NUCLEUS Information Bulletin No. 13 25 July 2011

D. Grybauskaitė: Visaginas Hitachi selected as strategic NPP Project is promising and will be developed investor for Visaginas NPP Project “Upon the selection of the new strategic investor, the Project enters a new stage. The Project is viable, and we have lo- gistic capabilities for its development. The door is open to all regional part- ners: to Estonia, and to Latvia, which, we believe, will participate in one or other way, as well as to Poland. Hence the Project is promising and will be de- veloped,” said the Lithuanian President Dalia Gry­bauskaitė after a meeting with the Latvian President Andris Bērziņš. “Atomic energy industry still is ne­ ce­ssary and electricity generated by nuclear power plants will remain the more cost-effective in contrast to such alternative energy sources as wind within the coming 30 years,” pointed out D.Grybauskaitė in an interview aired on a show “Right to Know” with the Lithuanian Radio and Television Association. “Our neighbourhood it- self is largely turning the scale of our ener­gy balance and is deciding the The strategic investor for the Visaginas NPP Project has been selected: Hitachi Ltd along with Hitachi-GE Nuclear Energy Ltd. need for nuclear energy industry,” said the President. The Concession Tender Commission for the Selection of the Strategic Investor (the Commission) for the Visaginas Alfa.lt, zebra.lt Nuclear Power Plant (NPP) Project has selected Hitachi Ltd along with Hitachi-GE Nuclear Energy Ltd (Hitachi) as N. Udrėnas: The strategic investor. The Commission had received two Proposals to become the strategic investor in the Visaginas NPP, construction of a new which complied with requirements. On completion of the process of clarification of both proposals, a proposal sub­ nuclear power plant will mitted by Hitachi has been recognised by the Commission at its recent meeting as the most beneficial economically. have positive effects ”Our evaluation embraced the whole opportunities of exporting electricity to an Advanced Boiling Water Reactor for national economic project development process including other countries in the region and thus (ABWR), the only generation III nuclear development analysis of economic, legal and technical making one of the biggest contributions to reactor with a proven operational track “The new nuclear power plant at aspects, and project schedule, integra- the national GDP,” pointed out the Prime record around the world and a boosted Visaginas site, which Lithuania along tion into our transmission system, and Minister Andrius Kubilius. level of safety. with regional partners and the strate- nuclear technology offered. Having com- According to A. Kubilius, the fact that The regional Visaginas NPP Project is gic investor intend to build, and its con- pared both proposals, we have selected Hitachi-GE Nuclear Energy undertakes one of the most advanced new nuclear struction process will have considerable the Hitachi’s proposal as the most eco- to invest and implement the Visaginas developments in Europe. By now, the positive effects for both regional and na- nomically beneficial,” said the Chairman Nuclear Power Plant Project is enhan­ preparatory work on the Project has tional economic development,” empha- of Commission, Romas Švedas, the cing the chances that the plant will start been completed, including environmen- sised Neri­jus Udrėnas, Chief Adviser Deputy Minister of Energy. As he noted, generating and marketing electricity by tal impact assessment and site suitabi­ on Economic and Social Policy to the Hitachi pledged to immediately launch the year 2020. lity evaluation, the results of which have President Dalia Grybauskaitė. preparatory work required for obtaining “The participation of all regional partners obtained positive IAEA evaluations. The Chief Adviser to the President the concession. is critical to the success. <...> We are Following the launch of the Visaginas Prezidentės favourably views the se- NPP, the generation of electricity with- “This decision is paving the way for huge engaged in a very intense collaboration lected strategic investor – Hitachi-GE out emissions of carbon dioxide will in- investments in Lithuania, and creation of with all regional partners on both busi- Nuclear Energy, an American-Japane­se crease by around 1300 MW and ipso large numbers of jobs during both the con- ness and governmental levels,” Romas corporation – and a worlds’s cutting- facto boost energy security in Estonia, struction and the operation of the nuclear Švedas, the Deputy Minister of Energy, egde nuclear technology offerred by it. power plant. Furthermore, the Visaginas said to business daily “Verslo Žinios”. Latvia, Lithuania, and Poland. Žinių radijas NPP will open the door to many significant In its proposal, Hitachi offered to install Ministry of Energy, vz. lt

