|
|
|
|
|
Finland
|
|
Number of nuclear units connected to the grid |
Nuclear electricity generation (net TWh) |
Nuclear percentage of total electricity supply |
|
| Finland |
|
|
28.4 |
| OECD Europe |
150 |
929.3 |
27.3 |
|
OECD TOTAL |
346 (out of 437 worldwide) |
2278.1 |
23.1 |
Today, about 27% of the total electricity supply in Finland is produced by nuclear power (Table 1). Finland's four nuclear power plant units have a total net capacity of 2 656 MW(e). They have operated reliably and complied with existing safety and environmental protection standards. For years, the annual load factors of all the units have been around 90%. Both companies have invested a lot to keep the annual outages as short as possible. During 2001, all the Finnish nuclear power units operated very reliably and produced more electricity than ever before.
The historical trend of annual load factors of the Finnish nuclear power plants is shown in Figure 1. The development of annual occupational collective doses (manSv/a/reactor) of the Finnish nuclear power plants (both with 2 reactor units) are shown in Figure 1.
Table 1. Status of nuclear power plants
|
Station |
Type |
Net Capacity |
Status |
Operator |
Reactor Supplier |
Construction Date |
Criticality Date |
Grid Date |
Commercial Date |
Shutdown Date |
|
LOVIISA-1 |
WWER |
488 |
Operational |
FORTUMPH |
AEE |
01-May-71 |
21-Jan-77 |
08-Feb-77 |
09-May-77 |
|
|
LOVIISA-2 |
WWER |
488 |
Operational |
FORTUMPH |
AEE |
01-Aug-72 |
17-Oct-80 |
04-Nov-80 |
05-Jan-81 |
|
|
OLKILUOTO-1 |
BWR |
840 |
Operational |
TVO |
ASEASTAL |
01-Feb-74 |
21-Jul-78 |
02-Sep-78 |
10-Oct-79 |
|
|
OLKILUOTO- 2 |
BWR |
840 |
Operational |
TVO |
ASEASTAL |
01-Aug-75 |
13-Oct-79 |
18-Feb-80 |
10-Jul-82 |
|
Modernisation of the Existing Plants
The operating licenses of all four Finnish power reactors were valid until the end of 1998. The applications for renewal of these permits were submitted for regulatory review in 1997. Major modernisation and power uprating actions were carried out in the connection of the licence renewal process. Several technical modifications at the plants and thorough updating of the Final Safety Analysis Reports were necessary.
In April 1998 the government granted licences to the Loviisa 1 and 2 plant units at uprated power levels. The licences are valid up to the end of 2007. It also covers the repository for low-and medium-level nuclear waste and interim storages for spent fuel including the necessary expansion of these facilities. The licence for the operational waste repository is valid until the end of 2055. The thermal power of both Loviisa units was uprated to 109% from the rated power specified in the former operating licence.
The application of new operating licence of Olkiluoto nuclear power plant was for uprated 115.7% reactor power. The government granted the licence to Olkiluoto 1 and 2 units in August 1998 at the uprated power level. The licences are valid for both units up to the end of 2018. By the end of 2008, the utility must submit to STUK a comprehensive periodic safety review report, after which STUK will make its own safety assessment.
The nuclear steam supply system (NSSS) and twin turbine generators for Loviisa nuclear power plant were supplied by V/0 Atomenergoexport of the former USSR. IVO acted as its own architect engineer and co-ordinated the design and supply of equipment from several countries. This included the integration of West German instrumentation and, under Westinghouse license, an ice condenser containment system. After the completion of the recent modernisation project the authorities approved in 1998 the raising of the power capacity of the Loviisa reactor units from 445 MW(e) to 488 MW(e).
The Olkiluoto units were ordered on turnkey contracts from Asea-Atom (now Westinghouse Atom) in 1972 and 1974. TVO had the responsibility for the second unit's civil engineering systems. In 1993, the containment buildings were retrofitted with Siemens filtered venting system. The Olkiluoto units were upgraded in 1984 from 660 MW(e) to 710 MW(e) (net capacity). After the completion of the recent modernisation project the authorities approved in 1998 the raising of the power capacity of the Olkiluoto reactor units from 710 MW(e) to 840 MW(e).
Collaboration with foreign vendors provided Finnish companies with experience in supplying certain mechanical equipment to nuclear power stations. Domestic capabilities have also been developed for simulators, fuel handling, storage equipment, radiation dosimeters and monitoring equipment. The design, deliveries and installation works in the connection of the modernisation projects were carried out by domestic and foreign companies.
