ENSURING SUSTAINABLE DEVELOPMENT
Vice-President of SE NNEGC Energoatom
The UN General Assembly recognised the crucial role of sustainable energy in achieving the sustainable development of the society. Member States have joined forces to provide universal and comprehensive energy access, as 2014-2024 were announced the Decade of Sustainable Energy for All. In this context, the "peaceful atom" is a reliable and safe source of clean energy. In addition, nuclear energy is a strategic branch of the economy. Ensuring economic efficiency and guaranteeing safety in this area, Energoatom promotes energy independence and contributes to the sustainable development of Ukraine.
In 2016, Energoatom became the first domestic state-owned company to prepare a non-financial report. The document contained an analysis of the Company’s contribution to the achievement of 17 United Nations Sustainable Development Goals. We have chosen the energy future of Ukraine as the main theme of this year’s report, because the Company leads the way, showcasing that stateowned enterprises can work not only efficiently, but also transparently and responsibly, contribute to the economic growth, preserve the climate, take care of the regions of operations, and encourage the development of employees and local communities.
Energoatom’s key achievements in 2017 were ongoing efforts to ensure a stable energy future. To this end, we are working to extend the life cycle of operating power units and build new production facilities. In the field of renewable energy, we develop hydroelectric power stations and have started to build a solar power plant (at Zaporizhzhya NPP). As to the stakeholder engagement, the Company continues to hold public hearings, consultations and discussions of our investment projects, development plans, electricity and heating prices, as well as other issues. We also promote international cooperation, which helps us learn the best practices and implement advanced technologies for further implementation of our projects and for the sustainable development.
IMPLEMENTING THE SUSTAINABILITY STRATEGY
Energoatom is a key player of Ukraine’s energy sector. The Company’s key sustainability priorities include the highest level of safety, reliable electricity supply, enhanced energy independence, as well as openness, transparency and contribution to the social and economic development of Ukraine. To do this, Energoatom implemented a number of investment projects in 2017 in an effort to promote the development of the industry. The Company also makes a significant contribution to the sustainable development of the society, creates jobs and pays competitive salaries. Energoatom takes great organisational and financial efforts to provide social guarantees to employees. We take care of their health and safety and implement professional development projects. In 2017, we made a significant progress in this area.
Energoatom develops local communities in the regions of its operations and implements joint projects for the social infrastructure development. In addition, we place an emphasis on working with future generations by developing educational programmes for schoolchildren, students and young specialists.
FOCUS AREAS OF ENERGOATOM’S SUSTAINABLE DEVELOPMENT
Energoatom operates within the framework of the Strategic Development Plan updated annually. The Plan covers the priority areas of the Company’s sustainable development actions.
RELIABLE AND SAFE ELECTRICITY PRODUCTION
Energoatom ensures reliable and safe supplies of electricity to its consumers: businesses, organisations and households.
NUCLEAR, RADIATION AND ENVIRONMENTAL SAFETY
Safety lies at the heart of all our decisions and actions. We are aware of the role and footprint of our operations on people and the environment, so we will always see safety as our top priority. Energoatom takes ongoing actions, measures and procedures to ensure a high level of nuclear, radiation, environmental and operational safety at NPPs.
COMPETITIVE SALARIES, SOCIAL BENEFITS AND PROFESSIONAL DEVELOPMENT OF EMPLOYEES
Energoatom is an employer of choice in the sector. We pay competitive salaries, provide social security, rest and recreation opportunities and create an enabling environment for the career advancement.
EMPLOYEE SAFETY AND HEALTH AT WORK
We have introduced an effective occupational health and safety management system in accordance with the OHSAS 18001international standard. The Company continues investing in activities that can help enhance safety in workplaces and reduce occupational injuries. We take a consistent approach to compliance with labour laws of Ukraine.
ENVIRONMENTAL PROTECTION AND ENERGY EFFICIENCY
We recognise our responsibility and role in preserving the environment for future generations. The Company ensures safe operations of nuclear power plants and the compliance of our actions with the principles of European and national environmental laws. Energoatom produces environmentally friendly electricity that does not contribute to climate change. We invest heavily in the upgrade of power units, use natural resources efficiently, implement energy-efficient solutions and adhere to the existing international waste treatment protocols.
As in the previous year, the Company’s CSR priorities remain a responsible attitude to production, society and environment, as well as creation of decent working conditions for employees and care for future generations. Introducing CSR standards, Energoatom seeks to maximise its contribution to sustainable development of the society with the economic, social and environmental impacts of its operations.
The Company’s environmental impact covers a wide range of issues: from increasing environmental awareness of employees and communities to improving the safety of existing power units and other facilities of Energoatom. We have been improving the environmental monitoring on an ongoing basis.