TABLE OF CONTENTS Is it really possible to live without ato­ LESTO completed one of the largest re­ Swings of Germany may cause black­ mic energy industry? construction projects this year outs in a large part of Europe 2 Germany, Switzerland and Denmark are 3 Having completed the reconstruction, LES- 4 Germany’s reaction to the Japane­se ISSN 2029-7572 page countries, which intend to live or are ac- page TO, the Lithuanian distribution network op- page nuc­­le­ar di­saster may result in the widest tually living without nuclear power plants. erator, improved the reliability of electricity blackouts in the region since 2006. Is it really possible that Germany and supply to more than 13,700 electricity con- UAB „Visagino atominė elektrinė“ Switzerland will disavow atomic energy sumers in Ukmergė, including about 500 Žvejų str. 14, Vilnius, tel. 85 2782 998 industry, and is Denmark a role model for companies. The total cost of work, which Lithuania? has been started in October 2009, totalled [email protected], www.vae.lt over LTL 5.1 billion. 2 NUCLEUS

Latvian President Andris Bērziņš: Is it really possible to live without Latvia will participate atomic energy industry? in the Visaginas NPP Professor Dr. Habil. Jonas Gylys, Director of the Institute of Energy Technologies, Kaunas University of Technology Project Germany, Switzerland and Denmark are countries, which intend to live or are actually living without nuclear power “We have discussed the Visaginas plants. Is it really possible that Germany and Switzerland will disavow atomic energy industry, and is Denmark a role NPP Project in detail. This project of model for Lithuania? historic importance has our, Latvia’s and mine, support, I can assure you Situation in Germany Electricity generation by source (2010) with all confidence of that,” said the Before recent events in Japan, Germany 45 41,0 had 17 operating nuclear reactors with 40 Latvian President Andris Bērziņš on 35 a combined capacity of 20.34 giga- 30 a visit in Lithuania. 23,0

watts, which generated a 23% share of % 25 17,0 According to him, Latvia currently 20 the electricity consumed in the country 14,0 does not have sufficient funds for (Fig. 1). In the wake of Fukushima melt- 15 10 5,0 a full-fledged participation in this down, the Government of Germany has 5 project. “Considering, however, the decided to shut down eight aged nuclear 0 situation of Latvenergo and a posi- reactors at seven nuclear power plants Nuclear Coal Natural Renewable Other gas sources tive development of the process in (i.e. losing about 41% of the total capacity Lithuania, we may confidently speak of nuclear reactors in Germany) in order Fig.1. Electricity generation in Germany in 2010. Source: BDEW of our efforts to assure the participa- to salvage remains of popularity that has Denmark Sweden tion in the project. Latvenergo can been melting away catastrophically. After a while following long debates, it decided 6,05 0,97 safely engage in this project,” added not to resume operation of the reactors A. Bērziņš. in question and, as mentioned earlier, Alfa, vz.lt to completely phase out nuclear energy 3,65 1,19 by 2023, i.e. to shut down the remaining nine reactors (about 59% of the total ca- U. S. State Secretary Netherlands Import 30,61 Poland pacity of German nuclear reactors). Export 38,65 1,93 H. Clinton backs 0,39 It is not clear as yet by what sources will 2,98 Lithuanian drive for it replace atomic energy: perhaps by 6,34 energy independence new coal- or natural gas burning power Belgium Germany At the meeting with the President plants, or perhaps wind turbine parks or 0,14 Dalia Grybauskaitė held in Vilnius, something else. Just the fact that, having Luxembourg 13,67 7,94 the U.S. State Secretary has made shut down only eight nuclear reactors, Czech Republic

