THE BALTIC NPP IN KALININGRAD: A WORTHWHILE OPTION TO CONSIDER

Nuclear power can solve some of Europe’s most pressing energy issues. The European energy sector is facing a triple challenge: decarbonisation of the economy, security of supply, and affordability. There are opportunities for Baltic electricity markets integration via third-party infrastructure, for example by using the Baltic NPP in the Kaliningrad region in Western Russia. 

It is most important to facilitate deep mutual integration of power systems and electricity markets for achieving the goal currently facing the EU, as outlined in the Concept of the Energy Union and the long-term energy strategy for Europe (Energy Roadmap 2050). [The EU has set itself a long-term goal of reducing greenhouse gas emissions by 80-95% when compared to 1990 levels by 2050. The Energy Roadmap 2050 explores the transition of the energy system in ways that would be compatible with this greenhouse gas reductions target while also increasing competitiveness and security of supply. To achieve these goals, significant investments need to be made in new low-carbon technologies, renewable energy, energy efficiency and grid infrastructure. Because investments are made for a period of 20 to 60 years, policies that promote a stable business climate which encourages low-carbon investments must begin to be made today. The European Commission's 2011 Energy Roadmap set out four main routes to a more sustainable, competitive and secure energy system in 2050: energy efficiency, renewable energy, nuclear energy and carbon capture and storage].

A mutually beneficial cooperation between EU and non-EU countries will contribute to meeting the goals set by the EU. The implementation of the Baltic NPP project will have a positive impact on the region’s economy. In addition to having a positive effect on the region’s economic development, the successful implementation of the project will contribute to significant reduction in CO2 emissions of up to 20 million tons per year, as well as a significant increase in the reliability of electricity supply in the region. The successful implementation of the Baltic NPP project will contribute to achieving EU energy policy objectives in the region without additional burden on consumers. The Baltic NPP offers a promising joint solution that meets environmental criteria with no burden on consumers and opens new opportunities for European businesses.

Nuclear power today plays a key role in ensuring that Europe’s energy needs are met and contributes to the three major energy policy objectives of the European Union: ensuring security of supply, limiting greenhouse gas emissions, and helping to secure competitive power prices in Europe. Some 28% of electricity in Europe was produced by nuclear power in 2014. Nuclear plants thus provide a substantial share of Europe’s power generation and are the largest source of low carbon electricity (54% nuclear share in low carbon electricity generation in 2014). The European nuclear industry occupies a leading role across all segments of the nuclear value chain (fuel cycle and reactors), both in terms of technology development and skills. With regard to the security of fuel supply, European companies rank among the world’s major producers of nuclear fuel. Modern nuclear power plants are flexible and can provide load-following properties within the range of 40% to 100% of rated power, although continuous baseload operation continues to be the optimum from both the economic and operational perspective. Given that the variable (fuel, operation and maintenance) costs of nuclear generation are low, nuclear plants are well-suited to provide a competitive base load supply of electricity. Different options to further increase the flexibility of nuclear power plants, such as the improved control of nuclear reactors (reactivity control), should be considered. As regards nuclear safety, the stress tests performed following the Fukushima accident confirmed the high safety standards of European nuclear plants. Additional safety measures adopted as a result of these stress tests will further improve safety standards in relation to very unlikely triggering events. With the amendments made to the Nuclear Safety Directive in 2014, the EU has further strengthened its nuclear safety framework. Continuous improvement of nuclear safety and security in Europe must be tackled not only through national efforts but also at the European and international levels.

In summary, from the perspective of security of supply, competitiveness and greenhouse gas emission reductions, nuclear energy has the potential to make a valuable contribution to the EU power mix for years to come. The European Commission’s 2050 roadmap confirms that and foresees an important continuing role for nuclear power in the EU.

Achieving the EU’s objective of closer integration of the Baltic States with the rest of the EU electricity markets will require the modernization and enhancement of existing transmission capacities within the three countries, the development of new transmission and interconnection links with the rest of the EU network, and synchronization of the networks. This will require investments of billions of euros. For the connection and the synchronization of the Baltic power system with the CE to become effective, stable and sustainable, there is also a need for investments in new baseload generating capacity, which would need to be able to compete for the reliable supply of (affordable) electricity to the Baltic and Nordic regions.

The Kaliningrad Baltic NPP could provide the additional competitive baseload capacity that will be required technically to link and successfully synchronize the Baltic States with the wider European system. On the financial side, the operation of the Kaliningrad NPP could help to shoulder the substantial financial burden attached to the synchronisation, which would otherwise have to come on top of the costs for new interconnections with the CE system.

The Kaliningrad Baltic NPP will be made fully compliant with the relevant EU regulation and standards, and meet the industry’s “best practice” in terms of information disclosure, corporate governance, social and environmental standards, technical and operational factors.

Looking at the synergies and benefits for the overall Baltic region, it would make sense to consider this option. It could work if energy security issues (from control and reliability perspectives) are properly addressed, thereby making the project apolitical. The bottom line is that integrating regional energy structures and eliminating energy islands would benefit everybody in the region, regardless of national boundaries. And a new level of cooperation would certainly be more advantageous than a cold war in energy affairs with a wall separating grids and national economies.