In the course of corporatisation, talent retention is an important HR issue. This process is an unconditional demand of our times, because it underlies the stable operation and development of the Company, particularly with the available investment and HR potential. For talent retention, we implement safety measures, provide social guarantees and training, etc.
Energoatom pays great attention to ensuring maximum openness to the public in all aspects of its operation. Since its inception, the Company has proven that these aspirations can turn into tangible results. In 2017, Energoatom was among TOP 10 biggest Ukrainian companies in the Transparency and Corporate Social Responsibility Index presented by the Center for CSR Development.
Compliance policy and the fight against corruption remain in the limelight at the Company. We are the first state-owned company to have assessed corruption risks in our operations with the assistance of external independent experts. Following the assessment, Energoatom adopted a new version of the Anti-Corruption Programme in 2017, which is one of the Company’s top priorities.
ENERGOATOM’S SUSTAINABILITY MILESTONES 2017
RELIABLE AND SAFE ELECTRICITY PRODUCTION
Our production gives a tangible financial result for the Ukrainian economy. The Company was the largest electricity producer and a major taxpayer in Ukraine.
SOCIAL BENEFITS AND PROFESSIONAL DEVELOPMENT OF EMPLOYEES
The system of incentives at Energoatom saw continuous improvements. The Company ensured a level playing field for professional development of employees and implemented its corporate social programs in an effort to preserve employees’ health and high performance. We invested heavily in recreation facilities and health improvement. For more on this, please see the Caring for People section.
TRANSPARENCY, ACCOUNTABILITY AND FIGHT AGAINST CORRUPTION
The Company’s efforts were highly recognized by monitoring organisations. Another our achievement was the cost savings with the ProZorro system.
The Company continued to improve the system of stakeholder engagement in 2017, demonstrating its information openness and finding a balance of interests. In particular, Energoatom sought to engage stakeholders in cooperation in the course of the most important investment projects and current production activities.
General management and policy shaping in the area of corporate social responsibility is a responsibility of Energoatom’s President and general directors of nuclear power plants. CSR programme planning and implementation is a responsibility of the Directorate for HR and Social Issues and the Center for External Information Communications, as well as of social development departments and PR departments at NPPs. Our NPPs coordinate this work with the Directorate, but develop independently their plans and measures with due account for the specifics of their site, supervised area and location of the nuclear power plants. Other subdivisions of the Company and the NPPs, in particular the units responsible for health, safety and environment, are involved in the CSR project management.
SOCIAL ISSUES AND HSE MANAGEMENT DIAGRAM
OUR CONTRIBUTION TO THE UN SUSTAINABLE DEVELOPMENT GOALS
In 2016, Energoatom was the first Ukrainian public company to prepare a non-financial report in accordance with international GRI standards. We also described our contribution to the achievement of 17 United Nations Sustainable Development Goals. This year’s report outlines the Company’s further steps towards building an integrated sustainable development management system based on the stakeholder engagement principles.
The annual process of preparing a non-financial report enables the Company to analyse existing mechanisms for information collection and consolidation, as well as to identify priority aspects for assessing and managing the non-financial impact of Energoatom in the future. In addition, the report has become an important tool for the Company to introduce unified approaches to benchmarking its operations against SDGs and developing a single CSR policy clear for both the Company’s employees and stakeholders.
CORRESPONDENCE OF ENERGOATOM’S AREAS OF FOCUS WITH UN SDGS
The Company makes a significant contribution to the development of two types of renewable energy: hydropower and solar energy. We have just embarked on development of solar power plants. In particular, in 2017, the Company developed design and cost estimate documents for the pilot project, Construction of Sonechko-1 solar power plant in the area of a cooling reservoir at Zaporizhzhya NPP. In the long run, Energoatom is set to build similar facilities at other NPPs.
Energoatom plays a significant role in the hydropower sector, building new facilities. South Ukraine Energy Generating Complex is the only company in Ukraine that uses both baseload nuclear power capacities and load-following pumped storage capacities. In addition to South-Ukraine NPP, the complex includes Tashlyk Hydroelectric Pumped Storage Power Plant and Olexandrivska Hydro Power Plant. The electricity produced by South-Ukraine NPP, Tashlyk Hydroelectric Pumped Storage Power Plant and Olexandrivska Hydro Power Plant is enough to supply needs of Mykolaiv, Odessa, Kherson and Kyrovohrad oblasts where five million people live altogether. Put into commercial operation in 1999, Olexandrivska Hydro Power Plant now operates two hydroelectric units with a total capacity of 11.5 MW. The construction of Tashlyk Hydroelectric Pumped Storage Power Plant started in 1981. The first hydroelectric unit was put into operation in late 2016, the second in July 2007. Tashlyk Plant is designed to meet peak demands in the southwestern part of Ukraine’s power grid, as well as to ensure a reliable baseload operation of South-Ukraine NPP.
