Ross Hendin, CFP contributer and Principal of Hendin Consultants, has provided below a new chapter to the case study of the Ignalina Nuclear Power Plant, involving the political risks Estonia and Poland are making when they use the slow pace of the plant’s progression as a catalyst to second-guess their energy dependence :

The Baltic Course joins a number of Polish media today in reporting that both Poland and Estonia are not satisfied with how slowly the Ignalina nuclear power plant program is progressing, and adding that as a result, Poland is very serious about building its own atomic energy plants.

Andrus Ansip, Prime Minister of Estonia, said: “We are interested in finally getting rid of the status of an energy island in the European Union“.

Some Polish media are also reporting that the government will appoint Hanna Trojanowska to be a special envoy to the Polish Prime Minister Donald Tusk on the issue. She is apparently supported by all parties for this role.

The press also say that France’s Areva is the most likely candidate to win the tender for the work, but other companies from the US, Korea (HANJUNG – Korea Heavy Industries & Construction Co., Ltd.) and Canada (AECL – Atomic Energy of Canada Limited) will also participate.

Poland and Estonia both take a fair political risk in making an announcement like this. It publicly shows how the group is not satisfied with its internal efforts, and invites further lobbying and political meddling from potential suppliers to try and mend the situation, but in their favor. More importantly, it also shows Russia that there is a good chance their new proposed plant in the area will end up doing exactly what they want (and exactly what the Baltic states are trying to avoid) – create energy dependance simply by having the needed supply at the first possible opportunity. This will make it easier for Rosatom to finance their Russian project in the same area.