New Projects, Nuclear, Reactors

Baltic power companies to study joint nuclear development

9 March 2006 – The heads of three Baltic Energy Companies – Lietuvos Energija AB, Eesti Energija and Latvenergo have signed a memorandum of understanding on “Preparation for Construction of a New Nuclear Reactor in Lithuania. “

The feasibility study is to be completed by November 1, this year. The memorandum states that the signing parties under equal conditions will participate in the project and contribute to the development of the project. They will establish a management committee for the general management and control of the project and delegate CEOs of all three energy companies to be members of the committee. The parties in equal parts will share all expenses related to general interests in the project.

“By signing this memorandum we commence the first stage of preparation – the feasibility study aimed at evaluation of technological, environmental, legal and economic aspects of the project and its feasibility. It will assist in reaching the most acceptable decision for all three countries to ensure electricity supply in the region and development of diversified electricity generation sources in the future,” – says Mr. Rymantas Juozaitis, General Director.

All signing parties of the memorandum agree that in order to reduce the dependence on a single primary energy source, it is extremely important to have diversified power generation sources.

According to the CEO of Eesti Energia Sandor Liive Estonian energy company has had interest in participation of nuclear power plant development projects. Agreement of three Baltic energy companies signed today creates a real opportunity. “From study we conducted in 2002 with Ministry of Economic Affairs showed that for diversifying generation resources nuclear plant is one of the most seriously perceived options. Based on the aforementioned study it was clear that it is reasonable to explore in depth cooperation possibilities with Lithuania. Being one of our closest neighbours and cooperation partner they have relevant infrastructure and experience, “added Liive.

“This is to be considered as a forthcoming mutual Baltic energy expert’s project, in line with the Estonian-Finish project Estlink. I would like to point out that our energy supply should be not only economically reasonable and technically impeccable, but also maximum safe. I am confident of finding up- to-date, society and environmentally friendly and safe solutions” said Karlis Mikelsons, chairman of the Board “Latvenergo.”

On the 27th of February Prime Ministers of Lithuania, Latvia and Estonia signed a declaration, assuring to assist energy companies in their undertakings to start implementation of feasibility study for construction of the new nuclear reactor.