SEE TOP 100: Mix of nuclear/renewables to help SEE meet energy demand, goals - Part 2

The abundance of hydro resources in the region is apparently neglected for the time being with investors’ interest directed at wind and solar projects, which might be due to the higher feedin tariffs afforded to those segments. However, harnessing the power of water for electricity generation, particularly in Croatia, Macedonia, Montenegro and Kosovo, would reduce their reliance on exports from their neighbours.

The analysis was featured in the fourth edition of SEE TOP 100, the annual ranking of the biggest companies in Southeast Europe published earlier this month by SeeNews.

Given the favourable climate, it would be natural for the local governments to make more effort to promote green energy across SEE. Adequate legislative measures may also be instrumental in pouring capital into the local energy sector.

Nuclear

The majority of the SEE countries have never relied on own nuclear sources. A quick reference to the energy profiles and strategies of the countries reveals that only Bulgaria, Romania and Slovenia have any tradition in nuclear power.

Bulgaria is the leader among the three countries in terms of installed nuclear capacity with the two 1,000 MW reactors of the Kozloduy NPP. The country’s nuclear ambitions include the construction of a second 2,000 MW nuclear plant near Belene, in northern Bulgaria. The project is currently making little progress because Bulgaria and Russia disagree over the price of the units. According to the World Nuclear Association, the first unit of the plant could become operational in 2016 and the second a year later, on condition that the two sides resolve the financial issue and construction works start in 2011.

The nuclear plans of Romania envisage additional capacity of 1,440 MW. The government has been searching for new investors in the project after previous strategic partners RWE, GDF Suez, CEZ and Iberdrola bowed out of the venture. Presently, Romanian officials are in talks with Chinese company China Nuclear Power Engineering Co. Ltd. for its participation in the planned Cernavoda 3 and 4 units. The other partners in the project are Italy’s Enel with a 9.15% share and Luxembourg-based ArcelorMittal with 6.2%. The commissioning of the second pair of reactors at Cernavoda NPP has been extended by two years to 2019.

After sharing Krsko NPP with Croatia for 30 years, Slovenia will have to decide on a fully-owned 1,100-1,600 MW unit at Krsko. In January 2010, the owner of Krsko NPP - GEN Energija d.o.o., applied for a permit to build another reactor at the site. The Slovenian Ministry of Economy is expected to return an answer by end-2011.

If all those projects get the green light and secure investors, the three countries will become the undisputed electricity giants in SEE. The catch in that case would be a compromise with the EU’s energy target by 2020, as the production of more nuclear energy will reduce the share of renewables in the final electricity generation.

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