Nuclear bonus: residents of the areas surrounding the future nuclear power plant in Estonia can expect compensation.

The consideration of the bill on nuclear energy and safety continues in Estonia, which provides for the establishment of a comprehensive legal framework for the construction of a nuclear power plant. On Monday, April 20, the document was discussed in the parliamentary committee on economic affairs along with invited experts.

The bill provides for the creation of a comprehensive legal framework for the use of nuclear energy in the country. It regulates the entire life cycle of nuclear facilities - from planning and construction to operation, decommissioning, and handling of radioactive waste.

Previously, such an integrated regulatory system in this area did not exist in current legislation. One of the key principles of the bill is the priority of nuclear safety. And although it is still unknown in which region the nuclear power plant will be built, it is expected that local government and residents will be able to count on compensation.

"According to the proposal, part of the income from electricity production will be directed to the local government in whose territory the plant will be located. Moreover, it is provided that a share of this compensation will also be received by residents living in close proximity to the facility. This concerns a payment of 0.5% of the value of the produced electricity. The amount will depend on the market price of electricity and, accordingly, may change from year to year. According to preliminary calculations based on last year's production volumes, assuming that the right to compensation extends to residents within a radius of up to two kilometers from the plant and, say, there are one hundred houses there, the distribution may look as follows: approximately one million euros per year will go to the budget of the local government, and about 10,000 euros will go to one household. It is assumed that the payments will first go to the local budget, after which 50% of this amount the municipality will distribute among the residents of the corresponding territory," noted the Deputy Chancellor of the Ministry of Climate, Antti Tooming.

How much the preparation and construction of the nuclear power plant will cost is still unknown. According to Tooming, the financial responsibility and the risks associated with the launch of the nuclear power plant will lie on the shoulders of the developer. It is estimated to amount to 350 million euros. The state's expenses will be 19 million euros and will be mainly related to labor.

As noted by the chairman of the board of Elering AS, Kalle Kilk, one thing is now obvious - new sources of electricity are necessary, but whether the nuclear power plant will be profitable for consumers remains unknown.

"According to experts, Estonia's need for controlled electricity generation capacity has significantly increased. While it was previously considered that a little more than 1,500 megawatts was sufficient to ensure the energy system, it is now becoming clear that by 2035, at least 2,100 megawatts will be required, and possibly more. Part of this need may be covered by energy storage, but their role remains limited, which means the necessity of creating additional sources of electricity generation. It is expected that this need will only continue to grow. This is linked to the global trend of transitioning to electricity. In turn, this will lead to the need for the construction of new power plants. In this context, the development of a regulatory framework for nuclear energy is viewed as a justified step. The question is only whether nuclear energy can compete with other energy sources, which remains open and requires further assessment," emphasized Kilk.

The executive director of the Association of Electric Industry Enterprises of Estonia, Tynis Vare, also pointed out that it is necessary to improve the investment environment and analyze various technologies.

"I believe that the Ministry of Climate should prepare a comparative analysis of the competitiveness of the main electricity generation technologies - both in Estonia and in other countries in the region. This analysis needs to show what costs and obligations arise for investors in different countries. At the same time, it must be based on facts and scientific data. Over the past year, there have been many examples where the government effectively sets the initial premises even before the analysis is conducted - and then the final result becomes predictable. Therefore, such a comparative review should be as neutral as possible," said Vare.

"It is precisely based on such an analysis that we will be able to understand how much different solutions actually cost. Today, we do not have a complete and systematic picture - there is no clear understanding of the total cost. Ultimately, it is important to realize that any regulatory framework can be created, but if the business environment is not competitive compared to other countries, investments will not come here. This is quite obvious: when comparing ourselves to other states, we already see that some projects for creating new generating capacities are being implemented outside Estonia - simply because the conditions for investors turn out to be more attractive there," added Vare.

The consideration of the bill in parliament will continue. On Thursday, there will be another open meeting of the two committees - economic and environmental protection.

Source: "Echo of the Day" https://rus.err.ee/1610001378/atomnyj-bonus-zhiteli-okrestnostej-buduwej-ajes-v-jestonii-mogut-rasschityvat-na-kompensaciju