Finnish energy company Fortum has completed a feasibility study that examined the prospects of constructing a new nuclear power plant in the country.
It found that undertaking such an effort would require several factors, including growing energy demands by customers, strong private and public partnerships as well as an overall positive market outlook.
According to Fortum's CEO, Markus Rauramo, it is also a question of funding. He said one prerequisite for building a new reactor would be to bring Finnish electricity prices in line with Europe — where such costs are currently about double those in Finland.
"That's the price level needed from customers for a new nuclear power plant to be built," Rauramo said.
The majority-state-owned firm began investigating the feasibility of building a new nuclear reactor in Finland and Sweden more than two years ago. It examined possibilities including conventional large nuclear plants as well as Small Modular Reactors (SMR).
Solar, wind and nuclear
According to Rauramo, new demands for electricity over the next five to 10 years will primarily be met with new onshore wind and solar power. He also mentioned flexibility and storage solutions, as well as lifetime extensions of existing nuclear power plants.
"To prepare for the growing needs of our customers, we are developing a ready-to-build renewables pipeline, exploring pumped hydro, and extending the lifetime of our Loviisa plant. New nuclear [power] could provide new supply to the Nordics earliest in the second half of the 2030s, if market and regulatory conditions are right," Rauramo said in a press release on Monday.
The company said it plans to continue developing nuclear power as a long-term option. It noted that new nuclear projects could be feasible with a "solid risk-sharing framework — like the one being prepared by the Swedish government – when matched with increased customer demand".
In November 2023, the Swedish government unveiled a roadmap for developing nuclear power in the country, including the construction of two large-scale reactors by 2035 as well as the equivalent of 10 SMRs, according to the World Nuclear Association.
Frameworks needed
While Fortum did not specify what kind of framework it was seeking, the company has previously lobbied ministries about construction loans and production subsidies towards nuclear power plant construction.
Rauramo told Yle that the types of state support could include loan guarantees or long-term financing deals, as well as subsidies for production.
"So, not necessarily direct financial support, but stability that helps to reduce risks and costs," the CEO explained.
At the beginning of the year, when Kai Mykkänen (NCP) was still Finland's climate and environment minister, he said the state should invest in a large nuclear power plant.
At the time, there was discussion about setting up a mechanism that would offer minimum electricity price guarantees to companies that invest in nuclear projects. Such a pricing model would put the financial burden on customers.
Boosting nuclear power in Finland is part of Prime Minister Petteri Orpo's (NCP) government programme.
Fortum has also examined the possibilities of the financing model used in the construction of TVO's nuclear reactors. That arrangement involves electricity providers helping to fund a nuclear construction project and then receiving the generated electricity at cost.
Finland's low prices
The price of electricity in Finland was the third-lowest in Europe last year, according to trade association Finnish Energy, with an average of 46 euros per megawatt hour (MWh).
One factor that has helped keep prices down in Finland was an increase in the use of wind power, the variability of which regularly prompts prices to grow — but also to drop below zero.
Last year, the hourly price of electricity was in negative territory for a total of around 725 hours — or about one-tenth of the year.
Fortum said it would continue examining nuclear power matters with the French state-owned firm EDF Group (Électricité de France), as well as the US-Korean company Westinghouse-Hyundai. EDF provided the reactor for Finland's newest nuclear facility, Olkiluoto 3.
Fortum is also exploring possibilities of constructing small nuclear power plants with US-based GE Hitachi Nuclear Energy. However, SMR technology is still in its development stages, with the world's first small nuclear plants expected to go online within the next decade.
Users with an Yle ID can leave comments on our news stories. You can create your Yle ID via this link. Our guidelines on commenting and moderation are explained here.