Ukraine seeks nuclear energy independence
Recent gas disputes with Russia and shortages of coal due to the conflict in Donbas have prompted Ukrainian officials to reassess energy policies and work toward nuclear energy independence.
On December 30th in Brussels, state enterprise Energoatom, which runs all four Ukrainian nuclear power plants, signed a contract with US-based Westinghouse Electric Company for a significant expansion in nuclear fuel supply over the next five years.
However, it is not yet clear how much of Ukraine’s nuclear fuel Energoatom will purchase from Westinghouse.
Nuclear power currently accounts for about 50 percent of Ukraine’s energy balance, and the country has the eighth-largest nuclear capacity in the world. Until recently, almost all nuclear fuel was supplied by Russia’s TVEL Company, a subsidiary of the state-owned Rosatom Corporation.
“We set ourselves upon the task of diversification and acquisition of energy resources, coal from all over the world and nuclear fuel from Westinghouse,” said Prime Minister Arseniy Yatsenyuk. “If earlier we used to have total dependence on Rosatom, now we are diversifying supplies and expanding our co-operation with our Western partners.” Ukraine’s alliance with Westinghouse began in the early 2000s, but was often hampered during Viktor Yanukovych’s presidency. Experts said the new contract is a positive step.
“In the near future, the risk of nuclear blackmail by Russia is quite low since Ukraine has a stockpile of nuclear fuel for the next year or two,” Volodymyr Omelchenko, director of energy programmes at the Kyiv-based Razumkov Centre, told SETimes. “But long term, the diversification of the nuclear fuel supply is a very serious issue.”
However, the Kremlin is trying to prevent the co-operation between Ukraine and Westinghouse by using its propaganda machine. Immediately after the contract was signed, Russia accused Kyiv of neglecting security issues for political purposes, and said that the Westinghouse fuel is not suitable for Ukrainian nuclear plants.
“A dangerous experiment started by Kyiv endangers the health and safety of Ukrainian citizens and peoples of Europe. It seems that the lessons of the Chernobyl tragedy had not taught Kyiv authorities responsible and scientifically based approaches to the use of nuclear energy,” the Russian Foreign Ministry said in a statement.
However, experts refuted such allegations. Moscow’s reaction is not only an attempt to preserve political influence through energy blackmail, but also an effort to maintain control of the Ukrainian market, said Olga Kosharnaya, an expert on nuclear power with the Ukrainian Nuclear Forum. Ukraine pays TVEL about $600 million per year for nuclear fuel and about $200 million for its disposal.
“Russia unleashed this large-scale information warfare campaign back in 2008, and a lot of money was invested in it,” Kosharnaya told SETimes. “Now it is joined by the Russian Foreign Ministry, the puppet leaders of the so-called Donetsk People’s Republic frightening people by saying ‘second Chernobyl,’ and a fake engineers union writing alarming letters to [German Chancellor] Angela Merkel. But the safety of the Westinghouse product was confirmed by government agencies, experts and practice.”
Experts emphasised that Moscow also speculates on the issue of price. Although Westinghouse fuel is more expensive than fuel from Russia, it has a longer-term operation, said Mychailo Gonchar, president of the Centre for Global Studies Strategy XXI, a Kyiv-based energy security think tank. Gonchar added that as Ukraine increases the volume of supply, the price will fall.
“It is just a normal business strategy — to have two suppliers,” Gonchar told SETimes. “In about five to seven years, it would be beneficial for Ukraine to increase the share of Westinghouse fuel up to 50 percent. Competition is always positive since it forces manufacturers to monitor the quality and not to raise prices.”
According to experts, several countries, including France and the Czech Republic, have engaged in the diversification of nuclear fuel supplies in recent years. In May 2014, the EU released its Energy Security Strategy, making such diversification obligatory for any new investment in nuclear plants to be built in the EU.
“Do not forget that Rosatom as well as Gazprom is a state-owned company. And it is managed, in fact, by the Kremlin,” Gonchar said. “We already know what the Kremlin can do. Following the logic of the war unleashed by Russia, we must be ready for anything, especially in such an important area as nuclear energy.”
What are the most important steps for the country to take in order to move toward energy independence? Share your thoughts in the comments section.