Development of East Europe Power Plants and Rivalry Among US, China and Russia Triangle

Over the recent years, one major concern of the countries ,regarding power generation and energy supply, has been tackling environmental hazards such as air pollution and climate change.
15 December 2020
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Ali Beman Eghbali Zarch

Over the recent years, one major concern of the countries ,regarding power generation and energy supply, has been tackling environmental hazards such as air pollution and climate change. Under such circumstances, utilizing nuclear power plants, due to sustainability, appropriate costs as well as little pollution is a better option compared to other energy supply choices. In a new world record, nowadays, more than 440 nuclear power plants, generate about 370 Gigawatts of electricity in more than 30 countries. While, day after day, more countries declare their will for building new nuclear power plants, China, India, Russia , UAE, south Korea, have under construction 11, 7, 4,4 and 4 respectively, also, other countries like Bangladesh, Ukraine, Belarus , USA, Pakistan, Slovakia, and Japan each have 2 nuclear power plants under construction and the number of countries utilizing nuclear power plants are rising. Besides, persisting opposition to the Iranian peaceful nuclear activities and double pressure justified by a variety of pretexts and interpretations, reveals the western states double standards regarding the Iranian nuclear dossier. The rising energy consumption trajectory has caused many countries to consider a larger share of nuclear energy in generating their needed electricity. over the last 12 years, in Europe alone, 6 new power plant units have been utilized although some power plants have gone out of service in Bulgaria, Lithuania , Germany, Spain, Sweden, and the UK due to ageing.

Among the countries using highest rates of nuclear electricity in the world, following countries rank highest: the US with 30%, France 15%, China 13%, Russia 7.5%, south Korea 5.5%, and Canada, Ukraine, Germany, Sweden, Japan, and Spain between 2 to 4% . Also , in Europe, competition for utilizing nuclear energy is going on and the European commission from 2010 has asked the EU members to start broader utilization studies on nuclear energy so as to reduce reliance on oil and gas, as a result securing their energy supply. In its advice, the European commission has emphasized that nuclear energy is a viable alternative option for fighting global warming. More interestingly, in Europe, after the agency and the commission, the parliament too has entered the subject and asked the EU members for determination for constructing new nuclear power plants and specialized  resolutions on the subject have been adopted by a majority of the votes especially from the German representatives of the parliament.  Generally, the situation is facing pending changes and many politicians see nuclear energy a golden opportunity. In this regard, Santiago San Antonio –General Director of the European Atomic Forum (FORATOM), says” We are witnessing the revival of the atomic energy.”

The former cold war border in eastern Europe is transforming into a battle field for a tens billion dollar trade for constructing nuclear power plants. Four months after overturning bans on financing nuclear energy transactions outside the country, the US is opening the way for companies like the General Electrics, the Westinghouse Co., and the Bechtel Group Inc.; in this regard, in recent years, the American companies have had agreements with east Europe as follows:

  1. Ukraine: Utilizing alternate US nuclear fuel instead of Russia
  2. Bulgaria: Utilizing American technology for constructing new power plants
  3. Romania: Using the exim bank for constructing a new one Gigawatt power plant
  4. Poland: utilizing financial credits and technical knowledge for constructing the first joint power plant

On one side, the Us has ratified a memorandum of understanding for financing  a new reactor , among other agreements, with Romania, Poland and Bulgaria and intends to revive the old reactors project , in which  more access to financial resources and competitive costs being the American side privilege , a thing against the Russian and Chinese interests, on the other side, the eastern European states , which are dependent on Russian fossil fuel and their coal reserves, are more motivated than others for seeking nuclear options, a trend that,coupled with changed regulations, permits the US to compete for a larger share in a market whose value , over the next ten years , is estimated between 500 and 700 billion dollars. However, a senior official close to the Russian nuclear industry  says  Russia does not see the current US nuclear agreements in eastern Europe  as a threat  to its standard bearing Rosatom corporation , because for constructing new power plants, the US companies lack  the necessary infrastructure and the US projects in eastern Europe will be limited to services agreements.

 Romania’s need for renovating an existing reactor has made this country a potential candidate for using the US budget or starting work by participation from the US, Canada, and France, although there are greater doubts harbored by Poland, and Bulgaria in the political will to the nuclear subject due to pressure. Some of these countries have remained Russia’s main technology and financing partner, also, Hungary is at the final stages of its 10 billion euro (12 billion dollar) nuclear agreement with Russia although , according to predictions, the needed turbines will be provided by the US General Electrics Co. Therefore, in the Romanian case there is no talk of competition; because, the Russian technology and financing is preferred for developing nuclear power plants. In the Czech republic, competition for constructing a new nuclear reactor  has, after years of interruption, become a geopolitical battle among the US, Russia and China, and politically regarded, the Czech republic is vacillating among three big powers. Also, a Russian company has united with a French-American one to win construction contracts for two units of nuclear power plants in Bulgaria. Generally, Hungary and Bulgaria are, at present, traditional allies of Moscow. Poland, recently, declared its  revolutionary energy plan, in  which coal will be substituted for green energies along with its first nuclear power plant. Who will  be the provider of the nuclear technology? In the biggest eastern European economy, the government declared that it will speed up the 40 billion dollar project for constructing its first nuclear power plant , one of the goals of which being reducing energy reliance on coal that , at present,  has a 75% share. The first nuclear reactor is expected to be utilized  in 2023. Recently the Bratislava government has asked the Slovenske  Elektrarne Co. to conduct the environmental impacts assessment as a precondition for granting utilization permit. The company seeks to construct the units 3 and 4  of the Mochovce  power plant  with a capacity of 440 Megawatts, but is struggling for receiving needed finances and the construction permit.

Generally, although the Balkan states have not yet started any nuclear projects, but the eastern European countries , both the EU members and nonmembers have committed to providing a larger portion of their generated combined cycle electricity from renewable energies , and to materialize this goal, each country not only needs to develop its existing energy infrastructure, but also modernize the supervising plans and traditional markets . the success of such efforts depends on regional cooperation and foreign investment. From regional cooperation standpoint, to meet their need for better infrastructure and  creation of equality with western European countries, the eastern European countries have come up with various joint initiations which can pave way for further competition among the powerful triangle of nuclear power plant constructors in the region , i.e. the USA, China and Russia.                    

   (The opinions expressed are those of the authors and do not purport to reflect the opinions or views of the IPIS)

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