Chinese funded
power plants in
CEE
Mark Szabo
Barbora Horanova
Jakob Rammer
Introduction
Chinese interest in funding power plants around Europe - mainly Balkans
China Development Bank and other Chinese banks provide funding, Chinese companies
sometimes build them
Problem regarding the plants meeting EU standards
Poland’s first nuclear power plant built by the Chinese?
Why is China so interested in funding these projects?
International response
Where these plants will
be
Mostly in Bosnia and Herzegovina, but also other
Balkan states
Currently developing in Stanari (operating since 2016),
Kostolac and Tuzla (currently delayed)
Nuclear power plant in Poland, Romania
Some problems
Economic, environmental and legal weaknesses
Health standards far below the levels of Western Europe
Plants do not comply with EU standards, upgrade would be costly
‘Opinions on Further Guiding and Regulating the Directions of Overseas Investments’
EU plans to go carbon free by 2050
Paris Agreement goal problematic with these plants
Chinese plans to build Poland’s first nuclear
power plant
Company: China General Nuclear Power Group (CGN)Doubts
remain: Why China ?
-lower price
-financing package
-first time for China to build up nuclear power plant beyond its own territory
-bound to lead to delays and cost increases
Is it even useful for Poland?
Why Poland?
China+Poland signed Memorandum on nuclear cooperation for civil use.
China’s interest in nuclear technology of developed states
Bosnia and Herzegovina
Currently operating- 5 power coal-fired plants
2 more planned plants -final phase of financing planning resolved
All projects financed or built by Chinese companies and banks
Greater risks: air pollution leading to increase of death rates,respiratory issues...
'Stranded assets'
Bosnia and Herzegovina-already producing enough energy for its needs
2015 investigation: “If Balkan countries actually built all the planned centres for electricity production. They
calculated that the region would export 56% of the electricity”
“Country with 3.8 million people does not need that many power plants, especially with the existing hydropower
plants and the new coal power plant that just started working in 2016”
Big Risk:
- Bosnia and Herzegovina does not take into account the future costs of CO2 emissions
- If is the electrical energy not cheap enough, nobody will buy it
Nuclear power in Romania
Romania has two nuclear reactors generating almost 20% of its electricity
Romania is first commercial nuclear power reactor began operating in 1996.Its second
started up in May 2007.
China General Nuclear Power has agreed to complete two more units
Romanian government support for nuclear energy is strong
International Responses and future
Outlook
● Critics from Environmentalists and EU regarding pollution issue
● Concerns about Chinese interfering with EU strategy for the reason
● Trojan Horses
● Future will bring increased cooperation and investment, probably more cautious EU
● Investment needed by many CEE countries
Thank you for your attention!
Any questions?
Sources
https://bankwatch.org/publication/chinese-financed-coal-projects-in-southeast-europe
https://bankwatch.org/wp-content/uploads/2018/05/China_SEE-coal-briefing_july-7-2018-u
pdate.pdf
https://www.thegwpf.com/china-builds-funds-europes-new-coal-power-plants/
https://theecologist.org/2018/jul/24/china-expands-coal-power-interests-bosnia-and-herzeg
ovina