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94 percent against new coal power plant in Croatian local referendum

Labin, Croatia – 94 percent of voters have today rejected the proposed new 500 MW Plomin C coal power plant [1] in a local referendum in Croatia. Residents of five districts of Istria County answered a resounding ‘No’ to the question “Are you in favour of building the Plomin C power plant to run on coal?”

The referendum follows a similarly successful initiative in the coastal town of Ploce on 25 January this year, in which over 90 percent of voters voted against a proposed coal plant in the town.

“Plomin C is harmful to people’s health and the climate, will cost electricity consumers heavily, and will hinder Croatia in switching to a renewable energy-based energy system. The Croatian government and project promoter Hrvatska Electroprivreda (HEP) must respect the will of the local people and stop this project immediately,” commented Bernard Ivcic of Zelena akcija/Friends of the Earth Croatia.

“This referendum provides an opportunity to turn around Croatia’s energy sector and make our country a leader in the field of energy efficiency and renewable energy,” he added.

Contacts:

Bernard Ivcic, Zelena akcija/Friends of the Earth Croatia, bernard@zelena-akcija.hr
Mobile: +385 99 314 9138

Pippa Gallop, CEE Bankwatch Network, pippa.gallop@bankwatch.org
Mobile: +385 99 755 9787

Notes for editors:

[1] For more information about Plomin C, see:
https://bankwatch.org/our-work/projects/plomin-coal-power-plant-croatia

Statement: EU trade secrets directive threat to free speech, health, environment and worker mobility

Multi-sectoral civil society coalition calls for greater protections for consumers, journalists, whistleblowers, researchers and workers

We strongly oppose the hasty push by the European Commission and Council for a new European Union (EU) directive on trade secrets because it contains:

  • An unreasonably broad definition of “trade secrets” that enables almost anything within a company to be deemed as such;
  • Far-reaching legal remedies for companies whose “trade secrets” have been “unlawfully acquired, used or disclosed”, including provisional and precautionary measures, damages and secrecy rights throughout the judicial process; and
  • Inadequate safeguards that will not ensure that EU consumers, journalists, whistleblowers, researchers and workers have reliable access to important data that is in the public interest.

The proposal must be amended to ensure that only information acquired, disclosed or used by third parties with intention of commercial gain is protected under the directive.

Download the full statement as pdf >>

Bankwatch statement on today’s EU Council decision about the ‘Energy Union’

Europe’s leaders have failed today to live up to their commitments and make the EU’s energy future more sustainable. The Commission’s ‘Energy Union’ strategy endorsed today by EU Heads of States prioritises new fossil fuel infrastructure at the expense of investments into energy savings and clean energy sources.

“One such project – a gigantic, USD 45 billion gas pipeline from the Caspian sea to Europe – is completely senseless, because Europe already has more gas import infrastructure than it needs. For the last ten years, gas demand in Europe has fallen, and the Commission’s own forecasts predict further decreases by 2050, so this mega-project will only be a white elephant.

“If the so-called Southern Gas Corridor plan does materialise and starts to pump gas from Azerbaijan, it will not address the security of supply questions that Europe seeks answers for as it distances itself from the import of Russian gas. Rather, the project will fuel the oppressive authoritarian regime of Ilham Aliyev and its abhorrent track record of human rights violations and complete disregard for democratic principles.

“Ultimately, while the EU has repeatedly pledged to spearhead global efforts in combating climate change, this kind of project commits the EU to a prolonged dependence on fossil fuels. Believing it offers Europe a sustainable energy future is nothing more than deception.”