very clear that the USA strongly sup- Germany, a former exporter of electric- 4,82 8,45 ports Lithuania’s plans to build a new ity, became an importer (Fig. 2), high- 1,69 nuclear power plant at Visaginas, lights what a serious problem the country France 6,06 electric grid interconnections with is facing. Electricity import from France Austria increased two times, while export to Switzerland the West, and liquefied natural gas 2,99 Netherlands and Switzerland drop more Fig. 2. Electricity import-export in Germany in 2009. Source: RWE Facts and Figures, 2010 terminal. than two times (BDEW). Furthermore, “We also discussed Lithuania’s ef- some of German regions, in particular Electricity generation by source (2009) forts to achieve a secure, sustain- southern lands, already encounter short- 45 able, and safe supply of energy. ages in the supply of electricity. 40 We strongly support Lithuania’s en- Meantime, a question whether Germany 35 30 ergy independence strategy, which will phase out atomic energy industry – % 25 includes regional development of the only real alternative to fossil fuels – 20 nuclear power, liquefied natural gas, remains open. It is quite possible that a 15 10 unconventional oil and gas, as well new Government will cancel (not for the first time) the decision against atomic en- 5 as gas and electricity links between 0 ergy industry being forced to reconsider the Baltic States and the rest of the Nuclear Thermal and Hydro Hydro the issue in the face of rising of electricity renewable (run of river) (dams) European Union,” said H. Clinton. prices and worsening of competitive ability energy sources Lrt.lt, diena.lt of the country. It is still premature to wel- Fig. 3. Electricity generation in Switzerland in 2009. Source: Swiss Federal Office of Energy (SFOE) come Germany as a non-nuclear state. Seimas approved We should wait and see. amendments to And what about Switzerland? Germany regulations applied In Switzerland, the situation (Fig. 3) is rather different as compared to Germa- to atomic energy ny. At present, the country has five oper- 2,1 industry ating nuclear reactors, which generate At the end of June, the Seimas of the about 40% of the Swiss electricity mix. 0,1 Other countries Republic of Lithuania has adopted a Decisions on sites for new plants were package of 12 laws amending laws due to be made in the coming year. A 19,1 on atomic energy industry. This pack- substantial share accounts for water 1,6 age provides for a more effective and power plants. Switzerland is importing France transparent model of licensing and electricity from neighbouring countries Austria to cover power shortages (Fig. 4). Im- permit issuing for activities related to 22,2 and enhanced protection of public port opportunities become, however, more limited after the retirement of Ger- interests in the atomic energy indus- many from the nuclear generators club. try. The amendments to laws were The Swiss will have to open widely their based on international and European purses in order to build new power ca- Italy legal regulations on nuclear and ra- pacities – water, thermal and wind pow- diation safety. er plants – by the year 2034, when the Fig. 4. Electricity import-export in Switzerland in 2010, TWh. Ministry of Energy last Swiss nuclear reactor is due to be Source: Schweizerische Elektrizitätsstatistik 2010 shut down after 50 years of operation. continued on page 3 NUCLEUS 3

Litgrid started LESTO completed one of the tests on submarine power cable largest reconstruction projects Work within the framework of Nord­ Balt project, a Lithuanian-Swedish this year cross-border electricity interconnec- tion, is being performed at a test site in Having completed the reconstruction, LESTO, the Lithuanian distribution network operator, improved the reliability Karlskrona (Sweden). First tests on a of electricity supply to more than 13,700 electricity consumers in Ukmergė, including about 500 companies. The submarine cable have been success- total cost of work, which has been started in October 2009, totalled over LTL 5.1 billion. fully carried out. Each cable is designed and manufactured considering specific According to Virgilijus Žukauskas, Ge­ According to V. Žukauskas, enclo­sed- The replacement of electricity transmis- requirements of electricity transmission, neral Director of the Power Grid Service type switchgears in substations ha­ve sion and distribution equipment with technology applied, particular condi- of LESTO, it was one of the largest in- been renovated: 10 kV switchgear was new one contributed to improving the tions of installation such as a design vestment projects of LESTO this year: renovated and new 35 kV switchgear reliability of electricity transmission. This depth of the underwater route and sea- “LESTO allocates a major por­tion of its was installed. After the overhaul, two also allowed reducing the grid opera- floor characteristics. investments for the reconstruction of 25 MVA transformers operates in a tional costs and environmental impact. At the beginning of a testing pro- transformer substations. It is necessary more silent mode. This year, LESTO schedules to comp­ gramme, mechanical tests on a sub- to renovate substations with a view of “Based on principles of sustainable lete another large project in Utena re­ marine cable have been carried out. company’s purpose to ensure the safety de­­velopment and pollution prevention, gi­on (in which Ukmergė is situated), “During the testing, the cable was sub- and reliability of electricity supply given we have installed a safe emergency oil namely, the reconstruction of Antalieptė mitted to a tensile load of more than that consumer needs has dramatically spill collector in order to prevent pollu­ TS of 35kV/10 kV in Zarasai District. eight tonnes. Such mechanical load is increased as compared to a time when tants to get into environment. Also, new Each year, airline cables are replaced much higher than the maximum ten- network equipment was installed, and lightning protection equipment has under a long-term network reconstruc- sile load the cable may need to with- comply with technical standards applied been installed,” said the head of the tion plan. stand during the installation,” explained in Europe. Po­wer Grid Service of LESTO. LESTO Virgilijus Poderys, General Director of Litgrid, Lithuanian electricity transmis- sion system operator. Positive results of stress-strain measurements provide a guarantee that technical characteris- tics of the submarine cable installed on the sea-floor will comply with technical requirements specified. The next stage of the testing pro- gramme will include high voltage elec- trical breakdown tests in order to ensure good performance of the cable system at 300 kV and 1250 A as a minimum. delfi.lt