The operation, maintenance, and training at Loviisa are carried out by Fortum Power and Heat Oy. TVO takes care of operation and maintenance and operator training for Olkiluoto.
After joining the European Union the requirements of Euratom have been adopted in nuclear fuel supply to the Finnish nuclear power plants.
Fortum Power and Heat Oy, the operator of the Loviisa nuclear power plant, has continued the efforts for acquiring an optional fuel supplier from western sources besides the present Russian fuel supplier. Together with the Hungarian Paks utility, test fuel assemblies have been bought from BNFL. Five lead assemblies from BNFL were loaded in Loviisa in 1998 and from 2001 it was planned that half of the fuel is delivered by the BNFL for five years.
Uranium for TVO 1 and TVO 2 comes (or has come) from Canada, Austria, Niger, China and Russia. Most of the enrichment has taken place in Russia, the rest in Western Europe. Fuel elements delivered to Olkiluoto have been manufactured by ABB Atom in Sweden, Siemens in Germany and GENUSA in Spain.
Spent fuel from the reactors is stored for a few years in the fuel pools at the reactor buildings. Thereafter, they are transferred to interim spent fuel storage at the power plant sites. Fortum Power and Heat Oy and TVO are responsible for both the acquisition of fuel and the management of spent fuel.
Repositories for medium-and low-level wastes are already in use at Olkiluoto and Loviisa sites. Spent fuel management plans and the financial provision for nuclear waste management in general are been discussed in the nuclear waste managementy issues section. A specialised company, Posiva, is taking care of the necessary research and development activities, design and implementation of the spent fuel disposal project in Finland. In the future, Posiva also aims to supply similar services to other countries.
For additional information on the Finnish radioactive waste management programme please see the OECD Nuclear Energy Agency's Radioactive Waste Management Programmes in OECD/NEA Member Countries.
Finland has no institutes dedicated solely for nuclear research. Most research takes place at the Technical Research Centre of Finland (VTT). Other major research institutes include the universities of technology in Helsinki and Lappeenranta (TKK, LTKK), the Geological Survey of Finland (GTK), the Finnish Meteorological Institute and the universities of Helsinki, Kuopio, Tampere and Jyväskylä. In addition, the Radiation and Nuclear Safety Authority (STUK) and the power companies Fortum Power and Heat Oy and TVO carry out internal research or finance research in the research institutes or universities.
The focus of nuclear research and development is on the safety and operational performance of the power plants and on the management and disposal of wastes. Publicly funded nuclear energy research provides impartial expertise for the regulation of nuclear energy. The public sector's research also plays a major role in ensuring the necessary personnel and equipment resources for research and development, as well as in establishing the framework for international collaboration.
To make publicly funded nuclear energy research result-oriented and efficient, to strengthen the basic and advanced education of experts and to facilitate international co-operation most of the research was organised into national research programmes in 1989. The Advisory Committee on Nuclear Energy (YEN) assists the Ministry of Trade and Industry (KTM) in directing the publicly funded nuclear energy research. KTM has appointed steering and review groups to supervise and direct publicly funded research. Currently, the third generation of programmes is under way. The programmes now in progress are:
The total volume of the four research programmes on nuclear fission energy is about 65 person-years annually. Nuclear fusion research comprises about 25 person-years. At present, the total annual volume of all nuclear energy research in Finland is estimated to be some 200 person-years.
Finnish nuclear energy research has been decentralised among several research units and groups, which operate at different state research institutes, universities, utilities and consulting companies. The focus of nuclear research and development is on the safety and operational performance of power plants, and on the management and disposal of waste. Publicly funded nuclear energy research provides impartial expertise in nuclear energy issues. It contributes to maintaining the necessary personnel and equipment for research and development, and has established the framework for international collaboration.
The objectives of the national research programmes have been largely aligned with the research fields and priorities of major international programmes, both within the European Union, the OECD Nuclear Energy Agency (NEA), and the Nordic countries. The annual total volume of Finnish research into nuclear fission and fusion energy is estimated to be 200 person-years, and the total funding about €30 million.
The most important research institutes and universities taking part in nuclear energy research are the Technical Research Centre of Finland (VTT), the Geological Survey of Finland, the University of Helsinki, the Lappeenranta University of Technology, the Helsinki University of Technology, the Finnish Meteorological Institute, and the Radiation and Nuclear Safety Authority (STUK). VTT carries out most of the publicly funded research and development work in the field of nuclear energy.
The Finnish public nuclear energy research is organised into national research programmes. These research programmes are operated mostly on funding provided by the Ministry of Trade and Industry, the Radiation and Nuclear Safety Authority, National Technology Agency Tekes, VTT and the European Union.
