Poland invited to nuclear plant project, seeks 25 percent stake

  • 2006-12-13
  • By TBT staff

ON DUTY: Lithuania's Ignalina power plant will be shut down in 2009 and eventually replaced by a more advanced model.

VILNIUS - The prime ministers of the three Baltic states announced on Dec. 8 that they would invite Poland to take part in the construction of a new nuclear power plant that will replace the one in Ignalina due to be shut down in 2009. Polish Prime Minister Jaroslaw Kaczynski told reporters in Vilnius that Poland would seek a 25 percent stake in the plant, though he stopped short of saying which companies would participate, a matter of concern and urgency for the Baltic states.

"We want to be shareholders in a joint venture 's four countries, four equal parts," he said.
The Baltic states agreed earlier this year to build the atomic facility, which could cost up to 4 billion euros, and the decision to bring Poland on board will add weight to the project in Brussels and help spread the financial burden.

Lithuanian Prime Minister Gediminas Kirkilas hailed Poland's inclusion in the project. "Poland wants to speed up the construction of the new reactor so it's ready before 2015," he said. "This idea is acceptable to all Baltic countries."
Still, Estonian and Latvian leaders expressed doubt about Poland's role in the project, and Lithuania had to lobby hard to bring its Baltic neighbors around. Estonia and Latvia are keen to see the project up and running as soon as possible and are skeptical about Poland after the latter dragged its feet on the energy bridge with Lithuania for years (see story on Page 1).

In the lead-up to the Dec. 8 meeting, Estonian Prime Minister Andrus Ansip expressed concern that Estonia, which would be furthest from the new reactor 's which will be built not far from the existing atomic plant in Ignalina 's would not receive as many kilowatts as it needed. He did note, however, that the project's pay-back period would be shortened if Poland is involved.
An official at Estonia's Economy Ministry went further, saying Poland's participation would "not be good."
"The inclusion of Poland will slow down the preparations," said Einari Kisel. "Nor is it clear who would be the partner from their side."

Ansip echoed the sentiment in Vilnius on Dec. 8.
"To say that Poland will join this project is not enough 's we need specific names of companies, and we have to know if they have resources to take part in this project," he said.
Likewise, Latvian officials accentuated the need for expediency. "We have to continue with the existing project without any stops," Latvian Prime Minister Aigars Kalvitis told journalists in Vilnius. "If there are other partners in the process, including Poland, we are ready to start consultations, but the main priority is not to stop the project."
In the end, however, it was Poland's ambition to have the atomic plant online before the original deadline of 2015 that convinced Latvian and Estonian officials.

As Lithuanian Prime Minister Gediminas Kirkilas said, "We are not halting the project. If the Poles present their proposals on time, everything will be alright."
At the same time, Lithuanian energy officials expressed caution about pushing forward deadlines. Lietuvos Energija CEO Rymantas Juozaitis said that speeding up construction was not possible, since the feasibility study has shown that it will take nine years and four months to build a new reactor.

A single reactor nuclear power plant with a capacity of 800 megawatts would cost some 2.5 billion euros, while two reactors with a combined 1,600 megawatts would cost approximately 4 billion.
Lietuvos Energija, together with partners Eesti Energia and Latvenergo, have claimed they could implement the project on their own, though there is skepticism about such claims.
Latvian Foreign Minister Artis Pabriks told journalists in Riga last week that Poland's participation was welcomed and together the four countries could handle project finance.

In recent weeks the theme of energy security is being heard more often in the EU as dependence on Russian hydrocarbons increases and dissatisfaction with the Kremlin's track record on democracy grows.
Marko Mihkelson, an Estonian MP, was quoted last week as saying that European unity was at stake as Russia increasingly uses its energy exports as a tool of foreign policy.

In the meantime, Lithuanian officials have not given up hope of prolonging the life of the Ignalina plant. In accordance to current agreements and plans, there will be a minimum five-year "window of vulnerability" after Ignalina Nuclear Power Plant closes and the new planned reactor goes online. To diminish the need for electricity imports (some 80 percent of Lithuania's energy is generated in Ignalina), Lithuania is mulling how to amend an agreement with the EU according to which the Baltic state is obliged to shut down the second reactor of Ignalina in 2009.

Lithuanian MEPs, however, reject any attempts to amend the Baltic state's commitments to the European Union, a position President Valdas Adamkus adheres to.