Russia plans dozens of new nuclear reactors

LONDON, Sep 8 (Reuters) Russia today outlined plans to build dozens of nuclear reactors over the next two decades to help meet its growing power demand.

Sergei Kiriyenko, head of Russia's atomic energy agency, confirmed Moscow's commitment to nuclear, saying it wanted to keep it at the heart of the country's energy mix, despite Russia's vast oil and gas reserves.

Russia produces about 16 percent of its power from nuclear and Kiriyenko said this proportion would be maintained, as a minimum.

Moscow's plans call for a total of 42-58 new reactors by 2030.

Construction of two power stations, each with a capacity of 1,150-1,200 megawatts, would begin each year in the period 2007-2015.

Kiriyenko said nuclear would become competitive with gas when Russia's internal gas prices, currently at artificially low levels, start moving into line with world prices as Russian energy markets are liberalised.

''With internal gas prices at 80-100 dollars per 1,000 cubic metres (compared with 40 dollars currently) nuclear becomes very competitive with gas,'' Kiriyenko told Reuters in an interview.

''Russia will be moving towards liberalised markets for gas and electricity.'' Russia's commitment to nuclear comes as the power source re-gains popularity with many governments because they say it offers secure supplies and lower greenhouse gas emissions than fossil fuel plants.

The focus on nuclear energy for domestic power consumption will avoid eating into oil and gas resources that are a vital source of export earnings and global influence.

Kiriyenko said the government would subsidise new projects up to 2015.

''Subsequently, after (gas and power) market liberalisation, further construction of nuclear plants should be secured by the market or non-government participants,'' he said.

Kiriyenko said Russia is restructuring its civilian nuclear industry under a single state-owned company that would comply with international standards on transparency.

''Next year we will create a vertically integrated stock company, 100 percent government owned,'' Kiriyenko said.

He likened the proposed new company to French nuclear group Areva.

Reuters SBA KP2243