The main objective of these programmes is to provide the authorities with high-standard expertise and research results relevant for the safety of nuclear power plants and waste management and disposal, and to support various activities of the authorities. Also these programmes train new nuclear experts and they promote technology and information transfer.
The research programme on nuclear power plant safety SAFIR (2003-2006) and its predecessor FINNUS (1999-2002) concentrate on themes of ageing, accidents and risks. The waste research programme KYT (2002-2005) covers most part of publicly funded nuclear waste studies. In the fusion research programmes FFUSION 2 (1999-2002) and FUSION 2003-2006, the major part of the work focuses on the development of materials, systems and services for the needs of European fusion research facilities. In addition, there are research programmes that are mostly funded by the utilities and Tekes and that primarily serve the needs of the nuclear industry.
Finland participates in all IAEA programme areas. The main emphasis is on nuclear safety and safeguards programmes. Finland also supports the IAEA's work through voluntary contributions. Finland is a party to all IAEA conventions.
When Finland joined the European Union together with Austria and Sweden in early 1995, it also became a member of the European Atomic Energy Community, Euratom. In March 1995, Finland made the first contract of association with the European Commission to participate in research on controlled thermonuclear fusion. Through this contract, Finland is also involved in the global International Thermonuclear Experimental Reactor (ITER) project. The contract has been renewed in early 1999.
As a member of the European Union, IAEA, OECD/NEA and the Nordic Council of Ministers, Finland participates in most nuclear research and development activities conducted by intergovernmental organisations. Multilateral co-operation is supplemented by several bilateral projects and co-operation agreements that the Finnish research institutes, safety authorities and industrial enterprises have with foreign organisations.
The importance of international co-operation in reactor safety and nuclear waste management research and development is most evident in experimental research and development of large computer codes where large manpower and financial resources are involved.
Finnish research institutes and companies have been well represented in the Euratom research programme. Finnish institutes and companies are part of the Euratom Sixth Framework Programme, after being involved in a total of 47 research projects and networks as part of the Fifth Framework.
Finnish nuclear safety authorities and nuclear research institutes take part in committees and expert groups established by the OECD/NEA. Finland has been a member of the OECD Halden reactor project since its beginning in the late 1950's.
The five Nordic countries have carried out joint research programmes since 1977. The goal is to maintain a high level of competence in the field of reactor safety, waste management and emergency preparedness as well as promoting a unified view on safety issues. The current sixth programme covers the years 2002-2005.
Finland's bilateral assistance in the field of nuclear safety and other sectors of nuclear technology is mainly directed to the neighbouring areas in Russia and the Baltic states and to Ukraine. In Russia, work is focused on the Kola and Leningrad nuclear power plants. By the end of 2000, Finland's total financial commitments in regard to Russia and CEECs for nuclear safety amounted to about €25 million.
The Technical Research Centre of Finland (VTT) has a research reactor in operation since 1962. The Loviisa Power Plant units, on the southern coast (see Figure 3), owned by Fortum Power and Heat Oy (Fortum), were ordered in 1969 and 1971 and started commercial operation in 1977 and 1981. The Olkiluoto Power Plant units, on the western coast, owned by Teollisuuden Voima Oy (TVO), were ordered in 1972 and 1974 and started commercial operation in 1979 and 1982. The Loviisa power plant has two Russian (Soviet) VVER (PWR) reactors and Olkiluoto power plant has two Swedish BWRs. At the start of the operation the nominal net capacity of the Loviisa units was 420 MW(e) each and the initial net rating of the Olkiluoto units was 660 MW(e) each. The power level (net) of the Olkiluoto units was raised to 710 MW(e) in 1984. In the connection of the latest operating licence renewal process and plant modernisation projects, the authorities approved in 1998 the uprating of the power production capacities (net) of the Loviisa and Olkiluoto plants up to 2 ´ 488 MW(e) and 2 ´ 840 MW(e).
For additional information on national laws and regulations concerning nuclear power please see the OECD Nuclear Energy Agency's Analytical Study of Nuclear Legislation in OECD countries.
General safety regulations are issued by the Council of State. Detailed regulations and regulatory guides are issued by the Radiation and Nuclear Safety Authority (STUK). The licensing of nuclear installations in Finland (construction permit and operation license) is the responsibility of the Council of State. A major nuclear facility also needs a positive decision-in-principle by the Council of State, subject to ratification by Parliament. However, licenses for small nuclear facilities (e.g., research reactors with thermal power below 50 MW(e)) are granted by the Ministry of Trade and Industry, which has overall responsibility for the control of nuclear energy in Finland.
