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Lithuanian ProposalsSecure Support in SeoulPresident DaliaGrybauskaitė of Lithuaniaemphasized at theplenary session of theNuclear Security Summitin Seoul that stress testsunder the most adverseconditions should bemade mandatory forthe operating nuclearpower plants andnuclear utilities underconstruction. Lithuaniagained significant IAEAsupport to the NuclearSecurity CompetenceCenter underestablishment in Vilnius.Electricity to Cost More in Germanyand Still Remain NuclearGermany will soon mark a yearof living with a decision todecommission its nuclear powerplants (NPP). Thus we are ableto calculate the aftereffects ofthe shutdown of the first 8 NPPsand analyze the investmentsthat may be needed in thefuture, furthermore, Lithuaniacould possibly learn fromGermany’s experience, prof.Kęstutis Masiulis told delfi.ltnews portal.“I have been to Germany twice to discussenergy matters with politiciansand energy specialists. I heard theirpreoccupation with Germany’s plansto close the NPPs, as abandonment ofnuclear power was inevitably pullingup electricity prices, which will putan extra burden on manufacturerswhose production and services willlose competition. The abandonmentleads to increased dependence uponimports, lowers the degree of energysecurity and boosts gas imports,” saidMasiulis. Nevertheless, in his words,during discussions with members ofGreens’ and left-wing parties, the latterexpressed indignation over thecheapness of electricity generatedin NPPs, comparing them to moneyminting machines. They said it wouldbe unfair that Lithuania will producecheap electricity, while Germans shiftto the more expensive type.Lithuanian President DaliaGrybauskaitė underlinedLithuania’s active contribution tothe efforts of guaranteeing safeuse of nuclear materials.Electricity Prices Up in GermanyThe grief, fear and uncertainty of tsunamithat rippled across the globefrom Japan in March 2011 was probablythe most shaking effect uponGermany – the government of AngelaMerkel first declared a moratoriumand, after an overnight meeting, fullyreversed its earlier decision to extendoperations of nuclear utilities. Sevenoperational NPPs were brought tofull stop over a year. This led to nearlya 10% rise in energy prices in Germany.On average, prices went up byEUR 8 per megawatt-hour (MWh) toapproximately EUR 60. Nevertheless,decommissioning of other powerplants is expected by 2022. Scientificcalculations show that the pricepaid by Germans for a kilowatt-hour(kWh) in 2020 would higher by EUR0.047, on average. Consequently,the annual amount spent on electricityby an average family of fourwill stand at about LTL 604. The increasein price will cost EUR 28.8 blnfor whole country per year. The sumconsists of bigger grants for productionfrom renewable resources, higherprices for CO2 emissions and NPPdecommissioning costs. The sum willbe deducted from building of roadsand schools, as well as salaries.According to the calculations, therewill be an inevitable rise in electricityprices, along with prices for anyother goods or services to end users,Ways of ensuring safe use of nuclearsubstances and safe operation ofnuclear power plants were high onthe agenda of the Seoul summit.“Lithuania is acting in full compliancewith all safety standards at both theIgnalina nuclear power plant, whichis being decommissioned, and theplanned Visaginas nuclear powerplant. We expect neighboring countriesto carry out in a same manner,”the President emphasized.Lithuania’s initiative that stress testsbe carried out not only at nuclearpower plants operating in the EuropeanUnion, but also worldwide, receivedsupport from President of theEuropean Commission José Manuelas well as a drop in industrial competition.Neighbors Will BuildLast year, Germany imported 25 TWhfrom the neighboring France and theCzech Republic. Ironically, the twocountries generate electricity in NPPs.After deciding to give up nuclearenergy, Germany is accelerating theconstruction of other types of powerplants – renewable resources andnatural gas, which is imported fromRussia. The plan will require giganticinvestments – they could reachabout EUR 200 bln over the comingdecade. Investments will be requiredto new power plants and renovationand development of electricity networks.However, the Czech Republicand Poland have