Lithuanian Nuclear Project gets European Approval

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) -- Lithuania has received the thumbs-up from the European Commission (E.C.) on its plans to construct a nuclear power plant at Visaginas.

The positive response is good news for the troubled nuclear project, but the E.C.'s clearance comes with a number of key recommendations, which include the project remaining "economically viable". The decision opens the way for the project to apply for loans from Eurotom or the European Investment Bank (EIB).

The Visaginas plant will be built on the site of the old, Ignalina nuclear power plant and will have a generating capacity of 1,300 megawatts (MW). It forms a key part of Lithuania's plans - and those of some of its Baltic neighbours - for energy independence from Russia by 2020.

Last month, the Ministry of Finance revealed that the Visaginas build will now cost approximately €6.8 billion ($8.7 billion), €2 billion more than previously estimated. For additional information see May 16, 2012, article - Lithuania's Nuclear Bill Jumps by €2 Billion.

In a statement, the E.C. said: "The Commission finds that the Visaginas project contributes to a sustainable energy mix on national as well as regional level. Furthermore, the project enhances the security of energy supply in the Baltic region. It plays an important role in the full integration of the Baltic States into the internal European energy market and contributes to achieving the E.U. climate goals."

"After careful assessment the Commission has found that the Visaginas project fulfils the objectives set by the Euratom Treaty. The responsibility for safety lies with plant operators and Member States. The Commission therefore emphasises the need to provide the national regulator with sufficient finances and human resources so that it will be able to fulfil its duties in the licensing process and when checking the operation of the plant in the future."

It will be built by energy consortium Visaginas Atomic Energy (VAE) (Vilnius, Lithuania), a joint effort between power companies from the Baltic states of Lithuania, Estonia and Latvia.

Specifically, the Commission recommended:

- It is crucial to include in the licensing process the E.U. stress test criteria which reassess whether the nuclear power plant can withstand the effects of extreme natural disasters and loss of key safety functions.

- The power plant should remain economically viable even when there will be new nuclear power plants in the region which will export large amounts of electricity.

- It is important to develop a long-term solution for the disposal of radioactive waste in Lithuania.

The Visaginas nuclear project suffered a major setback in December with the withdrawal of Poland's state-owned, Polska Grupa Energetyczna SA (PGE) (Warsaw, Poland) from the project. PGE, a founding member of Visaginas Atomic Energy (VAE), pulled out to focus on Poland's planned return to nuclear power. For additional information see December 14, 2011, article - Poland's PGE Drops Lithuanian Nuclear Project.

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