till the year 2035. Ukraine regards the nuclear power as one of the most cost-effective low carbon energy sources. The development of nuclear power sector for the period up to 2035 is forecasted assuming that nuclear generation’s share in the total generation mix will continue to grow.

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.

TABLE 7. PLANNED NUCLEAR POWER PLANTS TABLE 7. PLANNED NUCLEAR POWER PLANTS

The Operating Organization shall carry out its activity which is related to siting, designing, construction, commissioning, operation, decommissioning of a nuclear facility.

As required by standards and regulations as well as organizational and administrative documents, the Investment Program of SE NNEGC Energoatom NPPs is approved by the Ministry of Energy and Environmental Protection. Development of NPPs is provided for in specific sections of the Investment Program of SE NNEGC Energoatom NPPs, under labels such as “New Builds”, “Modernization”, “Ready-to-operate Equipment” .

The total length of main and cross-border transmission lines of Ukraine (220-750 kV) is 21.8 thousand km (including 561 km of 110 kV OTL- 35).

Major actions of the Unified Energy System of Ukraine, aimed at developing electric grids, involve:

• forming the electricity market that it will develop incentives for effective investments and efficient maintenance and functioning of the electricity transmission and distribution systems;

• supporting the extension of main transmission lines;

• supporting the rehabilitation and extension of distribution networks alongside distributed (unbundled) generation of electricity;

• decreasing operating expenditure and increasing the amount of investments into the development of electric grids.

The integration of the electricity market and related transmission networks of Ukraine into the EU energy community is possible and feasible. The purpose of integration in the electric power field is to achieve a synchronized functioning of UES of Ukraine and the energy system of ENTSO-E's synchronous zone of continental Europe. Once the synchronization has been fully achieved, the maximum electricity volume transmitted to and from ENTSO-? would reach 4 GW, thereby providing additional benefits in balancing the energy system and establishing the conditions for improved competitiveness in electricity markets.

A draft site cadastre specifying the priority sites that comply with the requirements of the regulations on NPP operation and environmental impact was developed and is updated to identify candidate sites for new NPP units.

The siting requirements are established by Ukrainian legal and regulatory documents. The decision-making procedure and requirements for documents justifying the construction of a nuclear installation are determined by Article 37 of the Law of Ukraine "On Nuclear Energy Use and Radiation Safety" and Law of Ukraine "On Decision-Making Procedure for Siting, Design and Construction of Nuclear Installations and Radioactive Waste Management Facilities of National Importance".

In 2008, the SNRIU approved the regulatory document "Safety Requirements for Siting of Nuclear Power Plants" (NP 306.2.144-2008) that establishes safety requirements for NPP siting and takes into account IAEA recommendations.

The legal and regulatory documents of Ukraine regulate the evaluation of the proposed potential impact of the nuclear installation on individual categories of the public, society and the environment in view of safety.

According to Ukrainian legislation, the potential impact of a nuclear installation on the environment is evaluated through EIA (Environmental Impact Assessment).

In December 2017, in furtherance of the Law of Ukraine "On Environmental Impact Assessment", the Cabinet of Ministers of Ukraine adopted resolutions to establish the procedure for public hearings in the EIA process (No. 989 dated 13 December 2017) and the procedure for submission of EIA conclusions, EIA funding, and procedure for keeping the unified environmental impact assessment register (No. 1026 dated 13 December 2017).

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, 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, in addition to a separate “Science and Technology Center”.

On 10 June 2019, a tripartite agreement for establishing an international consortium was signed which will aid in the implementation of the SMR-160 technology (Small Modular Reactor) in Ukraine.

International co-operation in the nuclear field is based on a number of bilateral and multilateral agreements, international programs and projects, memorandums and commercial contracts.

International co-operation intended for:

1. improvement of nuclear safety and safety culture;

2. upgrading NPP units;

3. diversification of nuclear fuel supply;

4. planning of stability of nuclear power development;

5. participation in development of new units .

NNEGC Energoatom is a member of international organizations such as World Association of Nuclear Operators (WANO), World Nuclear Association (WNA), EUR (European Utility Requirements) and European Atomic Forum (FORATOM).

Of particular importance is national 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.

The main functions of the nuclear regulatory body as determined by the Convention on Nuclear Safety and the Joint Convention on the Safety of Spent Fuel Management and on the Safety of Radioactive Waste Management are entrusted to the State Nuclear Regulatory Inspectorate of Ukraine, which acts in compliance with the "Statute of the State Nuclear Regulatory Inspectorate of Ukraine" approved by Cabinet Resolution No. 363 of 20 August 2014.

The Law of Ukraine "On Licensing Activity in Nuclear Energy" states that any bodies, officers, officials, members of the public and their associations shall not be allowed to interfere with resolution of the issues that fall within the SNRIU authorities unless otherwise provided by law.

At the legislative level, the nuclear installation licensing system is governed by the Law of Ukraine "On Nuclear Energy Use and Radiation Safety" and the Law "On Licensing Activity in Nuclear Energy".

Article 26 of the Law of Ukraine "On Nuclear Energy Use and Radiation Safety" prohibits legal entities or individuals to conduct any activity related to the use of nuclear installations or radiation sources without an appropriate licence.

Pursuant to the Law of Ukraine "On Licensing Activity in Nuclear Energy", the operators have licences covering all necessary life stages of their nuclear installations.

Under Article 15 of the Law of Ukraine "On Licensing Activity in Nuclear Energy", the nuclear regulatory body supervises compliance with licence conditions by conducting regulatory inspections and nuclear safety reviews of reporting documents submitted by the operator.