TRANSPARENCY AND ACCOUNTABILITY
The Company adheres to the principles of transparency and accountability, openly shares information about its activity with the stakeholders on its official social network pages and website. Energoatom interacts with the media on an ongoing basis and promptly provides information on the most important issues regarding the nuclear power industry in Ukraine. In 2017, we entered the TOP 10 biggest Ukrainian companies in the Transparency and CSR Index.
We comply with the Law of Ukraine On Public Procurements and buy goods, works and services through the ProZorro Electronic Procurement System. Today, everyone can follow this process.
In 2017, the Company conducted 5,002 procurement procedures in accordance with annual procurement plans, which is by 2,710 higher than in 2016. Open bids saw the highest increase (up by 2,463), with 10,292 bidders (against 4,921 last year) submitting 10,487 tender offers (5,397 in 2016).
Every month, ProZorro e-Procurement Administrator publishes information about customers who were able to save the most money for the previous month. Savings are calculated by determining the difference between the expected cost of procurements and the price of the purchase contract.
ANALYSIS OF ENERGOATOM’S CONTRACTS, 2016-2017, %
In November 2016, ProZorro launched DoZorro portal (dozorro. org), a procurement control tool. Later that year, a risk indicator system was launched in the test mode (risk.dozorro.org). The system allows to identify automatically the purchases with potential violations of the laws and regulations. The Company has joined the DoZorro portal to ensure procurement monitoring.
Since August 2017, Energoatom has extensively used the toolkit of risk indicators at ProZorro. The Company undertakes an ongoing analysis of risks, using the information from for ProZorro risk indicator system. In follow-up, we develop measures for risk elimination and prevention. In 2017, Energoatom joined the Memorandum of Cooperation at ProZorro.Sales in an effort to increase the transparency of stateowned property sales. In 2017, commodity exchanges and Prozorro. Sales e-commerce system sold property of a total book value of UAH 26,400,763 for UAH 41,083,966, with the financial result making UAH 13,577,962. In 2017, the financial result of the Company’s property sales through commodity exchanges and Prozorro.Sales increased by UAH 12,372,814 compared with 2016.
Since we embarked on selling assets via the electronic system, we have received no complaints about non-transparency of property sales from potential bidders.
The main principles of the Company’s information policy are openness and transparency, as well as accountability to all stakeholders. Energoatom regularly publishes all the information about its current activities, upcoming investment projects, strategic plans and reports. There have been no significant changes in the information disclosure as compared with last year. At the same time, the Company is constantly updating and expanding the scope of information published on the website.
The Code of Corporate Ethics (hereinafter referred to as the Code) has been in place at Energoatom since 2010. It defines the principles of ethics and rules of conduct for employees at work. The goal of the Code is to instil corporate values, norms and rules of conduct for employees to establish safety an as unconditional priority at NPPs, as well as to ensure that employees are aware of their role in achieving the Company’s strategic objectives.
- Energoatom’s Code of Ethics relies on the following principles:
- Safety is our first priority. Zero harm to the environment, health and safety of the company’s employees and communities.
- Professionalism of Energoatom employees serves as a guarantee of reliable and failure-free operations of nuclear facilities and ensures the required level of nuclear, radiation and technogenic safety.
- Openness and honesty is a way to enhance the reputation of Energoatom.
- Employee relations based on the compliance with the principles of corporate ethics are the key to the Company’s success.
- Zero tolerance approach to corruption at all levels of Energoatom’s activity.
The Code regulates the development of corporate culture and ensures that employees adhere to high standards of conduct that are traditional for the nuclear power sector. Compliance with the Code is a must for every employee to work for the Company. At work, all employees of Energoatom must follow the principles established in the Code which applies to all employees regardless of their position.
ENERGOATOM’S KEY CORPORATE VALUES:
PLACING SAFETY AS THE ABSOLUTE TOP PRIORITY IN PRODUCTION PROCESSES IN EVERY SUBDIVISION OF THE COMPANY
MANAGING KNOWLEDGE ABOUT THE NUCLEAR POWER USE
TAKING ACTIONS TO IMPROVE THE SAFETY CULTURE AT EVERY LEVEL OF PRODUCTION MANAGEMENT AND AT EVERY WORKPLACE, INVOLVING ALL EMPLOYEES
RESPECTING RIGHTS AND INTERESTS OF OUR EMPLOYEES
MAINTAINING THE RELIABILITY, HIGH QUALITY, COMPETENCE, RESPONSIBILITY AND EXPERTISE IN OUR WORKS AND SERVICES
RESPECTING THE COOPERATION TERMS AND CONDITIONS SUGGESTED BY BUSINESS PARTNERS
RETAINING THE COMPANY’S PRODUCTION POTENTIAL, HUMAN RESOURCES AND OTHER CAPACITIES
CREATING THE ENABLING ENVIRONMENT FOR THE SUCCESSION PLANNING
TAKING ONGOING EFFORTS TO DEVELOP EMPLOYEES’ POTENTIAL AND ENSURE EQUAL OPPORTUNITIES FOR PROFESSIONAL ADVANCEMENT.
