Despite the ongoing conflict, Ukraine is poised to embark on an ambitious project to construct new nuclear power units, with Energoatom set to commence building the first of these units within the current year. This development has been made feasible by the agreements signed last year with American partners from Westinghouse for the AP1000 project. Additionally, in a groundbreaking achievement, Westinghouse and Energoatom have jointly produced nuclear fuel for VVER-440 reactors in record time, breaking Russia’s monopoly in this market segment. Energoatom’s consistent electricity production has not only prevented blackouts but has also helped maintain low tariffs for consumers, thanks to fulfilling Public Service Obligations. The year 2023 marked a period of decisive actions and remarkable results for Ukraine’s nuclear energy sector.
Despite losing control of the Zaporizhzhia NPP, Europe’s largest nuclear power plant, to Russian occupation, Energoatom has continued its dynamic development and maintained its leading position in the Ukrainian energy market. The company has successfully adapted to wartime conditions, implementing comprehensive measures to ensure nuclear and radiation safety for its facilities within Ukrainian-controlled territory. This adaptation has enabled Energoatom to operate at full capacity amidst constant threats, a unique experience not shared by any other nuclear operator worldwide.
In 2023, Energoatom achieved a significant technological advancement, a feat made possible by its strong international partnerships. The company is particularly grateful to its American partners, Westinghouse and Holtec, whose state-of-the-art technologies and expertise propelled Energoatom to a higher league in global nuclear energy. This collaboration was crucial in overcoming Rosatom’s monopoly in the nuclear fuel and components market for Soviet-style reactors.
Energoatom has set a precedent for countries operating Soviet-era reactors on how to break free from dependency on Russia. The steps taken include completely ceasing the import of spare parts and materials from Russia and replacing them with domestic production and imports from partner countries. They also fully transitioned from Russian nuclear fuel to fuel from the American company Westinghouse, notably for VVER-440 reactors, achieved through proactive efforts by Energoatom and Minister of Energy German Galushchenko. Ukraine is the first and, so far, the only country to switch Soviet-designed reactors (VVER-1000 and VVER-440) to alternative nuclear fuel from another supplier, setting an example followed by nuclear power plants in Czech Republic and Finland.
To further dismantle Russia’s monopoly in the nuclear sector, Energoatom initiated the domestic production of components for heat-emitting assemblies, specifically tails and heads for fuel cartridges. Starting from 2026, this initiative will enable Ukraine to self-supply 50% of its nuclear fuel, with the remainder provided by Westinghouse. In 2023, Energoatom, in collaboration with Holtec, successfully commenced the operation of the world’s first Centralized Storage Facility for Spent Nuclear Fuel. Previously, spent fuel from three Ukrainian NPPs was transported for storage in Russia. Additionally, an agreement with Holtec has been reached to construct a facility in Ukraine for producing containers for spent nuclear fuel, which are currently manufactured in the USA.
Energoatom has ambitious plans to expand Ukraine’s nuclear capacity from the current 13.8 GW to over 20 GW. This expansion will be facilitated by constructing two Westinghouse AP1000 units at the Khmelnytskyi NPP, completing units 3 and 4 at the same site, and deploying small modular reactors and microreactors. Following agreements with Westinghouse in 2021 and 2022 for initially five and later nine AP1000 units, Energoatom has been actively progressing with preparatory and design work, technical-economic justifications, and procurement contracts for equipment. Additionally, in collaboration with Holtec, plans are underway to build a facility in Ukraine for manufacturing key equipment for Holtec SMR small modular reactors. This initiative is expected to significantly contribute to Ukraine’s post-war reconstruction and enhance the competitiveness of its nuclear industry, creating a Ukrainian hub of nuclear technologies with advanced nuclear engineering, scientific, and technological support. Strategic agreements have also been reached with leading nuclear fuel raw material manufacturers Cameco and Urenco, ensuring supply until at least 2035.
In 2023, Energoatom completed its corporatization process, transitioning from a state enterprise to a joint-stock company. This change introduced a new modern corporate governance model aligned with the best global practices, emphasizing independence and efficient management. This transformation not only improves management quality but also opens up additional opportunities for the development of Ukraine’s nuclear energy sector, including attracting significant investments in the industry.
