power on  Newsletter 5/12/03  Contact us

 

This is an occasional newsletter to educate. Here is some background on Finnish energy policy.

Fortum takes stake in Finnish nuclear plant

HELSINKI (AFP) Nov 18, 2003
Fortum, Finland's state-controlled energy group, (Fortum was created in 1998 as a result of a merger of two Finnish companies - Imatran Voima and Neste )on Tuesday went ahead with a controversial decision

to take a 25-percent stake in a new nuclear reactor, set to become operational by the end of the decade. Fortum, (2002 turnover €11 Bn) controlled by the Finnish state with a 61-percent stake, has a stated ambition to become the Nordic region's largest supplier of electricity.(Fortum has 15.7% of Russian eleco Lenenergie after buying 9.3% from the German E.on Energie in Jan 2003 they also own DZT Fortum in Poland with CHP projects in 23 cities.) Fortum also sponsor the Swedish Ice Hockey League.

Teollisuuden Voima Oy (TVO) is a privately owned electricity generation company, owned by Finnish industry and power companies. The company supplies electricity to its shareholders at cost. The company owns and operates two nuclear power plant units on the west coast of Finland at Olkiluoto, in the municipality of Eurajoki. In addition to the nuclear power plant, TVO also has a share in the Meri-Pori coal fired power plant.

consump.jpg During the past ten years, the consumption of electricity in Finland has increased by nearly 25 per cent in total.

Industry uses about 55% of electricity. According to a survey carried out by Finergy, the Finnish Energy Industries Federation, electricity consumption will increase  despite continuous efficiency improvements. Household electricity consumption is growing due to the increasing number of households and the growth of living space.

Electricity consumption is expected to rise by 1.5 % pa until the year 2010, after which the average yearly growth will be approx 1 %. At the same time ageing power plants using fossil fuel are decommissioned. It is estimated that 3,800 MW of new power plant capacity will be needed by the year 2015 to secure the supply of electricity

 

The means of large-scale electricity production viable in Finland are nuclear, coal-fired, natural gas and peat-fired power plants. The Lappeenranta University of Technology (LUT) has surveyed the costs of different production methods.

With nuclear energy capital expenditures is high, while fuel costs remain low. The price of nuclear electricity predictable and steady regardless of variations in fuel price.

In the LUT survey, nuclear power plant investments are based on the assumption of constructing the plant unit on an existing plant site, with a construction time of five years.

 

 

 

 

 

Net electricity acquisition, 2001 (81,6 TWh) Finnish electricity production is varied and all applicable energy sources are used. (In 2000, 50% of coal, 44% of crude oil and 100% of natural gas was imported from Russia.) A large percentage of wood and peat is used. Variety provides market stability, encouraging competition and contributes to a low user energy price.

Picture of woman´s costume, MuolaaMay 20th 2002 HELSINKI - More than half of Finns now support a plan to build a new nuclear reactor to meet rising energy demand and reduce dependence on imports, particularly from Russia, a survey showed on the weekend. The Gallup poll, published less than a week before the parliament votes on the issue, showed that 54 percent approved construction of a fifth reactor, as long as other energy sources were also expanded.

The five-party coalition government, which includes the anti-nuclear Green Party, has said the best way to meet both Finland's rising energy demands and its obligations to cut greenhouse gas emissions under the Kyoto protocol was to build the country's first new reactor for more than two decades.

Supporters said a key reason for Finland's determination to push ahead was its desire to be more self-sufficient and reduce reliance on imports, particularly from Russia.

Opponents of nuclear energy believe that health and environmental risks of nuclear generation are excessive, so other energy sources should be favoured. The parliament rejected a proposal to expand nuclear power generation in 1993.

Finland has four nuclear reactors at two installations, supplying about 30 percent of total electricity needs. It has no oil or gas of its own.

Finnish Energy Industries Federation Finergy is an organisation of the companies carrying out power and heat generation, procurement, transmission, sales, and building of power transmission grid. This is what they said abour electricity supply in winter 2002/3:

 

 Measures by authorities were drafted especially in Norway, where preparations for electricity rationing were made in the early part of 2003. In Finland, authorities emphasised voluntary energy conservation.

 

In summary, it can be stated that it was possible to manage the difficult energy situation in the normal manner through market-focused measures even though the operating limits of the entire Nordic power system came occasionally close.

 

 Finland's nuclear power reactors:

Loviisa 1

VVER-440

488 MWe

1977

Loviisa 2

VVER-440

488 MWe

1981

Olkiluoto 1

BWR

840 MWe

1979

Olkiluoto 2

BWR

840 MWe

1982

Olkiluoto 1 & 2 started up in 1978-80 at 690 MWe (gross)They are Swedish boiling water reactors. Fortum's two units at Loviisa are Russian, with western control systems, and have been uprated 9.7%, from 465 MWe (gross) in 1977-80 to 510 MWe.

April 2001 figures put nuclear costs at EUR 2.40 c/kWh, coal 3.18 c/kWh and natural gas at 3.21 c/kWh (on the basis of 91% capacity factor, 5% interest rate, 40 year plant life). The 2000 study also quantified fuel price sensitivity to electricity costs:

 

TVO said they preferred the Framatome ANP's 1600 MWe European PWR (EPR) 10/2003,on the basis of operating cost. Siemens AG will provide turbines and generators. However, Other bidders are not excluded, notably General Electric and Atomstroyexport. TVO hope to finalise by the end of 2003 and a construction licence is then applied for. Meanwhile bids to TVO for shares of the 1600 MWe output totalled 2000 MWe.

TVO has bought uranium from Canada, Australia and Africa, had it converted to UF6 in Canada and France, and enriched in Russia. Fuel fabrication has been in Germany and Sweden.

Fortum (originally IVO) initially contracted for a complete fuel supply service from Russia for the Loviisa plant. Subsequently, it contracted with BNFL to supply fuel.

Some sources : -Robin Jeffrey, paper to IEE, London, 11/6/02.
Tapio Saarenpaa, paper at WNA Mid-term meeting, April 2002.
Juhani Vira, Taking it step by step Ð Finland's spent fuel, Radwaste Solutions Sept-Oct 2001.
Mauno Paavola, paper at WNA Symposium, Sept 2001.
Nucleonics Week 3/4/03.

"Today, nearly 1.6 billion people in the world do not have access to modern, commercial energy of any sort. Most of these people live in developing countries, many in rural areas or isolated communities. Energy poverty is a primary reason for their poor living conditions and low prospects. Secretary General of the World Energy Council Gerald Doucet.

 

 

Professor Tor Ragnar Gerholm in Helsinki:

Supply security is EU' s major energy challenge

 Energy supply security will be the biggest energy challenge for industries within the European Union and in the OECD area in this century. The dependence of European OECD countries on natural gas will grow from the current 30 per cent to 70 per cent by 2020. The dependence of OECD-Europe on imported oil will increase from 50 per cent to 85 per cent, that of OECD countries in the Far East to 100 per cent, and in the United States to 66 per cent by 2020. At the same time, there is a risk that global oil production reaches its peak between 2010 and 2020.

 Professor Tor Ragnar Gerholm spoke at a round table event arranged by ICC Finland and Energiafoorumi

 

 

Websites to visit to learn more about Nuclear Energy

World Nuclear Association, London including Symposium Proceedings and portal.

Corporate sites related to UIC

Silex: enrichment technology