Since 2017, the principles of corporate ethics have been also enshrined in Energoatom’s Anti-Corruption Programme binding on all employees. In particular, the Programme requires that the Company’s personnel should adhere to the culture of safety principles, carefully handle the assets of Energoatom, adhere to Corporate Ethics, be open in reporting existing problems (except for restricted information) and comply with the requirements of environmental laws of Ukraine.
Taking into account the importance of observance of these norms by the Company’s employees, these issues are constantly covered during anti-corruption training sessions. Recently, corporate ethics has become an increasingly important element that unites employees into a single corporate environment with high standards, responsibilities and values.
In 2014, the Energoatom developed and implemented a Compliance Policy. Its goal is to ensure transparency and effective counteraction to corruption, as well as to combat abuse in the workplace. The Compliance Policy establishes a number of principles binding on all employees of the Company. In 2017, the policy was implemented during public procurements, production and any other operations of the Company. Compliance efforts are covered in a separate section on the official website of Energoatom.
Anti-corruption clause. In 2017, the Company made contracts, adding the anti-corruption clauses to them. Energoatom informed all business partners about the existing compliance policy by posting the Anti-Corruption Programme and Compliance Policy on the official website of Energoatom5.
Trust Box. Reports about possible signs of violations of the Anti-Corruption Programme, as well as about incitement of employees to commit corruption or corruption-related offenses are accepted orally or in writing via a number of communication channels.
In particular, the Company offers a "Trust Box" tool (firstname.lastname@example.org) placed on the main page of Energoatom’s official website. In addition, websites of separate subdivisions contain e-mail addresses for sending corruption reports.
Whistle-blower hotline. Persons who want to report violations of the Anti-Corruption Programme, corruption or corruption-related offenses by employees can use the hotline (044 277 79 47).
Anonymity. Energoatom also considers anonymous reports about corruption or corruption-related offenses if the reports contain the information about a concrete person and actual data that can be checked.
Confidentiality. Employees are guaranteed the confidentiality and protection from dismissal, disciplinary liability, other negative actions of influence (transfer, attestation, change of working conditions, refusal to promote, salary decrease, etc.) that can be taken by a superior or employer, or threats of such actions in connection with theor reports of violations of the anti-corruption laws.
Following the corruption risk assessment, the Company developed, approved and implemented a new Anti-Corruption Programme in 20176.
We set up a working group for corruption risk assessment in February 2017. Chaired by the President of the Company, the group also engaged external experts. The text of the Anticorruption Programme is available on Energoatom’s website .
- In 2017, the Company developed the following documents within the framework of the Anti-Corruption Programme:
- Guidelines for corruption prevention briefings;
- Methodical Guidelines for anticorruption examination of documents and their drafts;
- Regulations on interaction with regulatory and law enforcement agencies;
- Regulations on gifts and property that are received/identified by employees and can be regarded as an improper advantage.
In 2017, an anonymous corruption prevention survey of employees was held for the third time. The findings underlay an anti-corruption action plan for 2018. Moreover, they will be taken into account to identify corruption risks of the Company.
- After analysing anonymous questionnaires of its employees, the Company made the following conclusions:
- Employee awareness about the requirements of anti-corruption laws increased significantly (compared with 2015-2016), since more than 50% of respondents correctly answered the general questions about the anti-corruption legislation.
- Anti-corruption measures were approved by the team: 63% and 39% were ready to report a potential corruption offense by an official to their immediate superior.
Energoatom is a player in a large number of two-way social and political processes. The Company is influenced by decisions of governmental authorities, ministries, agencies, local self-government agencies in the regions of its operation. Moreover, media industry-specific community organisations, experts and environmental associations have an impact on the Company’s reputation. On the other hand, the Company itself has a significant impact on the economy and society. Energoatom generates half of the electricity in Ukraine, which has a strong impact on businesses and households. We are a major taxpayer, which has a direct impact on the State Fiscal Service, the State Treasury and the Ministry of Finance and an indirect impact on the public finances in general. The Company is a leading employer in the regions where our assets are based, which affects the social and economic situation and budgets of the satellite towns (through the payment of individual income tax and salaries). The strict observance of environmental standards by Energoatom has a positive impact on the environmental situation in the regions of presence and the country as a whole. Our operations and actions play a role for foreign partners: sectoral organisations (IAEA, Euratom and others) and financial organisations (EBRD).
