Presentation to the speech President SE NNEGC “Energoatom” Yuriy Nedashkovsky at the Ukrainian Energy Forum 2017 of Adam Smith Conferences (02.03.3017)

1. Ukrainian Energy Forum of Adam Smith Institute
Kyiv
March 2nd, 2017
Yuriy Nedashkovskyi, President

2. 2
SS ZNPP
SS RNPPSS KhNPP
SS SUNPP
SS “AtomProjectEngineering”
SS “Emergency Technical
Center”
SS “AtomKomplekt”
SS “AtomEnergoMash”
SS “AtomRemontService”
STRUCTURE OF SE NNEGC “ENERGOATOM”
HEAD OFFICE
SE NNEGC ENERGOATOM
2

3. Total installed capacity of NPPs of SE NNEGC
Energoatom
13 835 МW
ВВЕР-
1000
ВВЕР-
1000 ВВЕР-
1000
ВВЕР-
1000
SUNPP
ВВЕР-
1000
ВВЕР
-1000
ВВЕР-
1000
ВВЕР-
1000
ВВЕР-
1000 ВВЕР-
1000
ВВЕР-
440
ВВЕР-
440
ВВЕР-
1000 ВВЕР-
1000
ВВЕР-
1000
ВВЕР-
1000
ВВЕР-
1000
Ol HPP
6000 MW
302 MW
GENERATING FACILITIES OF SE NNEGC “ENERGOATOM”
3
THPSPP
11.5 MW

4. Total installed capacity of Ukrainian NPPs reached 13.8 GW(e) that makes 25 % of the installed capacity of
the Integrated Power System of Ukraine. The NPP’s share in the energy generation balance in Ukraine
rises continuously and in 2017 it exceeded 60 %.
SE NNEGC ENERGOATOM – AN ONLY NPP OPERATING COMPANY IN UKRAINE
4
Main objectives of NNEGC Energoatom:
1. Safe electricity generation
2. NPP safety enhancement
3. Nuclear new builds and life time extension of operating power units
4. Establishing national infrastructure on management of nuclear fuel and radioactive waste
5. Physical protection of nuclear installations
6. Continuing education of the staff
Electricity production by the types of generation, in TWh
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.66
0.33
0.14
Current indicator of scrams per 7000
hours of reactor operation under
critical state at Ukrainian NPPs (0,14)
is almost 2.4 times lower than the
average in WANO-MC and 4.7 lower
than that worldwide.
NNEGC Energoatom is safe, reliable, advanced energy utility, having
significant development capability and plans for the future

5. By 2020 NNEGC Energoatom will complete implementation of the measures of NPP complex
consolidated safety upgrade program, resulting in :
• Enhancement of safety level of all Ukraine’s NPP up to the level compliant with international and
national safety requirements.;
• Implementation of current obligations on implementation of safety upgrades to international
organizations;
• Replacement of safety related equipment whose life time ended with the modern one;
• Implementation of post-Fukushima corrective measures;
• Creation of conditions for extension of a power unit design lifetime.
By 2020 the design lifetime of all power units of Energoatom’s NPPs will be extended (except for the
newest two power units, Khmelnitskyi-2 and Rivne -4, whose design life expires in 2034).
NNEGC Energoatom will step into 2021 as a modern company that operates NPP with extended
lifetime, upgraded on the basis of state –of –the –art technologies and safety level meeting the best
international standards.
Electric power produced by NNEGC Energoatom is environmentally clean, free of
СO2 emissions and competitive at the local and international markets.
Operation Safety and Reliability at SE NNEGC ENERGOATOM
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6. Ukrainian NPPs are compliant with the International Safety Standards
Based on the FSAR - safety criteria (CDF, LRF) meet the safety standard
requirements
Proper safety level of Ukrainian NPPs has been confirmed by
international experts
 During regular meetings at the IAEA addressing the compliance with provisions of the
Nuclear Safety Convention;
 During continuous monitoring performed by international experts in the framework of
international cooperation projects, including WANO’s activities;
 Based on the results of a comprehensive safety assessment of Ukrainian nuclear power
units, conducted under the Joint Projects EC-IAEA-Ukraine on the safety evaluation of
Ukrainian NPP between 2007 and 2010
In recent years the five WANO peer review missions (WANO PRM) were conducted to
check the operational safety at SE NNEGC Energoatom, specifically:
• SUNPP - 2014;
• KhNPP- 2015;
• ZNPP -2015
• Corporate peer review of SE NNEGC Energoatom – 2015
• RNPP -2016
Operational safety of NPP is the top priority to SE NNEGC Energoatom
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7. Pilot Project
Energy Bridge: Ukraine –European Union
- first step towards full strategic synchronization between the Ukrainian and European energy grids,
safe and smooth gradual approach to a fully synchronized mode of operations;
- potential for securing the export of up to 2.55 TW to the EU countries even in near future;
- financial instrument to finance construction of Khmelnitsky Units 3 and 4
Khmelnitsky NPP, Ukraine750 kV Overhead
Transmission Line
Rzeszow, Poland

