This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 8/6/2019

Overview

Data in TWh

 20172018
Total Net Generation (TWh)155.4159.35
Of which Nuclear85.5784.4
Of which Thermal (coal)44.9647.93
Of which Hydro10.5710.57
Of which CHP10.8810.88
Of which Hydro-Accumulative1.531.47
Of which Wind1.12.0
Of which Solar0.51.7
Of which Biomass0.30.4
Final Consumption (TWh net)126.5122.00
Generation Park2017 Production Share %2018 Production Share %
Thermal (gas, coal)28.929.50
Nuclear55.154.33
Hydro / Hydro-Accumulative6.87.81
CHP, other co-generation8.06.45
Wind, solar, bio1.21.91
Total100.00100.00

Because Ukraine relies heavily on nuclear power, there are significant opportunities for U.S. equipment suppliers in Ukraine's civil nuclear sector. Due to the Russian-backed separatist conflict in Eastern Ukraine, energy has become a high-profile political and economic issue. Because of the conflict in the east, Ukraine's coal production has fallen by about one-fifth since 2014, thereby increasing the importance of the nuclear energy sector in limiting large-scale electricity shortages. Before this conflict, Ukraine significantly relied on Russia for energy.  Though it is working to diversify its energy production, currently 52 percent of the country’s electricity comes from nuclear power plants. 

Ukraine currently operates 15 nuclear reactors at four facilities with a total installed capacity of 14,148 MW: Zaporizhzhya (6,000 MW, 6 VVER-1000 units), South-Ukraine (3,000 MW, 3 VVER-1000 units), Rivne (2,835 MW, 2 VVER-100 units and 2 VVER-440 units) and Khmelnytska (2,000 MW, 2 VVER-1000 units). Ukraine’s nuclear power utility, Energoatom, operates all of these facilities, generating 85.57 billion kWh, more than half the nation’s electrical needs. Currently, all units are Russian VVER pressurized water reactors. Rivne 1 and 2 are 440 MWe V-312 models, and the rest are larger 1,000 MWe units, V-320 models. Energoatom's current priorities are to increase safety, bring load factors up to 83-85 percent, and extend the working lives of the reactors by 10-15 years, at a cost of around $150 million per VVER-1000 reactor.

Leading Sub-Sectors

Life Extension and Upgrades  - In 2008 and 2009, Energoatom successfully extended the operating licenses of three of its reactors by 20 years.  Based on these and other subsequent success with NPP life extensions, Energoatom is working with the European Bank for Reconstruction and Development (EBRD) as well as Euratom to upgrade additional reactors. Though the life extension program is being challenged under the UN Convention on Environmental Impact Assessment in a Transboundary Context, Energoatom continues with life extensions. In 2017, Ukraine extended the Zaporozhe-3 nuclear plant's 10-year operational license.

Fuel - For decades, Ukraine had been nearly entirely dependent on Russian nuclear fuel procurement from Rosatom because Ukraine does not convert, enrich, or fabricate its fuel.  Despite a lack of domestic enrichment capacity, Ukraine does possess mineral uranium resources, including approximately 2 percent of the world’s uranium reserves.  Traditionally, Ukraine sent its uranium concentrate and zirconium alloy to Russia for enrichment.

To reduce the risk of complete dependence on Russia, however, in December 2014, Ukraine signed a contract with Westinghouse Electric Company to begin diversifying its nuclear fuel supply. Historically, Russia supplied 100% of fuel, but in 2017 it dropped to 60%, with 40% supplied by Westinghouse. Ukraine took an additional step towards diversification in August 2016 when it signed a supply contract for enriched uranium with the Anglo- German-Dutch company, URENCO.

Waste Management - Ukraine has an open fuel cycle and two storage facilities for spent fuel, one dry at the Zaporozhye plant and one wet at the Chernobyl plant. Currently, Ukraine sends its spent fuel to Russia and Energoatom pays Russia $150-200 million per annum to accept and store this spent nuclear fuel. In January 2015, Energoatom and the U.S. firm Holtec signed a contract to construct a centralized dry storage facility for spent fuel (CSFSF) in the Chernobyl Exclusion Zone to reduce Ukraine's reliance on Russia.  In January 2017, Energoatom announced a tender for the preparation of the construction site for CSFSF, which it will commission in the third quarter of 2019.

Opportunities

Prospects and opportunities in Ukraine’s civil nuclear sector are based on the goals of the “Energy Strategy of Ukraine – 2030.” This strategy foresees Ukraine producing 20-21 mln kW in 2030.  To do this, Ukraine will increase power plant capacity, including the commissioning of new HPPs and NPPs power units to ensure the country’s energy security.  Procurements related to the construction of these new units will be posted at Energoatom. 

U.S. suppliers should note that alongside local manufacturers of equipment for the nuclear industry, such as Turboatom, UTEM, and Westron, are major foreign competitors.  These include Germany (Siemens), Switzerland (ABB) and France (Alstom, Areva), Rosatom, TVEL (Russia), Westinghouse (Japan) and Holtec (U.S.). Ukrainian manufacturers supply turbines, generators, transformers, and electric cable at very competitive prices, but they are less efficient and longlasting.

In December  2018, the Cabinet of Ministers of Ukraine approved a plan of measures for the synchronization of the Unified Energy System (UES) of Ukraine with the European Network of System Operators of Electricity (ENTSO-E). The action plan foresees the creation of a joint control unit for the UES of Ukraine and the energy system of Moldova, work on ensuring the availability of thermal power plants for work in the ENTSO-E, the organization of communication channels for the technological control of the UES of Ukraine, the construction of air lines and substations, certification of the transmission system operator (NEC Ukrenergo), the transition to work with the grid systems of countries outside the ENTSO-E (RF, Belarus), and international technical assistance. Within the framework of the plan, by 2021 Ukraine will have to build a number of trunk transmission lines (power lines).

Web Resources



http://www.e-b.com.ua/

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