FIG. 2. Energy consumption (EJ)

FIG. 3. Energy production in 2002

1.2. Energy Policy

The highest body of state power in the Republic of Lithuania is the Seimas (Parliament). Parliament has a number of standing committees on most sectors such as science, culture and education, but there is no specific committee for energy. Newly revised Energy Law of the Republic of Lithuania came into force on July 1, 2002 and regulates overall energy sector activities (electrical power, district heating, oil, natural gas, coal, local fuel and renewable energy recourses), power engineering development and management principles, effective use of the energy and energy recourses. According to this Law, the Ministry of Economy is responsible for preparing the National Energy Strategy. This document defines strategic objectives of the Lithuanian energy sector for a period of 20 years and is updated every five years. The Strategy is approved by Parliament.

The Government is responsible for establishment of rules for the use of energy and energy resources. It is also responsible for establishing procedures for new state or privately owned enterprises, joint ventures and foreign owned companies in the power sector.

The Parliament of the Republic of Lithuania approved the new edition of the National Energy Strategy of Lithuania on 10 October 2002, which includes national energy development directives taking into consideration that the first power unit of Ignalina NPP will be de-commissioned in 2005, and the second unit - in 2009, accordingly.

The National Energy Strategy is aimed for ensuring reliable, secure and environmentally-friendly energy supply at minimum costs, steady increasing the effectiveness of the energy, liberalising electricity and natural gas sectors, and opening the market according to the requirements laid down in the EU directives, privatising natural gas supply/distribution and electricity supply enterprises that can be privatised, continuing privatisation of oil refining and transportation enterprises, prepare for the decommissioning of Ignalina NPP; the document also covers disposal of radioactive waste and long-term storage of spent nuclear fuel, integrating Lithuanian energy systems into the energy systems of European Union, and further developing regional cooperation in order to create common electrical power system in the Baltic states. In addition it is planned to achieve that the share of the electricity generated in the co-generation plants would account for at least 35% of the electricity generation balance at the end of the period, and the share of renewable energy resources would account of up to 12% of the total primary energy balance by 2010.

When updating the Strategy account has been taken of significant changes in the economy and energy sector, experience gained and information required for the planning and forecasting of the development of individual energy sectors, and plans for the energy sector development in Lithuania and neighbouring countries as well as global trends in the area of environmental protection and market liberalisation.

Limited indigenous energy resources available and, the in-efficient use and conservation of energy resources are the basic conditions for the National Energy Strategy. The main directions for implementation of the National Energy Efficiency Programme, which is constantly up-dated, are the following:
· improvement of legal and normative basis;
· introduction of modern technologies and energy conservation measures;
· introduction of a pricing system stimulating energy conservation;
· creation of favourable conditions for investments into the energy conservation field;
· development of scientific, informational and educational activities.

1.3 The Electricity System

The Law on Electricity was passed and came into force on January 1, 2002. It sets electrical energy production, transmission, distribution, and supply regulation basis in the Republic of Lithuania, in pursuance of legal requirements of the European Union, relationship between electricity suppliers and consumers, as well as conditions to develop competition in the electricity sector. In addition, the law provides that electricity market will be created in phases in the country, i.e. gradually giving the right to independent consumers to draw direct electricity supply agreement with the manufacturers or independent suppliers. Independent consumer status is given by the National Price and Energy Control Commission.

The National Price and Energy Control Commission is established as energy regulator. The Commission will monitor the licensing activities and price application as well as exercise supervision over the compliance with the activity transparency principles. This Commission is proposed by the Government and approved by the President for a period of five years.

12 enterprises have received independent consumer status already, and together they consume over 20 million kWh of electrical power annually. Beginning year 2003, the number of these consumers will increase as enterprises that consumer over 9 million kWh of electrical power annually will be able to receive the status of independent consumer according to the foregoing law. Talking about all the consumers, including the least consuming ones, we can state that all the consumers will be able to choose their supplier freely by the year 2010. This could happen even earlier though, as the Law on Electricity regulates that the

Government will be able to set market openness level (i.e. minimal electrical power consumption quota per year, and exceeding the quota would enable the consumer to become an independent one) by the year 2004. This regulation was defined in the abovementioned law taking into consideration that European Union intends to change the current directive for the creation of domestic electric energy market, in order to speed up the openness level of electricity market.

