Lack of funding could shutdown Bulgaria’s nuclear safety institute
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| Prof. Yordan Stamenov, Director of the Bulgarian Institute for Nuclear Research, is alarmed by the lack of State funding. Photo by dnevnik.bg |
Russia will sue Bulgaria over unpaid USD 1.35 M owed for the removal of used nuclear fuel, according to Prof. Yordan Stamenov, Director of the Institute for Nuclear Research and Nuclear Energy (INRNE) at the Bulgarian Academy of Sciences.
The deadline to pay for the 2008 services of transporting and burying the fuel near the Russian town of Ozersk is September 1, Stamenov says, adding the Institute needs another BGN 9 M by 2012 to carry out the reconstruction of the research reactor.
According to the Professor, BGN 2 M annually have been regularly slated for nuclear safety between 2001 and 2009, and this is the first year INRNE did not receive any money. He said the transported fuel was State property thus Russia will sue the Bulgarian State, not the Institute.
With the current financial situation, INRNE has only one month before closing doors and after that the safety and efficiency of the facility cannot be guaranteed, Stamenov stressed, but assuaged fears of a nuclear disaster explaining the reactor is empty.
“If radiation increases, the instruments will not be able to correctly register the levels, and this is alarming. This concerns people living nearby,” says the INRNE Head.
The Finance Ministry informs there is no money for nuclear research, reminding the subsidies for the Academy of Sciences have been reduced by 20% in the updated budget.
As early as March, Finance Minister, Simeon Djankov, had asked his colleague, Education Minister, Sergey Ignatov, to help with the funding, but the latter never responded and Stamenov has not been successful in trying to reach him for discussion.
Source: Novinite
Bulgaria’s nuclear power development
The Bulgarian government has moved forward the deadline for appointing a new financial consultant for the Belene nuclear project to the end of this month, following a decision to expand nuclear capacity whether a majority investor for the plant will be found or not.
According to Bulgarian energy minister Traicho Traikov, the country’s government will choose between HSBC, Société Générale or Ernst & Young and a consortium of KPMG with McGuire, Rothschild and Arjil. The groups have all bid for the consultant’s role on Belene.
The minister added that, in case Bulgaria does not find a new major investor after following the consultant selection, the government will focus on the construction of a new reactor at the existing Kozloduy nuclear plant instead of Belene. Four Soviet-era reactors at Kozloduy were closed on condition of joining the EU causing a general energy defecit in the region.
Belene’s initial price tag has been estimated by supplier Rosatom as being €4 billion, but an inflation target for the project was not included in this estimate. The Bulgarian GERB-led government, which came into power exactly one year ago, has concluded that the more realistic price could be anything ranging from €6 billion to €10 billion.
The selection of the consultant is of paramount importance to the Belene project, as the selected company will need to draft a strategic plan for the restructuring of Belene’s business plan so far, which will be used as a vehicle to try and attract a strategic European investor.
In autumn 2009, German utility RWE withdrew as a strategic investor in Belene, which was designed to offset the loss in generating capacity following the premature closure of the Kozloduy reactors totalling 1680 MWe.
Traikov said that the construction of a seventh nuclear reactor at the existing Kozloduy plant is a cheaper and better alternative to Belene. In addition, the seventh reactor at Kozloduy could be built regardless of the final fate of the planned Belene plant, Traikov said.
Traikov added that the final fate of Belene will be resolved by the end of August 2010, one way or another, bringing the decision deadine forward by one month.
Meanwhile, Bulgaria will continue to make payments to Russian contractor AtomStroyExport for the construction of the first reactor at the future Belene plant, while also attenpting to keep Serbia interested in investing in up to 5% of the project’s value, if a major European investor can be found.
Serbia has previously confirmed its interest in a minority stake in Belene, following recent diplomatic activities between the two countries, based on a prospective secured loan from the Chinese Development Bank.
Source: World Nuclear News
Macedonia considering to participate in Bulgaria’s nuclear project
A file picture dated 03 September 2008 showing workers during the construction of the first 1,000 MW unit of the
second nuclear plant of Belane, Bulgaria. Photo by EPA/BGNES
Macedonia is considering the acquisition of a minority stake in Bulgaria’s second nuclear power plant of Belene, which has stalled over lack of funding, according to media reports.
Should Macedonia join officially the project, this may secure financing for the construction works and a market for the electricity to be produced by the plant, local Standard daily reported, citing unnamed members of the Bulgarian parliament.
Earlier this year Bulgaria’s Prime Minister Boyko Borisov said Serbia has expressed interest in a 5% stake in the project, which in his words would turn it into “a Balkan, European project.”
The government has also reportedly unsuccessfully courted Romania as it angles for a new chief investor in its second nuclear power plant Belene to replace the German energy company RWE, which withdrew last autumn.
Bulgaria suspended the construction of its second nuclear power plant until it finds a new investor and funds to complete the project at Belene, on the Danube, 180 kilometres northeast of the capital Sofia.
