General Manager of VUJE Matej Korec for ENERGIE EUROPA magazine: Stability and Innovation in Nuclear Power in spite of Global Challenges

Despite the challenges caused by economic and geopolitical factors, it managed to achieve the set objectives and prepare itself for the future developments with full responsibility, as Mr. Matej Korec, the company´s CEO, has revealed in an interview for us.

How do you assess the past year in terms of the achievement of objectives planned by VUJE, a. s.?

Our company’s priority in the past period was to create a stable inhouse environment for our employees, to continue optimising internal processes and making them more effective, and to successfully manage generational renewal at certain key positions within our executive structure. Objectively speaking, we witnessed a considerable cutback in capital construction in the domestic market caused by the impacts of previous crises resulting from soaring input prices following the Covid period, war conflicts in Ukraine and post-election personnel changes performed by key customers.

Our main task was to stabilise the situation within the company and prepare it for uncertain development of a market environment for an indeterminate period of time. We were aware that the impacts of energy crisis and of growing input prices will seriously affect everybody’s individual situation. Stabilisation in this area, along with unceasing need for enhancing process effectiveness, constituted the main topics on our agenda. The quality and satisfaction of our team of professionals is our chief priority and I believe that in spite of the complexities of this period we have been successful in reaching these goals.

On the other hand, as already mentioned, over the past period we faced unprecedented changes as to the conditions on the input side, which resulted in considerable increases in the cost of acquisition, often happening amidst ongoing project contracts and work-in-progress as part of comparatively large projects. Since any compensation mechanisms largely depended on individual will of end customers, various scenarios came into play when dealing with these impacts.

I would like to express our gratitude to those customers who stood up to these issues as partners. Unfortunately, there also occurred cases where we were confronted with absolute ignorance about these phenomena on the part of our customers, which markedly affected the overall economy of the projects underway. This fact too has contributed towards the need for stabilisation of intra-company environment with a view to lasting out this period with the least possible staffing reductions, loss of motivation, and in spite of the atmosphere in external environment, to pacifying the inhouse „climate“. Honestly speaking, it was not simple and easy at all.

Could you please describe in detail the big order for a transformer station, which you recently delivered in the Czech Republic? What was demanding about it and what challenges did you have to overcome?

The construction of a new 400 kV transformer station in Dětmarovice represented one of the key major projects bearing upon the Czech transmission and distribution network at that time. The project was born in response to a growing electricity consumption and the reduction of sources connected to the distribution network in the Moravian-Silesian Region.

A new transformer station, located in close proximity to the Dětmarovice power station, constitutes a systemic measure necessary for ensuring a reliable supply to the Ostrava region upon the phasing out of the aforementioned power plant units. The transformer station will provide for an output of approximately 700 MW, which is comparable to the output of a power plant (just for illustration, the output of the Dětmarovice power plant is 800 MW). Also, forming part of this project was a relatively complicated loop-in of the existing 400 kV power line and the establishment of new connections to Albrechtice and the Polish town of Dobrzeń.

The project was extremely demanding in terms of a time schedule for the construction and the coordination of the parties involved, as it was necessary to harmonise the ongoing activities of three partners (ČEPS, ČEZ and the Polish PSE). Since a critical nod was involved, the schedule was very ambitious and practically did not allow for any reserves or deviations. This required an extraordinary experience and personal engagement on the part of our management team, as well as the assembly staff, who worked with enormous dedication during the entire course of construction lasting for three years.

As is normally the case, challenges always occur in such extensive projects. Right at the commencement, we had to sort out how to set up a transmission line in a special way because of an exceptionally high groundwater, whilst having to meet a very early deadline for turning it on in accordance with a bilateral agreement with the Polish party. Later on, we faced challenges in connection with an unusually rainy autumn and an early onset of winter with plentiful snowfall in 2023. The aforementioned were just natural conditions, and obviously there also occurred a number of technical challenges, frequently due to the coordination of activities of three network operators.