Therefore, a high-quality, transparent and honest interaction with such a broad array of stakeholders is strategically important for us. Energoatom seeks to ensure a high level of openness and transparency of its operations through a public dialogue. We maintain active communications with all stakeholders, providing timely information on all aspects of our operations. To determine the principles of stakeholder engagement and a range of the material issues, the Company applies the AA1000 international stakeholder engagement standards and Global Reporting Initiative standards.
Awareness raising about Energoatom’s operations and development prospects is the main form of stakeholder engagement at the Company. This approach involves providing a complete, objective and clear information about all corporate processes. The Company continuously holds consultations with the stakeholders, including public and expert events organised by Energoatom independently or jointly with other organisations: public hearings, discussions, meetings, conferences, round tables, etc. There are also specific forms of stakeholder engagement, such as NPP information centres, introductory tours to NPP facilities, sectoral exhibitions, dedicated printed information products, sectoral media, etc. In addition, stakeholder engagement involves other forms required by laws of Ukraine: processing requests for information, as well as addressing claims and complaints of citizens. We also have outreach and educational programmes and projects for stakeholders in place: educational schools, thematic lectures, internships, etc.
Stakeholder engagement is an integral part of the assessment, management and monitoring of environmental and social processes related to investment projects of Energoatom. In such major investment projects as Complex (Consolidated) Safety Upgrade Programme of Power Units of Ukrainian NPPs and Construction of the Central Spent Fuel Storage Facility, the Company develops and implements individual stakeholder engagement plans approved by senior management. Such plans include the use of procedures allowing stakeholders to give their comments or complaints. The comments, complaints and replies are recorded in Q&A books posted on the official website of the Company.
ENERGOATOM’S STAKEHOLDER ENGAGEMENT IN 2017
WAYS OF ENGAGEMENT
Safe and reliable electricity production. Transparent and not inflated electricity prices. Openness and transparency. Company’s contribution to the social and economic development of Ukraine
Company’s public reporting. Public discussions. Information centres of nuclear power plants. Informing via all available sources of information
CENTRAL GOVERNMENT AUTHORITIES
Safe and reliable electricity generation The Company’s sustainable long-term development. Compliance with high standards of business ethics. Openness and transparency. The Company’s contribution to the social and economic development of Ukraine. Payment of taxes. Provision of jobs. Partnership development. Compliance with Ukrainian and international laws
Development of partnerships, including public private partnerships. Compliance with the sustainable development principles in all aspects of the Company’s operations. Leadership in government-led initiatives of transparency and accountability. Introduction of anti-corruption policy and programme in the Company. Payment of taxes to the national budget. Timely and full payment of the social and economic compensation for risks of the population living in the NPPs’ supervised areas. Participation in lawmaking. Public reporting of the Company. Informing via the Company’s official website www.atom.gov.ua (in particular, via interactive sections)
Timely and accessible information on tenders. Transparent public procurement procedures. Openness and transparency. Mutually beneficial cooperation
Trust line on the Company’s anti-corruption efforts. Trading on ProZorro platform. Engaging anti-corruption NGOs to the Company’s tender commissions and working groups to assess corruption risks related to procurements and contractor relations. Informing via the Company’s official website www.atom.gov.ua
Competitive salaries and social benefits. Safe and comfortable working conditions. Respect for human rights. Transparency of management processes. Professional development opportunities
Open dialogue between the Company’s management and employees. Social polls. Training programmes for the Company’s employees. Participation of the Company’s employees in local development projects. Participation of the Company’s employees in corporate volunteering projects. Partnership with educational institutions as part of staff training for nuclear power plants. Corporate media
ACADEMIC AND EXPERT COMMUNITY
Development of science and technology cooperation. Innovative development of the Company and the nuclear industry as a whole
Engagement of academic and expert community in expert commissions. Science and technology cooperation. Partnership with educational institutions as part of staff training for nuclear power plants. Public discussions. Informing via all available sources of information
Openness and transparency. Real-time, objective and accessible information on the Company’s operations.