Generation of electric power in Lithuania is provided by Ignalina Nuclear Power Plant (Ignalina NPP), CHP plants belonging to municipalities and joint stock companies Lietuvos Elektrine (Lithuanian power plant), power plant Mažeikiu Elektrine. All power generated at Ignalina NPP can be sold to joint stock companies Rytu Skirstomieji Tinklai (East Electricity Distribution Company) and Vakaru Skirstomieji Tinklai (West Electricity Distribution Company) or joint stock company Lietuvos Energija. Lietuvos Energija is a specific joint stock with responsibility for managing and supervision of transmission grids and electricity transmission. Lietuvos Energija sells power to two regional network utilities: joint stock companies: Rytu Skirstomieji Tinklai and Vakaru Skirstomieji Tinklai who, in turn, distributes and sells it to the end users and to abroad users. Lietuvos Energija exports electricity to Latvia, Estonia, Belarus and Kaliningrad province of the Russian Federation. Earlier responsibility of Lietuvos Energija for supplying heat was transferred to municipalities, responsibility of generation of electric power - to joint stock companies Lietuvos Elektrine, power plant Mažeikiu Elektrine.

Restructuring of Joint Stock Company Lietuvos Energija laid the basis for the successive liberalization of the sector's operation, and preparation for the creation of domestic market in power engineering. Hence, we can safely say that the structure of Lithuanian power engineering economy is fully in tune with the requirements of European Union's legal acts. The recent scheme of the Lithuanian electricity sector is represented in Fig. 4:

FIG. 4. Lithuanian electricity sector

The national transmission system in Lithuania comprises 330 kV and 110 kV grids, which connect all power stations to the load centres throughout Lithuania. Electricity export interconnections already exist with Latvia, Belarus and Kaliningrad region. At present, there is no power interconnection with the neighbouring Polish energy system

Lithuania is continuing talks with Poland on possible transmission line across Poland connecting Lithuania's with other western countries into common market. Lithuania is considering building additional transmission lines from the Kruonis hydro pumped storage unit, through Alytus, to the border with Poland.

In 2001 a contract concerning the Lithuania - Poland electricity transmission inter-connector feasibility study has been signed between the EBRD and a consortium headed by a company IPA Energy Consulting Ltd. (United Kingdom). The recommendations and conclusions of the study will serve as a basis for making the decisions on further implementation of the project. In early 2003 the study received the approval and it was agreed to establish a common project development company.

The main source of electricity in Lithuania is the Ignalina NPP. Over the period of the last five years it has generated 80-85% of the total electricity production. There was 17.7 TWh of electrical energy generated in Lithuania in 2002 (Ignalina NPP generated 79.7%, thermoelectric power stations - 15.8%, hydroelectric power stations and hydroelectric pumped storage power station - 4.5%), an increase of 20% compared to 2001. This increase in electrical power generation was influenced by an increase in electrical power export.

Table 2 shows the historical energy balance and Fig. 5 the share of the primary energy sources in the 2002 energy production.

TABLE 2. ENERGY BALANCE
PJ

FIG. 5. Final Energy Demand (PJ)

2. NUCLEAR POWER SITUATION

2.1. Historical Development and current nuclear power organizational structure

2.1.1 Overview

The decision to build a nuclear power plant in the Baltic region for electricity supply to the Baltic States, Belarus and Kaliningrad was made by the former government of the Soviet Union at the beginning of the seventies. After the formal agreement of the Lithuanian Government, the site on the shore of Druksiai lake near the borders of Lithuania, Latvia and Belarus was selected. Construction of the first unit of the Ignalina NPP commenced in April 1978, the second unit followed in April 1980, and the third unit in 1985. The town of Visaginas (formerly named Snieckus) was built for the workers of the Ignalina NPP. The first unit was commissioned in December 1983 and the second in August 1987. In August 1988, the former USSR Council of Ministers suspended the construction of the third unit. In November 1993 the Lithuanian Government decided to abandon the construction of Unit 3 and dismantle the existing structure. In 1999 decision was made to close first unit of Ignalina NPP before 2005 and in 2002 it was decided to close second unit in 2009.

