The Impact of The Covid-19 Pandemic on The Global State of The Nuclear Industry in The Long Term and The Prospects of Rosatom State Corporation

It is still difficult to accurately assess the impact of the COVID-19 pandemic on the state of global energy in the long term. However, it is already possible to assume how the vector of development of individual energy industries including the nuclear branch will shift. Nuclear power sector was less impacted by the current crisis than fossil fuel-based power industries. However, nuclear energy will face new challenges and threats in future.

The cost of nuclear fuel has risen sharply during the pandemic, which may both arouse investor interest and lead to an overproduction of fuel in the medium term.

The capacities of solar and wind installations, which have become widespread in recent years, are not subject to reallocation. Therefore, other power plants have to «maneuver» in the network, adjusting for the constantly changing volume of energy generated during the day. The COVID-19 pandemic is likely to accelerate the process of growth of renewable industries with variable generation in the energy system, so the issue of «maneuverability» of power plants will become even more urgent. NPPs are not adapted to constantly follow the rapidly changing load in the network, therefore, the process of abandoning the peaceful atom in a number of countries is likely to accelerate.

Delays in the construction of nuclear reactors due to anti-coronavirus restrictions may significantly affect the growth of NPP capital costs. As a consequence, the cost of nuclear energy will rise.

During the pandemic, emergency services have been overburdened, which may prompt governments to increase spending on the safety of nuclear installations. However, positive changes are also possible – a reduction in investment in the hydrocarbon industry may in the long-term lead to an increase in prices for fossil fuels, which will revive interest in nuclear energy. In addition, a number of countries may consider diversifying their energy balance through nuclear energy, including small modular reactors and «pure» hydrogen produced at nuclear facilities.

1. Boliev A. M., 2021. The impact of the COVID-19 pandemic on the energy sector. Main problems in the sectors of renewable energy sources // Innovative development of science and education. Penza: Science and Education. Ch. 4. P. 169–179. (In Russ.)

2. Daneeva Yu. O., 2020. The impact of the latest coronavirus pandemic on the energy transition to renewable energy sources // Bulletin of Eurasian Science. № 4 // https://esj.today/PDF/62ECVN420.pdf, accessed 31.03.2021. (In Russ.)

3. Lizikova M. S., 2020. Ensuring safety in the field of nuclear energy use in the context of a pandemic: legal aspects // Law and practice. № 2. P. 144–148. (In Russ.)

4. Mastepanov A. M., 2020a. Coronavirus and the crisis caused by it: on the prospects of the world economy and energy // Oil industry. № 6. P. 6–12. (In Russ.)

5. Mastepanov A. M., 2020b. Hydrogen energy in Russia: state and prospects // Energy Policy. № 12. P. 54–65. (In Russ.)

6. Morozov S. A., 2020. What will be the impact of the coronavirus outbreak on the global economy? // Scientific electronic journal Meridian. № 8. P. 456–458. (In Russ.)

7. Digges Ch., 2021. Four infected: how Rosatom is preparing to fight the coronavirus // https://bellona.ru/2020/04/02/rosatom-covid-19/, accessed 31.03.2021. (In Russ.)

8. Combs J., 2020. COVID-19 and Nuclear Energy // IAEE Energy Forum. Special COVID-19 Edition 2020. P. 22. (In Eng.)

9. McNally R., 2020. Oil Market Black Swans: COVID-19, the Market- Share War, and Long-term Risks of Oil Volatility / Center on Global Energy Policy. 11 p. (In Eng.)

10. Narajewski M., Ziel F., 2020. Changes in electricity demand pattern in Europe due to COVID-19 shutdowns // IAEE Energy Forum. Special COVID-19 Edition 2020. P. 44–47. (In Eng.)

11. Alvarez C. F., 2021. Global coal demand surpassed pre- COVID levels in late 2020, underlining the world’s emissions challenge // https://www.iea.org/commentaries/global-coal-demand-surpassed-pre-covid-levels-in-late-2020-underlining-the-worlds-emissions-challenge, accessed 28.03.2021. (In Eng.)

12. Rising A.,2020.The role of nuclear energy in the postCOVID recovery // https://unece.org/fileadmin/DAM/energy/se/pdfs/egrm/egrm11_apr2020/0._Agneta_Rising.pdf, accessed 25.03.2021. (In Eng.)

13. IEA. Oil 2021, 2021 // https://www.iea.org/reports/oil-2021, accessed 28.03.2021.

14. Impact of Covid-19 Reduces Global Energy Demand by 8 % // https://eto.dnv.com/2020/highlights/impact-of-covid-19-reduces-global-energy-demand, accessed 25.03.2021. (In Eng.)

15. Trading Economics. NYMEX Uranium Futures // https://tradingeconomics.com/commodity/uranium, accessed 25.03.2021. (In Eng.)