Lithuania Debates on Energy

Lithuania Debates on Energy
http://www.sptimes.ru/index.php?action_id=2&story_id=16504

By Darius James Ross

Reuters

VILNIUS - Lithuania's government said on Monday it must decide soon on
extending the Baltic's state's nuclear capacity by building a new nuclear
power station.

Economy Minister Kestutis Dauksys told a news conference Lithuania was
closely examining another power station, in addition to the existing
Ignalina nuclear power plant which had been previously earmarked for
closure.

"In 2006 it is essential that a decision be made about building a new
nuclear power station," Dauksys said.

He said the normal cost for such a new station was about $3.62
billion, but added that a precise estimate was premature at this stage.

He did not say how the station would be funded, but added that the
Lithuanian government was keen on retaining a minimum 34 percent stake in
the new power plant.

Last week the government said in a statement that it was considering
extending the life of its Soviet-era Ignalina nuclear power plant despite a
promise to shut it down by 2009.

Dauksys told the news conference on Monday his government wanted to
"negotiate with the European Commission about extending the operation of the
Ignalina nuclear power plant." Lithuania closed the first of two units of
the Ignalina power plant at the start of 2005, as part of its EU joining
deal, and has promised a complete shut-down by 2009.

But talks to build a power bridge with Poland have failed, meaning the
small Baltic country of 3.4 million - which has almost no natural
resources - could be cut off from Western Europe, the government said last
week in a statement after a high-level meeting with energy experts.

"During the meeting it was noted that it has been in no way possible
to agree with Poland on an electricity bridge," Prime Minister Algirdas
Brazauskas was quoted as saying in a statement issued by his office.

"Therefore, after the closure of Ignalina AE, Lithuania would be
isolated from the European Union's electricity grid. Therefore ... this
raises the possibility of extending the operation of Ignalina AE,"
Brazauskas added.

Proponents of keeping the plant operating have said that significant
upgrades to the Chernobyl-style plant over the last decade, along with
strict operating standards, mean it poses no safety threat.

Brazauskas said a new nuclear facility could be built if Baltic
neighbors Latvia and Estonia bound themselves to take part in the project.
If Ignalina were closed, Lithuania would be left with only fossil fuel fired
plants.



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