For more on the false promise of this project, see the report Pipe Dreams: Why the Southern Gas Corridor will not reduce EU dependency on Russia published in January 2015:
https://bankwatch.org/publications/pipe-dreams-why-public-subsidies-lukoil-azerbaijan-will-not-reduce-eu-dependency-russia

Markus Trilling
EU Policy officer, CEE Bankwatch Network

Electricity export ambitions may prove risky for Western Balkans, shows new study


The Western Balkans countries [1] have strong electricity export ambitions that create the danger of stranded assets, finds a new report launched by CEE Bankwatch Network today. If governments take electricity expansion decisions without taking due account of developments in other countries, the region will have to compete with other nearby exporters and may find that its power plants become uneconomic.

The study was carried out for CEE Bankwatch Network by the University of Groningen and the consultancy ‘The Advisory House’ and it can be found at
https://bankwatch.org/sites/default/files/WBalkans-stranded-assets.pdf

The complete dataset can be downloaded at
https://bankwatch.org/sites/default/files/WBalkans-stranded-assets-dataset.xls

It analyses the electricity supply and demand patterns of countries in the Western Balkans for the next ten years and examines their export prospects. The results show that if the countries realize their planned capacity extensions, the region will have a 56% electricity surplus in 2024, suggesting significant export ambitions.

In particular Bosnia and Herzegovina could turn into the largest exporter of electricity (up to 20 000 GWh), followed by Serbia (18 000 GWh). The other countries have a much lower potential contribution [2] to the regional surplus, but measured in terms of their domestic demand, their export potential is substantial.

Such significant electricity capacity expansions designed to meet export demand create the danger of becoming dependent upon the export market. The export analysis shows that there will not only be competition within the Western Balkans (in particular between Serbia and Bosnia and Herzegovina) but also from other nearby competitors such Bulgaria, Romania and the rest of the EU. Given an expected excess supply in Europe, increased competition may put pressure on export prices and increase the risk of incurring stranded assets – power plants that will become simply uneconomic to even operate. For this reason, the study suggests closely examining investments that are directed to serve export markets and to also consider the trade-off of producing or buying electricity.

The study finds a wide gap between the planned capacity and actual progress in constructing new power generation capacity, meaning that significant surpluses for export are likely to materialise only after 2019. In the meantime, the study recommends making use of increased regional co-operation to meet peak demand and taking measures to reduce electricity losses.

“This study shows that it is time for governments to re-examine their plans and go for quality not only quantity when it comes to electricity generation”, says Pippa Gallop, CEE Bankwatch’s research coordinator. “Most of the countries plan many more coal and hydropower plants than they actually need or can afford, but with more strategic planning, attention to energy efficiency and regional co-operation to cover peak demand, the region could enjoy a much more realistic and rational energy future.”

The report will be presented at a press conference in Belgrade, Serbia, on March 25. For more details please contact Ido Liven at ido.liven@bankwatch.org

Bankwatch coordinators will also be available for interviews in Podgorica, Montenegro, on March 23 and in Sarajevo, Bosnia and Herzegovina, on March 26.

Notes for the editors:

1. The countries included in the study are Albania, Bosnia and Herzegovina, Kosovo, Macedonia, Montenegro and Serbia. (According to the UN, the official name for Macedonia is “The former Yugoslav Republic of Macedonia”. The designation “Kosovo” is without prejudice to positions on status, and is in line with UNSCR 1244 and the ICJ Opinion on the Kosovo declaration of independence)

2. Montenegro 2000 – 5000 GWh, Macedonia 2000 GWh, Albania 2000 GWh, Kosovo 2.500 GWh

For more information please contact:

Pippa Gallop
Research Coordinator, CEE Bankwatch Network
pippa.gallop@bankwatch.org
Tel.: +385 997 559 78

Ioana Ciuta
Energy Coordinator, CEE Bankwatch Network
ioana.ciuta@bankwatch.org
Tel.: +40 724 020 281 (email preferred)
Twitter: @unaltuser

New study sounds the alarm on safety in Ukrainian nuclear power plants operated beyond their design lifetime

Prague, Kiev – In December 2013, Ukraine’s State Nuclear Regulatory Inspectorate (SNRIU) has granted a 10 years lifetime extension license to unit 1 in the South Ukraine nuclear power plant. But a new independent study reveals critical vulnerabilities in the 32 year old nuclear unit that could have dangerous ramifications.