8. Background of the Project
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 Ukraine and Poland possess a mutual energy potential which may be deployed for developing Ukraine’s and Poland’s energy sectors, fostering
integration and cooperation between European countries. That potential is a 750 kV overhead transmission which is 450 km long and rated up to 2000
MW, connecting Khmelnitsky NPP (Ukraine) with 750/400 kV Videlka Substation (near Rzeszow, Poland) .
 In 1979 five countries of CMEA (USSR, Poland, Czechoslovakia, GDR and Hungary) had signed an agreement on construction of a new electricity
transmission line to export the electricity from the Soviet Union to Poland, Czechoslovakia and Hungary (GDR had entered the system only with the
purpose of stabilization, but without specific electricity supplies). The line was put into operation in 1985 and linked the Ukrainian SSR to Poland.
Nowadays, in the current circumstances , constructing such a line “from scratch” would cost up to half a billion Euros.
 Actually, the electric power was exported to Poland though that line until 1991, while a planned scope of supply of 6000 GW*h/year was accomplished
only in 1988. But in 1992 the electricity supplies were halted, and immediately after that stoppage the supplies became technically unrealizable
because Poland together with Czechoslovakia and Hungary separated from their eastern neighbor and synchronized their domestic electrical networks
with European energy grid. Since then, despite several significant economic benefits for Poland and Ukraine, which could be obtained from that line, if
operated, that line remain disconnected and is not utilized.
 Potential of that line allow exporting a part of electricity generated by Khmelnitsky NPP, which has two VVER-1000 units in operation. SE NNEGC
Energoatom ’s experts performed an initial survey (using the satellite data) of the total line length, and determined that the line has not any visible
interruptions or damages. It is necessary to conduct an inspection and restoring repairs of the line itself and its infeeds to 750 kV OSG of Khmelnitsky
NPP. Also, it is necessary to clear the territory of a sanitary zone under the line: that territory (especially, the Ukrainian territory) is treed in various
parts. According to the analysis, the renewal and re-commissioning of 750 кV OTL will take about 18 months.
750/400 kV Videlka Substation 750 kV OTL from Khmelnitsky NPP to the
Videlka Substation (Poland)

9. Ukraine is Closely Connected with Neighboring European Countries with Transmission Lines
Diagram of interconnection of Ukraine and European countries
• In view of current changes in geopolitical
situation in Ukraine, there is no alternative
option to full synchronization between Ukraine
and ENTSO-E
• It is assumed that starting 2025 Ukraine will be
able to export up to 15-25 TWh(e) to ENTSO-E
countries, provided there are no political
restraints, and subject to full synchronization.
• Pilot project “Ukraine–European Union: Power
Bridge” is the first step towards full
synchronization with the EU
Comments
* There is a 750kV transnational OTL Khmelnitsky NPP-Rzeszow between Ukraine and
Poland. However, is has not been operated since 1993.
According to the assessment of national grid operators of Ukraine and Poland,
technical condition of the OTL is satisfactory and does not require significant funding
and time to resume its operation..
According to market forecasts and estimates, in the next 20 years
electricity price in the EC countries will grow by 1% on average, in the range
from 36 to 50 EUR/МWh.
Taking into account the current level of Ukraine’s NPP electricity price,
which is Euro 16.3 per 1MW, it is obviously competitive at the EU market,
even if increased by the investment constituent.

10. Організація експорту електроенергії з Хмельницької АЕС (Період 2017-2019 рр.)
Area of responsibility of NEC Ukrenergo :
1. Restoring the operability and improving the
operational efficiency of the three 750 kV OTL:
 KhNPP (Ukraine) –
Videlka substation (Rzeszow, Poland)
 KhNPP (Ukraine) –
Zakhidnoukrainska substation (Ukraine) –
operable
 Zakhidnoukrainska substation (Ukraine) –
Albertirsa substation (Hungary) – operable,
(10% loaded)
2. Disconnection of the part of Zakhidnoukrainska
substation from the Ukrainian energy grid and its
connection to the Burshtyn island
Estimated cost - EUR 8 million
Area of responsibility of SE NNEGC Energoatom:
1). Modernization of Khmelnitsky Unit 2 and its re-connection to the Burshtyn island
Estimated cost– EUR 16 million
2). Ensuring of in-house load reserves of KhNPP Unit 2 during the operation with ENTSO-E by performing the advance installation of KhNPP Unit 3
transformer
Estimated cost - 31 млн євро
Export of electricity from KhNPP Unit 2 to the EU is expected to start in 2019