The plant was originally to be built by Russian company Atomstroyexport for EUR 4 B. The first reactor is expected to be built by mid-September for delivery to the site. Bulgaria has to pay an installment of EUR 280 M in addition to EUR 300 M already paid.
Last month Bulgaria’s Prime Minister Boyko Borisov unexpectedly said that his country was “giving up” on Burgas-Alexandroupolis oil pipeline project decision, and that construction on the planned Belene nuclear power plant had been suspended.
In a dramatic twist that left all of Europe confused, Borisov retracted his statements shortly afterwards, saying that the Bulgarian government hasn’t made a final decision regarding the construction of the Burgas-Alexandroupolis oil pipeline and Belene nuclear power plant.
Source: Novinite
Serbian gov’t considering joint venture with Bulgaria
July 9, 2010 by admin
Filed under Bulgaria, Joint Venture
The government is seriously considering the construction of a joint nuclear power plant with Bulgaria, Minister of Mining and Energy Petar Škundrić stated.
Škundrić told the press that he personally has nothing against the idea, adding that the construction of a joint nuclear power plant with Bulgaria would reduce the cost of electricity in Serbia, and position Serbia higher in the electric energy system of European countries.
Serbia received the proposal to participate in the building of the joint plant from Bulgarian Prime Minister Bojko Borisov during his visit to Serbia on April 26, 2010, after which Škundrić consulted partners in China about a potential credit support for the participation.
Škundrić and Chief of EU Delegation in Serbia Vincent Degert visited the construction site of a new power line in Leskovac.
Degert told the press that the EU invested EUR 500mn into various projects in the Serbian energy system, adding that Serbia will enjoy multiple benefits from the power line which is under construction in the south.
The power line will help Serbia attract foreign investors and empower its electric energy network, Degert stated.
Source: B92
Bulgaria considering two more reactors at Kozloduy NPP
One or two extra reactors might be added to the two functional and four closed units at the Kozloduy NPP.
Photo by energytribune.com
The preliminary project survey of the site of the Kozloduy Nuclear Power Plant shows technical opportunities to built one or two extra reactors there, Bulgaria’s Economy Minister Traikov announced.
Speaking in Parliament Friday, Traikov has defended the initiative for at least one new reactor at Kozloduy based on the favorable characteristics on the site of the plant.
Bulgaria’s NPP at Kozloduy currently has only two 1000 MW Soviet VVER reactors in operation, Units 5 and 6.
Its four 440 MW reactors have been shut down ahead of schedule as part of Bulgaria’s EU accession negotiations over European concerns about their safety. Thus, Units 1 and 2 were turned off in 2002, and Units 3 and 4 – in 2006.
The decision for that has been seen by most Bulgarians as unfair and resulting from European pressure motivated by foreign energy interests.
The idea to build a seventh and even an eighth reactor at Kozloduy has often been presented as an alternative to the project for the construction of a second Bulgarian nuclear power plant at another Danube town, Belene.
The Belene nuclear plant is supposed to have two 1000-MW reactors, and to be built by the Russian state company Atomstroyexport. The project, first started by the former communist regime in the late 1980s and frozen in the early 1990s, has run into troubles after the strategic foreign investor, Germany’s RWE pulled out in the fall of 2009, and estimates of its price have increased from EUR 4 B to EUR 10 B or even more.
Officially, the Bulgarian government of PM Boyko Borisov is exploring both options for new nuclear facilities – the new plant at Belene and new reactors at Kozloduy.
In April 2010, Bulgaria’s Minister of Economy, Energy, and Tourism, Traicho Traikov, met with representatives of the US energy company Westinghouse in America, and announced after that that Westinghouse is interested in building a seventh nuclear reactor at Kozloduy.
Source: Novinite
Nuclear energy progress at Bulgaria
Little progress has been achieved at the construction site of Bulgaria’s drawn-out Belene NPP project. Photo by BGNES.
Bulgaria has not made any decision to freeze or give up the NPP Belene project, stated Bulgarian energy minister Traicho Traikov.
Bulgaria moreover will make institutional commitments to nuclear energy, stated Traikov at a conference organized for Bulgarian Energy Day, as reported by BGNES.
An exchange trading in electrical power will be created in Bulgaria by 2010 as part of the state strategy for the development of energetics for 2020.
What Bulgaria has done is to limit to the absolute minimum state spending on the project, until its financial structure becomes clear, said Traikov. The market is to decide whether Belene would be realized, added he, stating that Bulgaria for the time being is loath to commit public funds.
Submissions of technical and financial proposals for a tender for project consultants is expected in the next few days, announced the Bulgarian energy minister.
The goal of the government is to find a reliable investor who can commit to the projects.
Traikov also expounded on German RWE’s withdrawal from the project. According to him, some conditions that RWE required in order to invest were not going to be fulfilled – such as the state’s investing EUR 5 B (51%) of the project, and concluding of a contract with the Russian Atomstroyexport. He dismissed giving any other reasons for RWE’s withdrawal as the sign of a “wooden head that is not able to comprehend a most elementary fact”, according to BGNES.
