Investments analysis for construction of nuclear power plant in Ukraine: the influence of the size

This thesis provides a feasibility study and analysis of Nuclear Power Plant construction in Ukraine and the influence of the size on the investments. Energy sector is considered one of the most prospective fields for investments. Development of nuclear energy facilitates ensuring of energy safety of the country, decreases or totally eliminates dependence from electricity import and provides a profit to the investor. At the present time, the energy sector stands in the stage of reforming, which is determining by market reforms in power – energy complex. In the base of reforming process, there is a creation of real working and competitive market of electricity and electric generation facilities. All these facts make a question about investing in NPP to be an actual today. During a study and analysis for NPP construction it is important to define which type of reactor to choose: Large or Small reactors. Today in Ukraine operates four nuclear power plants with 15 nuclear units in total. These units have been in operation, on the average, about half of their design service life. From 15 nuclear power units operating in Ukraine 13 of them are LR’s with VVER – 1000 type and 2 reactors with VVER – 440 type. Ukraine has experience in exploitation of both LR and SMR’s, but the majority belongs to LR. An object of analysis is Nuclear Power Plant with Large and Small reactors. Thesis consists of 4 chapters: • Introduction to Energy System of Ukraine • The Ukrainian Scenario • Financial/ Economic Results • External Factors Analysis First chapter “Introduction to Energy System of Ukraine” describes a situation and prospective of power-energy complex of the country, generating capacities structure, nuclear power energy industry. Electrical Energy Market structure, its mechanisms of work, regulation policy and new coming market reforms are represented in a first chapter. Introduction to Energy System of Ukraine shows problems and prospects of integration in the energy grid of European Union, which can increase exporting of electricity by nuclear power plants to foreign markets. “The Ukrainian Scenario” part analyses information used for studying possibility of investing into new Nuclear Power Plants on the territory of Ukraine. Second chapter reviews generation costs of nuclear power plant capacities, operation and maintenance, financing and revenue. Necessity of enterprise in nuclear fuel, its costs and its utilization are described in the “Ukrainian Scenario” chapter. Financial results about NPP construction in Ukraine and comparison of results when the size of reactor changes is analyzed in the third chapter “Financial/ Economic Results”. During financial analysis of investing into new nuclear power plant in Ukraine the Internal Rate of Return, Net Present Value and Payback Time shows better result in a case of choosing Large Reactor choice. A Financial analysis promotes a Large Reactor choice. Last fourth chapter “External Factors Analysis” shows that size influences on the external factors and studies the choice of the better nuclear power plant size as a multidimensional problem. Some external factors promoted Large Reactors, some factors were the same in both cases, but the total result of external factors analysis promotes Small Reactors choice. Conclusion of the feasibility study for NPP construction results, that for Ukrainian scenario it is more profitable for investor to choose Large Reactor. Even if external factors analysis promotes small reactors choice, financial/economic analysis promotes Large Reactor choice. In this case for investor it is more profitable to invest into Large Reactors. All in one, the goal was to make analysis of NPP construction in Ukraine and study a difference between investing to construction of NPP with Large and Small reactors. Ukrainian scenario promotes to invest into nuclear power plants with Large Reactors.