Moldova could have four small nuclear reactors and a liquefied gas terminal

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Vineri, 26.12.2014 10:54   3010
During its 23 years of independence, Moldova has launched dozens mega-projects on energy infrastructure, with the purpose to ensure its energy security and reduce its dependence on Russia.

During its 23 years of independence, Moldova has launched dozens mega-projects on energy infrastructure, with the purpose to ensure its energy security and reduce its dependence on Russia. None of them have been seen through so far. This did not stop however the authorities and various companies to continue announcing new projects, some of them downright ridiculous.

1.85 billion dollars needed for four small nuclear reactors

By far, the most eccentric initiative belongs to the company Accent Investment from Chisinau, which is part of the financial-industrial group Accent, controlled by businessman Vladimir Russu. The Company published on its website that it has started “the process of assessing the interest of third party investors regarding construction, operation and management of a network of four small modular nuclear reactors of 145 MW each”.

Per total, the four small reactors will have a capacity of about 580 MW, and according to the company’s announcement, to carry out this project in Moldova, an investment of 1.85 billion dollars would be required. “This is an intention the company has been having for a while now. It’s all I can tell you”, declared Vladimir Russu.

According to a study conducted by Moldovan researches, a potential construction of a reactor with a total output of 700 MW, would require investments of 1.7-2.5 billion dollars. These are extremely high amounts for a small country like the Republic of Moldova. The scientists ascertained that given the relatively high investment risk in Moldova, it is obvious that few would risk making investments without special guarantees of their recovery, which in turn, would inevitably lead to a substantial increase of energy costs. Estimates showed that if the nuclear group shall operate at 50-70% capacity, in the first 15 years the average price would be 6.1 US cents/kWh for an annual return on investment of 10%.

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Meaning the price could be quite competitive, if the estimates made in 2008 are still valid.

The Soviets have also planned the construction of a nuclear plant in Moldova. In October 1984, near Butor village, Grigoriopol, during a special ceremony, accompanied by a fanfare, Moldovan wine and cheese pies, the cornerstone of the future foundation was laid on the grounds intended for the erection of the plant. The future nuclear plant, was supposed to have an output of 6.000 MW based on six third generation VVER-100 reactors, and its total cost was estimated at six billion rubles (note: about 9 billion dollars at the ruble/dollar exchange rate at the time). The first reactor was intended to be commissioned in 1991, but then the Cernobal nuclear disaster occurred and the project was abandoned.

Liquefied gas terminal

A month and a half ago, Deputy Prime Minister Andrian Candu came up with some curious initiatives of his own. “I have discussed with potential investors from the US regarding the possibility of building a liquefied gas terminal in Giurgiulesti. They have expressed interest in the project”, said the Minister of Economy. The official appeared to be very confident in the possibility of erecting such a facility, but could not say what it would cost and what output it would have.

A year ago, former Minister of Economy Valeriu Lazar announced another mega-project: the set up of back-to-back convertors on the 400kV power line CERS Moldoveneasca-Vulcanesti-Isaceea, which would allow the relay of electric energy imports from Romania to the Republic of Moldova. The project initially estimated at nearly 70 million Euro, would need investments of doubled value. Ukraine takes the blame, for nationalizing at the beginning of the year segments of the 400kV power line CERS Moldoveneasca-Vulcanesti-Isaceea, that stretch on its territory. To carry out the project, authorities are now looking at the possibility to build a 330kV power line from Vulcanesti to Chisinau, to bypass the Ukrainian territory. The main problem is though - where do we take the money from?

"Some soap bubbles"

Experts are skeptical about these projects. “Last year several other mega-projects were announced. For example, the Burlaceni, Vulcanesti power plant which is now left only on paper. We also have the case of Iasi-Ungheni pipeline, which although built - is not operational. In these circumstances, we cannot but suspect that some of these initiatives are simple soap bubbles”, claims Ruslan Surugiu, president of the Center for Energy Efficiency in Chisinau. In the expert’s opinion, construction of a nuclear power plant is risky given that the regional market is oversaturated with electricity supply. As far as the liquefied gas terminal is concerned, Ruslan Surugiu calls to attention the example of the Baltic States.

“Lithuania has built a floating liquefied gas terminal, but this project was designed to provide gas to all the three Baltic States. We, on the other hand, beside the fact of not having money, will have to compete with Ukraine and Romania, which also want to develop such projects”, concluded the expert.

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Agenția Corcimaru, Partenerii și Asociații S.A., prin traducerea acestui material pentru site-ul Mold-Street.com, susține eforturile jurnaliștilor de a combate corupția și de a asigura un grad mai mare de transparență în mediul de afaceri.



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