Presentations, press conferences with representatives of the Company. Public reporting by Energoatom. Public discussions. Information centres of nuclear power plants. Informing via all available sources of information
CIVIL SOCIETY ORGANISATIONS, ENVIRONMENTAL, SECTORAL AND ANTI-CORRUPTION NGOS
Openness and transparency. Accountability, compliance with national and international standards. Compliance with high standards of business ethics. Partnership in joint projects
Partnership, implementation of common projects. Reporting on the Company’s operations in public sources and in accordance with the applicable laws of Ukraine. Information centres of nuclear power plants. Public discussions. Informing via all available sources of information
INTERNATIONAL NON-PROFIT ENVIRONMENTAL AND ENERGY ORGANISATIONS, CSR INSTITUTIONS
Openness and transparency. Accountability, compliance with national and international standards. Compliance with high standards of business ethics. Partnership in joint projects
Cooperation with international organisations, including participation in international projects and programmes. Engagement with civil society organisations, including environmental organisations. Reporting on the Company’s operations in public sources and in accordance with the applicable laws of Ukraine. Public discussions. Information centres of nuclear power plants. Informing via all available sources of information
LOCAL GOVERNMENTS AND COMMUNITIES
The Company’s sustainable long-term development. Contribution to the social and economic development of the regions where the Company operates. Maintaining and creating jobs. Social partnership
Social programmes to improve living standards in the regions where the Company operates. Public private partnership projects in towns where nuclear power plants are located. Social partnership. Public discussions. Information centres of nuclear power plants. Informing via all available sources of information
COOPERATION WITH CIVIL SOCIETY ORGANISATIONS
Civil society organisations are a Company’s important stakeholder group representing the energy community, environmental experts and civic activists.
- Energoatom takes an active part in conferences and roundtables, adhering to the principles:
- ongoing and constructive dialogue
- open productive cooperation
- publicity and transparency
- raising public awareness of Energoatom’s operations in time and in full
- meeting commitments.
In addition, Energoatom invites non-governmental organisations (NGOs) to public discussions on extension of the operating life of Ukrainian NPPs, raising of Olexandrivske Reservoir level, and findings of the Environment Impact Assessment for Complex (Consolidated) Safety Upgrade Programme of Power Units of Ukrainian NPPs. During such events, public representatives can receive full answers to all the questions of which they are concerned. In 2017, the following events took place:
On April 19, South Ukraine Energy Generating Complex held public hearings and presented findings of the environmental impact assessment (EIA) in relation to raising the level of Olexandrivske Reservoir to a mark of 20.7 m. The presentation was held the day before in Bohdanivka village (Domanivka district, Mykolaiv Oblast), bringing together businessmen, scholars of the National Academy of Sciences of Ukraine and experts of the State Scientific and Technical Centre for Nuclear and Radiation Safety. Public hearings were also attended by delegations of National Ecological Centre of Ukraine, other public and environmental movements, locals residing in the supervised area of the nuclear power plant, from Pervomaisk, Yuzhnoukrainsk, Domanivka, Bohdanivka and Vinogradny Sad, representatives of central and regional mass media.
In August, Zaporizhzhya NPP specialists met with communities of Dniprorudne, Novovodiane, Dniprovka and Velyka Belozerka in the format of public hearings to discuss feasibility and safety of extension of the lifecycle of power unit 3 at Zaporizhzhya NPP. In September, the Company used the same form of engagement to interact with the communities in Kamianka-Dniprovska, Velyka Znamianka, Nikopol and Blahovishchenka.
On November 20, a community and business centre at Zaporizhzhya Nuclear Power Plant hosted public discussions about the implementation of the Complex (Consolidated) Safety Upgrade Programme of Power Units of Ukrainian NPPs. In particular, they focused on the Environmental and Social Action Plan (ESAP). On November 24, 2017, a similar event took place in the satellite town of Khmelnitska NPP (with due regard to local specifics). We believe our cooperation with anti-corruption public organisations is another our remarkable success.
Energoatom and its separate subdivisions are in an ongoing dialogue with local communities. This helps the Company identify the most important issues for the society. In particular, the Company’s investment programmes have always been the focus for both the general public and local communities. All separate subdivisions of Energoatom implement or plan to implement local community programmes. Our key objectives for the public dialogue have two components. The first is to explain the benefits of the Company’s projects for the Ukrainian economy (an increase in output), the country’s energy balance (capacity increase), budget (taxes) and local communities (taxes, jobs, and social development). The second is to explain in detail the strict and effective safety system of the Company, which is aimed at avoiding accidents and minimising the environmental impact.
In January-June 2017, South Ukraine NPP held public discussions as prescribed by applicable laws to discuss findings of the environmental impact assessment about raising the level of Olexandrivske Reservoir to the design mark of 20.7 m as part of the completion of Tashlyk Hydroelectric Pumped Storage Power Plant. In particular, public hearings were held in five localities, including Yuzhnoukrainsk. In September, public hearings were held on extended operation of power unit No. 3 at Zaporizhzhya NPP in Kamianka-Dniprovska, Nikopol and Marganets. In October, the State Nuclear Regulatory Inspectorate of Ukraine held public hearings in Energodar. The event brought together representatives of environmental organisations, local authorities, mass media, communities, and specialists of Zaporizhzhya NPP.
