Russia and Poland to Develop New Nuclear Power Plants

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Researched by Industrial Info Resources (Sugar Land, Texas)--Plans to build Russia's Kaliningrad nuclear power plant were finalized almost a year ago in April 2008. The facility is to be set up in Kaliningrad, the Russian exclave on the Baltic Sea between Lithuania and Poland. The Rosatom Nuclear Energy State Corporation (Moscow, Russia) will be setting up the plant with two nuclear reactors, each with a power-generation capacity of 1,150 megawatts (MW). The cost of the project has been estimated at about $8 billion. According to Sergei Kiriyekno, Director General of Rosatom, the project would be implemented using both Russian and European structures. For the first time, non-Russian participation will be allowed, but foreign players are permitted to own a maximum stake of only 49%. The first reactor is expected to be operational in 2015, while the second reactor is scheduled to be operational by 2020. The plant will successfully meet the energy needs of the region, and the excess power will be exported to the European Union market.

The Kaliningrad project is seen by most observers as a rival to a new nuclear power plant proposed to be set up in Lithuania. The Kaliningrad plans have caused a great deal of dismay in Lithuania since its proposed plant could become less profitable and almost superfluous. Analysts are of the view that Russia intends to discourage Lithuania's partners from participating in the proposed nuclear power project, which is already long delayed and is not expected to be ready before 2020. Lithuania is currently making plans to set up a new plant to replace the Ignalina nuclear power plant, which will be completely decommissioned later this year for safety reasons.

Across the border, Polish energy producer Polska Grupa Energetyczna S.A. (PGE) (Lublin) was recently given a go-ahead by the Polish government to set up two nuclear plants of 3,000 MW each. According to the firm's CEO, Tomasz Zadroga, the estimated cost of the plants is $19 billion to $23 billion. PGE intends to have the first block ready for operations by 2020 and plans to seek a partner to build and run the plants. PGE will maintain a controlling stake in the project. The company intends to raise 80% of the funds from external sources.

According to estimates made by analysts, Poland will have to add about 1,000 MW of energy annually during the next few years to effectively meet the country's growing demand. The country generates about 95% of its power from coal-fired plants, most of which use obsolete technology.

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