VILNIUS - Lithuanian lawmakers on June 28 passed the much disputed law on nuclear energy that foresees the construction of a new atomic power plant to replace the Ignalina unit planned for closure in 2009.
The proportion of votes reflected how strong the political will is to continue Lithuania's status as a nuclear power producer. One hundred-five MPs voted in favor, while four voted against and nine abstained. There are 141 members in the Seimas (parliament).
"It is very important for Lithuania to remain a nuclear energy producer and exporter," Prime Minister Gediminas Kirkilas said after the vote. "This will help us guarantee energy independence and national security and will be of enormous strategic importance for the whole region," he said.
The law is crucial since without it the four countries participating in the project 's the three Baltic states and Poland 's cannot sign a final agreement and begin to raise finance.
However, the law, which establishes ownership stakes for all four countries, was bound to stick in the craw of Estonia and Latvia, where earlier officials expressed dismay at Lithuania's refusal 's or unwillingness 's to discuss the issue of ownership.
Lithuanian lawmakers gave Lithuania a larger stake in the project 's 34 percent 's while the other three will each receive a 22 percent stake. Previously the three Baltic states had agreed to divide the project equally, but Poland joined later saying it would participate "on an equal basis," which would assume four 25 percent stakes.
The prime ministers of the four nations were expected to meet in Vilnius on July 6 to ink a final deal.
Prior to the law's passage, Kirkilas said he expected that Latvia, Estonia and Poland would eventually agree to Lithuania's larger stake in the joint venture.
"The only question on their part is about electricity volumes," Kirkilas said in an interview with Ziniu Radijas radio on June 28.
Kirkilas did admit that he had received a letter from partner countries in which they asked that the provision on Lithuania's 34 percent ownership not be included in the law. However, the prime minister said there was no alternative.
"The Seimas (parliament) will not give us the mandate if we back down and do not mention that 34 percent," he said.
At the same time Kirkilas said the law was mandatory for Lithuania since it was in the country's interest. "Otherwise, I would dare to predict that we will not have a new nuclear facility in 2015," he said.
The law also provides for the creation of a state-controlled energy company that will combine production and distribution at a time when the European Union is moving toward deregulation.
But in order to raise finance for the project, as well as bring in the necessary expertise, Lithuania needs a large corporate entity.
This new entity 's or national investor 's will be comprised of state-owned Lietuvos Energija and Rytu Skirstomieji Tinklai (Eastern Power Grid) and the privately owned VST (Western Power Grid). Shares in the latter will be exchanged for a maximum of 49 percent of shares in the new structure, according to the law.
The government will have the pre-emptive right to acquire newly issued shares of Lietuvos Energija, the name of the new energy corporation, ensuring that the state will hold a stake of at least 51 percent in the company.
Lawmakers hoped that the law will also give impetus to other infrastructure projects necessary if a new nuclear energy plant is to succeed.
Birute Vesaite, chairwoman of the economics committee, even went so far as to say that the law could serve as a basis to extend the life of the existing unit at Ignalina.
"There is also hope now for more of our lobbyists and partners in terms of extending the operation of the second block of Ignalina's nuclear power plant until the new reactor is built," she said.
Some Lithuanians, fearing a new dependency on Russian energy after the closure of Ignalina, want to lobby Brussels for an extension of the nuclear power plant.
Others, however, feel that the time and energy spent on trying to convince eurocrats that Ignalina should operate for a few more years is not worth it and that Lithuania should stick to its accession commitments.
It is also unclear whether the new nuclear powerplant will have one or two reactors. With Poland on board, there may be a push for more megawatts, although a double reactor will entail reworking Lithuania's distribution network to handle the additional wattage.
According to preliminary plans, the first reactor of the new power plant is scheduled to be completed in 2015, though the law does not set any dates.
The cost of the new plant will depend upon size. An 800-megawatt plant will cost approximately 2.4 billion euros, while a 1,600-megawatt facility will run around 4 billion euros.
