Alexander Ignatyuk, analyst of Energocapital IG

– Construction and operation of Nizhniy Novgorod NPP will improve the living standard in the region

According to the results of the survey held by the Nizhniy Novgorod branch of the Sociology Institute in Navashino district in Aug 2009, almost 60% of the local residents support the construction of Nizhniy Novgorod NPP if their proposals and demands are considered. Only 17.9% object to the project pointblank. 24.7% have no opinion on the matter.

Sept 4 the public of Navashino district of Nizhniy Novgorod region expressed support for the project.

The construction and operation of Nizhniy Novgorod Nuclear Power Plant can improve the living standard not only in Nizhniy Novgorod but also in Vladimir, Ivanovo and Ryazan regions. The plant will give as much as $30bln in tax revenues. 50% of this sum will be transferred to the regional and local budgets of Nizhniy Novgorod region while the rest will be spent on the other residents of the Russian Federation, particularly, on social and development programs. 

Now that the unemployment rate is growing, the project will give Nizhniy Novgorod and its neighboring regions almost 10,000 new highly paid jobs. This, first of all, concerns Murom, a city with big human resources in the field of construction. Constructors are among the key victims of the crisis. The Nizhniy Novgorod NPP project will give stable jobs to 8,000 people and Murom will be among the beneficiaries. 

It should be noted that regions having cheap and stable energy resources enjoy high investment appeal. Over 30% of the energy to be produced by Nizhniy Novgorod NPP will be transmitted to Vladimir region – this is half of the annual energy consumption of a small European country. And this implies traditional cycle: new energy capacities – new industrial facilities – new jobs – more taxes – new infrastructure.

For Murom this is an opportunity to develop ecological tourism. Nizhniy Novgorod NPP will have WWER-type reactors based on ecologically friendly NPP-2006 project, which means that the safety level of the plant will be higher than the average level in Europe. This may boost ecological tourism. For example, in France and the United States nuclear power plants have long become an attraction for tourists.

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.