already announcedtheir plans to limit the imports ofelectricity generated in wind mills innorthern Germany due to a possiblydestabilizing effect upon their nationalelectricity networks and excessivefluctuations, which increase therisk of system stalling, in other words,if the system cannot withstand excessiveload amid powerful winds,the country or a region could be leftpowerless.Special phase-changing transformersdirect the unsteady wind electricityto Germany’s internal electricity networks,which are just as loaded.Barroso and most countries participatingin the Nuclear Security Summit.At a meeting with Grybauskaitė,Director General of the InternationalAtomic Energy Agency (IAEA) YukiyaAmano stated support to the NuclearSecurity Competence Centerthat is being founded in Lithuania.He also pledged assistance in thecreation and development of itsoperations. “In the future, the centercould become a regional bodyin order to bring the Nordic andBaltic competences and possibledonation in the Eastern Europeanregion,” the Lithuanian Ministry ofForeign Affairs said. Sources: Verslo Žinios,delfi.lt, lrytas.lt, bernardinai.ltEnergy SpecialistsSkepticalIS GERMANY READY TO GIVE UPNUCLEAR ENERGY?A survey of respondents from 90countries carried out by the WorldEnergy Council showed:• None of the surveyed expertsbelieve that Germany will meetthe objectives in time – give upnuclear energy and acceleratenatural gas and renewableenergy.• Merely one third of energyspecialists believe that Germanywill successfully implement itsenergy objectives or part ofthem with delays.• The majority of world energyspecialists are convinced thatchanges in Germany’s energypolicy will have negative effectsupon Germany’s economy – 78%of polled experts think theeconomy will be undermined by2020 and 48% believe the effectswill continue in later years.• The experts think that othercountries will also suffer fromnegative consequences of theGermany’s decision to give upNPPs:71% of experts believe this will lead toa price hike in other countries,62% think this will undermine safeelectricity supplies of the whole ofEurope.Source: World Energy Council2


Finland Backs Nuclear EnergyThe development of nuclearenergy in Finland could set anexample for Lithuania, andthe country’s good experiencecould serve as a significantpush to pursue a goal.Nuclear energy is one of the cornerstonesof Finland’s independent energy,and Finland’s plans of securingenergy independence are similar tothose of Lithuania - intensive developmentof construction of nuclearpower plants by 2020 and renewableenergy.The main arguments in support ofnuclear energy lie in the strife forenergy independence, the growingneed for electricity and environmentalfactors, i.e., emission of lessgreenhouse gases and boosting ofbusiness competition, says HerkkoPlit, director of Energy Departmentat Finland’s Ministry of Employmentand the Economy.Finland continues developingnuclear energy – it hasalready announced a tenderfor supplier of the reactorfor Olkiluoto-4 (OL4). Whilewaiting for offers, Finlandis preparing for the trainingof the labor force that willbe needed for nuclearinfrastructure in the future.Herkko Plit, Director ofEnergy Department atFinland’s Employmentand Economy Ministry:“The majority ofmembers of parliamentin Finland welcomedevelopment of nuclearenergy.”Finland currently operates twoNPPs, namely, Loviisa and Olkiluotowith four total reactors. Nuclearenergy accounts for nearly 30% ofall electricity consumed in Finland(about 21.9 TWh).In 2011, electricity consumptionlevels in Finland were 9 times biggerthan those in Lithuania – 84.7 TWh.Finland is currently building the 3rdreactor at Olkiluoto and is readyingto construct two more – the 4threactor in Olkiluoto and a new onein Fennovoima in northern Finland.According to the plan, NPPs will satisfyabout 60% of the country’s electricityneeds by 2020, while renewableswill account for about 38%.Political BackingIn Finland, decisions on constructionof a nuclear utility are made bymembers of the parliament. Theyrefer to environmental impact reportsand other criteria. Later, theFinnish government approves licensesfor construction and operationof a power plant. Nevertheless,development of nuclear energy orinvestment in other ways of producingelectricity in Finland is firstlydecided by the energy companiesbased on