11. Pilot Project “Ukraine – European Union: Power Bridge”
Implementation Logic
 Revitalization of the existing 750 kV OTL Khmelnitsky
NPP – Rzeszow.
 Radial connection of the two existing 750 kV OTL
operated within the Energy System of Ukraine,
specifically, (1) Khmelnitsky NPP – Rzeszow and (2)
Khmelnitsky NPP – SS Zakhidnoukrainska – SS
Albertirsa, to the Burshtyn Island will allow an
increase of the Grid’s transmission capacity;
 Synchronous operation of Khmelnitsky NPP Unit 2
(1000MW) within the extended Burshtyn Island allows
to increase the system’s generating capacity;
 Power plants within the extended system:
Khmelnitsky NPP Unit 2 (1000MW), Burshtyn TPP,
Kalush TPP.
 The export potential of the Burshtyn Island will be
increased up to approximately 1550 MW (potentially,
maximum up to 2550 MW);
 The electricity export under the project can be
launched starting 2019
The PURPOSE of the project is to increase Ukraine’s export potential at the cost of electricity supply to
the European Union countries through extension of the Burshtyn Island. The project includes
revitalization of the 750 kV OTL Khmelnitsky NPP – Rzeszow, its radial connection to the Burshtyn
Island, and synchronous operation of Khmelnitsky NPP Unit 2 within the extended Burshtyn Island,
thus allowing for and increase of Ukraine’s generating capacity, which is synchronized with the
European Union, and of electricity export to EU up to 1550 MW (potentially, maximum up to 2550 MW).11

12. Benefits from the use of energy potential of the pilot project “Energy Bridge: Ukraine –
European Union”
4
Option 1
Owing to the revitalization of the existing 750 kV OTL
Khmelnitsky NPP – Rzeszow, an “energy ring: Rzeszow- KhNPP-
Albertirsa” is to be established to allow performing the transit of
electricity (1300 MW) between various regions of Europe (from
Germany, Poland to Hungary, Romania and Balkan countries
across Ukraine).
Option 2
The connection of KhNPP Unit 2 to the Burshtyn island will
provide the potential for exporting 1550 MW up to 2550 MW (in
future) from the Burshtyn island to Europe.
Option 3
Full synchronization of UES of Ukraine with ENTSO-E will enable
Ukraine to increase the export to the EU up to 4000 MW. At the
same time, tangible benefits will be obtained by all participating
countries :
Open access to electricity markets;
Mutual security and redundancy of energy systems;
Political and economical benefits

13. 750 kV buses system of Khmelnitsky NPP Unit 2 is to be
connected directly to ENTSO-E through the KhNPP – Rzeszow
line
Безпека роботи АЕС та енергосистеми в цілому є
безумовним пріоритетом організації Проекту
 Feasibility study of “Connection of Khmelnitsky NPP Unit 2
to the Burshtyn island” (PJSC KIEP) has identified 4 possible
options of power supply from KhNPP Unit 2 to the ЕNTSO-Е
system, each of them fully complies with the safety
requirements at the design level , including the in-house
power circuit of KhNPP.
 Safe disconnection of KhNPP Unit 2 (for operating
separately from the Ukrainian energy system) is secured by
means of initial designed scheme of power supply by
Khmelnitsky NPP, where power unit 2 supplies power to its
own 750 kV buses system , which is separated from other
KhNPP units in view of its voltage class.
 When completed, KhNPP Units 3 and 4 will allow improving
the security of in-house supplies for operating power units,
under separated operation mode, by means of back-up
electricity supply from power units, which are under
construction, using an advanced commissioning of their
supply systems
 .
Owing to the dedication of KhNPP Unit 2 to operation in the ENTSO-Е system, the Project “Energy
Bridge: Ukraine-European Union” will provide the source of back-up electric power supply directly
on Khmelnitsky site, with unprecedented power and opportunities provided by ENTSO-Е. When
made available, that independent source of electricity supply will significantly improve the safety of
KhNPP in case of loss of power on site, as well as the safety of the Ukrainian energy system or the
European energy system as a whole in case of an “exceptional” accident in the system.

14.  Ukraine’s OTLs are closely linked to the western neighbouring countries, however it is only a
limited capacity of Burshtyn Island that is synchronously connected to the ENTSO-E. The full
synchronization requires political will, coordinated efforts of design and power sector
organizations of Ukraine and the EU, and significant time
 The project “Ukraine-European Union: Power Bridge” is a pilot project and the first step towards
the strategic synchronization of Ukraine’s power system with that of the EU. The start of electricity
export in the amount of 1,55 GW (potentially up to 2,55GW) is planned for as early as 2019. The
project is designed to ensure safe smooth and seamless transition to the mode of full
synchronous operation (preliminary start of full synchronization - 2025)
 The project is fully investment-driven: it doesn’t produce any additional load on the budget of
Ukraine. The project will be duly implemented in the form of the Public Private Partnership (PPP) in
accordance with the laws of Ukraine. The return on investments will be effected through electricity
sales in the European market
 The project establishes a mechanism to arrange for commercial funding, which SE NNEGC
Energoatom is in need for to support modernization of nuclear power units. It is planned that the
proceeds from the electricity export from Khmelnitsky NPP Unit 2 can be used as a necessary
funding source for construction of Khmelnitsky NPP Units 3 and 4 through a long-term power
purchase agreement (PPA) between investors and Ukrainian partners.
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Conclusions

15. NNEGC “Energoatom” and the Universe1`
According to the present-day theories, the age of the Universe,
between its inception with the Big Bang and nowadays,
is 13,8 bln. years.
The installed electric capacity of all operating Ukrainian NPPs
is 13,8 bln W,
which is 1W per each year of existence of the Universe!
Thank you for your attention !