In Finland, the overall management and supervision of nuclear matters is the responsibility of the Ministry of Trade and Industry (KTM). The ministry also prepares policies and licensing procedures for adaptation by the Council of State. Preparation of legislation drafts and implementation of international agreements, supervision of nuclear waste management, and administration of the state's nuclear waste fund are the duties of the ministry's Energy Department. The ministry is assisted by the Advisory Committee on Nuclear Energy for the preparation of the most important matters related to nuclear energy.
The Radiation and Nuclear Safety Authority (STUK) works to ensure that radiation equipment, radioactive materials, nuclear energy and the nuclear materials are used safely. STUK is also responsible for the control of handling of radioactive materials and radiation exposure in workplaces, at home and in the environment. STUK operates under the auspices of the Ministry of Social Affairs and Health. The safety authority maintains close contacts with the Ministry of Trade and Industry, other government bodies, research institutes, universities and power companies. STUK is assisted by the Advisory Committee on Nuclear Safety (YTN) on major nuclear safety issues. Licensing of nuclear power plants proceeds in three stages: the decision-in-principle; the construction license; and the operating license. The safety aspects of the license applications are assessed by STUK. All use of nuclear energy must meet the following prerequisites:
The application for the Council of State's decision-in-principle (see Figure 4) may concern one or more alternative nuclear installation projects. Before the decision is made, an overall description of the installation including environmental effects and safety plans are made available to the public. Public and local authorities are given the opportunity to present their opinions in a public hearing. If the general prerequisites are met and if the municipal council of the site in question is in favour (municipal right of binding veto) of the construction of the installation, the Council of State may make the decision-in-principle. The decision is submitted to parliament, which either confirms or rejects it.
The Council of State enforces regulations on nuclear safety, security and emergency preparedness drafted by STUK. The Ministry of Interior is responsible for regulating public rescue services.
The application for a construction license is more detailed and includes safety analysis reports and security plans.
The application for an operating license must be accompanied with detailed construction information of the facility and cover the facility's operational plans. The license can be granted only for a fixed period.
During operation, a nuclear power plant is subjected to three types of regulatory inspection: periodic inspections; inspections that the operating organisation must pass in order to continue operation; and, continuous re-evaluation of the safety level of the operating plant. Operating licenses are granted for a limited period. When renewing a license, an overall evaluation of the safety of the plant is carried out by STUK.
The Nuclear Energy Act 990/1987 (Ydinenergialaki) and Decree No. 161/1988 (Ydinenergia-asetus) give parliament the final authorisation for building new major nuclear installations including waste disposal facilities. The Act and Decree also define the licensing procedure (e.g. handling of construction and operation licence applications), the conditions for the use of nuclear energy as well as waste management (including the scheme to ensure that sufficient funds are collected for future waste management). Furthermore, they define the role and tasks of the different parties involved in the regulation, licensing and operation of nuclear facilities, such as the responsibilities and authority of STUK.
The Radiation Act 592/1991(Säteilylaki) establishes the conditions to prevent and limit harmful radiation effects to health.
The Nuclear Liability Act 484/1972 & 588/1994 (Ydinvastuulaki) implements the Paris Convention on the Third Party Liability in the Field of Nuclear Energy and the Brussels Supplementary Convention. The amendment of 1994 implements the Joint Protocol on the application of the Paris and Vienna Conventions.
The Electricity Market Act 386/1995 (Sähkömarkkinalaki) opened access to the distribution networks and allowed foreign ownership of electricity supply. The Competition Act 480/1992 (Laki kilpailunrajoituksista) is compatible with EC directives on competition. Cartels and abuse of dominating position are prohibited by the act. Several other laws also cover electricity sector, including nuclear facilities:
The requirements presented in the Nuclear Energy Act and Decree are specified in several general regulations laid down by Decisions of the Council of State (Government). These decisions (VNp) cover the following topic areas:
Furthermore, the detailed Finnish licensing requirements for nuclear installations are outlined in the STUK regulatory guides YVL guides). The YVL guides now include about 60 directives in the following eight series: general guides, systems, pressure vessels, civil engineering, equipment and components, nuclear materials, radiation protection and radioactive waste management.
In 1994, Finland ratified the Framework Convention on Climatic Change. For the reference year (1990) of the convention, the total CO2 emissions in Finland were 54 million tons. In the Kyoto Protocol to the Framework Convention on Climatic Change the EU commitment is to reduce greenhouse gas (GHG) emissions, calculated as an average of the emissions between 2008 and 2012, by 8% from the 1990 level. According to the burden sharing between the EU countries, Finland's commitment is to return the emissions to the 1990 level. Meeting the emission limits - especially those of carbon dioxide - seems to be a challenging task to be accomplished without expanded use of nuclear power or a significant increase in electricity imports. In 2000, the CO2 emissions decreased to 54 Mt from the previous year's levels of around 60 Mt but in 2001 the emissions increased again. The main reasons for the drop during 1990s were major increases in hydropower production and in net electricity import as well as the power uprating in the connection of plant modernisation projects in nuclear energy production.