economic calculations. Plitsaid the Finnish government did notinterfere with their decisions, didnot provide any financing or grants.However, nuclear energy is developedin accordance to the NPP constructionmodel prescribed by stateinstitutions.Finland Announces a Tenderfor Reactor SupplyFinnish company TVO is working onOlkiluoto 4 nuclear reactor project.Finland’s company TeollisuudenVoima Oyj (TVO) has invited fivesuppliers of nuclear technologies– Areva, GE Hitachi (GEH), KoreaHydro and Nuclear Power (KHNP),Mitsubishi and Toshiba – to submittheir offers on construction ofa new nuclear reactor. The reactortechnologies under considerationinclude ABWR, ESBWR, APR 1400and APWR. The new reactor isscheduled to be operated in 2020.OL3, Finland’s fifth nuclear reactor,will be launched in 2014.Offers are expected in early 2013.TVO seeks to apply for Olkiluoto 4construction license by mid-2015,at the latest.“In the light of the alternative proposalsof future suppliers of equipment,we have started the engineeringtasks. This is to check whetherthe proposed types of reactors willmeet Finland’s safety requirementsand may be installed at OlkiluotoNPP,” Janne Mokka, TVO vice-president,said. “A site for the new OL4reactor and the NPP infrastructurehave already been selected.”Back in 2008, TVO applied to theFinnish government for a permissionto build a 1000-1800 MWe capacitypressurized or boiling waterreactor, which would be the 4th inOlkiluoto. The government’s permissioncame in May of 2010, it hasbeen ratified at the Finnish parliament.The Committee for Nuclear EnergyCompetence in Finland, which wasset up by the Ministry of Employmentand the Economy in Octoberof 2010, has performed a survey ofthe nuclear energy sector’s longtermneeds related with training andresearch, and the results suggestthat the sector will need about 2,400new employees by 2025. Finland’snuclear energy sector currently hasa staff of about 3,300 people. Calculationssuggest that the new NPPconstruction projects and buildingof the storage facility of radioactivewaste will pull up the need for employeesto 4,500. The committee’sreport states: “In order to ensure safeand reliable use of nuclear energy, itis crucial to improve competences innational nuclear energy.” The commiteealso noted that “regulatoryand other activities should be continuedin a way that it constantly improvesand fulfills the highest nuclearsafety requirements.” Sources: WNA, Elta3


6Who Would Benefitfrom Referendum?Nuclear Energy Commissionof the Seimas (Parliament) iscautious about the initiativeof holding a referendum onconstruction of the new NPP inLithuania, inviting the societyto carefully consider support orrejection of such initiatives.Rokas Žilinskas, Chairman of theNuclear Energy Commission, haswarned that those in support of thereferendum idea may mean well,however, support the forces thatmean no good for Lithuania. TwoNPPs are planned next to Lithuania’sborders, and the projects lack transparency,run counter the internationallaw and are, therefore, unsafe.Clearly, the expectations are thatthe protests against nuclear powerplants will work in a democraticcountry, i.e., in Lithuania.“Should Lithuania decide to dropits plans of building the new NPP, atleast one of the nuclear projects – inRussia or Belarus – will get in motion,”said the chairman of the parliamentarycommission.The MP also noted nuclear energy’ssensitivity to the political contextand public opinion. In the wake ofthe Fukushima disaster, a number ofcountries abandoned developmentof nuclear energy for purely populistreasons, without any calculations ofthe probability of accidents. Nevertheless,the countries that carriedout precise calculations have no intentionsof giving up nuclear energy.In Žilinskas’ words, the referenduminitiative alone – regardless ofwhether the referendum ever takesplace and its results – sends a messageof anxiety to participants of theproject. Regional partners will startDangers of Anti-Nuclear PropagandaBiggest threats to Lithuania’s nationalsecurity are constituted byanti-nuclear propaganda made byforeign countries, reads the annualassessment of threats provided bythe State Security Department to theparliamentary National Security andDefense Committee. The departmentsaid that the propaganda againststrategic energy projects shouldcause major concerns.The committee’s