LITHUANIA

(updated on Dec. 2004)

1.  ENERGY, ECONOMIC AND ELECTRICITY INFORMATION

1.1.  General Overview

The Republic of Lithuania is situated on the eastern coast of the Baltic Sea, in central Europe. Lithuania is bordered by Latvia in the north, Belarus in the east, Poland in the south, Kaliningrad Region of the Russian Federation in the southwest and the Baltic Sea in the west. Lithuania is situated in a temperate climate zone. The average annual air temperature in Lithuania is 5.5°C, with 17.8°C in June and -6.5°C in January. The absolute maximum-recorded temperature is 36oC and the absolute minimum -40°C. There are noticeable east-west weather variations. The western part, mostly influenced by the Baltic Sea, is characterized by the smallest temperature variations. The eastern part, where the Ignalina NPP is situated, has colder and longer winters and warmer but shorter summers. Western and southwestern winds predominate.

The average annual amount of precipitation is 638 mm. About 70% of the precipitation takes place during the warm period of the year (April - October). The minimum relative humidity (53 - 63%) is in June and the maximum (exceeding 90%) in January.

Information about population is given in Table 1. The steady growth of the population (about 0.9% a year) in the period 1970 to 1990, primarily caused by influx of people from other Soviet republics, was abruptly stopped in 1991 and a period of slow decrease, caused mostly by the outflow, followed. The population slightly exceeded 3.7 million in the period from 1990 to 2000. Number of population started to decrease from 2000 and dropped to 3.5 million. in 2003.

TABLE 1. POPULATION INFORMATION

The historical data on gross domestic product are shown in Table 2. Lithuanian market was growing steadily during the last four years.

TABLE 2. GROSS DOMESTIC PRODUCT (GDP)

TABLE 3. ESTIMATED ENERGY RESERVES

Table 4 shows historical energy statistics. Fig. 1 shows the share of the primary energy sources in the corresponding energy consumption and Fig. 2 - the share of the various sectors in final energy demand.

TABLE 4. ENERGY STATISTISTICS

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. In reference with decision to close Ignalina NPP, commission on the Problems of Ignalina Nuclear Power Plant in the Parliament was established. 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 shut down before 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.

The Strategy states that, with a view to remaining a nuclear energy state in the future and generating electricity in nuclear power plants complying with modern safety requirements, Lithuania will legally, financially and politically support investments in the construction of a new unit or reactor with the use of the existing infrastructure at the Ignalina NPP.

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

1.3.1.  Policy and decision making process - including planning the electricity system

Revised version of the Law on Electricity entered into force on 10 July 2004. It establishes the basic principles regulating the generation, transmission, distribution, and supply of electricity in the Republic of Lithuania, the relations between providers of electricity services and their customers as well as the conditions promoting competition in the electricity sector. The provisions of this Law have been harmonised with the legal acts of the European Union.

The main objectives of the Law are establishment of the rights, responsibilities of and mutual relations between the entities in the electricity sector; development of a legal framework for the functioning of competition based electricity market and establishment of fair competition between producers and suppliers; ensuring and promoting efficiency in the production, transmission, distribution and consumption of electricity; ensuring safe and reliable operation of electricity system, electricity generation, transmission and distribution; ensuring public service obligations and establishing reasonable, comprehensive and transparent requirements and obligations in the electricity sector; promotion of the internal electricity market and electricity export, modernisation of technical facilities for implementation of the market, and development of easy-to-understand and transparent energy pricing; creating favourable conditions for investments in the electricity sector; promotion of environmentally friendly technologies in generation, transmission and distribution of electricity.

The electricity sector is regulated by the Government and National Control Commission for Prices and Energy. Government formulates and implements the state policy; co-operates with foreign state electricity institutions; draws up the list of public service obligations; sets the requirements for electricity supply security and service quality; sets the expected time for connecting consumers' equipment to the system and of electricity supply restoration; issues licences for provision of electricity services; establishes for all suppliers uniform conditions for importing electricity. The National Price and Energy Control Commission is responsible for ensuring effective competition in the electricity market, non-discrimination of customers and suppliers and provision of all customers with services of established quality.

1.3.2.  Structure of electric power sector - generation, transmission and distribution network

Generation of electric power in Lithuania is provided by Ignalina NPP, CH plants belonging to municipalities, Kruonis HPS and Kaunas HPP belonging to joint stock company Lietuvos Energija or joint stock company Lietuvos Energija, private HP plants and joint stock companies power plant Lietuvos Elektrine, power plant Mažeikiu Elektrine. Lietuvos Energija is a specific joint stock company with responsibility for managing and supervision of transmission grids and electricity transmission. Lietuvos Energija sells power for two regional network utilities: joint stock companies: Rytu Skirstomieji Tinklai and Vakaru Skirstomieji Tinklai who, in turn, distribute and sell it to the end users locally and abroad. Lietuvos Energija exports electricity to Latvia, Estonia, Belarus and Kaliningrad (province of the Russian Federation).

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.

Study concerning connection electricity transmission grids of the Lithuania and Poland was performed in 2002. Taking into account recommendations and conclusions of the study - proposals for further implementation of the project were made and it was agreed to establish common development company for the project in 2003.

Project on the connection electricity transmission grids of the Lithuania, Latvia, Estonia and Finland was started in 2004. It will allow for our consumers and producers participate in electricity market of Scandinavian countries.

1.3.3.  Main indicators

Table 5 shows the electricity production and capacity and Table 6 - energy related ratios.

TABLE 5. ELECTRICITY PRODUCTION AND CAPACITY

TABLE 6. ENERGY RELATED RATIOS

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 Drukšiai 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 political decision was made to close first Unit of Ignalina NPP before 2005, in 2002 - to close second Unit in 2009.

2.1.2.  Current Organizational Chart(s)

See Fig. 3 of interaction between governmental and 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
• Local Authorities

The Ministry of Economy shall exercise the rights and duties of a participant of the operators of nuclear facilities; implement state policy in the sphere of nuclear energy; organise bilateral and multilateral international co-operation in the sphere of nuclear energy; organise nuclear accident prevention, accident management, investigation and countermeasures in the nuclear facilities under its control; represent the Republic of Lithuania in international nuclear energy organisations and at conferences; organise the drafting of a special project for the choice of the site for a new nuclear power plant or other state nuclear facilities, exploring several alternative sites; after the approval of a detailed site plan, proceed in an established manner with the legal formalities of the acquisition for the public needs of the site for the construction of a nuclear power plant or other state nuclear facilities; organise the development of the nuclear energy infrastructure in the Republic of Lithuania; establish institutions of design, science and technology (together with the Ministry of Education and Science) to meet the needs of the operators of nuclear facilities. The Ministry has one department related with nuclear energy, which contains of two divisions. The Nuclear Energy Division supervises the nuclear energy sector and is responsible for the preparation of regulatory acts governing nuclear energy 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 early closure of the Ignalina NPP. 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.