Traikov added that building additional reactors at the existing Kozlody NPP is another matter and that Bulgaria will go forth with the Belene project first.
Source: Novinite
Bulgaria receives additional decommissioning funds
The European Parliament (EP) has approved a European Commission (EC) proposal to extend its financial aid for the decommissioning of four shut-down reactors at Bulgaria’s Kozloduy nuclear power plant until 2013. Meanwhile, neighbouring Serbia is said to be considering taking a stake in the proposed new plant at Belene.
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| More decommissioning funds for Kozloduy (Image: KNPP) |
Four functioning VVER-440 reactors at Kozloduy were shut down early as part of Bulgaria’s deal to join the European Union with the loss of over 1600 MWe in generating capacity. Units 1 and 2 were shut down at the end of 2002, while units 3 and 4 closed at the end of 2006. As part of its accession deal, the EU provided €210 million ($260 million) between 2007 and 2009 for decommissioning the units.
In October 2009, with the decommissioning program uncompleted, the EC proposed earmarking an additional €300 million ($370 million) for site cleaning and the safe treatment of radioactive waste at the Kozloduy plant between 2010 and 2013.
In a vote today, the EP backed the proposed additional financial aid. However, it also called for stricter financial controls and more investment in energy efficiency. The EP said that of the proposed €300 million, Bulgaria should spend €180 million ($222 million) on decommissioning the Kozloduy units, while €120 million ($148 million) should go towards energy saving measures.
In a statement, the EP said: “The early closure of Kozloduy has already led to significant additional greenhouse gas emissions, so even though the program’s primary goal remains decommissioning, it must also contribute to modernization of energy production, including renewable energy, new sustainable jobs and industries.”
Members of the European Parliament (MEPs) also called for a detailed financial breakdown of the decommissioning program’s individual projects, such as technical assistance costs, salaries for employed experts, construction costs of the radioactive waste disposal facility, and the cost of treating dismantled waste. The EC will monitor the program, which may be audited, either by the commission itself or by outside qualified auditors, at any time.
Kozloduy’s two remaining reactors, units 5 and 6, provide about 35% of Bulgarian electricity. The closure of units 3 and 4 was controversial given extensive safety upgrades that had been carried out. The Bulgarian government even prepared for temporary restarts during the gas crisis of early 2009 when all supply was lost.
Similar shutdowns of Soviet-era reactors have taken place in Slovakia and Lithuania, with the latter’s last Ignalina reactor closing at the end of 2009. Both these countries, as well as Bulgaria, have sought to replace old nuclear with new nuclear with the plan in Bulgaria to build two large pressurized water reactors at Belene.
Belgrade mulls Belene
German utility RWE had been set to take a 49% stake in the Belene project, with Bulgaria’s NEK holding the remaining 51%, but pulled out altogether in October 2009. The Bulgarian government is now seeking new investors for up to 80% of the project and hopes to arrange this by the end of 2010. A project consultant was expected to be chosen by June 2010 to develop the plant’s economic model and proceed to the selection of investors. Early in 2010, a new project company financed by Russia was established to finance construction activities until a strategic investor is found.
Serbia’s energy minister has reportedly said that the country is considering participating in the Belene project. The Sofia News Agency (Novinite) cited Petar Skundric as saying, “The Bulgarian prime minister officially made an offer for Serbia to participate in financing construction of the Belene plant.” He added, “We haven’t made the decision yet, but we are interested.”
Following the Chernobyl accident, Serbia introduced a moratorium on the construction of nuclear power plants until 2015. However, Skundric said that participating in the Belene project “would be a good reference for us and allow us to respect the embargo. It would also contribute to regional stability and cooperation.”
Skundric said that he had discussed a loan to finance Serbia’s participation in the project whilst on a recent trip to China, but said that no deal had been reached. Bulgarian prime minister Boyko Borisov said earlier this month that Serbia was interested in taking a 5% stake in the project.
Source: World Nuclear News
Bulgaria on the losing end of Russia-Turkey deal
Bulgaria might suffer from the latest Russia-Turkey nuclear deal, according to Ivan Hinovski. Photo by Monitor Daily
Bulgaria might lose Turkey as an electricity export market as a result of the energy deals that the latter has signed with Russia, an expert has warned.
“If the Turkish nuclear power plant which Russia is going to construct is cheaper that the one that we are hoping to build at Belene, we will lose the Turkish market,” said Ivan Hinovski, Chair of the Bulgarian Energy Forum, an NGO, as quoted by BGNES.
“The sums and conditions of the Russian-Turkish deal for a nuclear plant in Turkey are still unknown to us,” the energy expert pointed out. He did stress, however, that the nuclear energy project in Turkey will not be realized very easily.
“About 4-5 years ago Turkey asked Bulgaria to provide training for 100-120 nuclear specialists per year. Unfortunately, this project failed to materialize, which is an opportunity the Bulgarian business missed to take advantage of,” Hinovski revealed.
Source: Novinite.com
