VZCZCXRO3746
RR RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV RUEHSR
DE RUEHSL #0597/01 3581606
ZNR UUUUU ZZH
R 231606Z DEC 08
FM AMEMBASSY BRATISLAVA
TO RUEHC/SECSTATE WASHDC 2201
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE
RHEBAAA/DEPT OF ENERGY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS SECTION 01 OF 03 BRATISLAVA 000597 
 
SENSITIVE,SIPDIS 
 
DEPARTMENT FOR T/MARC HUMPHREY 
USDOC FOR ITA:LMARKOWITZ AND SLOPP 
DOE:MAPICELLI 
NRC:BWITTICK AND JRAMSEY 
 
E.O. 12958: N/A 
TAGS: ENRG TRGY BEXP BTIO EPET PGOV LO
SUBJECT: CIVIL NUCLEAR ENERGY SECTOR OVERVIEW 
 
REFTEL: A) SECSTATE 127423 
  B) BRATISLAVA 582 
 
¶1. (U) Responses to reftel questions follow. 
 
Overview of Civil Nuclear Power Program 
--------------------------------------- 
¶2. (U) Slovakia currently has five 440 megawatt (MW) nuclear 
reactors in operation.  One of them will be shut down in December 
¶2008.  Two 440 MW reactors are currently under construction with 
plans for one, and possibly two, new projects. 
¶3. (U) The state-owned company JAVYS a.s. owns two reactors at 
Nuclear Power Plant V1 Jaslovske Bohunice located in western 
Slovakia, near the town of Trnava.  Both reactors are of the Russian 
VVER 440 design, type V230, and each one has an installed capacity 
of 440 MW.  The GoS agreed to close these two Soviet-era nuclear 
reactors during EU accession negotiations.  The first reactor was 
shut down in December 2006, and JAVYS a.s. is currently working on 
its decommissioning.  The second reactor is still in operation but 
is scheduled to be shut down by the end of 2008. 
¶4. (U) After the second reactor is closed, total installed 
production capacity countrywide will drop from 8,157 MW to 7,277 MW. 
 At the same time, the demand for electricity in Slovakia is 
projected to increase over the next 10-15 years.  The GoS considers 
it a strategic priority not to rely on imported electricity; as a 
result, it plans to expand production with both thermal and nuclear 
plants. 
¶5. (U) Slovenske Elektrarne a.s.owns two additional nuclear reactors 
at the Nuclear Power Plant V2 Jaslovske Bohunice.  Slovenske 
Elektrarne a.s. is managed by the Italian energy firm ENEL (49 
percent shareholder) with the Slovak government as majority 
shareholder. Electricity is generated by two 440 MW reactors of the 
same VVER 440 design, type V213. Both V2 reactors will be closed in 
2025 or 2026. 
¶6. (U) The next four nuclear reactors, also owned and operated by 
Slovenske Elektrarne a.s., are located at Mochovce in southern 
Slovakia, between the towns of Nitra and Levice. All four of these 
reactors use pressurized water and are of the same WER 440 design, 
type V213, with an installed capacity 440 MW for each reactor.  The 
Mochovce facility is divided into two plants - EMO 1 and EMO 2.  The 
first reactor at EMO 1 has been in operation since 1998, and the 
second reactor has been supplying electricity since late 1999.  Both 
reactors are scheduled to be shut down in 2045. EMO2 is currently 
under construction. The third reactor should be completed by 2012 
and the fourth reactor is expected to be completed by 2013. 
¶7. (U) Slovakia plans to build a fifth reactor unit in Jaslovske 
Bohunice and possibly an additional new reactor in Kecerovce in 
eastern Slovakia.  Plans for Bohunice 5 (V3) were announced in April 
2008 and call for 1000-1600 MW capacity.  The manufacturing base in 
Slovakia is not involved in nuclear-related products or services so 
the majority of components or contracting services for new plants 
would need to be imported.  The Economy Ministry has stated that 
Slovakia would benefit from the participation of a foreign strategic 
investor in the construction of the new nuclear unit and recently 
selected the Czech energy group CEZ as its strategic partner.  CEZ 
is to become a 49-percent managing shareholder in a 100-percent 
special purpose vehicle (SPV) that is to be established by the GoS. 
The Ministry has not yet specified the type or capacity of the 
reactor for Jaslovske Bohunice.  The final decision on these issues 
is scheduled to be made by October 2010.  The GoS and CEZ are 
expected to seek financing from a variety of sources.  The GoS has 
not specified what incentives will be available for this project, 
but it has a number of established subsidy programs for new 
investment, including direct subsidies, employment subsidies, 
education credits, income tax relief, and land grants.  Direct 
financing participation and/or guarantees from the GoS are possible. 
 