Lithuanian Nuclear Power Safety Inspectorate (VATESI) implements state regulation of nuclear safety, radiation protection, accounting for and control of nuclear materials in the sphere of nuclear energy. Prime Minister of Lithuania appoints the Head of VATESI. VATESI is independent of other institutions and reports directly to the Government of the Republic of Lithuania. According to the Nuclear Energy Law, VATESI is shall: approve technical regulations of the design and construction of nuclear facilities together with the Ministry of the Environment; approve standards and rules of operation of nuclear facilities, standards and rules of storage of radioactive materials used in nuclear energy and disposal of their waste and establish the procedure for drafting of standards and rules; control the compliance with the requirements stipulated in licences, safety regulations and standards; carry out state supervision of the accounting for and control of nuclear materials; inform the mass media about the radiation and safety situation in nuclear facilities; prepare surveys on the safety of nuclear facilities and submit them to the Government, local authorities and other bodies concerned; organise and support research into and expert analysis of nuclear safety and radiation protection, independently carry out the analysis of incidents and occurrences at nuclear facilities; co-ordinate and control preventive measures for the staff and the population in the event of a nuclear facility accident, monitor the state of nuclear accident preparedness of the facility; impose sanctions established in statutory acts on violators of safety rules; organise bilateral and multilateral international co-operation in the sphere of nuclear safety and radiation protection. VATESI consists of five principal divisions for: Nuclear material control, Decommissioning and radiation protection, Licensing, On-site and Safety assessment.

The Ministry of Health shall draft and approve regulatory acts and rules on the health of the personnel of nuclear facilities and the residents of the monitored zones of the facility and control compliance thereof; undertake environmental health studies of radiation impact on people and their environment and establish health protection requirements; co-ordinate the sitting of nuclear facilities and undertake state environmental health analysis of their construction; take part in the acceptance of the constructed or reconstructed nuclear facilities, issue the environmental health passport for work with radioactive materials and other sources of ionising radiation; establish the standards for medical examination of the personnel working with radioactive materials and the sources of ionising radiation, periodic reviews of health, contraindications and control of compliance; undertake health surveillance of the nuclear facility personnel and the residents of the monitored zone of the facility; ensure the preparedness of medical institutions to use countermeasures; establish the radiation protection norms for the population and control compliance with them; organise medical examination of the forces of response to a nuclear accident and/or mitigation of its consequences and hygiene control of the population affected by radiation exposure and submit proposals for the reduction of radiation exposure; determine occupational diseases for the personnel working in the field of nuclear energy and study the causes of the diseases; educate the population about radiation protection. Most of these functions are delegated to Radiation Protection Centre, which was established by the Ministry of Health.

The Radiation Protection Centre is the institution which 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 Ministry of Environment shall establish the limits of radioactive emissions into the environment and the permitted pollution norms after co-ordination with the Ministry of Health, monitor compliance with them, and establish the procedure of emission licensing; establish radiation protection standards jointly with the Ministry of Health and monitor compliance with them; co-ordinate in the manner prescribed by law assessment of the impact on the environment; approve technical regulations for the design and construction of nuclear facilities together with VATESI; co-ordinate the projects for sitting, reconstruction and expansion of nuclear facilities and facilities related to their operation; take part in state monitoring of design and construction of nuclear facilities (structures) in the manner prescribed by the Government of the Republic of Lithuania; issue licences for the use of natural resources, organise state radio-ecological monitoring, co-ordinate and control radiological monitoring nuclear facilities; organise and co-ordinate scientific research of the impact of nuclear facilities on the environment; prepare and approve methodology of assessment of radiation damage to the environment and its compensation; periodically inform the public, national and local authorities about the radiation situation in the country and in the environment of nuclear facilities; on the recommendation of the institutions exercising state control and supervision of construction of nuclear facilities or at its own initiative shall cancel the authorisation to construct or reconstruct a nuclear facility when it is discovered that the authorisation was issued unlawfully.

The Ministry of Social Security and Labour shall coordinate the supervision of potentially dangerous technical installations carried out by the authorised technical supervision services in accordance with the procedure established in the Law on the Supervision of Potential Dangerous Installations with the exception of those under the control of VATESI.

The Ministry of Transport and Communications shall take part in drafting laws and subordinate legislation regulating transportation of nuclear and radioactive materials; participate in training and certification of the personnel involved in transportation of nuclear and radioactive materials; organise railway transport for the evacuation of the population from the danger zone in the event of a nuclear accident.

The Ministry of National Defence shall take part in drafting and implementing co-ordinated interdepartmental anti-terrorist and anti-penetration protection plans of the nuclear power plant and other nuclear facilities; ensure the security of transportation of nuclear and radioactive material cargoes across the territory of the country.

The Ministry of Interior shall ensure fire protection of the nuclear power plant and other nuclear facilities, conduct the state fire protection examination of their construction and reconstruction designs, co-ordinate the fire protection systems of those facilities; lay down fire protection requirements for nuclear facilities, exercise compliance with them and apply sanctions laid down in statutory acts for violators of fire protection regulations; promptly extinguish fires breaking out at nuclear facilities, participate in the management of a nuclear accident and its consequences, organise radiation monitoring of a contaminated area; exercise and ensure physical safety of a nuclear power plant; draft, co-ordinate and implement interdepartmental anti-terrorist and anti-penetration action plans; analyse and control the crime situation in the regions with nuclear facilities; investigate the cases of theft and illegal possession of nuclear and radioactive materials, also of other dual-purpose goods; provide assistance in ensuring the safety of transportation of nuclear and radioactive materials in the territory of the country.

The Fire-prevention and Rescue Department under the Ministry of the Interior shall draw up a population radiation protection plan in the event of a nuclear accident which shall be a model for other institutions authorised in the prescribed manner in preparing their respective plans of nuclear accident prevention, accident management and countermeasures; within the scope of its competence implement the measures for the response to the accident and mitigation of its consequences; organise training sessions of population protection in the event of nuclear accidents jointly with other state institutions.

