Identifier
Created
Classification
Origin
08LJUBLJANA563
2008-12-24 13:58:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Ljubljana
Cable title:  

THE FUTURE OF NUCLEAR ENERGY HAS A GLOWING FUTURE

Tags:  BEXP BTIO ENRG ETRD TRGY SI 
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VZCZCXRO4666
RR RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV RUEHSR
DE RUEHLJ #0563/01 3591358
ZNR UUUUU ZZH
R 241358Z DEC 08
FM AMEMBASSY LJUBLJANA
TO RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHC/SECSTATE WASHDC 7100
RHEBAAA/DEPT OF ENERGY WASHINGTON DC
INFO RUCNMEM/EU MEMBER STATES
UNCLAS SECTION 01 OF 02 LJUBLJANA 000563 

SENSITIVE
SIPDIS

EUR/NB AND T - MARC HUMPHREY
COMMERCE - SARAH LOPP AND ITA LEAH MARKOWITZ
ENERGY - MICHAEL APPICELLI

E.O. 12958: N/A
TAGS: BEXP BTIO ENRG ETRD TRGY SI
SUBJECT: THE FUTURE OF NUCLEAR ENERGY HAS A GLOWING FUTURE
IN SLOVENIA

REF: SECSTATE 127468

Summary
--------
UNCLAS SECTION 01 OF 02 LJUBLJANA 000563

SENSITIVE
SIPDIS

EUR/NB AND T - MARC HUMPHREY
COMMERCE - SARAH LOPP AND ITA LEAH MARKOWITZ
ENERGY - MICHAEL APPICELLI

E.O. 12958: N/A
TAGS: BEXP BTIO ENRG ETRD TRGY SI
SUBJECT: THE FUTURE OF NUCLEAR ENERGY HAS A GLOWING FUTURE
IN SLOVENIA

REF: SECSTATE 127468

Summary
--------------

1. (SBU) The Slovene nuclear energy sector holds considerable
promise for the U.S. company Westinghouse. Slovenia
currently shares the electricity from its only nuclear plant,
which was established during Yugoslav days, with Croatia.
Westinghouse built the plant, which is 50% owned by the
Government of Slovenia (GoS) and 50% owned by the Government
of Croatia. The plant is located on the Slovenia side of the
border, in Krsko. GoS is planning to add a second unit at
the same location, which will probably be 100% GoS owned and
operated. GoS will almost certainly invite bids from
Westinghouse for expected future plant expansions. The
following presents the information requested in reftel
regarding civilian nuclear energy in Slovenia.

Overview
--------------

2. (U) Slovenia's demand for electricity has been rising
steadily, and the country now imports roughly 30% of its
electricity from abroad. According to several sources, one
additional unit at the existing nuclear power plant in Krsko
will generate sufficient electricity to meet the deficit with
possible excess electricity for export.


3. (SBU) In October 2006, the GoS adopted a "Resolution on
National Development Programs for the Period 2007-2023" in
which they earmarked 2B Euro for construction of unit 2 in
Krsko. The project was slated to start construction in 2015
and conclude in 2017. The new GoS is currently promoting big
infrastructure projects in the energy sector to help the
Slovene economy. Government, business and academics have all
told emboffs that nuclear is the only viable option to solve
Slovenia's energy needs. However, as of December 15, rumors
have floated of introducing a referendum on the question of
building a second unit in Krsko. Government officials were
not able to substantiate the reports, but it is relatively
easy under the Slovenian constitution to force a referendum
on any issue.


4. (U) The nuclear regulatory authority, the Slovenian
Nuclear Safety Administration (SNSA),employs 45 people and
has a 2.5M Euro budget. There is no plan to expand the SNSA,
as the number of people it employs is codified in law.


5. (U) Slovenia is party to the Paris Convention on nuclear
liability.


6. (U) The manufacturing base in Slovenia is not involved in
nuclear-related products of services. Neither components nor
contracting services could be sourced locally.


7. (U) Slovenia has a small population and an insufficient
nuclear-trained workforce. For this reason, Slovenia
outsources its civil nuclear power services.

Opportunities for U.S. Industry
--------------

8. (U) Slovenia has no current nuclear-related tenders.
If/when the GoS moves to build an additional unit in Krsko,
it will publish a tender conforming to EU regulations.


9. (U) As elsewhere, Slovenia is significantly concerned
about their nuclear waste disposal. Officials at the
Slovenian Nuclear Safety Administration said that any bid to
build in Krsko that included a plan to remove the waste from
Slovenia would probably win the construction project. A deal
fell through with a Russian company to remove and dispose of
nuclear waste. While there is no current tender for waste
removal, the opportunity may exist for an international
company that offers such services.


10. (U) Slovenia currently purchases nuclear services from
abroad - for example, Westinghouse conducts periodic audits
of spent fuel. Slovenia intends to continue to buy services
to maintain its nuclear energy program. Services and
training for the Slovenian nuclear energy sector are
overwhelmingly supplied from the U.S.

Foreign Competitors
--------------

11. (SBU) Assuming Slovenia builds a second reactor at the
Krsko site, Westinghouse is widely considered to be the top

LJUBLJANA 00000563 002 OF 002


contender for the construction bid. However, the French
company Areva will probably also be invited to bid.


12. (U) While projects above a certain value have to be
announced within the EU, the SNSA stated definitively that
Slovenia would not take political considerations into
account, or favor an EU company over a non-EU company.
FREDEN