The study was conducted by CEE Bankwatch’s member organisation the National Ecological Centre of Ukraine (NECU) together with technical experts, and an English language summary can be found at
https://bankwatch.org/sites/default/files/summary-SUNPP1-safetystandards-17Mar2015.pdf

Three of Ukraine’s nuclear energy units are already operating beyond their design lifetime, and nine others are expected to be given similar permissions by the State Nuclear Regulatory Inspectorate (SNRIU) by 2020.

Upgrades, necessary to enable lifetime extensions for these units, are partially financed [1] by loans from the European Bank for Reconstruction and Development (EBRD) and the European Atomic Energy Community (Euratom) totalling EUR 600 million.

The new study shows the reactor pressure vessel in unit 1 has several dangerous vulnerabilities that could lead to the appearance of micro-cracks in the vessel’s metal casing. According to the study authors, observed wear in a number of elements in the reactor vessel already exceeds tenfold tolerable levels.

Such vulnerabilities, the study warns, could result in a nuclear emergency, including a release of radioactivity inside the unit, or even to the environment in a worse case, if the unit is operated beyond its design lifetime. And since the reactor pressure vessel cannot be upgraded or replaced, its technical condition essentially determines the lifetime of the entire nuclear unit.

The new study also found, that the structural assessment of the reactor vessel was not performed fully, and the state expert’s review of nuclear and radiation safety lacked substantiation.

In addition, as part of a governmental decision to suspend all state regulation in Ukraine (with the exception of tax authorities), as of January 2015 SNRIU is prevented from conducting any safety inspections on their own initiative in nuclear energy facilities across the country. And given the current military conflict in the east of the country, the risk is particularly high.

“These findings cast serious doubts over the SNRIU’s ability to ensure the safety of Ukraine’s nuclear fleet,” says Iryna Holovko, CEE Bankwatch Network’s national campaigner for Ukraine. “It is insane to leave nuclear installations without state control. It is also a clear violation of the conditions attached to the EBRD loan. The loan became effective as of December 2014 and it is an important instance for the EBRD now to demonstrate its leverage on the Ukrainian government in the area of nuclear safety.”

In February NECU have raised their concerns on this issue with the EBRD in a letter to the Bank’s president (see here: https://bankwatch.org/publications/letter-ebrd-nuclear-inspections-must-continue-ukraine). The Bank has acknowledged that such limitation to SNRIU’s independence contravenes the conditions of the loan agreement with the EBRD.

Nuclear power plants generate almost half of the electricity supply in Ukraine. The country is almost completely dependent on Russia for its nuclear fuel as well as treatment and storage of most spent nuclear fuel.

Unit 2 in the same South Ukraine nuclear power plant will reach the end of its design lifetime on May 15. By the end of April, SNRIU will have to make a decision on a 20 years lifetime extension license for this unit.

Based on the study findings, NECU demands that Energoatom and SNRIU carry out a comprehensive assessment of nuclear and radiation safety in the South Ukrainian nuclear power plant’s unit 1.

“If the results of this additional comprehensive assessment are negative, SNRIU should cancel the lifetime extension license for South Ukraine Unit 1,” says Tatiana Verbytska, energy police expert at NECU. “It is essential to ensure that decisions to extend the lifetime for South Ukraine’s Unit 2 and Zaporizhia’s Unit 1, expected to be made by SNRIU this year, are based on full data and truly comprehensive assessments. The price of the mistakes in nuclear safety assessments is too high for Ukraine to bear, especially under the current economic situation and a de-facto war in the east of the country.”

Notes for the editors:

1. The first four tenders within the nuclear safety upgrade program, started by the Energoatom under the EBRD tendering procedures, include measures at South Ukraine unit 3 and at four units at the Zaporizhia nuclear power plants. Most of these units expire by 2020 and are planned for prolonged operations.