The State Security Department shall exercise prevention of terrorist acts as well as other criminal acts aimed at damaging the interests of state security at nuclear facilities, in their environment, and on transportation routes of nuclear and radioactive materials; undertake operations and pre-trial investigation to detect and investigate actions constituting a threat to nuclear facilities, nuclear installations, equipment and technologies in keeping with the state security interests; scrutinise the credibility of persons who are being admitted to work or who are working at nuclear facilities or those who are assigned to transport nuclear and radioactive materials; control the effectiveness of physical safety and emergency preparedness of the nuclear power plant and other nuclear facilities; take part in drafting and implementing interdepartmental anti-terrorist and anti-subversive co-ordinated action plans of the nuclear power plant and other nuclear facilities.

The Governmental Emergencies Commission shall direct the activities of management of a nuclear accident and elimination of its consequences; mobilise material and other resources necessary for the response to a nuclear accident.

The County Governors on the territory whereof the construction of a nuclear facility is planned or has already started, in exercising supervision and control of the facility, shall act within the limits of the powers delegated to him by the Law on the County Government, this Law and other laws and subordinate legislation of the Republic of Lithuania.

The Local Authorities in the territories under their jurisdiction shall: take part in controlling the activities of nuclear power plants, nuclear reactors and other nuclear energy installations for which sanitary protection zones have been established; control the compliance with the landscape and architectural requirements of a nuclear facility, also with the sanitary, hygienic and nature protection requirements of a nuclear facility and its territory; take part in decision-making about the construction, reconstruction or decommissioning of nuclear facilities in their territory; obtain information from the facility operator about the failure, shut-down, release of radioactive materials and other incidents; prepare the population protection plans, and implement them in the event of nuclear accidents; inform the population about the radiological situation in the area where nuclear plants and other nuclear facilities are sited and about the radiation protection measures which are being implemented.

The Government established the Nuclear and Radiation Safety Advisory Committee (NRSAC) in May 1993. In July 1997, this Committee was reorganised as the Nuclear Safety Advisory Committee. The Committee's members include nuclear experts from Lithuania, Germany, Finland, France, the USA, Sweden, Ukraine and the United Kingdom, who advises the Government in resolving problems in the field of nuclear energy. The Committee works with the Government, VATESI, the Ministry of Economy, managers of the state enterprise Ignalina NPP, state enterprise RATA and provides advice on upgrading nuclear safety and on the development of an efficient regulatory infrastructure. The Committee's activities are fully financed from the State budget.

2.2.1.  Status of nuclear power plants

Lithuania operates one Nuclear Power Plant - Ignalina NPP, which contains two RBMK-type design reactors with a nominal capacity of 1500 MW(e) each. Both Units of Ignalina NPP, down rated to about 1300 MW(e) for safety reasons, are supplying about 80% of the total electricity consumption of Lithuania and allow export of electricity to Latvia, Estonia, Belarus and Kaliningrad. Table 7 shows the status of Ignalina NPP. Ignalina NPP is located in the Northeastern part of Lithuania, near the borders with Latvia and Belarus. The site of the nuclear power plant covers an area of about 0.75 km2. The buildings take up about 0.22 km².

Ignalina NPP contains of two RBMK-1500 reactors. This is the most advanced version of the RBMK reactor design series. The plant can be refuelled on line and uses slightly enriched nuclear fuel. Each nuclear fuel assembly is located in a separately cooled fuel channel (pressure tube). There are 1661 such channels in the reactor. The design lifetime of the Units is 30 years. Construction of the third Unit was terminated in 1989, demolition of the structure of the third Unit commenced in 1996.

TABLE 7. STATUS OF NUCLEAR POWER PLANTS

2.2.2.  Performance of NPPs

Both Units of Ignalina NPP were operating steadily during the last few years. Nevertheless, the plant did not have good performance indicators because of the decreased demand for electricity. During 1995 - 2003 production of electricity depends strongly on the volume of export. Table 8 and Fig. 4 shows the contribution of nuclear power to the total electricity generation.

TABLE 8. NUCLEAR POWER AND TOTAL ELECTRICITY GENERATION

Link to PRIS database for information on individual reactors is available: http://www.iaea.org/programmes/a2/index.html.

2.2.3.  Plant upgrading and plant life management

The safe operation of the NPP was and is always a major concern in NPP life management. Thus the plant life management process includes continuous assessment of plant safety level and plant upgrading.

Ignalina NPP safety analysis report (SAR-1), performed in 1994 - 1996, was the first western type in-depth safety assessment for RBMK-type reactors. The results of accident analysis, performed in the scope of this international project, showed that in the most cases of accidents initiated by equipment failures and loss of coolant accidents the acceptance criteria are unlikely to be violated. In July 1999 the license was granted to the Unit 1 of Ignalina NPP. However, few recommendations for plant upgrading were suggested. The special Safety Improvement Programme (SIP) was developed to perform modifications, whose were requested after finalizing SAR-1 results. The first Safety Improvement Programme (SIP-1) was prepared by Ignalina NPP in 1993-1996. According to SIP-1 the new algorithms for reactor protection and ECCS activation were implemented at Ignalina NPP. Also the compensatory measure - the additional reactor emergency protection system, which protects the reactor in the case of design emergency protection system failure, was implemented. In the new SAR-2 project all safety analyses are re-evaluated taking into account already performed modifications. This SAR became the basis for a second Safety Improvement Programme (SIP-2) for the period 1997-2004. One of the biggest and most important items in the programme is "Second Independent Diverse Shut-down System", which was installed in October 2004. The licence for operation Unit 2 was issued in September 2004. Safety Implementation Programme SIP-3 is already drafted - safety measures for the period 2005-2009 are planned there.

