Rosatom State Corporation may install floating nuclear power plants in the Primorsky Territory

Rosatom may install five floating nuclear power plants in the southeast and southwest of Primorsky Krai. Blocks with a capacity of 100 MW each are needed by the region to cover the energy deficit, the volume of which is already estimated at 240 MW, and by 2029 could reach 600 MW. The financing scheme for the project is still being discussed; one of the options is an investment tariff, they say in the Ministry of Energy of Primorye. Rosatom clarifies that the state corporation will own the facility and sell energy to the customer. The state corporation does not disclose how much the units will cost, as well as what the selling price of electricity will be.

Rosatom can build up to five floating nuclear power units (FPU) in the southeast and southwest of Primorsky Krai, the region’s Energy Minister Andrei Leontyev said on Tuesday, March 26, at the Atomexpo-2024 conference. As follows from Mr. Leontyev’s presentation, three power units can be installed near the city of Fokino for the development of industrial enterprises, one unit in the Khasansky district near the city of Slavyanka to supply energy to tourist sites. The fifth power unit will be a replacement unit to replace those in operation during nuclear fuel reloading.

As Andrey Leontyev noted, the energy deficit in the southern part of the region is already up to 240 MW, and in the future, by 2029, the total deficit in the region may increase to 600 MW.

On the sidelines of the conference, Rosatom and the authorities of the Primorsky Territory signed a memorandum of cooperation, according to which they will work on the technical and economic issues of constructing floating nuclear power units.

Andrei Leontyev told reporters that the project will take four to five years from the moment the contract is signed. At the same time, the region does not abandon the construction of two ground-based power units with a capacity of 600 MW each, which Kommersant reported on September 13, 2023.

Floating nuclear power plants will make it possible to more quickly cover part of the power shortage for the region, said the Minister of Energy of Primorye. Deputy head of Rosatom Andrei Nikipelov explained to reporters that the parties plan to “determine the capacity and specific binding documents” by the end of this year. The state corporation will be engaged in the production of floating floating units, and the region’s task is to “determine the placement points of floating units, prepare and provide coastal infrastructure,” he said.

Rosatom already has There is a firm order for the construction of four FPUs of approximately 106 MW each using RITM-200 reactors to supply power to the Baimsky Mining and Processing Plant in Chukotka, the launch of which is possible in 2027.

In 2021, the cost of these blocks was estimated at 190.2 billion rubles. (VAT included). Rosatom refuses to name the current actual cost of these facilities, but Kommersant’s sources have repeatedly talked about a “significant increase in price,” including due to an increase in the cost of basic equipment and buildings.

Rosatom ordered the first two buildings in China from Wison (Nantong) Heavy Industry Co. Ltd for $225.8 million, and wanted to order the other two from Baltic Plant (part of the United Shipbuilding Corporation, USC). However, Rosatom still does not have a contract with USC for the production of housings, Mr. Nikipelov said. According to him, the state corporation continues negotiations, but is also considering the possibility of ordering from foreign shipyards.

The cost of the case in general CAPEX is about 20%. At the same time, in March, Deputy Director General of Rosatom Vyacheslav Ruksha said that the construction of the third and fourth FPUs for Baimka was “paused” due to the risk of losses for the state corporation. In 2021, Rosatom claimed that, according to the contract with the Baimsky GOK, it would supply energy at 6.45 rubles. for 1 kWh (in 2020 prices). The tariff will be indexed to inflation annually. Kommersant’s sources claim that the actual cost of energy supply is already many times higher. Rosatom does not disclose the current cost of production.

This year, an electricity market may begin operating in the Far East, which will allow power plants to be repaid through higher payments for energy capacity.

However, Andrei Leontyev said that the issues of financing and payback of FEBs for Primorye still need to be discussed. One of the options is to allocate the property to an isolated zone, which will allow the establishment of a special investment tariff. Mr. Nikipelov said that the facilities will operate according to the build-own-operate scheme: Rosatom will operate the facility and sell electricity to the customer in Primorye.

The key issue is the cost of generation, states Sergei Kondratiev from the Institute of Energy and Finance: there is no confidence that Rosatom will be able to find consumers willing to enter into direct contracts for the purchase of energy, and it will not be easy for it to “fit” into the parameters of competitive power take-offs.

Polina Smertina