Finland has granted permits to two of three applicants seeking to build new nuclear reactors in the Nordic country as it tries to wean itself off dependence on Russian power imports.
The government will grant permits to Teollisuuden Voima Oyj (TVO) and Fennovoima. However, an application from Fortum was rejected.
Finland, which is the biggest power consumer per capita in the EU, has four reactors and needs more capacity in order to cut dependence on Russian energy and replace coal. The countryÔÇÖs electricity consumption is also the highest in the EU and more than double GermanyÔÇÖs per capita. This is partly due to the cold temperatures in winter, which can drop to minus 50 degrees Celsius (minus 58 degrees Fahrenheit).
The country lacks the oil and gas supplies of neighbouring Russia and Norway and has already harnessed most of its available hydropower. Only one of its reactors and some hydropower plants will be generating electricity in 2050, according to Finnish Energy Industries, the industrial policy and labour market policy association in Finland.
Finland paid Ôé¼365 million for Russian electricity last year, which accounted for 75 per cent of all imported electricity, or 15 per cent of all consumed power, according to official statistics.
YesterdayÔÇÖs decision to grant permits reflects the views of both the Finnish governmentÔÇÖs two main parties. The prime ministerÔÇÖs Center Party sought to add renewable power and one or two reactors, while the National Coalition Party pushed for three nuclear permits.
The governing coalition earlier this week voted for a package of tax breaks and subsidies for wood-based fuels, wind power and other renewable sources in order to cut emissions and raise the countryÔÇÖs share of renewable power to 38 per cent by 2020.
Commenting on the decision, Jarmo Tanhua, CEO and president of TVO, said: ÔÇ£We are happy about the wide support shown to our application by the various stakeholders during the process. The electricity produced at our new nuclear power plant unit will benefit not only the industry, but also households and the service sector.
ÔÇ£Our unit will produce electricity for the needs of Finnish people and industries in the most economical manner.ÔÇØ
Fennovoima, which is a venture between GermanyÔÇÖs E.ON and 63 other companies in Finland, is a new competitor into the market. It is thought that its application may have benefited from site locations in northern Finland, which will bring employment to less populated areas.
TVO is currently building the countryÔÇÖs fifth reactor, Olkiluoto-3 ÔÇöthe worldÔÇÖs largestÔÇöin partnership with FranceÔÇÖs Areva. Stora Enso and UPM-Kymmene, EuropeÔÇÖs two biggest papermakers, are among TVOÔÇÖs owners.
It was decided that Fortum would still benefit from the TVO project because it is a part owner in the venture. Fifty-one per cent owned by Finland, Fortum had hoped to construct a new nuclear plant to replace two reactors in southern Finland, which come to the end of their life spans in 2027 and 2030.
FinlandÔÇÖs current four reactors have a capacity of about 2,700 megawatts. Olkiluoto-3 will produce 1,600 megawatts. The new reactors will add from 2,500 megawatts to 4,300 megawatts.
More than 50 atomic reactors are under construction worldwide, including 21 in China and eight in Russia, according to the International Atomic Energy Agency.
