Economics of nuclear power in Finland

Conference · Mon Jul 01 04:00:00 EDT 2002

OSTI ID:21167925

Tarjanne, Risto; Luostarinen, Kari ^[1]

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1. Lappeenranta University of Technology, Department of Energy and Environmental Technology, PO Box 20, FIN-53851 Lappeenranta (Finland)

The nuclear power generation fits perfectly with the long duration load profile of the Finnish power system. The good performance of the Finnish nuclear power has yielded benefits also to the consumers through its contribution to decreasing the electricity price. Furthermore, the introduction of nuclear power has resulted in a clear drop in carbon dioxide emissions from electricity generation in the shift of 1970's and 1980's. In the year 2001 the four Finnish nuclear power units at Loviisa and Olkiluoto generated 22.8 TWh electricity, equivalent to 28 per cent of the total consumption. Loviisa power station has a net output capacity of 2 x 488 MW, and Olkiluoto 2 x 840 MW. The capacity factors of the four nuclear units have been above 90 per cent, which are among the highest in the world. The energy-intensive process industries in particular have strong belief in nuclear power. In November 2000, Teollisuuden Voima company (TVO) submitted to the Finnish Government an application for decision in principle concerning the construction of a new nuclear power plant unit. The arguments were among other things to guarantee for the Finnish industry the availability of cheap electric energy and to meet the future growth of electricity consumption in Finland. The carbon-free nuclear power also represents the most efficient means to meet the Greenhouse Gas abatement quota of Finland. Simultaneously, the energy policy of the Government includes intensive R and D and investment support for the renewable energy sources and energy conservation, and the objective is also to replace coal with natural gas as much as reasonably possible. The fifth nuclear unit would be located in one of the existing Finnish nuclear sites, i.e. Olkiluoto or Loviisa. The size of the new nuclear unit would be in the range of 1000 to 1600 MW electric. The ready infrastructure of the existing site could be utilised resulting in lower investment cost for the new unit. The Finnish Government accepted the application of TVO Company on January 17, 2002, but the final word will be said by the Parliament. During the spring 2002 there will be intensive discussion on all levels, whether nuclear power is for or against 'the total benefit of the society'. The Parliament decision is expected to be made by the summer 2002. In this paper, firstly a financial comparison of the new base-load power plant alternatives is carried out in the Finnish circumstances, and secondly the actual power production costs of the existing Olkiluoto nuclear power plant based on the operating history of about 20 years will be referred. (authors)

• Research Organization: American Nuclear Society, 555 North Kensington Avenue, La Grange Park, IL 60526 (United States)
• OSTI ID: 21167925
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
CARBON
CARBON DIOXIDE
COAL
COMPARATIVE EVALUATIONS
ELECTRICITY
ENERGY POLICY
FINLAND
NATURAL GAS
NUCLEAR POWER
NUCLEAR POWER PLANTS
POWER GENERATION
POWER SYSTEMS
RENEWABLE ENERGY SOURCES