EUROPE: BALTIC STATES PLAN NUCLEAR EXPANSION (May 29, Inter
Press Service)

by Giedrius Blagnys

VILNIUS (IPS) - Lithuania, Latvia and Estonia are starting preparations for
building a new nuclear reactor to replace existing 'Chernobyl type' reactors
at the Ignalina nuclear power plant.

Following a political agreement signed by the prime ministers of Lithuania,
Latvia and Estonia in February, energy companies of the three Baltic States
are starting a feasibility study for the building of a new nuclear facility.

"The study is due to be completed in October this year," Aurelija Trakseliene
from the Lithuanian Power Company (LPC) told IPS.. The design of a new
nuclear facility would take approximately four years.

The new reactor would be built at the existing Ignalina plant in Lithuania, and
would cost approximately 3 billion euros (3.8 billion dollars).

Within the framework of its membership of the European Union (EU),
Lithuania shut down the first Ignalina reactor at the end of 2004, with the
second scheduled to be closed in late 2009. Built more than 20 years ago,
the two Soviet reactors with a generation capacity of 1500 MW each are
considered unsafe.

The European Union (EU) has approved a grant of 865 million euros (1.1
billion dollars) for decommissioning the Ignalina plant. Some of that money
has been used to shut down the first reactor.

Besides loss of power generation, closure of the first reactor cut deeply into
Lithuania's EU emissions allowance reserve. Lithuania's reserve for 2005-
2007 is 1.8 million units, but about twice that will be needed if electricity is to
be produced by fossil fuel.

Baltic states have no means of importing electricity from the EU because of
a lack of power links. The European Commission has described the Baltics
region as an "energy island". Lithuania now wants to link its energy grid to
Poland's to get hooked to the European network.

"The bridge is not only important for the development of the Lithuanian
economy, but has international importance as it is related to the country's
energy independence and political independence as well," Lithuanian
President Valdas Adamkus said.

But talks to build a power bridge with Poland are deadlocked "mainly
because of finances," Polish President Lech Kaczynski said in a statement.
He stressed that the power disconnect was not for political reasons. The
energy grids of Lithuania, Latvia and Estonia are currently connected to the
network in Russia and Belarus.

"It is clear that from 2015 all the Baltic states will face a shortage of energy,
and one of the ways to solve the problem is a new nuclear plant," Lithuanian
economy minister Kestutis Dauksys told reporters.

Lithuania expects that a new nuclear facility will resolve the problem of
electricity shortage, and reduce the dependence of the Baltic states on
Russian fossil fuel.

"One of our aims is to diversify our sources of energy," Estonian Prime
Minister Andrus Ansip said. "This is why we are interested in building a new
nuclear power station at Ignalina."

But people living in the region are not as enthusiastic about a new nuclear
plant as their leaders.

According to a poll carried out for the European Commission in November
2005, only about 21 percent of the population of Lithuania (3.5 million)
support the development of a nuclear power. And only 8 percent of people in
Latvia and Estonia want nuclear energy.

"To build the new nuclear power plant is a political decision, not an
economical or technical one," Dr. Jurgis Vilemas, chair of the Council of the
Lithuanian Energy Institute (LEI) told IPS. "The urgent construction of the
new reactor is difficult to explain in terms of economic arguments."

Vilemas said that existing fossil fuel based power plants could be
modernised and developed further..

"In the medium term, Lithuania should look for an alternative to Russian
sources of fossil fuels, should invest in construction of large gas storages as
well as in development of efficiency of existing power generation capacities.
In the long term, depending on the situation, Baltic states might plan to build
a low capacity nuclear power plant."

Vilemas added: "We feel disquiet over the aggressive lobbyism of some
manufacturers of nuclear reactors. Baltic states should be very careful in
planning capacities of the new power plant, because economic calculations
presented by those manufacturers are based on outdated economic models
and data. It is very complicated to forecast costs and benefits of such a
project in the time horizon of 10-15 years."


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