The license renewal rule requires that applicants perform ageing management reviews on passive long-lived structures and components to demonstrate that aging will be managed during the period of extended operation. The Intergranular Stress Corrosion Cracking (IGSCC) in welded joints is main ageing problem of austenitic pipes in Ignalina NPP. This ageing issue impacts on safety Ignalina NPP. At present time Ignalina NPP developing a new welding methodology to repair defected welds using minimal heat input and minimal number of passes. Water chemistry is considerably improved and in normal operation oxygen content is very low, however it slightly increases during start up and shutdown. Current performances and further "Ageing Management" related actions solving IGSCC in Ignalina NPP are the following:

• On-going inspections
• Repairs of defected welds
• Leak-Before-Break deterministic analysis of 300 mm relative diameter piping systems (Downcomer piping, Pressure Piping connecting pressure header and group distribution header as well as Group Distribution Headers) of Unit 2 was performed. The aim was to calculate the maximal leak rates in acceptance with LBB requirements for all welds of analysed piping, and to analyses change of surrounding parameters in case of leak. Basing on analysis results, additional leak detection systems are in installation process.
• Participation in IAEA Extra budgetary Programme on Mitigation of Intergranular Stress Corrosion Cracking in RBMK Reactors (started in 2000). The aim of the project - using international experience to help countries operating RBMK reactors to solve IGSCC mitigation problems.
• Risk Based Inspection Pilot Study of Ignalina NPP Unit 2 were performed. The aim of study was optimisation of ISI program of 300 mm relative diameter piping produced from austenitic steel. The results of the pilot study shown that it is possible to combine a 44% reduction of the number of future inspections with a 35% reduction of overall risk.

2.2.4.  Nuclear power development: projections and plans

National Energy Strategy provides that taking into account global nuclear energy development trends, the latest technologies of reactors and their technical-economic characteristics, a comprehensive study on the continuity of the use of nuclear energy in Lithuania will be prepared in 2003-2004, covering the justification of nuclear safety and acceptability of nuclear energy, including the construction of new nuclear power plants (reactors). In May 2003 the Ministry of Economy signed an agreement with Kaunas Technological University for the performance of such study. The objective of the study is to evaluate possibilities to continue use of nuclear energy in Lithuania, political, social, economical and environmental preconditions in the context of reliability of electricity supply, safety, electricity prices, macro economical expansion, EU politics and international environmental obligations.

2.2.5.  Decommissioning information and plans

By the Government's of Lithuania 25 Nov 2004 Resolution No 1491 Unit 1 of Ignalina NPP will be closed on 31st Dec 2004. Lithuania committed to close Unit 2 by 2009 in Accession Treaty to European Union Protocol No. 4 on the Ignalina NPP in Lithuania. In this protocol European Community commits to provide Lithuania with 285 MEUR for the period 2004-2006 and to provide adequate additional Community assistance to the decommissioning effort beyond 2006. For the period 2007-2013 EC committed to provide 815 MEUR.

In order to manage, co-ordinate and monitor all aspects of the implementation of the main projects concerning the decommissioning of Ignalina NPP and to carry out associated engineering, procurement and other services Project Management Unit (PMU) was established in December 2001. The PMU finalized the Ignalina NPP Final Decommissioning Plan, which got approvals from relevant institutions. At the close of operations and during the decommissioning period, the Decommissioning Plan will be the principal document serving to prepare detailed plans (projects) of decommissioning activities. Decommissioning Project and associated Safety Analysis Report and Environment Impact Assessment Report for the Unit 1 defueling phase are in the final preparation stage and should be finalized till the end of 2004. Contract for PMU Phase 2 will be signed at the beginning of 2005.

Two of pre-decommissioning projects are on the final stage: Steam Boiler House is almost completed and the first part of training for the operating staff started. The Contractor for Heat Boiler Station has indicated that the date for operational acceptance will be in March 2005. New Technical Archive is also on the way and on the January 2005 staff training and acceptance of the facility is foreseen. Two projects Interim Spent Fuel Storage Facility (ISFS) and Solid Waste Management and Storage Facility are still in the tendering stage. The contract for ISFS is foreseen at the beginning of 2005.

The new Decommissioning Programme for Unit 1 and Unit 2 of Ignalina NPP is prepared. It has four main aims covering improving of Lithuanian legislative basis, continuation of pre-decommissioning, mitigation of decommissioning socio-economical consequences in the Ignalina NPP region and improvement of security of energy supply in Lithuania.

2.3.  Supply of NPPs

Both Units of the Ignalina NPP are of the RBMK type reactors, designed and constructed by the former USSR's Ministry for Nuclear Power Industry. Only these two Units of the new design RBMK-1500 were built, representing the most powerful nuclear Units in the territory of the former USSR. An overview of the various institutions responsible for the design and construction of the RBMK type reactors is shown in Fig. 5:

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 originated the design of the reactor internals and other radiation-related structural components The Accident Confinement System was designed by the Institute's Sverdlovsk branch in Ekaterinburg, Russia. Metal structures of the main building were designed by the Main Design Office "Leningrad Steel Design" ("Leningradstalkonstrukcija") of St. Petersburg, Russia. Atomic Energy Design Institute ("Atomenergoproekt") Kiev, Ukraine developed turbine hall, the open distributive system, and auxiliary facilities.

The scientific supervisor of the RBMK-1500 project was the Kurchatov Atomic Energy Institute (often referred to as the Russian Research Centre "Kurchatov Institute") in Moscow, Russia. The main designer of the nuclear steam supply system was the Research and Development Institute of Power Engineering (NIKIET) in Moscow, Russia. Russia is also the main supplier of spare parts to the Ignalina NPP.

2.4.  Operation of NPPs

Ignalina NPP is state-owned enterprise. The Ministry of Economy exercises the rights and duties of a participant of the Ignalina NPP. At the present time, Ignalina NPP entitles the rights as operator of a nuclear installation. For other purposes, such as liability to foreign countries, the State itself is assumed to be the operator.

Professional training of the personnel is organized at the Ignalina NPP Training centre, which was founded in 1996. It is responsible for organization and performance of initial, continuous and refresher training, certification and licensing of plant's staff and newcomers. All categories of operation personnel are trained there - managers, experts and qualified workers, as well as employees servicing equipment subject to the surveillance of the State Technical Inspectorate and performing potentially dangerous works. Training centre is well equipped with modern technical training aids and appliances, including full-scale simulator (FSS) - one of the most advanced models for NPPs with RBMK type reactors. Highly qualified instructors are prepared using support of IAEA experts, the Training centre staff.