chairman ArvydasAnušauskas said the key challengesworrying about the unstable politicalcontext of nuclear energy, investorsmay reconsider the loan interestfor the expensive long-term project.Consequently, he said the referenduminitiators could be followingthe naïve aspiration of asking thepopulation for its opinion, however,support the forces that wish ill for thesociety. Energy and political expertsnote that populist initiatives launchedby the greens usually gain activenessprior to elections. Sources: lrs.lt, lrt.ltHOW DID YOUROPINION ABOUT THENEW NUCLEAR POWERPLANT PROJECT INLITHUANIA CHANGEOVER THE PAST YEAR?I don’t know5 %My opinionhasn’t changed21 %I have a morenegative opinionabout the project31 %I havea morefavorableopinionabout theproject42 %Source: Verslo Žiniosto Lithuania were the ones relatedwith implementation of strategic energyprojects and the influence madefrom abroad.“Without doubt, information leversare used for reinforcing the influence,they are supplied with both informationand resources,” Anušauskas said.In his words, the State Security Departmenthas made rough calculationsof the investments made byneighboring countries into developmentof a negative information fieldEnergy Security MainlyThreatened by EnergyDependenceThe government said in its reportfor 2011 that the main threat tonational security had remainedunchanged from earlier years –Lithuania’s excessive dependenceon supplies of strategic resourcesand energy by a single country.Lithuania imports all of the naturalgas consumed in the country fromRussia, which also satisfies themajority of Lithuania’s needs forcrude and electricity.Reinforcement EffortsThe chapter of the report onthe state of national securityemphasized that Lithuania’senergy independence had beenreinforced over the past year.“Efforts were made to diversifythe supplies of energy resourcesby way of connecting energynetworks of Lithuania and otherEU member-states, electricityproduction from renewableenergy resources was promoted,the electricity market waslaunched. A strategic investor wasselected for the Visaginas NuclearPower Plant project, considerableprogress was made in theimplementation of the liquefiednatural gas terminal,” reads thedocument.The report highlights exclusivelyeconomic risks to nationalsecurity, namely, slowingeconomic development,relatively high unemploymentrate, economic emigration andsmuggling. Source: delfi.ltin Lithuania that would be adverseto future energy projects, particularlythe new nuclear power plant.Influence is mainly made “by instrumentsof soft power, i.e., establishmentof anti-nuclear organizations,foundations and holding of events.”In its assessment of the annual securitythreats, the State Security Departmentdid not establish that Lithuaniacould be targeted by terrorists orbecome home of a terrorist organization.Source: 15min.ltFIRST KILOWATT-HOURS OFNEW BLOCKLietuvos Energija’s new combined-cyclegenerator of 455 MWcapacity was for the first timesynchronized with the transmissionnetwork on 1 of March, i.e.,started generating the first kilowatt-hoursof electricity. About5% of the country’s annual energyneed should be generatedover the 4 months of generatortests. The power will be sold onelectricity market BaltPool. Thenew block will require 30% lessgas for production of 1 KWh ofelectricity. Source: Litgrid.ltGAS exchange ALREADYOPERATIONALIn March of 2012, the Gas Exchangeof natural gas was launchedin Lithuania. Establishmentof the gas market is an importantstep on the road to bigger competitionand more transparentprices in gas trade. The marketis operated by BaltPool. One ofthe market’s key advantages iscurrent day trade, which makes itpossible to buy or sell lacking orexcess amounts of gas amid unexpectedchanges during day-todayactivities. This provides moreflexibility to business and reducesthe risk of sanctions for failure toconsume all of the gas ordered inadvance. Source: baltpool.ltIMPORTANCE OF EU’S UNIFIEDENERGY POLICYAt a meeting with LithuanianPrime Minister Andrius Kubiliusin early March, EC CommissionerGunther Oettinger confirmedcontinuing support to Lithuania’senergy strategy and emphasizedthat the ultimate goal was thebecoming of Lithuania and Balticstates part of EU’s internal energymarket. Source: lrv.ltPRESIDENT: VISAGINASNPP WILL STIMULATECOOPERATIONThe Visaginas NPP project shouldstimulate cooperation betweenLithuania and Japan in otherareas, Lithuania’s President DaliaGrybauskaitė said after receivingletters of credence from Japan’snew Ambassador Kazuko Shiraishi.“The nuclear power plantproject would serve to promotethe Lithuania-Japan cooperationin other spheres as well so it is necessaryto make the most of thisopportunity,” the President said.Source: BNS