Advisory contract for the Liquefied Natural Gas Terminal Project signed Klaipėdos Nafta has awarded a contract Ukmergė TS after reconstruction Ukmergė TS after reconstruction to Fluor Corporation, as the lead advi- sor, to provide engineering and busi- ness support services for a new floating liquefied natural gas import terminal. continued from page 2 Under the contract, the lead advisor will provide services over four years. Fluor Is it really possible to live without will prepare the technical development plan and assist in selecting technolo- gies, and perform all actions neces- atomic energy industry? sary for obtaining of mandatory permits, Facing a power supply gap, the country power shortages itself and, presumably, that this country – under permanent provide solutions related to the project will try to import electricity from neigh- turn to Czech Republic for help. attacks for developing atomic energy – safety, navigation, and other technical bouring countries. The question is, from Incidentally, both Italy and Austria had might not be able to share with all would- issues. Advisor’s duties also include which country it may be imported? As it shut down two nuclear power plants be importers “suffering hunger”. business issues: producing a financial was mentioned earlier, Germany is out of each for political reasons. Afterwards, The future will show whether the Swiss model and a business plan for the ter- the game. Italy is one of the biggest im- Italy had tried to revive its atomic energy will be able to implement their ambitious minal as well as developping a busi- porters of electricity in Europe and badly industry time and again (last time in June but rather not thought-out plans. Very ness strategy of the terminal. The lead suffers because of it now and again. Just this year) but, regrettably, without suc- likely, Germans and Swiss will see quite advisor also will supervise the technical remember a blackout in 2003, which has cess. Meanwhile, Austria rushed to shut soon that “destroying is not building; you implementation of the project and par- paralysed the country following the inter- down its new nuclear power plants even do not need brains for it”. All the more so, ticipate in the project until its completion ruption of supply from Switzerland and before the start-up of the units and to if decisions of Germany and Switzerland and the start-up of the terminal at the France. The entire Italy, except Sardinia build nearby coal-burning monsters spit- to abandon the atomic energy industry end of 2014. and Capri, was literally frozen up. ting black smoke. for good will have impact not only on the delfi.lt Perhaps, Austria may be helpful but, fol- Therefore, France is the only hope for countries concerned but on the entire lowing shifts in Germany, will experience Switzerland. The trouble is, however, Europe. continued on page 4 4 NUCLEUS

Lithuanian and Latvian Prime Ministers focused Swings of Germany may cause on the Baltic Sea Region The Latvian Prime Minister Valdis Dom­ brovskis and the Lithuanian Prime Mi­ blackouts in a large part of Europe nis­ter Andrius Kubilius have discussed Germany’s reaction to the Japanese nuclear disaster may result in the widest blackouts in the region since 2006. economic issues of the Baltic Sea Region A decision to shut more than 25 per cent of the nation’s atomic capacity is turning Germany into a power importer, and perspectives of projects boosting the according to Deutsche Bank. The change risks straining utility networks in at least seven countries, said Bundes­ energy independence. netzagentur, the nation’s electricity-grid regulator. “I hope that we together acting in concert will be able to implement most important projects such as the Visaginas Nuclear Germany plans to phase out all nuclear Increased prices may hit the nation’s 40 Back in 2006 Power Plant Project and supply of natural power plants by 2022. Last year, nuclear million households as well as companies. Europe’s last widespread blackout was gas from alternative sources with a view reactors provided 23% of the country’s Meanwhile, Czechs are worried: that in November 2006, when a surge of of energy independence,” pointed out the electricity. leaves those grids at risk because they high-voltage lines shut down networks Prime Minister Andrius Kubilius. “The question isn’t whether there may were built at least 30 years ago to handle affecting 10 million customers across “We have discussed vital political issues be a blackout, the question is when,” domestic demand and puts a tremen- Austria, Belgium, France, Germany, related to Baltic Sea Region and to the said Roman Portuzak, electricity direc- dous pressure on the infrastructure of Italy, Portugal and Spain. entire Europe. Also, we considered long- tor at the Czech Ministry of Industry and supply. The Polish grid manager also agrees term financial perspectives of important Trade. “This has the potential to affect According to the German Energy Agency that Germany is increasing the likeli- projects including related to the energy half of Europe.” (Dena), investments in the EUR 10 billion hood of another blackout. Poland is ta­ sector with respect to recommendations Transmission lines could be as much (LTL 34.5 billion) range will be necessary, king the threat outlined in a letter to grid or the European Commision,” the Latvian as 40 per cent overloaded on a cold if Germany wants not to use power grids operators very seriously, which warned Prime Minister Valdis Dombrovskis told winter day with peak demand across of neighbouring countries until 2020. about an increased risk of failures in to journalists at a press conference when Europe, Bundesnetzagentur said, while Deutsche Bank warned that having ex- connected grids after the shut-down of giving his thank-you speech to A. Ku­bilius. Germany’s four grid operators say they ported 14 TWh of electricity last year, nuclear power plants. Alfa.lt cannot guarantee power for an estimated Germany’s import of electricity will ex- Bundesnetzagentur noted that, on a very Nuclear builders place four million homes in the southern part ceed by 4 TWh an amount of exported cold winter, electricity supply might be their bids of the country during the winter season. electricity. (For comparison: last year, interrupted to a part of clients in a worst Fennovoima has invited Areva and By turning to the Czech Republic, electric energy consumption of Lithuania case, for instance, to carmakers, in order to Toshiba to bid for the construction of a France, and Austria to ensure supplies, amounted to 10 TWh, while generation to- avoid supply disruptions, which may cause new nuclear power plant in Finland. The Germany is raising the risk of outages talled about 5 TWh, according to Litgrid). “heavy economic damage”. invitations sent by Fennovoima cover as it leads Europe’s economic recovery. Bloomberg, vz.lt bids for the delivery and construction of reactor and turbine islands. Infrastructure works early in the construction phase and other preparatory works are excluded continued from page 3 from the bids. A final decision on the plant supplier and the model of delivery will be reached in 2012-2013. Is it really possible to live without Jordan has received technical offers for its first nuclear power plant from atomic energy industry? three companies: an Areva-Mistubishi Heavy Industries consortium, Russia’s Denmark... AtomStroyExport and Canada’s SNC- Les us see how Denmark – pointed at and pro­moting their turbines instead of expe­rience worldwide. Wind power in