2.5.  Fuel Cycle and Waste Management

Lithuania has no nuclear fuel fabrication industry. All nuclear fuel is supplied by Russia. Originally, spent nuclear fuel from Ignalina NPP was to be managed by central Soviet agencies for reprocessing and final disposal of the radioactive waste. However, with the disintegration of the Soviet Union, Lithuania was obliged to find other solutions. Now Ignalina NPP itself manages its operational radioactive waste. There are facilities for processing and storage of liquid and solid waste. In November 1993, Lithuanian Government approved temporary storage of spent fuel in containers for fifty years until solutions for final conditioning and disposal are found. Interim dry storage for spent fuel was built and commissioned in 1999 on the site of Ignalina NPP. Twenty CASTOR casks and forty CONSTOR casks manufactured by GNB in Germany have been delivered to the Ignalina NPP site. The spent nuclear fuel can be stored in these casks for 50 years. Previously, all spent nuclear fuel was kept in the water pools next to the reactors. A new Interim Spent Fuel Storage (ISFS) will be built on Ignalina NPP site as a pre-decommissioning project. This project is in the tendering stage. The contract for ISFS is foreseen in 2005. It is planned to start operation of the first store of ISFS in 2008.

The Ministry of Economy established state enterprise Radioactive Waste Management Agency (RATA) in July 2001 to implement the management and final disposal of all transferred to it radioactive waste, generated by the Ignalina NPP during the operation and decommissioning process, and radioactive waste from small producers (hospitals, industry, research institutions etc.). Agency's task will be to construct and operate the repositories for short-lived and long-lived radioactive waste.

On February 2002 the Government approved the Radioactive Waste Management Strategy and the three-year programme of RATA. In the strategy is foreseen to modernize the management and storage of solid short-lived and long-lived radioactive waste of Ignalina NPP within 2002-2009, to perform necessary investigations and draft recommendations on implementation of a near surface repository for low- and intermediate-level short-lived radioactive waste until 2005.

During the last year RATA performed sitting for the low- and intermediate level radioactive waste repository. It is foreseen 3 possible sites in the Ignalina NPP region. RATA is responsible for detailed research works and environment impact assessment of the most reasonable from them.

2.6.  Research and Development

2.6.1.  R&D Organizations and Institutes

Main organizations and institutes in research and development area are Lithuanian Energy Institute, Kaunas Technological University, Vilnius Gediminas Technical University, Institute of Physics, State Institute of Information Technologies, Joint stock company ITECHA.

The Lithuanian Energy Institute (LEI)
http://www.lei.lt

The main LEI research programmes in close relation to the needs of the energy sector and the environmental protection are development of energy economy planning methods, research into safety and reliability of power plants, their environmental impacts, and efficient energy consumption in the context of integration into the European Union; research in the fields of thermal physics, fluid mechanics, and metrology; simulation of complex energy systems, development of their control methods and technologies; research into refractories and chemically resistant materials, their production technologies, and ageing of structural elements; research into combustion and plasmic processes in the fields of fuel saving, reduction of the environmental pollution, and thermal decontamination of materials. Specialists of the Laboratories of Nuclear Installation Safety, Heat Transfer in Nuclear Reactors, and Material Research and Testing have been actively engaged in the field of nuclear energy safety.

The main research areas of the Nuclear Installation Safety Laboratory are thermal hydraulic analysis of accidents and transients; thermal hydraulic assessment of the Ignalina NPP Accident Confinement System; structural analysis of plant components, piping and other parts of the Main Circulation Circuit; simulation of RBMK-1500 reactor core; Probabilistic Safety Analysis of the Ignalina NPP; assessment of the effects of graphite moderator and fuel channels ageing, and graphite-pressure tube gap closure on the plant safety; single-failure analysis and engineering assessment.

The main areas of activities of the of Nuclear Engineering Laboratory are fire hazard analyses in nuclear power plants; safety assessment of spent nuclear fuel storage facilities; safety assessment of radwaste treatment technologies and spent nuclear fuel storage facilities; long-term safety assessment of radwaste repositories; assessment of different factors related with decommissioning of nuclear power plants; strategy on the management of radioactive waste; development of legal and regulatory base for radwaste management.

Material Research and Testing Laboratory has been accredited according to LST EN 45001 requirements and is carrying out tests of refractory and heat-insulating materials. The main activity areas of the laboratory are testing of non-irradiated materials used in nuclear energy, research into ageing of non-irradiated materials, analysis and safety assessment of non-irradiated materials under operating conditions.

Kaunas Technological University
http://www.ktu.lt

Research areas of Structures Reliability Centre are evaluation of the operation condition of pressure vessels, pipelines, and seals; verification of design projects; safety of structures with defects; development of ultrasonic measuring devices, transducers, and visualisation systems for the identification of geometric shape and size of defects in metals; strength of structures subjected to seismic excitations; finite element modelling of solid, fluid and thermal structural behaviour.

Key areas of activities of Department of Thermal and Nuclear Energy are thermal energy - thermodynamics, heat exchange and mass transfer, hydrodynamics, combustion processes, steam and gas turbines, internal combustion engines, heat supply, heating and ventilation, thermal power stations; nuclear energy - theory of nuclear reactors, reactor design, nuclear fuel, management of spent nuclear fuel and radioactive waste, nuclear power plants, safe operation of reactors; thermo technology - thermal power systems, heat transformation, thermal technology plant, refrigeration processes, engineering of cryogenic processes, hydro mechanical technological plant, hydro mechanical processes, thermo ecology, biosphere conservation in energy generation.

Activities of Commission of Experts for Non-Destructive Tests (http://www.ultrasonics.ktu.lt) are analysis and qualification of results of non-destructive tests, development and estimation of NDT techniques, analysis and preparation of normative documents, training of the NDT personnel and technical support to VATESI in the field of NDT in nuclear power industry.

Principal areas of activities in nuclear energy of Strength and Fracture Mechanics Centre are structural Integrity (including fracture mechanics), ageing of Safety Related Systems and Components of Nuclear Power Plants.

Vilnius Gediminas Technical University
http://www.vtu.lt

Fields of activities of Welding and Materials Science Institute are increase of reliability in metal and welding joints; consulting in welding, consumables, technologies and materials; compiling standards and normal documentation and expertise.

Fields of activities of the Nuclear Hydrophysics Laboratory are control on concentration of artificial nuclides in the Baltic Sea; mathematical modelling of the Baltic Sea ecosystems; prognostic evaluation of radiological situations; monitoring of solid cosmic emanation flow (SCEF); analysis of SCEF experimental data by methods of mathematical statistics; search of criteria for the prognosis of anomalous phenomenon on the Earth and acute conditions of people's diseases.

Fields of activities of the Strength Mechanics Laboratory are determination of mechanical properties indexes of various materials under normal and high heat capacity; research of monocycle and multicycle intension of various materials and elements; research of intension and solidity of constructions, their components, details and joints; determination of natural objects (technological equipment, buildings) defects and reserve of proof strength.