In May and June, public consultations were held in the satellite towns of NPPs and the city of Kyiv to discuss findings of the regular environmental impact assessment of Complex (Consolidated) Safety Upgrade Programme of Power Units of Ukrainian NPPs. In November, satellite towns and Kyiv hosted public discussions of the Programme and the Environmental and Social Action Plan (EAPC). The events brought together managers and specialists of Energoatom’s NPPs and Head Office, representatives of the public and mass media from the satellite towns and Kyiv.
- In August, nine open public discussions covered the following issues:
- Setting "green" tariffs for electricity produced by Olexandrivska Hydro Power Plant;
- Energoatom’s adjusted investment programme 2017;
- Energoatom’s adjusted investment programme for electricity produced by Tashlyk Hydroelectric Pumped Storage Power Plant and Olexandrivska Hydro Power Plant in 2017;
- Changing prices for electricity and thermal energy generated by NPPs in 2017 in accordance with Resolution No. 866 of the National Energy and Utilities Regulatory Commission of Ukraine dated 30 June 2017;
- Adjusted proces for the electricity generated by the cascade of the Hydroelectric Pumped Storage Power Plant and Hydro Power Plant at South Ukraine NPP in 2017;
- Setting prices for the electricity produced by Tashlyk Hydroelectric Pumped Storage Power Plant at South Ukraine NPP in 2018;
- Setting prices for the electricity produced by Olexandrivska Hydro Power Plant at South Ukraine NPP in 2018;
- Setting prices for electricity and thermal energy produced by NPPs in 2018 in accordance with Resolution No. 866 of the National Energy and Utilities Regulatory Commission of Ukraine dated 30 June 2017;
- Energoatom’s investment programme 2018.
Participants in these events were representatives of selfgovernance bodies of the respective NPP satellite towns, specialists of Energoatom and nuclear power plants.
Following the events, the Company compiled minutes, collected and handled questions and comments from stakeholders, with questions being answered directly during the events or afterwards in writing. In addition, consolidated materials were posted in the Q&A Book in relation to the Complex (Consolidated) Safety Upgrade Programme of Power Units of Ukrainian NPPs. The events were covered on the official websites of the Company and NPPs, as well as in corporate mass media.
International cooperation holds a valuable place in the Company’s operations. After all, Ukraine is one of top five European nuclear energy producers.
At Energoatom, international cooperation focuses on maintaining the competitiveness of nuclear power generation, bringing R&D, technical and financial assistance, introducing international practices and ensuring the safe operation of nuclear power units in line with the global standards. Our international cooperation is based on bilateral and multilateral intergovernmental agreements, cooperation agreements in the field of peaceful use of nuclear energy, bilateral partnership agreements, international programmes and projects, memorandums and commercial contracts.
UKRAINE: ENERGOATOM – SUSTAINABLE CORPORATE DEVELOPMENT
Energoatom and the EBRD have undertaken to implement a joint project, Ukraine: Energoatom — Sustainable Corporate Development, in 2017 in accordance with the loan/guarantee agreement between Ukraine and the European Bank for Reconstruction and Development.
The objective of the project is to facilitate a broad research to result in recommendations on steps towards legal and commercial corporatisation of Energoatom, improvement of the management system, introduction of modern information systems and implementation of the corporatisation roadmap.
As part of the project, our advisor analysed and evaluated the current regulations on corporatisation. Results of the first stage were presented on 11 October 2017. The main conclusion of the first stage was that Energoatom’s corporatisation required the development of a special law that should take into account all the peculiarities of the Company’s operations.
ENERGOATOM INTERNATIONAL COOPERATION IN 2017
INTERNATIONAL ATOMIC ENERGY AGENCY (IAEA)
- The Company’s senior management took part in the Seventh Review Meeting of the Contracting Parties to the Convention on Nuclear Safety and the IAEA’s 61st session of the General Conference.
- Energoatom completed IAEA’s national project UKR/2/001, Improving the Safety-Related Nonconformity Management System.
- IAEA launched a project, Assessment of the Potential Role of Nuclear Energy in National Climate Change Mitigation Strategies.
- A lot of works were done under the INPRO project, Strategic Planning for Nuclear Energy Development in Ukraine;
- A workshop and a briefing were conducted on IAEA’s SALTO mission scheduled for May 2018 at power unit No. 3 of South Ukraine NPP.
