Visaginas Nuclear Power Plant – still high-risk investment
Visaginas Nuclear Power Plant – still high-risk investment

Author(s): Tadeusz Iwański
Subject(s): Energy and Environmental Studies, Environmental and Energy policy
Published by: OSW Ośrodek Studiów Wschodnich im. Marka Karpia
Keywords: Visaginas; Nuclear Power Plant
Summary/Abstract: The Lithuanian Seimas approved the government-sponsored proposal for the construction of a new nuclear power plant outside the Lithuanian city of Visaginas on 21 June. MPs cleared the government to sign the concession agreement (initialled 30 March 2012) with Japan’s Hitachi Ltd. Under this deal Hitachi becomes the strategic investor in the project and will provide a 1350-megawatt reactor for the plant.Despite its original plans, the Lithuanian government was unsuccessful in securing a Western investor who would be willing to take on a 51% stake in the project. According to Lithuania’s deal with Hitachi, the Japanese company will receive just 20% of the shares in the future NPP, whose total cost has been estimated at 5 billion euros. Although Hitachi’s investment is going to be significantly lower than initially expected, the company’s decision to back the project and supply it with a modern reactor can be seen as a guarantee that the implementation of the project is financially viable. The majority of the risk however will be shouldered by the Lithuanian state, which will retain a 38% stake in the plant. In addition, the government is currently trying to secure additional investors for the project from across the Baltic Sea region. Estonia has already shown interest in buying a 22% stake in the company, while Latvia might finance another 20% of the project.

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