Fields of activities of Geodesy Institute are working out digital and analogous engineering-topographical plans of various scale in different co-ordinate systems; control geodetic pictures of underground communications; working out plans of plots and marking their limits in the district; marking buildings and constructions of different complexity; formation of geodetic foundation by GPS method; collation of range finder, electronic tachometers and GPS receivers.

Fields of activities of Building Construction and Materials Laboratory are research of building materials, constructions, buildings and technologies, examination of building conditions and projects, testing of building materials and constructions under laboratory and natural conditions, calculation of complex constructions and buildings; designing reinforcement of building constructions and buildings, author's supervision of projects, technical maintenance of construction; certificate testing of materials and constructions, contribution to the creation of Lithuanian regulations and standards.

Institute of Physics
http://www.fi.lt

The main fields of activity of the Institute of Physics in nuclear power engineering are modelling of the neutron flux-matter interaction; safety evaluation of spent nuclear fuel; determination of spent nuclear fuel nuclide composition; radiation dose evaluation and calculation of neutrons and gamma fields; modelling of radionuclide migration and accumulation in ecosystems; application of alpha- and gamma-spectroscopy in radioecological monitoring in identification of the balance of radionuclides in ecosystems; estimation of the radioactive pollution of the atmosphere, soil, Lake Drukšiai water and sediments in the vicinity of the Ignalina NPP, estimation of radiation doses received by the population.

The State Institute of Information Technologies (SIIT)

The State Institute of Information Technologies is continuing activities of the Computer Engineering and Information Research Institute established in 1988 on the basis of the Special Computer Design Bureau. The main areas of activities related with nuclear energy of SIIT are information, control and safety systems; automation and safety systems of technological processes; telecommunication system; information technology, telecommunication research and development, standards; management technique modernisation and safety analysis of breakneck objects.

Joint stock company ITECHA

Key areas of activities are design, installation, commissioning and support of automated control systems; I&C system analysis.

2.6.2.  Development of advanced and new generation nuclear reactor systems

Not applicable.

2.7.  International Co-operation and Initiatives

Lithuania has or had multilateral and bilateral projects, mostly concerning safety of nuclear power plants, with several highly developed Western countries, including Sweden, Germany, the USA, the UK, France, Belgium, Italy, Switzerland, Denmark, Canada, Finland and Japan.

The main multilateral projects were the TACIS founded International RBMK Safety Review Consortium, Lord Marshall's Users Group for Soviet Designed Reactors and the IAEA extra budgetary programme on RBMK reactors. One of the most important projects for Lithuania was the international project "Safety of Design Solutions and Operation of NPP's with RBMK Reactors" covering a broad range of safety related topics with Unit 2 of the Ignalina NPP used as a reference plant.

The BARSELINA project (1992-2001) - level 1 and 2 probabilistic safety assessment (PSA) of the Ignalina NPP conducted by Sweden, Lithuania and Russia. At different stages of the project the study was reviewed by USA (1994) and IAEA (2000 and 2001) experts. This project provides a unified basis for the assessment of severe accident risks for RBMK type reactors and the preparation of remedial measures. Some of the improvements highlighted by PSA have already been implemented at the Ignalina NPP.

Another project of the Lithuanian-Swedish bilateral programme is the application of modern non-destructive testing (NDT) systems for in-service inspection of the pressure boundary system. One other project is the preparation of an "Overall Plan for Radioactive Waste Management" in Lithuania by Swedish Nuclear Fuel and Waste Management Co., SKB. Project "Fire and flooding protection" helped to improve the whole fire protection system at Ignalina NPP.

SAR (1995-1996) was the first Western-style safety analysis for any Soviet-design NPP. Specialists from the Ignalina NPP, Russia (main RBMK designer RDIPE), Canada, UK, USA and Sweden participated in the project. The SAR team supported the Ignalina NPP management convincing that (1) an adequate safety case for continuing operation of plant had been demonstrated; (2) the safety case would be adequate to the point of first gap closure, which will be the lifetime limiting factor; and (3) the plant's safety standards and practices had been assessed and recommendations for improvement had been made and accepted by Ignalina NPP. A significant conclusion of the SAR - none of the analysed safety concerns require the immediate shutdown of the plant.

RSR (1995-1997) was an independent review of the SAR, which was performed by Western (France, Germany, Italy, UK and USA) and Eastern (Lithuania, Russia) experts. The RSR team agrees with almost all the SAR team's recommendations for improvement and made some additional recommendations. They, however, were not able to agree that a fully adequate safety case had been demonstrated and gave a set of recommendations both on the additional analyses and safety improvement measures to be implemented. These recommendations formed a basis for the Ignalina NPP's Second Safety Improvement Program (SIP-2).

Safety analyses recommended by SAR, RSR and Ignalina Safety Panel (1997-1999) - these analyses had been conducted by Lithuanian or Russian experts, but had been independently reviewed by Western experts, mainly by experts from former RSR team.

Lithuania, Russia, USA, Sweden, Great Britain and European Bank for Reconstruction and Development participated and still are taking part in performance of Safety Improvement Program SIP-2, which was started in 1997. Objective of SIP-2 program is - improvement of safety of Ignalina NPP both power Units with reference to equipment, operating procedures and management to the level of Western standards.

Level 2 Probabilistic Safety Assessment of the Ignalina NPP (2000-2001) - the study had been conducted by joint Lithuanian-Sweden team and reviewed by UK experts. IAEA IPSART mission to review this study was completed in October 2001.

On 5 April 2001, a Framework Agreement was signed between the Republic of Lithuania and the European Bank for Reconstruction and Development relating to the activities of the Ignalina International Decommissioning Support Fund in Lithuania for the decommissioning of Unit 1 of Ignalina NPP.

The European Commission supported the project "Assistance in the Enhancement of Lithuanian Technical Safety Organizations Capability to Support Nuclear Safety Regulatory Authority", which enables future development of the Metal Control Laboratory.

International Atomic Energy Agency offers a lot of courses for nuclear specialists' training. One of the most important national Technical Co-operation projects - Systematic approach to training (SAT) for NPP personnel, completed in 2000, helped to strengthen safety and reliability of the Ignalina NPP. For the 2003-2004 year period Lithuania had four national Technical Co-operation projects. The most important is Support for Decommissioning of Ignalina NPP, which started in 2001.

