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Saturday, 02/02/2008 8:15:30 AM

Saturday, February 02, 2008 8:15:30 AM

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Proof of Growth in the NPP Industry


RIGA, Feb 1 (Reuters) - Economy ministers from the Baltic states and Poland are to meet next week to talk on delayed plans for a new nuclear power plant aimed at replacing one Lithuania has to shut down at the end of 2009.

Talks on the new plant have become bogged down due to Polish demands for a third of the power, though four partners are involved. Poland has linked its demand to agreeing to build a power link between its grid and that of Lithuania.

The Latvian Economy Ministry said in a statement that the economy ministers of the four countries would have a working meeting and get an update on the nuclear plant plans as well as the project for the power bridge to Poland and one to Sweden.

A spokesman for the Lithuanian Economy Ministry said the ministers were expected to sign a document confirming their interest in the new nuclear plant, though no other breakthrough was expected. The meeting is to take place on Feb. 4.

The countries want to build a nuclear power plant with a capacity of between 3,200 and 3,400 megawatts at a cost of about $9 billion.

It would replace the Ignalina plant, which Lithuania is to close as part of its agreement to enter the European Union in 2004. The EU wants to close the plant as it has the same reactors as the one which blew up at Chernobyl in 1986.

The countries hope the new plant will lessen long-term dependence on Russian gas, the main fuel for their conventional power plants. Poland relies on coal, but also wants to diversify its energy sources.

The signing of a concrete agreement on the new plant between the four countries has been delayed several times, leading to fears the 2015 start date will be delayed.

Lithuania is forming a merged national power company to give it the capacity to raise finance for its share of the new nuclear power plant. A vote on the merger is due on Friday.

Sweden's economy minister, Maud Olofsson, will also be in Vilnius next week, on Feb 5-6. Diversifying power sources also involves Lithuania building power links to Sweden and Poland. (Reporting by Patrick Lannin; editing by James Jukwey)