Production of Electricity:Myths about Risks and PricesIn an article „Productionof Electricity: Myths andRealities about Risksand Prices” published inscientific magazine Scienceand Technology, AssociateProfessor Dr. StanislovasŽiedelis busted some mythsin connection to assessmentof different methods ofproduction of electricity byway of comparing them toother types of human activitiesfrom the economic angle, aswell as risk, safety and ecologicperspective.In his words, it has become popularover the past few years to place anemphasis on shortfalls and threatsof nuclear energy, emphasizingthe positive aspects of alternativeenergy technologies. Unfortunately,few of the discussionscontain impartial analysis of factsand independent statistical data.Instead, many provide biased interpretationsexpected by the groupsconcerned, thus shaping a biasedpublic opinion. The worst thing isthat such public opinion serves asgrounds for crucial state-level decisions,which could have a majoreffect on perspectives of economicdevelopment and well-being ofgenerations to come. The decisionmade by the German governmentto shut down all nuclear powerplants is one of the examples.Risks Rank 20thŽiedelis maintains that the biggestdiscrepancy is observed in the publicopinion about risks of nuclearenergy and the reality. One of thebiggest myths describes nuclearenergy as involving the highestrisk. However, statistics show thatnuclear energy ranks merely 20thin terms of deaths caused by humanactivities and technologies.Primary hazards to human healthand lives includes smoking, alcoholand driving cars. The list of the mostdangerous professions also doesnot include NPP operators or otherspecialists of nuclear energy.Although electricity productioncosts are mainly assessed inmonetary units, there is anotherPicture 1. ELECTRICITY PRODUCTION COSTS AND DEATHS INVARIOUS INITIAL ENERGY SOURCES AND TECHNOLOGIESNuclear EnergyHydro EnergyWind EnergySolar EnergyPeatBiofuelGasOilCoalProduction costs, EUR/MWh0 100 200 300 400 500 600Deaths/TWh in EuropeDeaths/TWh in the worldProduction costs, EUR/MWh(maximum)Production costs, EUR/MWh(minimum)0 5 10 15 20 25 30 35 40Deaths/TWhPicture 2. CO2 EMISSIONS FROM ELECTRICITY PRODUCTIONTECHNOLOGIES USING DIFFERENT PRIMARY ENERGY SOURCES PER1 Kwh OF PRODUCED ENERGYgCO 2eq/KWh gCO 2eq/KWh2000150010005000200150100500Brown Coal Coal Oil Gas CCS*Primary energy source/technologyHydroNuclearWindSolarBiomassCCS*Primary energy source/technology*CCS is a technology based on the use of carbon capture and sequestration methods.Scales used inPicture 2 aredifferent. The topgraph portraysemission levelsof technologiesbased on fossilenergy sourcesthat have beenrecalculatedfor equivalentamounts of CO 2(scale from 0to 1800 g CO 2eq/KWh). Thebottom graphportrays emissionlevels of technologiesbased onnon-fossil energysources (scalefrom 0 to 180 gCO 2eq/KWh).measurement – electricity price inhuman lives. This evaluation alsodestroys the myth about hazardsof nuclear energy. According toresults of an analysis of deathscaused by different types of energyper TWh, the figure in nuclear energyis the smallest at 0.04, rankingat 0.15 in wind energy, 0.1-1.4 in hydropower, etc. The highest numberof lives is claimed by fossil fuel technologies:coal (world average is 161deaths), crude (33) and biofuel (12).The analysis of death statisticstakes consideration of fatal casualtiesthat occur during accidents inpower plants and during extractionand transportation of primaryenergy sources, as well as deathscaused by environmental pollutionwith dust, smoke particles and radionuclides.Nuclear Energy Truly EcologicalYet another popular and ungroundedmyth has to do withenvironmental protection andecology, saying that advantages ofproduction of electricity from renewableenergy resources is significantlybigger than those of nuclearenergy.Picture 2* provides a comparison ofCO 2levels generated by various energytechnologies. It gives a summaryof