There have been implemented a number of projects with the USA financed by the Department of Energy and USAID framework of Nuclear Safety Assistance Programme for Lithuania. The Ignalina Source Book was prepared and printed in 1994 in close co-operation with the University of Maryland. Brookhaven National Laboratory (BNL) and Science Application International Corporation (SAIC) from the USA together with Nuclear Installation Safety Laboratory have developed the RELAP5 model for the Ignalina NPP. BNL also assisted with the development of the Ignalina NPP Analyser, and the University of Maryland was conducting an assessment of the Accident Confinement System using the software code CONTAIN. Other project with USA helped to develop western style Configuration Management programme for Ignalina NPP and provided plant staff technical support. This Project provided Ignalina NPP with DC Power Supply System consisting of safety class batteries, battery racks and switchboard.

Co-operation in nuclear safety improvement at the Ignalina NPP with Japan specialists started in 1994. In the frame of the Agreement of Co-operation for Safety Improvement at the Ignalina NPP signed in 1996, Science and Technology Agency of Japan started two big projects: "Co-operation on plant operation management" and "Co-operation on fuel channel integrity". In November 1998 Japanese experts installed at Ignalina NPP a data server system as result of the first project. The second project includes problems of inspection equipment for oxidized layer thickness of fuel channel and investigation of corrosion of fuel channel.

GRS (Germany) and Nuclear Installation Safety Laboratory are involved in the co-operative project of Analysis of Safety Aspects of Ignalina NPP, including the studies of neutron dynamics and thermal hydraulics. A compact simulator for operator training with normal and accident scenarios was developed by CORYS (France) and TRACTEBEL (Belgium). Canada mainly provides educational and training courses in safety design, waste management, maintenance and inspection of NPP's. The Lithuanian-Swedish co-operative project of seismic evaluation of the Ignalina NPP is finished. A seismic network is placed in and 30 km around the plant. The British authority AEA has launched two specific programs: checking the reliability of the Ignalina NPP's ultrasonic inspection devices on British mock-ups during the plant operation and a leak before break analysis, including the use of a code treating a transition weld. A Swiss consortium of independent engineers evaluated the design concepts for interim storage of spent fuel elements. Project on radiation monitoring was implemented together with DS&D (USA).

2.8.  Human Resources Development

Kaunas Technological University (KTU) in Lithuania is specialized in providing education of highly qualified nuclear and nuclear related specialists. The system of studies has four levels: Bachelor (undergraduate studies), Diploma engineer (professional studies), Master (graduate studies), and PhD (postgraduate studies). Duration of studies depends on chosen level and can continue from 4 to 10 years. About 50 - 70 % of KTU graduates are usually sent to Obninsk, and the rest of them stay at KTU to continue their education in Masters studies and sometimes in PhD studies.

Agreement between KTU and Ignalina NPP regarding additional scholarships and guarantees of employment for nuclear engineering students was signed. 61 Bachelor and 51 Master or Diploma engineers of Nuclear energy sciences were prepared at KTU in the period from 1995 to 2004. Popularity of nuclear engineering sciences dropped sharply after the decision to shut down Ignalina NPP.

3.  NATIONAL LAWS AND REGULATIONS

3.1.  Safety Authority and the Licensing Process

In October 1991, just after Lithuania regained independence, the national regulatory authority - State Nuclear Power Safety Inspectorate (VATESI) - was established with responsibility for the functions of safety and control of nuclear facilities and the supervision of accounting for nuclear materials. In October 1992, the Government approved the statute of VATESI, regulating its activities and determining the basic objectives, functions, and rights of the inspections. The new statute of VATESI was approved in July 2002.

Pursuant to its statute, VATESI is responsible for the state regulation of nuclear safety at the Ignalina NPP and other nuclear facilities and the safety of radioactive waste management. The duties of VATESI in its capacity as national nuclear regulatory authority include:

• drafting and, under the authority of the Government, approving safety standards and rules for the design, construction and operation of nuclear facilities, storage of nuclear and radioactive materials and waste disposal;
• ensuring adherence to the requirements set out in licences and safety rules through assessment of the safety of nuclear facilities;
• establishing the system of accounting for and control of nuclear materials; and issuing licences for the acquisition, possession and transportation of nuclear materials and the storage and disposal of radioactive waste

In 1997 the Board of VATESI was established. The task of the Board is to supervise VATESI activities, to assist the Government of Lithuania in forming the strategy of nuclear safety, to address the issues raised by the Head of VATESI and Board members. The new Board was appointed on 2001.

Until 1994 VATESI was not directly involved in the licensing of nuclear power plants. In autumn of 1994, VATESI, aided by Swedish experts, started the first licensing activity - licensing of spent fuel storage at the Ignalina NPP site. Later, in 1999 using close co-operation with the experts of international Licensing Assistance Project VATESI issued the license for the operation of Ignalina NPP Unit 1. The Long term Licence for operation Unit-2 of Ignalina NPP was issued in September 2004.

3.2.  Main National Laws and Regulations in Nuclear Power

• Law on the Enforcement of Application of the Vienna Convention on Civil Liability for Nuclear Damage of May 21, 1963 and the Joint Protocol Relating to the Application of the Vienna Convention and the Paris Convention of 21 September 1988, adopted on 30 November 1993.
• Law on the Amendments and Supplements to the Law on Taxes on Profit of Legal Persons, adopted on 11 April 1995.
• Law Concerning Control of Import, Transit and Export of Strategic Goods and Technologies, adopted on 5 July 1995.
• Environmental Protection Law, adopted on 28 May 1996.
• Law on Nuclear Energy, adopted on 14 November 1996.
• Resolution on the Approval of Regulations for Licensing of Nuclear Power Related Activities, adopted on 27 January 1998.
• Law on Waste Management, adopted on 16 June 1998.
• Civil Protection Law, adopted on 15 December 1998.
• Law on Radiation Protection, adopted on 12 January 1999.
• Law on the Management of Radioactive Waste, adopted on 20 May 1999.
• Law on the Decommissioning of Unit 1 at the State Enterprise Ignalina Nuclear Power Plant, adopted on 2 May 2000.
• Law on Electricity, adopted on 20 July 2000.
• Program on Safe Exploitation of State Enterprise Ignalina Nuclear Power Plant, approved by the resolution of the Parliament on 26 September 2000.
• The Resolution on the Approval of the Programme on the Decommissioning of Unit 1 at the State Enterprise Ignalina Nuclear Power Plant, adopted on 19 February 2001.
• Law on the State Enterprise Ignalina Nuclear Power Plant Decommissioning Fund, adopted on 12 July 2001.
• Radioactive Waste Management Strategy, approved on 6 February 2002.
• Energy Law of Republic of Lithuania, adopted on 1 July 2002.
• National Energy Strategy, approved by the resolution of the Parliament on 10 October 2002.
• Law on the Conversion of the State Enterprise Ignalina Nuclear Power Plant into a Private Limited-Liability Company, adopted on 27 January 2004.

