Denis Demin, investment analyst, deputy managing director of Lenmontazhstroy IC

– Nizhniy Novgorod NPP will take part in the economy of the region as a big manufacturing enterprise giving income to the local population and budget

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.

Energy supply is one of the key points of a big investment project – be it the construction of a manufacturing enterprise or new residential area. The shortage of power generating capacities in Nizhniy Novgorod region is compensated by the import of electricity from the neighboring regions. Due to active water power generation in Middle Volga region, its price is not high but as the energy consumption will be growing, the problem of energy shortage will be getting increasingly acute. There is also the problem of underdeveloped networks. The experience of Moscow and St.Petersburg shows that limited access to networks can seriously curb the development of a city. The construction of a powerful source of cheap energy and the consequent enlargement of the related network system will spawn new big enterprises in the region and will reduce the energy costs of the local population.

The problem of energy shortage can have several solutions: energy saving and energy efficiency must be the key priorities of local authorities irrespective of the energy situation in their region. The key solution for Nizhniy Novgorod region is the construction of gas-fuelled or nuclear power plants: the use of coal is not attractive because the region will have to import it from faraway areas. So, preference was given to NPP mostly because of the problems with gas supply.

The construction of NPP will give the region lots of benefits: jobs, contracts for the construction, machine building and some other sectors, social projects. When built, Nizhniy Novgorod NPP will take part in the economy of the region as a big manufacturing enterprise giving income to the local population and budget.

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.