The development of the Ignalina NPP design was carried out by the Research and Development Institute for Energy Technology (Russian abbreviation - VNIPIET), St. Petersburg, (at that time Leningrad) Russia. This institute developed the design of the reactor internals and other radiation-related structural components. The development of the Accident Localisation System was carried out by the Sverdlovsk branch, Ekaterinburg, Russia, of the above mentioned institute. Metal structures of the main building were designed by the Main Design Office "Leningrad Steel Design" (translation of the Russian - "Leningradstalkonstrukcija"), St. Petersburg, Russia. The turbine hall, the open distributive system and the auxiliary facilities were developed by the Atomic Energy Design Organisation (Russian abbreviation -"Atomenergoproekt"), Kiev, Ukraine.

It was intended that Ignalina NPP would be the pilot nuclear power plant for the RBMK-1500 reactor type. The scientific supervisor of the RBMK-1500 project was the Kurchatov Atomic Energy Institute (often referred to as the Russian Research Centre "Kurchatov Institute"), Moscow, Russia. The principal designer of the nuclear steam supply system was the Research and Development Institute of Power Engineering (RDIPE), Moscow, Russia. These two institutes prepared and published the Technical Safety Justification of the RBMK-1500 Reactor in 1987. These institutes, together with the Research and Development Institute for Energy Technology, prepared the Technical Safety Justification of the Ignalina NPP in 1988. This safety report came closer to the Western standard in comparison with the Technical Safety Justification of the RBMK-1500 reactor. However, the Technical Safety Justification of the Ignalina NPP was not officially approved.

2.1.2 Current Organizational Chart(s)

See Fig. 6 of interaction between governmental and regulatory bodies and Ignalina NPP.

FIG. 6. Organizational Chart of interaction between regulatory bodies and Ignalina NPP

 

2.2. Nuclear Power Plants: Status and Operations

The following state institutions and bodies are involved in nuclear power related activities:
· Ministry of Economy
· State Nuclear Power Safety Inspectorate
· Ministry of Health
· Ministry of Environment
· Ministry of Social Security and Labour
· Ministry of Transport and Communications
· Ministry of National Defence
· Ministry of Interior
· State Security Department
· Governmental Emergencies Commission
· County Governors and
· Local Authorities

The Ministry of Economy is responsible for the implementation of state policy, organizes bilateral and multilateral international co-operation in the sphere of nuclear energy and is the responsible authority for promotion and ownership of nuclear facilities. The Ministry of Economy is the owner of the Ignalina NPP and is responsible for a broad scale of activities: tariffs, pricing system, organisation, and financial audits. The Ministry has two divisions related with nuclear energy. The Nuclear Energy Division supervises the nuclear energy sector and is responsible for the preparation of regulatory acts governing nuclear energy and nuclear safety and for co-ordination of assistance for nuclear safety improvements. The Ignalina NPP Problems Co-ordination Division was established in 2001 in connection with the closure of the Ignalina NPP's unit one. The task of the Division is supervision of the Ignalina NPP decommissioning sector and preparation of regulatory acts governing of the decommissioning and radioactive waste management. The Ministry of Economy also comprises a Strategic Goods Export Control Division, which is responsible for the issue of licences for the export, import and transit of nuclear, radioactive and other materials used in nuclear technology, nuclear equipment and dual-use items.

The Radioactive Waste Management Agency (RATA) was established by the Ministry of Economy for management and final disposal of all transferred to it radioactive waste, generated by the Ignalina NPP during the operation and decommissioning, as well as to collect, process and finally dispose of radioactive waste from. Agency's task is to construct and operate the repositories for both short-lived and long-lived radioactive waste.

