Ignalina Nuclear Power Plant - Shutdown

Shutdown

As a condition of entry into the European Union, Lithuania agreed in 1999 to close existing units of the station, citing the Ignalina plant's lack of a containment building as a high risk. The European Union agreed to pay €820 million decommissioning costs and compensation, with payments continuing until 2013.

Closure of the plant faced fierce opposition from the Lithuanian people. The plant provides income to most local residents. To compensate for this, a project was started to encourage tourism and other small businesses. Others were afraid that the price of electricity would skyrocket or that Lithuania would be left to cope with the extremely high costs of decommissioning the plant and disposing of its nuclear waste. A 2008 referendum proposed extending the operation of Unit 2 until a new nuclear plant could be completed as a replacement; the referendum gained 1,155,192 votes for the proposal, but ultimately failed to gain the 50% turnout necessary to be passed. President Valdas Adamkus opposed the measure on grounds that continued operation would not respect Lithuania's international commitments.

The Lithuanian government forecasts that the electricity price for households will rise by 30% from 2010. Analysts expect that the shutdown could cut Lithuania's gross domestic product growth by 1–1.5%, and increase inflation by 1%. Ignalina's production will be compensated for by production of the fossil fuel Elektrėnai Power Plant as well as by imports from Russia, Latvia, Estonia, Ukraine, and Belarus. The closure may test Lithuanian-Russian relations. Responding to concerns that Lithuania would become more dependent on Russian energy sources that could be withdrawn if relations deteriorate, President Dalia Grybauskaitė issued reassuring statements in late 2009.