Leo LT has announced its long-term strategy and it’s in trouble already

September 23, 2008 at 6:27 pm Leave a comment

The Lithuanian Energy giant Leo LT had announced the long-term strategy for its activities.  The Leo LT was created in order to build a new nuclear plant, and to connect Lithuanian energy network with power grids with Poland and Sweden.

As the national investor company Leo LT believes reactors for new Lithuania’s nuclear power plant may be supplied by one of four global producers, including US Westinghouse and General Electric, Canada’s Candu and France’s Areva.

As Saulius Specius, Leo LT board member said during the press conference and BNS reported, “They all are working with us. Which one is chosen will depend on the quality of proposal – the best price and conditions”.

“We think that discussions should only be continued with these companies, which have relevant technical parameters and meet national security criteria,” he added.

The financial model of Leo LT, as set forth in the long-term operating strategy, included two reactors with a combined capacity of 2,200 MW, yet it should not be seen as a firm decision to reduce the capacity of new facility to 2,200 MW, from the maximum permissible level of 3,400 MW, Rymantas Juozaitis, Leo LT chairman, pointed out.

Mr Juozaitis further noted that “Output shares in MW to be assigned or chosen by the partners will be decided in future. We know two things – Lithuania will have the share of 1,300 MW and at least 34 percent of new facility Management Company. The maximum capacity of the plant remains at 3,400, the statements that its capacity has been reduced to 2,200 MW are not true”.

“Leo LT has reserved the share of 1,300 MW irrespective of how much it makes percent-wise. It will depend on the size of nuclear power plant, which will be known only after the tender, when we know the producer of reactors,” Specius said to the BNS.  ‘In line with the main scenario for new facility’s funding, initial investments would be made as early as 2009-2010, he added. “We have envisaged certain investments into early orders next year. We will try to speed up the construction of the plant so that the first unit is ready in 2016.”

I would like to remind you that Poland earlier demanded a 1,000-1,200 MW share of new plant’s output. Latvia and Estonia reportedly mentioned the share of 400-500 MW each.

However, soon after the plan’s announcement Leo LT came into troubles when some 50 MPs decided to ask the Constitutional court to explain is the process of the Leo LT creation did not violate country’s constitution.  Read more about it here or here.

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

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