Alexander Ignatyuk, analyst of Energocapital IC

– The decision to speed up the construction of nuclear facilities in Rostov region is timely and reasonable

The 2nd unit of Rostov Nuclear Power Plant may be launched by the end of this year, Director General of Rosatom State Nuclear Energy Corporation Sergey Kiriyenko said while visiting the construction site of Rostov NPP on July 23 2009. He pointed out that, despite the general decline in energy consumption in the country (6% — compared with the last year), the south of Russia was actively developing and consuming more and more energy (115.8% of the plan in Jan-June 2009). As a result, during the period the capacity factor of Volgodonsk NPP exceeded the planned level by 10% and totaled 84.82%. “This proves that we must build the 3rd and 4th units. This construction will give Volgodonsk and Rostov region huge investments. In 2009 alone the project received 30bln RUR. In the future the plant will give the region stable tax revenues. It is a known fact that NPPS are the biggest tax-payers in their host regions,” Kiriyenko said.

The crisis has revised Russia’s development projects in the energy sector. The same is true for the nuclear power industry. On the one hand, today is the right moment for effecting a qualitative breakthrough in the nuclear industry and for shifting the energy balance in Russia towards cheaper and ecologically safer nuclear energy. On the other hand, the crisis is pushing energy consumption down and some regions have stopped lacking energy. The South of Russia still needs energy and will need even more when the crisis ends. Let’s not forget about the Olympic complex of Sochi.

Thus, while in the other regions the Government is putting off its NPP construction projects, in Rostov region it has decided to speed up the construction of the 3rd and 4th units of Rostov Nuclear Power Plant. The 2nd unit is almost ready and may be launched as early as Oct 2009.

I think that the decision to speed up the construction of nuclear facilities in Rostov region is timely and reasonable. Let’s not forget that such construction projects attract lots of investments and create lots of jobs.