Lithuanian parlt gives blessing to construction of new power plant

February 4, 2008 at 9:26 pm 6 comments

LionOne of the most significant law in the modern Lithuanian history passed in the Parliament on February 1.  Lithuanian Seimas passed amendments to the bill on nuclear power plant, which will capacitate finishing negotiations between the government and privately owned NDX Energija regarding the national investor.

It is proposed to create Leo LT, which would build a new nuclear power plant and energy links with Poland and Sweden, not through the state-owned Lietuvos Energija – as had been planned before – but through a new company, as NDX energy has bargained with the government.

This new company would incorporate the shares of state-owned Lietuvos Energija and distribution grid operator Rytu Skirstomieji Tinklai (RST) as well as Vakaru Skirstomieji Tinklai (VST), owned by NDX Energy.

This controversial law was widely discussed in the Lithuanian media and amongst the politicians.  Some 63 MPs voted in favour of the amendments, 11 voted against and three abstained.  The voting was boycotted by the Seimas opposition – Liberal Democrats, the Liberal Movement, Liberal Centrist Party, the Conservatives and a few members of other parliamentary groups.

The amendments will take effect if nation’s leader Valdas Adamkus doesn’t veto them.  Conservative Party leader urges Lithuanian president to veto amendments to the nuclear power plant.  As the BNS reported MP Kubilius notes that should nation’s leader Valdas Adamkus not veto the amendments, this would be a signal to entrepreneurs round the country that they can get away with whatever they do and however they choose to do it.

“The negotiations were not transparent, and the government has failed at defending public interest”, Kubilius said in a press conference organized Monday.

He noted that the bill is not flawless, as it was passed without presenting calculations on the expenditures of constructing the new plant and the price of energy it will produce.

The MP added that it is unclear as to how the new plant will incorporate the currently existent Ignalina N-plant’s infrastructure, and how the Kruonis pump storage power plant located in central Lithuania will function.

The government will control 61.7 % and NDX energy will control the remaining 38.3 % in the national investor company Leo LT.

The opposition voiced concerns that the Leo LT’s main objective written in the agreement is not to build the new plant and the links but to seek profit for the company and its share holders.  This aspect concerns Liberal Centrist leader Zuokas.

However, Lithuanian side has kept its promise to create a national investor to begin negotiations with its other partners of Latvia, Estonia and Poland.  The Economy ministers of all three ministers have met in Vilnius today.  The Lithuanian minister Navickas was pleasantly surprised by his Polish counterpart’s initiative.  The Polish Economy minister invited the Lithuanian Economy minister to sign an agreement in establishing a joint company, which will link the Lithuanian, and the Polish electricity grid.

This blog wrote about the negotiations between Lithuanian and Poland regarding the grid.

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Entry filed under: Baltic States, Economics, Energy, Estonia, Latvia, Lithuania, Northern Europe, Poland, Politics, Russia, Sweden.

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6 Comments Add your own

  • 1. Pawel  |  February 5, 2008 at 5:00 pm

    Unfortunately Poland still hesitates to build modern nuclear power plants on Polish soil. Which is a pity since it’s ecological, efficent, etc. But no one wants to live near one. And that’s why we still have zero nuclear plants.

    Reply
  • 2. Ruslanas Iržikevičius  |  February 5, 2008 at 9:13 pm

    From what I understand the Poles are working on the new energy strategy according to which Poland will solely rely on the Polish coal. It sounds that one of the main purpose of the Polish participation in the project is to acquire some experience in building and running a nuclear plant.

    However, Warsaw still hesitates in giving a clear answer about they participation in the project. Lets wait and see.

    Reply
  • 3. Pawel  |  February 6, 2008 at 12:11 am

    Strange, the way it is said in the Polish media, we’re totally in favour of the project in Lithuania, but Lithuania is not sure whether to let us in:) Or maybe I’m not well oriented in this matter.
    If our new govt. is to rely on coal, then I’d say they are complete knobs.

    PS. Today it was revealed by the media that since 2003 Poland has been buying Russian gas from a company owned by Russian mafia. Great. And top politicians knew about this! I quote: “There was no other option” Yet another reason to build nuclear plant and stop buying gas. God knows how the mafia has been “reinvesting” the money…

    Reply
  • […] on the energy issues background.  The Law of the establishment of the National Investor the LEO LT passed the parliament few days before, there is an intensive debate about prolonging of the […]

    Reply
  • 5. Vince  |  February 11, 2008 at 2:25 am

    Do you know why the Baltic sea is one of the most radio active seas in the world? Ask the Swedish.

    There are so many alternatives to nuclear. Cheaper, faster to build, and reliable. Green renewable energy.

    Better we rethink this today and go for a referendum before the nuclear lobby looking for profit makes a new mess in the country.

    Reply
  • […] 12, 2008 The Lithuanian President Valdas Adamkus signed the amendments to the nuclear power plant law on February 11.  The signed amendments gave way for establishment of […]

    Reply

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