For more information contact:

Iryna Holovko
National campaigner for Ukraine, CEE Bankwatch Network
iryna@bankwatch.org
Tel.+380 50 647 6700

Tatiana Verbytska
Energy policy expert, NECU
tanya@necu.org.ua
Tel. +380 93 775 0580

Victories piling up: 130 more hectares of forest saved from lignite mining in Romania

Bucharest – A Romanian court has accepted a petition filed by Bankwatch Romania and Greenpeace Romania, and cancelled the environmental permit which allowed cutting down 130 hectares of forests – equivalent to approximately 260 football pitches – to make way for the expansion of the Pinoasa lignite open pit.

The two organisations filed this court case in 2013, because the environmental permit issued by the Gorj Environmental Protection Agency only assessed the environmental impact of the deforestation, without a proper evaluation of the lignite extraction activity, which is the actual project.

Located in Romania’s southwest, the mine is owned by the state company Oltenia Energy Complex (OEC).

The environmental permit did not oblige OEC to compensate the land owners, as required by law. It also did not evaluate cumulative impacts of Pinoasa lignite quarry’s expansion together with ten other similar projects planned by OEC in the Rovinari area. Such impacts include exposure to air pollution, noise, risk of landslides, loss of habitats and others.

No social or health impacts analyses have been carried our either, although the mines’ expansion doesn’t make only forests disappear, but neighbouring villages too. In fact, a large part of the village of Timiseni has already vanished from the face of the Earth to allow the development of the Pinoasa pit. See a map here:
http://wikimapia.org/#lang=ro&lat=44.886587&lon=23.126307&z=14&m=b

“The Oltenia Energy Complex still refuses to acknowledge the legal requirement to conduct an environmental impact assessment, in spite of an infringement procedure opened by the European Commission against the Romanian Government [1] and the previous national courts’ decisions[2],” says Cătălina Rădulescu, the lawyer representing the two NGOs and a member of Bankwatch Romania. “The state owned company insists on referring to 40 year old legislation, from when the first lignite operations started developing in the region. We demand the company carries out environmental and social impact assessments for all its lignite mines’ operating licenses, abiding by today’s environmental protection legislation.”

“Forests play a crucial role in CO2 absorption, the gas with the highest contribution to climate change. The Oltenia Energy Complex wants to cut down forests to extract coal, which it would then burn in its thermal power plants, causing a double environmental damage,” adds Ionut Cepraga, campaign coordinator with Greenpeace Romania. “We argue that currently Romania has plenty of clean energy resources to quit burning coal, and this should also be reflected in the country’s National Energy Strategy, currently under preparation.”

This is the latest legal victory in a series which has so far annulled 27 deforestation permits, preventing the clearance of 22 hectares of forest for the expansion of the Rosia open-pit. The court has also ordered the cancelling of another environmental permit, thus saving 59 hectares of forests near Tismana 1 lignite quarry. Nine other, similar cases are pending a court decision.

Yesterday’s court decision is yet to be formally transmitted to the parties. The defendants, the Gorj Enviornmental Protection Agency and the Oltenia Complex, can appeal the ruling within fifteen days of its notification.

For more details, please contact:

Ionuț Brigle
Campaign coordinator, Bankwatch România
ionut.brigle@bankwatch.org

Cătălina Rădulescu
Lawyer
catalina.radulescu@gmail.com

Notes for the editors

1. On the decision of the European Commission to open an infringement procedure against Romania: https://bankwatch.org/news-media/for-journalists/press-releases/european-commission-opens-infringement-procedure-against-r

2. On the previous court rulings: https://bankwatch.org/news-media/blog/forests-sitting-lignite-saved-romania and https://bankwatch.org/news-media/blog/bankwatch-stops-cutting-another-22-hectares-forest-coal-mining-romania

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Image credits: Mihai Stoica