Lithuanian Nuclear Power Safety Inspectorate (VATESI) exercises the state supervision of nuclear safety. The Prime Minister appoints the head of VATESI. VATESI is independent governmental institution and reports directly to the Lithuanian Government. According to the Nuclear Energy Law, VATESI is responsible for licensing: design, construction, reconstruction and operation of nuclear power plants, storage and disposal of radioactive waste, transportation of nuclear materials. Currently VATESI has a new task - to control and supervise the safe decommissioning of Ignalina NPP unit 1 and to assess the safety of the projects. VATESI consists of five main divisions. Nuclear Material Control Division organize state accounting and control of nuclear substances, set the rules of accounting, supervise the physical protection of nuclear materials and nuclear facilities, participate in controlling export, import, and transit of commodities used in nuclear activities, co-operate with the IAEA and other international organizations and counterparts in other countries in the area of accounting and control of nuclear materials, maintain contacts with the Comprehensive Nuclear Test Ban Organization, and co-ordinate the activities of Lithuanian governmental institutions related with this Organization. Decommissioning and Radiation Protection Division control radioactive waste management, license spent fuel storage facilities, control the level of Ignalina NPP preparedness for emergencies, and notify international organizations and neighbouring countries about nuclear accidents. Licensing Division set the conditions for licensing the Ignalina NPP and its safety systems, develop rules and regulations that govern Ignalina NPP safety, assess the reliability of the safety-related systems, establish the operation conditions for Ignalina NPP, elaborate conditions for licensing other nuclear activities. On-site Division at Ignalina NPP carry out direct supervision at Ignalina NPP, inspect safety systems, control technological processes and repairs. Safety Assessment Division assess design decisions, produce reviews of safety analysis reports, check the adequacy of the computer software used for safety assessment, and analyze the physical issues of the reactors.

Board of VATESI supervises VATESI activities, assists the Government of Lithuania in forming the strategy of nuclear safety, addresses the issues raised by the Head of VATESI and Board members.
The Ministry of Health develops and approves guides and regulations for looking after the health of people working at nuclear sites, sets health requirements for radiation protection and defines the frequency and requirements for medical examination of people working with radiation sources and supervises their performance, etc.

The Radiation Protection Centre co-ordinates the activities of executive and other bodies of public administration and local government in the field of radiation protection, exercising state supervision and control of radiation protection, monitoring and expert examination of public exposure. The Centre drafts laws and other legislation on radiation protection, performs licensing of users of sources of ionizing radiation, organizes and controls monitoring of radioactive contamination of air, drinking water, foodstuffs and raw materials and other objects which may cause exposure of humans, carries out investigation of radiological accidents, forecasts their consequences and present proposals on ways of their prevention and remedial measures, and etc.

The Ministry of Environment is responsible for establishing environmental pollution norms, monitoring compliance and licensing of emissions. The Ministry of the Environment coordinates environmental impact assessments, establishes the limits of radioactive emissions into the environment, issues single authorizations for transport of radioactive substances and radioactive waste inside the country, export, import and transit. After consultation with the VATESI and the Ministry of Health establishes procedure for the import, export, transit and transportation of radioactive substances and radioactive waste within the country and for return of used sealed sources, defines handling and disposal, sets maximum permissible levels for radioactive releases in the environment and authorises the use of natural resources. Ministry is also responsible for establishing radiation protection standards and monitoring their compliance together with the Ministry of Health.

The Ministry of Social Security and Labour is responsible for compliance with the requirements of labour, safety at work and related statutory acts.

The Ministry of Transport and Communications participates in the drafting of laws and subordinate legislation and the training and certification of personnel for the transportation of nuclear and radioactive materials.

The Ministry of National Defence is responsible for the protection and security of transportation of nuclear and radioactive material cargoes across the territory of the country. In co-operation with Ignalina NPP and other local and national authorities Ministry develops plans for public protection in case of an accident at Ignalina NPP. Together with VATESI and other state authorities, the Ministry organises exercises for coping with nuclear accidents.

The Department of Civil Protection of the Ministry of Defence is the co-ordinating institution in respect of the preparation of emergency plans and their implementation in the event of an accident in the Ignalina NPP. The department organises of the training sessions of population protection in the event of nuclear accident.

The Ministry of Interior insures fire protection and physical safety of the nuclear power plant and other nuclear f