VILNIUS - The CEOs of the three Baltic energy companies signed an agreement on March 8 to study the feasibility of a new nuclear power plant in Lithuania. The three companies 's Lithuanian Energy, Estonian Energy and Latvenergo 's will have an equal footing in the study, which should be completed by Nov. 1, 2006.
Rymantas Juozaitis, director of Lithuanian Energy, said the companies agreed to study the possibility of a new nuclear plant from technological, environmental, electricity transmission, financing and legal aspects. "The study will help us make the best decision for the three Baltic states to ensure reliability of power supply and diversity of production capabilities," he said.
Estonian Energy CEO Sandor Liive said the company has been interested in joining projects for nuclear power stations, and the agreement concluded between the three Baltic utilities creates a real opportunity for this.
The agreement came just two weeks after the three Baltic prime ministers agreed to work together in building a new nuclear power plant to replace the existing Ignalina Nuclear Power Plant, which is set to be shut down in 2009.
In the meantime, the first signs of skepticism about the project were voiced over the past week. Both experts and public polls show that far from everyone is keen on the idea of building a new nuclear power plant, despite concerns of energy supplies and independence. Estonian Economy Minister Edgar Savisaar even suggested the need for a referendum on the project.
"I'm a supporter of direct democracy, and I'm not ruling out that when this project is ready we should arrange a plebiscite and decide in a referendum whether Estonia will take part in a nuclear energy project or not," Savisaar told MPs.
Savisaar said it would become clear in 2008 whether nuclear power is a serious alternative in ensuring energy supplies. The government must endorse Estonia's new energy sector development plan two years from now.
"Theoretically, the council of Estonian Energy can decide whether or not to take part in some business project," the minister said.
Lithuanian energy experts also floated the idea of a referendum. Stasys Paulauskas, president of Lithuania's Wind Energy Association, said he would seek a referendum for any new nuclear plant. In his opinion, nuclear energy was an "erroneous path," the Verslo Zinios business daily reported.
Other experts suggested that Lithuania develop a network of smaller-scale gas-fired power plants and build more clean power plants that would generate electricity from wind, water, sun or fire local fuel.
"A greater number of smaller-scale power plants would be more reliable compared with one large power plant. Such a solution would shape the electricity market and encourage competition among producers. What's more, the development of cogeneration power plants would not be halted," said Linas Vainius, project manager at Kaunas environmental protection community Atgaja.
The CHP plants in Vilnius and Kaunas do not use full capacities now since Ignalina is still operating, he noted.
Gitanas Nauseda, an adviser to SEB Vilniaus Bankas president, warned that any rash decisions over the new nuclear power plant could bring about grave consequences for the national economy. "We need a truly comprehensive study, the arrangement of which should involve international financial institutions. Only the study could provide an answer to the question which option we need to pursue - whether nuclear or thermal energy," he noted.
A poll carried out by the Faktum pollster found that nearly half of Estonia's residents are against the country participating in a new nuclear power plant. Some 26 percent of respondents in the survey in whose course 400 people were interviewed said they are totally against Estonia joining the project, and 21 percent said they rather oppose it.
Only one-third of respondents backed the project.
At the same time 9 percent of the polled were firmly for taking part in the construction and 27 percent rather supported the idea.