a number of studies anddemonstrates the level of emissionsthat are produced throughoutthe technological cycle ofelectricity production. For instance,an assessment is made of theamounts of CO 2that are producedduring extraction and enrichmentof uranium ore, production of nuclearfuel, construction, operationand decommissioning of nuclearplants, including management ofradioactive waste.Picture 2 shows that nuclear, hydroand wind energy produce the lowestlevels of CO 2, which is more than10 times less than fossil fuel anda third less than solar energy andbiomass technologies. Regardlessof technological progress, this distributionof amounts of CO 2emissionshas remained unchanged foryears. Nuclear energy generatesroughly 10 gCO 2-eq/kWh, withthe bulk of CO 2emitted during thepre-plant nuclear fuel cycle – extraction,processing, enrichmentof uranium ore and production ofnuclear fuel.Solar Energy Most ExpensiveThe statistical data makes it possibleto compare costs of electricityproduction from various primaryenergy sources. Picture 1 clearlyshow that the costs of generating1 MWh of electricity in solar energyare higher by a factor of more than10, as compared with nuclear andhydro energy. Electricity generatedfrom biofuel and wind is also moreexpensive.7


Start of a new phase of Visaginas NPP projectBUSTING MYTHSNuclear energy is wrapped in various myths and rumors, which are mainly caused by lack ofknowledge. We are denying the most frequent myths.Write us with anyquestions:info@vae.ltMYTHSNuclear energy has no future andis being dropped by the mostdeveloped countriesNo storage for radioactive wasteFuture of Lithuania’s energy lies inrenewable energy resourcesVisaginas NPP will impedeEuropean integrationFACTSAlthough Germany decided to cease operations of all NPPs operating in the country by 2022, nuclear poweris still used in France, Great Britain, Finland, Sweden, the United States, China, etc. Specialists say Germany’srenewable energy resouces that are dependent on the nature will not compensate for the shortage ofelectricity, thus increasing its dependence upon Russian gas supplies and electricity imports from theCzech Republic and France. This will inevitably pull up electricity prices. Furthermore, Germany will importelectricity from neighboring countries that generate electricity in nuclear utilities.Currently, nuclear energy is probably the only industry that assumes full responsibility for management ofthe waste produced in the process. Safe ways, instruments and equipment have been developed for storagepurposes. Storage facilities of medium- and low-radioactivity waste exist in a number of countries, i.e.,Sweden and Finland. Underground laboratories for testing environmental effects of buried spent nuclearfueal and highly radioactive waste operate in Belgium, Switzerland, Canada, the United States, Sweden andother countries.Renewables are merely one of the energy resources available to the country. Hydro power, wind power, Solarpower, biomass, geothermal energy, waste incineration, etc. should be developed, however, does not give allthe answers, as electricity from renewable energy resources is very expensive. More importantly, renewableenergy resources will no transform into basic, i.e., they will not be able to generate electricity in a continuousmanner, which is necessary for stable and economical operation of the country’s energy system.Visaginas NPP will not impede integration into Europe but is vital for separating the Baltic energysystems Russia and successful synchronization with the European network. With an efficient, modern andindependent electricity generator that is independent from gas prices, Lithuania will no only be able toproduce electricity to satisfy its needs but also serve as an important energy system for continental Europe.To fully integrate its electricity system into Europe, Lithuania is engaged in projects of electricity links(LitPolLink with Poland and NordBalt with Sweden), network development, new nuclear power plant, systemsynchronization with continental European network.8ISSN 2029-5464 UAB “Visagino atominė elektrinė” Žvejų g. 14, Vilnius, tel. 85 2 782 998 info@vae.lt, www.vae.ltLeidinyje panaudotos VAE archyvo,Ramūno Danisevičiaus, Juditos GrigelytėsHerkaus Milaševičiaus nuotraukos

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