¶8. (U) The GoS plans to create a new facility to be used as a final 
storage disposal site for used nuclear fuel and other nuclear waste. 
 The total planned investment is $4.73 billion.  The government is 
considering five potential locations for this facility.  All costs 
for the building of the storage facility, the decommissioning of 
reactors, and storage of used fuel from reactors will be paid by the 
National Nuclear Fund. 
¶9. (U) Slovakia has the workforce necessary to run the five nuclear 
power plants currently operating.  The expansion of civil nuclear 
power will not require a significant foreign workforce.  However, we 
are unaware of the demographic distribution of the current 
workforce; pending retirements may affect its size over the long 
term.  Officials in the regulatory authority have raised the 
declining graduation rate of young nuclear engineers as a concern 
for the future of the industry.  Programs are in place for the 
training of domestic personnel. 
¶10. (SBU) The Nuclear Regulatory Authority of the Slovak Republic 
(UJDSR) is an independent regulatory body responsible for licensing, 
safety, waste management, radiation protection and security.  UJDSR 
 
BRATISLAVA 00000597  002 OF 003 
 
 
has 81 full time employees with plans to expand to 89 employees. 
COMMENT: Recently, the GOS has undertaken efforts to constrain the 
ability of energy suppliers to raise prices and allegedly has 
attempted to pressure regulatory bodies to act in line with GOS 
preferences in violation of EU requirements (reftel b), including by 
firing "uncooperative" leadership.  Given the strategic and economic 
importance of the nuclear sector in Slovakia, this emerging pattern 
could presage similar pressures on the UJDSR.  END COMMENT. 
¶11. (U) UJDSR has the following enforcement powers: 
--Issues decisions based on the Atomic Act and Building Code. 
--Evaluates documentation submitted by supervised institutions. 
--Evaluates events at nuclear facilities, nuclear safety, and 
reviews decisions resulting from the Atomic Act. 
--Executes state supervision, inspection activities, and 
administration of sanctions in case of violations. 
--Coordinates emergency preparedness of the Slovak Republic for a 
radiation event. 
--Publicizes information on nuclear safety issues. 
--Manages the state record system for nuclear materials. 
--Fulfills the role of lead agency in implementing relevant EU 
commitments and international treaties and agreements. 
--Drafts and comments on legislation. 
¶12. (U) Nuclear liability is governed by the Vienna Convention (No. 
70/1996), signed by Slovakia in January 1995, and the Nuclear Law 
(No. 541/2004).  The minimum level of liability coverage required 
for operators is EURO 75 million for nuclear power units for 
production of electricity and EURO 50 million for other nuclear 
equipment and transportation of nuclear fuel. 
 
Opportunities for U.S. Industry 
------------------------------- 
¶13. (U) We anticipate tenders for two new plants in Jaslovske 
Bohunice; specifications and method of tender are expected to be 
determined in late 2010.  The GoS recently selected a strategic 
partner (CEZ) to structure and set specifications for the new build 
at Jaslovske Bohunice.  As a minority shareholder in a stand-alone 
corporation, the partner will have management responsibilities for 
both the build and the operation of the new plant.  The method and 
technical specifications for choosing technology providers has not 
been determined.  Whether these will be open tender has also not 
been determined.  The final decision on these issues should be made 
in October 2010. 
 
¶14. (U) U.S. companies are potential suppliers of feasibility 
studies or other consulting services, plant construction management, 
reactor sales, fuel cycle service provision, waste management, and 
logistics for planned nuclear reactors.  Potential U.S. suppliers 
include American Brazing Co., Babcock & Wilcox Company, Basler 
Electric Co., Bechtel Nuclear Power, Brooks, GE Energy, Henry Pratt 
Co., Hudson Energy, Megawatt Machine Services, Nace International, 
Parker Hannifin Corporation, Washington Group International, 
Westinghouse, and others. 
 
¶15. (U) The primary companies involved in Slovakia's civil nuclear 
sector follow. 
 
Current electricity utilities and plant operators: 
--Slovenske elektrarne a.s. (SE a.s.) 
--Jadrova a vyradovacia spolocnost (JAVYS) 
 
Major domestic construction or consulting firms: 
--JAVYS 
--Vyzkumny ustav jadrovej energetiky (VUJE) 
 
Other institutions: 
--Nuclear Power Research Institute 
--Office of Standards, Metrology and Testing 
--Electrotechnical Research and Design Institute 
--Union for the Co-ordination of Transmission of Electricity 
--Slovak Nuclear Regulatory Authority 
--National Nuclear Fund 
 
Foreign Competitors 
------------------- 
¶16. (U) Slovakia signed MOUs with France and Russia on nuclear 
energy cooperation in 2008.  Anticipated foreign technology vendors 
and fuel cycle service providers follow. 
 
--German firms RWE, E.ON and EnBW 
--French companies Electricite de France (EdF) and Electrabel (a 
member of the GdF Suez concern) 
--Italian company Enel 
--Swedish company Vattenfall 
--Spanish company Iberdrola 
--Czech energy group CEZ 
--Finish firm Fortum Ovi 
 
BRATISLAVA 00000597  003 OF 003 
 
 
¶17. (SBU) Slovakia's dependence on Russian gas and oil may steer 
business toward Russian nuclear suppliers in hopes of influencing 
gas and oil price agreements.  Existing business ties with German, 
Italian, and French energy companies may advantage suppliers from 
those countries.  On the other hand, the current government has had 
rocky relationships with its foreign partners, in privatized energy 
companies.  Historically close cooperation between the Slovak and 
Czech nuclear sectors appears to have influenced the selection of 
CEZ as the strategic partner for the new build in Jaslovske 
Bohunice. 
¶18. (SBU) Nonetheless, there should be opportunities for U.S. firms, 
offering more technologically advanced and safer technologies than 
some foreign competitors, to participate in Slovakia's efforts to 
expand its nuclear capacity.  Embassy Bratislava will monitor and 
report on the evolving business environment, to include transparency 
in government contracting and award of EU funds, as well as on 
developments in the nuclear energy sector. 
 
OBSITNIK