All this notwithstanding, our team lived up to their reputation, as they were able to cope with all these factors and deliver the work to the full customer’s satisfaction. It goes without saying that coexistence of parties at the construction site over such a long period depends apart from other things on establishing a good relationship with the customer. I would like to thank representatives of ČEPS and ČEZ for having created a very constructive working atmosphere and for approaching unpredictable situations like real partners.

Your company, VUJE, a. s., plans to get involved in the development of small modular reactors. The key goal is to explore the possibility of recycling spent nuclear fuel in Slovakia in new generation IV reactors. Would you be so kind as to further specify this big project and its future benefits for our market?

The concept of „small modular reactors“ (SMRs) covers a whole range of reactors depending on their performance, design, cooling medium, but also the spectrum of neutrons in the reactor core. They may utilise accelerated (fast) neutrons or decelerated (slow) neutrons, as is currently the case of all power reactors in the EU. SMRs with the electrical power output ranging from approximately 250 MWe to 500 Mwe have the biggest chance of getting established in Europe. Such reactors could replace decommissioned coal fired power plants at the original site.

Building SMRs with the maximum output of up to 500 MWe should be more effective, notably due to a shorter construction period and lower initial capital requirements, which means a smaller risk for investors. The construction period should be shorter compared to the time needed for the construction of large units (1200 through to 1700 MWe) thanks to a modular construction method, assuming the manufacture of modules in a production plant and on the spot „assembly“ of these modules. This method would allow for reproducibility of construction, thus speeding up the construction and enhancing the quality.

It is likely, considering the current plans for nuclear power plant units around the globe, that in a few decades a demand for uranium will exceed its supply. This will necessitate the construction of fast-neutron reactors. This type of reactors is capable of utilising approximately 50 % of natural uranium, contrary to the reactors currently in use in the EU, which hardly make use of 1 % of uranium. Not only the fast reactors provide for a better use of natural uranium, but they are also capable of utilising uranium and plutonium from the fuel spent by contemporary reactors. This means that there is no need to rush when it comes to depositing spent fuel in the final spent nuclear fuel repository, and rather wait until it is reprocessed and used in fast reactors.

In our company VUJE, a. s., we have been tackling the issue of fast reactors since 2009 as part of the Allegro project, which is a joint project run by V4 countries and France. It is therefore no problem for us to get involved in the development of still another type of „fast“ reactor, such as lead-cooled fast reactor. With the use of „fast“ reactors, the issue of energy source for our territory will be resolved for hundreds of years ahead.

What are your mid-term and long-term visions and goals in the energy sector in Slovakia and in Europe? What will be your priority?

First and foremost, we want to continue to be a stable, high quality and reliable partner with a great deal of erudition and knowhow, its own capacities and a significant experience in the implementation of major complex energy projects, whether in the field of nuclear power engineering or in the transmission and distribution. The factor of „real“ capabilities and knowhow is of principal importance for us, even though in the past period we witnessed a trend marked by loosening of requirements, even „gambling“ on the part of some proponents, who have no problem with relying on partners lacking erudition and capacities. There is no place for such attitude in the critical infrastructure environment, as it may lead to crucial problems, which we are unfortunately already witnessing in some projects.

If a company wants to operate in the market for decades, it must also be mindful of the more distant future. In the medium term, we want to get involved in the building of new nuclear power sources in Slovakia and neighbouring countries, such as Hungary, the Czech Republic and Poland, but also in other countries of Europe. Quite naturally, we want to keep our position of the main supplier of work for nuclear power plants in operation in the SR. We also want to take part in the development of new types of reactors (SMRs, „fast“ reactors), which would enable us to get engaged in their construction anywhere in the world. We actively keep track of some other lines of power engineering business, such as direct hydrogen production by means of high temperature reactors, the development of high voltage direct current (HVDC) devices for transmission systems and the introduction of DC technologies in general.