| Capitalism has hit the ex-Soviet Union.
But free markets are rarely free of politics. LILY HYDE looks
at the West's attempt to revive Ukraine's moribund nuclear
power plants.
'It's basically
the same imperfect design
and we'd
wind up with the same dangers as Chernobyl'
At
the Chernobyl Museum in the Ukrainian capital, Kiev, solemn-faced
schoolchildren examine the documented source of their own
ill-health. Evacuees from one of the worlds worst
nuclear-power accidents weep over photos of their lost homes.
Streets away, a group of Western nuclear experts are working
with the Ukrainian energy company Energoatom to complete
two sub-standard nuclear power plants with the encouragement
of major Western governments and the European nuclear industry.
The reactors are planned for Khmelnytsky and Rivne, two
small industrial cities 250 kilometres west of Kiev. They
are Soviet-designed, 1,000 megawatt, light-water-cooled
nuclear plants, generally deemed safer than those at Chernobyl
but still far from Western safety standards. Its
basically the same imperfect design, says Andrey Odinenko
of Greenpeace Ukraine. And wed wind up with
the same dangers as Chernobyl.
The project was agreed in a deal signed by Ukraine, the
G7 group of industrial nations and the European Union (EU)
in 1995. The G7 pledged to help Ukraine make up for electricity
lost when Chernobyl shuts its doors for good next year.
The European Bank for Reconstruction and Development (EBRD)
offered a $190-million loan towards the one-billion-dollar-plus
project. That support would open the door to a further $500
million from Euratom, the EU-funded nuclear organization.
And the G7 pledged millions more to guarantee payment from
Ukraine for reactor parts exported to the country by Western
suppliers.
Yuri Kostenko, former Minister for Environmental Protection
and Nuclear Safety, says the Government initially suggested
a gas power plant but experts from the G7 said it
would be cheaper to go nuclear. The reactors at Khmelnytsky
and Rivne were started under the old Soviet regime, then
abandoned nearly 80-per-cent complete after the Chernobyl
disaster.
Western power companies have been keen supporters of the
plan, since new orders for nuclear plants in Europe and
North America have dried up. Nuclear giants Electricité
De France, Tractabel from Belgium and the Finnish firm IVO
International are already acting as consultants in Ukraine.
Companies likely to win lucrative contracts if work goes
ahead include the German corporation, Siemens. A large proportion
of the loan package would consist of export guarantees,
with Ukraine obliged to buy equipment and services from
designated Western firms.
But there are also political motivations. The West wants
Ukraine as a buffer between Europe and Russia. Generating
its own electricity from nuclear power would make the country
less dependent on Russian gas, for which it has already
incurred vast debts.
The irony is that Ukraine doesnt need new generating
capacity to replace Chernobyl. Since the collapse of the
USSR and the economic stagnation that followed, energy demand
has plummeted. The country now has the capacity to generate
more power than it needs, according to a study by economist
John Surrey commissioned by the EBRD. Surrey concluded Ukraine
already has excess generating capacity of 100 per cent and
recommended instead that the West help the country repair
its existing coal- and gas-fired power plants. For Surrey
the nuclear scheme has always been a highly political
project looking for economic justification that has never
existed.
A much bigger problem is distribution and waste. People
open windows to cool overheated apartments from October
to April. Ukraine uses many times more energy per person
than the European Union average. Local environmentalists
have been arguing for years that the system needs a complete
overhaul and that energy-saving devices should be installed
in houses, apartments, factories and offices.
Inefficiencies in the current system of electricity supply
have done little to dampen Western interest in the nuclear
project which environmentalists say is potentially disastrous.
Neighbouring Austria has concluded that an accident at either
of the new plants could contaminate all of Central Europe.
And David Kyd of the International Atomic Energy Agency
says scrapping the Russian design in favour of a total revamp
along Western lines would cost more than a billion dollars
and is simply too expensive. Kyd also says the reactors
would never be licensed in the West.
There is a slim ray of hope the project can be halted.
The EBRD has not yet approved the loan perhaps because
of increased pressure from the German Green Party after
last years elections. But there is also a strong pro-nuclear
lobby in the Ukrainian Government which clings doggedly
to the project, holding the West to its original commitment.
Meanwhile, environmentalists worry the Khmelnytsky and
Rivne reactors may open the door to more Western-funded
nuclear projects in Eastern Europe. Tobias Muenchmeyer of
Greenpeace International says Euratom is considering nuclear
power loans to Russia, Bulgaria and Romania.
Lily Hyde is
a freelance journalist based in Kiev.
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