Fedor Veselov, Head of Energy Market Regulation Laboratory of Institute for Energy Studies of RAS

— Nizhniy Novgorod NPP project will give Vladimir region new jobs, social infrastructure and taxes

Public hearings on the preliminary environmental impact assessment of the construction and operation of the 1st and 2nd units of Nizhniy Novgorod Nuclear Power Plant took place in Navashino, Nizhniy Novgorod region on Sept 4 2009.

Nizhniy Novgorod Nuclear Power Plant will be based on the NPP-2006 project. So, it will certainly be a safe plant. This project has been certified in Europe and is considered as very safe and efficient. Some people may remember ecological threats so as to haggle and to earn some preferences. But this will be just a region-level speculation.

If this plant was built in Vladimir region, that region would get more money. But taxes are not the only way to earn money. Vladimir companies may take part in the project. The priority will be given to local resources and materials and the choice between Vladimir and Nizhniy Novgorod will depend on the quality. Nuclear power plant is a basic source of energy. But an energy system must have different sources: basic, peak, cycled. The construction of Nizhniy Novgorod NPP will stimulate the development of other types of capacities — peak and cycled. There are different types of such plants but the most interesting one for the nuclear industry is pumped storage unit (GAES). At nights, when consumption is low, such plants consume energy by pumping water into their ponds and at peak hours they produce power by pouring the water back. On the one hand, they ensure peak capacity during the day, on the other, they back up NPPs at night, when consumption is low, as the latter are unable to quickly reduce their output. 

GAESs ensure additional capacity and make the work of NPPs easier. The point is that they in Vladimir region are planning to build a GAES as a source of cycled capacity. That plant will back up the work of Nizhniy Novgorod NPP. So, the residents of Vladimir region will have enough work and financing. After all, nobody forbids them to take part in the construction of Nizhniy Novgorod NPP.

In the energy sector all big investment solutions are inter-linked. The general plan for the allocation of power facilities in Russia includes both Nizhniy Novgorod NPP and Vladimir GAES. So, the construction of an NPP in Nizhniy Novgorod region implies the erection of a 3mln KWh GAES in Vladimir. As far as I know, they in Vladimir are already making necessary preparations.   

Nizhniy Novgorod NPP will stimulate the development of nuclear power engineering in the central region and will give jobs, social infrastructure and taxes to Vladimir region as well. Construction is a positive thing. They in Vladimir have no reason to complain. The construction projects in Moscow involve residents of as many as 10 regions and nobody prohibits them from working there. So, I think that they in Nizhniy Novgorod region will be happy to welcome constructors from Vladimir as they will have really much work to do and will need several thousands of workers. As a rule, such projects recruit workers from neighboring regions.

Nizhniy Novgorod NPP is a serial project. A similar project is presently being implemented at Novovoronezh NPP-2. The general designer is Nizhniy Novgorod Atomenergoproekt (part of Atomenergoprom), the owner is Energoatom Concern OJSC (100% subsidiary of Atomenergoprom OJSC).

The plant will have two 1,170MW reactors and will generate over 17bln KWh a year and employ as many as 1,000 people. At the peak time the construction will involve as many as 8,000 people. The 1st reactor is supposed to be launched in 2017. The plant will be situated in Navashino district of Nizhniy Novgorod region.

The analysis of the power and capacity balance in Nizhniy Novgorod region has shown that in 2007 the region was short of 1,800MW while in 2020 it will need as much as 4,000MW.

This is a socially significant project: it will give the region 40bln RUR in profit tax, 50bln RUR in property tax, 1bln RUR in land tax and 50bln RUR in transport tax.