Lavalin International. The three were as an example to Lithuania by some en- focu­sing on solutions for problems in Denmark has not reduced CO2 emis- shortlisted to build the plant in May 2010. thusiasts – is getting along (Fig. 5). But their own energy sector and measures sions and has been a terribly expensive The designs under consideration are in fact it is not getting along as well as for reducing environmental pollution? mistake made by Danes. Most wind tur- the Atmea-1 pressurized water reactor you may think viewing glamorous folders, Here, I would like provide an opinion of bines run at about 25% of rated capac- (PWR), the AES-92 model VVER-1000, in particular those praising wind power... one of the most reputable foreign experts ity, requiring back-up generation for the and the Enhanced Candu-6 pressurized So, the Danes generate about 73% of in the field. Canadian Professor Michael balance of the time, while conventional heavy water reactor (PHWR). the nation’s electricity by burning coal, Tre­bilcock, Faculty of Law, University of forms of electricity generation typically WNA which is rather not quite friendly to the Toronto (Financial Post, 2008) wrote: run at 75% to 95% of capacity utilization. President signs environment, while wind power accounts “Denmark is home to Vestas, the world’s Danish consu­mers pay exorbitant power Law on Natural Gas for just over 19%. Now, you cannot help largest wind turbine manufacturer. As prices, the highest in Europe. Wind power The Lithuanian President Dalia Gry­baus­ wondering why do the Danes are insis­ the market for its turbines in Denmark costs two to three times as much as con- kaitė has signed amendments to the tently trying to trade off their wind turbines and other European countries becomes ventional sources of energy.” Law on Natural Gas and the Law on the to other countries, relentlessly adverti­sing saturated, it seeks to export the Danish What is the best way for Lithuania? Implementation, both of which will allow Will we go to extremes and base our unbundling gas production, supply and energy sector on renewable resources, transportation. which are expensive and are not able The law, according to the President, is Electricity generation by source (2009) to provide base-load power. Or will we an important step towards the energy in- 73,3 dependence because having unbundled 80 chose a wiser solution and ensure a basic 70 share of power generation from nuclear these three operations, Lithuania’s de- 60

% power plants, which generate electri­city pendence on one gas supplier will de- 50 crease. A separated gas sector monopoly 40 at a notably lower cost and more reliably? opens up opportunities for competition in 30 19,4 We can just hope that our preferred op- 20 6,9 0 0,05 0,1 the gas market. It will also ensure a pos- 10 tion of strategic development of energy 0 industry will satisfy to the best interests sibility of alternative suppliers, Lithuania Nuclear Hydroelectric Other Wind Other Coal of Lithuania but will not just serve to other will be able to implement different energy Renewable power plants projects at a faster pace and ensure fairer sources countries or greedy individuals. gas prices to the residents of the country. Nucleus, Valstybė Ministry of Energy Fig. 5. Electricity generation in Denmark in 2009. Source: ENTSO-E Statistical Yearbook 2009