New investors for Belene NPP
Finnish Fortum Corporation has declared its wish to buy 20 percent of the Belene NPP project. Representatives of the company that runs a series of nuclear projects, arrive in Bulgaria this week to discuss the possibilities for increasing their share in the project. French Altran Technologies will probably participate with some 10 percent in the construction of this country’s second NPP. According to preliminary information, the Russian side may remain with about 15 percent. Thus Brussels’ requirement for participation of more shareholders in the building of the NPP will be fulfilled. The most important thing – a European investor has shown interest in funding the Bulgarian participation at the Belene NPP project, which is 51 percent. Representatives of the investor are expected in Sofia these days. So, the plant’s future destiny will be cleared this week.
The history
In 2006 Bulgaria’s National Electricity Company /NEC/ signed a treaty with the Russian Atomstroyexport Company for the construction of a second NPP. According to preliminary data the construction of Belene NPP should cost some EUR 4 bln and the first of the two units should be ready by the end of 2012. Then, while lines such as: “is there any sense in a second NPP?” and “such a project will increase Bulgaria’s energy dependence on Russia” crossed the public space, the RWE strategic investor quit this project, despite its engagement to fund 49 percent of the construction works. The negotiations were delayed, there was no new strategic partner for a long period and in the meantime the Russians increased the price to EUR 6.3 bln to cover inflation. The Bulgarian government reacted in a sharp manner and expressed its disagreement with this pricing. Thus a project company was created, with 51 percent of Bulgarian participation, while the Russian Rosatom State Nuclear Energy Corporation, owner of Atomstroyexport had around 40-45 percent of the shares. Finnish Fortum and French Altran Technologies entered the project with a share of 1 percent each. According to the memorandum they kept the right to increase their participation in the project at the expense of the Bulgarian or the Russian side. The option of the Finns is for up to 25 percent, while the Frenchmen planned a share of 5 percent at the most. Russia has a certain interest to develop energy projects in Europe and that was why Rosatom even offered a 100 percent funding of the project, Bulgaria keeping the controlling stake.
The agreement between Sofia and Moscow has 14 annexes so far. The last one will expire on March 31, 2012. The London HSBC Bank, a consultant on the project should present till then its analysis on the necessity from a new NPP for the Bulgarian economy.
The stances
“The project will be approved or rejected according to the assessment of its effectiveness, price and safety,” PM Boyko Borissov commented. Energy Minister Traicho Traikov on the other hand has always defended the building of additional powers at the Kozloduy NPP as a cheaper and more effective option.
However, Radio Bulgaria’s sources claim that the decision will be more likely a political one than an economic. Brussels disagrees with the project’s structure and the major participation of Russia in it. Besides, the EU is skeptic, regarding the safety of Russian nuclear units. However, stress tests proved that the Belene NPP would stand an earthquake, 40 percent stronger than the typical ones for the region, along with a direct airplane crush and a temperature range of –60C to +60C.
Energy independence
As far as Bulgaria’s energy independence is concerned, some analysts say that the execution of the Belene NPP project will make it 80 percent dependent on Russian technologies and energy sources. Eurostat data assess the current dependence of this country to 60 percent. Energy experts say that an energy surplus of up to 12 000 GW will occur, if Belene NPP is built up. In case the project is not executed this country will feel a lack of 3 000 GW of electricity as early as 2015, when the old coal-fired plants should be stopped.
Text and photos: bnr.bg
(02.02.2012)