4.  CURRENT ISSUES AND DEVELOPMENTS ON NUCLEAR POWER

Lithuanian Parliament decided that the first Unit of Ignalina NPP will be closed before 2005, and the second Unit - in 2009, accordingly, while stressing the need for Lithuania to remain a "nuclear state". Adopted plan of technical-environmental and social-economic implementation measures of the Ignalina NPP Unit 1 decommissioning laid down relevant timetable as well as indicated the responsible organizations and financing sources. The plan of measures is an integral part of National Energy Strategy Action Plan, which was adopted by the Government in May 2001. Calculated preliminary cost for the implementation of technical decommissioning projects of Ignalina NPP measures related to safe operation of Ignalina NPP, Lithuanian PP upgrading and security supply projects require about 1 billion EUR for the period 2007 - 2013. European Community committed to provide 815 M EUR assistance for this period.

In June 2004 preparation and review of the Safety Analysis Report for the second unit of Ignalina NPP were completed. This document was the base for the Long term Licence for operation Unit-2 of Ignalina NPP, which was issued in September 2004.

Implementing Lithuanian power sector reorganization, Lithuanian power market will be gradually opened internationally. Integration into Baltic common electricity market, when afterward the integration into Western European and Scandinavian electricity markets is foreseen.

Currently synchronous interconnection between Baltic's and Europe is impossible due to different frequency regulation systems installed, therefore, the asynchronous interconnection is proposed. Joint Lithuanian - Polish task force evaluating possibilities of such interconnections came up with solution that the most applicable option is construction of double chain 400 kV line and 1000 MW capacity direct current insertions on Lithuanian side. The transmission capacity of such a line would be 3.6 TWh per year. The costs of the project can amount to 354 m EUR, when investments from Lithuanian side would make up to 154 m EUR. Such interconnection would positively affect European electricity market as well as would increase security and quality of electricity supply.

At present, the electricity generating capacities can meet the needs of Lithuanian consumers in full and enable electricity exports. However, Lithuania retains the electricity generating overcapacity. Therefore, the construction of large generating facilities is not planned. The investments must be channelled for the renovation and upgrading of the existing capacities. The negative aspect of this situation is that the development of the use of renewable energy sources and co-generation for electricity production is complicated. In principle, electricity transmission and distribution networks meet the present-day power system demands, however 75 per cent of the transmission and distribution facilities have been in operation for more than 20 years and 25 per cent for more than 30 years. Therefore, the investments will be required not only for the maintaining the present power networks level, but also for the improvement of their condition in a view to meet the growing requirements set for energy supply security and stability and also aiming at the establishment of the common electricity market of three Baltic States.

The Electricity Law came into force in January 2002, and calls for a partial opening of the market from 2002 and a full opening by 2010. From July 2004 electricity market is open to all non-household customers and from July 2007 - will be opened for all customers. The competition is allowed in the fields of electricity generation and supply, while the transmission and distribution activities remain subject to regulation.

Since Ignalina NPP generates more than 25% of the domestic demand, the Electricity Regulator according to the Electricity Law has the right to regulate prices, and currently sets a price for generating capacity and for reserve capacity as well as for kWh. Since only one Unit of Ignalina NPP is needed to meet domestic electricity demand, the rates set by the Regulator do not fully cover the fixed costs of operating the second Unit, and so additional income from electricity exports is necessary to cover the costs for two Units. The Transmission System Operator has so far been relatively successful in finding export markets at a price sufficient to cover costs. Otherwise, the Second Unit would need to be considered a stranded asset.

In order to comply with EU legislation on competition and state aid, legal status of state enterprise Ignalina NPP has to be changed into Limited-Liability Company. Law on the Conversion of the State Enterprise Ignalina NPP into a Private Limited-Liability Company was adopted in January of 2004.

The electricity market in the country shall be established in stages, by gradually giving the right of regulated third party access to the grid and the right to conclude direct electricity purchase contracts with producers having electricity supply licenses for the following eligible customers.

On the Lithuanian initiative, the main principles of the first phase of the market opening among three Baltic States were drawn up in October 2001. In November 2001 a Resolution regarding the Basic Principles of Establishing of Common Baltic Electricity Market was signed. The principles cover the functions of both transmission system operators and market regulators. The principles should be co-ordinated with respective institutions in Latvia and Estonia.

In November 2002 Memorandum between Energy Market Inspectorate of the Republic of Estonia, Public utilities Commission of the Republic of Latvia and National Control Commission for Prices and Energy of the Republic of Lithuania concerning the Common Baltic Electricity Market was signed. At present the energy companies (future transmission system operators) of the three Baltic countries are negotiating the common activities under market conditions.

The Lithuanian Parliament ratified United Nations Convention on Climate Change (UNFCCC) in February 1995 and Kyoto Protocol in November 2002. The Lithuanian Government approved the National Strategy and Action Plan of Implementation of Convention on Climate Change in 1996.

At present Lithuania fulfils requirements of the Kyoto Protocol easily. Energy production, energy consumption and fossil fuels consumption have decreased dramatically since year 1990. Besides Ignalina NPP produces about 80% of all electricity in Lithuania. Fast economical grow during the last few years was not related with increase of energy production and consumption. However, closure of Ignalina NPP is already settled and it will strongly impact the release of CO2. The future development tendencies together with conversion to conventional energy create rather unpredictable situation in connection with implementation of the Kyoto Protocol.

Lithuania already accumulated some experience on bilateral collaboration seeking to decrease emission of greenhouse gases. By now several projects in the Energy sector are under implementation or have been already completed. The highest priority is delivered to improvement of the district heating system, to energy consumption efficiency and energy saving.

REFERENCES

Appendix 1

INTERNATIONAL (MULTILATERAL AND BILATERAL) AGREEMENTS

Appendix 2

DIRECTORY OF THE MAIN ORGANIZATIONS, INSTITUTIONS AND COMPANIES INVOLVED IN NUCLEAR POWER RELATED ACTIVITIES