WORLD ASSOCIATION OF NUCLEAR OPERATORS (WANO)
- A follow-up peer review took place at Khmelnytska NPP;
- On 2-7 October, Kyiv hosted an international seminar, Leadership in Nuclear Energy. From 2018, such seminars will be held at each NPP. A pilot venue was Rivne NPP (March 2018);
- On 11-15 September 2017, Kozloduy NPP, Bulgaria, hosted WANO Site Vice Presidents’ & Plant Managers’ Conference, where the Company’s senior managers took part.
EUROPEAN UTILITY REQUIREMENT (EUR)
- Evaluation of APR-1400 project with requirements of EUR revision D was completed. Energoatom’s representatives took part in the assessment of sections 2.7 "Functional Requirements: Components", 2.3 "Grid Requirements" and 2.19 "Costs Assessment Information Requirements".
- Revision E requirements were completed.
HORIZON 2020 RESEARCH AND INNOVATION PROGRAMME
- A consortium of Westinghouse and eight European organisations completed the ESSANUF project, European Supply of Safe Nuclear Fuel. Energoatom was an associated expert in the project. The project made the design of a future fuel assembly and developed a concept of safety justifications, relevant codes and methodologies.
- Cooperation with Ukraine remained high on the Global Partnership agenda;
- Participation of representatives of the Company in the meetings of the GP working groups allowed discussing important projects on radiation, chemical, biological and nuclear safety, bringing financial and advisory international assistance for the implementation of targeted programmes and projects aimed at strengthening international security in activities against the spread of weapons and materials of mass destruction in general;
- International technical assistance projects were being implemented for the Company, supported by the governments of the United States, Canada, Germany, Sweden and Norway;
- On 3-4 October 2017, Kyiv hosted the second international meeting "Nuclear Security in Ukraine: Information Sharing, Lessons and Coordination" supported by the Government of Norway.
- The last two TACIS projects of 2006 (U1.01/06A and U1.03/06A) were completed: the equipment for radioactive waste treatment complex lines was supplied to Rivne and Zaporizhzhya NPPs (the total cost of these projects made EUR 21.3 million).
- In December 2017, Rivne NPP and Zaporizhzhya NPP completed the construction of complex lines for radioactive waste treatment and launched pilot testing.
INSTRUMENT FOR NUCLEAR SAFETY COOPERATION
- During 2017, four projects were implemented (under INSC 2010 and INSC 2012) and final meetings were held on two projects under the INSC 2009 programme.
In addition, Energoatom actively cooperates with other international organisations and initiatives: WNA, ENISS, IFNEC, FORATOM (through membership in UNF), Energy Community, Nuclear Law Committee NEA/OECD, European Bank for Reconstruction and Development, etc.
ENERGOATOM’S INTERNATIONAL BUSINESS PARTNERS:
Polernergia, General Electric Power
Skoda JS, ÚJV Řež
Framatome, Orano (earlier Areva), EDF
Westinghouse, Holtec International, General Electric-Hitachi, Global Nuclear Fuel, Meridican, Argonne National Laboratory
CNNC, Dongfang Electric Machinery, CGN
Manitoba HDVC RC, ELPROS, Relarte
Results of the Company’s cooperation with some businesses:
- Delivery of six batches of fresh nuclear fuel produced by Westinghouse. The fuel was put into pilot testing at power units No. 2 and No. 3 of South-Ukraine NPP and four power units of Zaporizhzhya NPP.
- Energoatom and Westinghouse made a new agreement for the nuclear fuel supply. The document established terms and conditions of wider cooperation and extended the validity of the current treaty to 2025.
- The Company signed an additional agreement to the Memorandum of Understanding for exploring physical protection practices and expertise of IDOM NS.
- Arrangements were reached to conduct a feasibility study for reprocessing the spent fuel assemblies of Ukrainian VVER reactors at la Hague treatment plant.
- Arrangements were reached to develop and implement measures to launch an automatic load-following (flexible) mode for a pilot station of Khmelnytska NPP 2.
- Energoatom signed a Memorandum of Understanding to develop cooperation on modernisation of the turbine generating equipment of nuclear power plants in Ukraine.
- An international consortium consisting of Polenergia International, EDF Trading and Westinghouse was set up. Proposals on public-private partnership for implementation of Ukraine-EU Energy Bridge were submitted.
- The Ministry of Energy and Coal Industry analysed the effectiveness of the public-private partnership, which actually meant the beginning of the Ukraine-EU Energy Bridge project.
- On 10 November 2017, Energoatom started the construction of the Central Spent Fuel Storage Facility.
- Energoatom became a Holtec User Group member company.
- Energoatom launched a joint project "Assessing conceptual approaches and comparing technical specifications with the best European practices for launching a system of forced pressure relief from the radioactive gas processing units at Ukrainian NPPs". The initiative is financed by the Government of Belgium.