The national climate strategy lays down guidelines as to how Finland will meet the targets for greenhouse gas reduction agreed upon in the Kyoto Protocol. Preparation work was started in 1999 and the strategy was approved by the government in March 2001. Later that same year the Finnish Parliament endorsed it in a statement. Significant changes in the energy field, such as emissions trading, have been proposed. The government sent a new energy and climate strategy to parliament in late autumn 2005, where it is still under discussion.
It is a generally accepted view that Finland should have an average annual economic growth of at least 2.5% for the next 30 years, in order to be able to reduce further the unemployment rate and, at the same time, reduce its foreign debt. Within this time frame, the growth of primary energy use is expected to slow down and even level off. The need for electricity is expected to grow from the 2000 level of 79.1 TW h to 90 TW h in 2010. This requires some 2500 MW(e) additional power plant capacity and maintaining net electricity imports at the present level. By the year 2025 electricity consumption is expected to grow by some 40% from the current level in the business-as-usual scenario.
In 1990, Finland became the first country to enact an energy tax based on the carbon content of energy products. However, after the deregulation of the electricity market in 1995, this taxation system was found to impair severely the Finnish electricity producers' competitiveness in Nordic markets. Therefore, several changes have been implemented to reform the energy taxation. Presently the taxes are imposed on the use of electricity (for industry about 4.4 €/MW h) and for other consumers (7.3 €/MW h). In heat generation, the tax that is levied continues to be based on the carbon content of the fuel and not on the consumption of heating energy (CHP or other). The taxes on heat generation are determined on equal terms for all consumers. In comparison, the target values in the EC directive proposal for the electricity tax for industry and other consumption is 3 €/MW h and the minimum tax level 1 €/MW h. In the EC directive proposal the same tax rate is valid for heat produced by CHP.
General electricity market situation in Finland
The New Electricity Market Act (1994) came into force in 1995 and opened up the Finnish electricity market. According to the Act, transmission and distribution companies are licensed by the Electricity Market Authority. The licenses specify the franchised territory for the distribution companies. In Finland there is only one company (Fingrid Plc.) for transmission of high-voltage electricity. In their territories the distribution utilities are obligated to connect end-users and production sites to the distribution network against reasonable compensation.
Transmission and distribution companies are obligated to transmit electricity in their networks if transmission capacity is available. Electricity retailers who have dominant market position in a distribution network have an obligation to offer electricity to small-scale customers at a reasonable price. Customers can choose between this local offer and any other offers on the competitive market. Foreign ownership of the electricity supply is also possible.
Generation and transmission investments are funded by loans from the domestic and international financial markets, by self-financing and by equity capital. The state does not fund investments by the utilities and gives no debt guarantees. The state is only involved as an equity investor in the state-owned companies and requires fair return on equity capital.
As of the beginning of 1997, all electricity users have been able to freely select their electricity suppliers. From 1 September 1998, all households have been able to select their supplier as changing supplier no longer requires new metering equipment. The enforcement of legislation pertaining to Finnish electricity markets and the operators operations are overseen by Energy Market Authority in collaboration with the Finnish competition authorities.
The deregulation of Finnish electricity markets has played a significant role in the opening of Nordic energy markets. This was in the interest of both industry and domestic consumers. The Nordic Electricity Exchange will play an important role in the creation of a common market by bringing in new players and helping to develop new forms of commerce. The exchange started in 1998 and its operations are based on the present and future products and services of the Nordic NordPool electricity exchange.
Impacts of deregulation on nuclear power sector in Finland
The existing nuclear power plants in Finland are operating as base load units and have an average annual load factor of more than 90 %. The electricity production costs are low for both Loviisa and Olkiluoto nuclear power plants. The investment costs of the existing nuclear plants are to a large extent already paid for and the operating costs are low compared with conventional thermal power stations. Hence the deregulation of electricity market does not have any significant impact on the competitiveness of nuclear power. The present nuclear power plants will be even more competitive in case environmental fees, for example CO2 taxes, are introduced. In that case, a long lifetime for most of the existing nuclear power plants can be foreseen.
According to the Nuclear Energy Act, the licensing process for a new nuclear facility commences with the decision-in-principle. At this step the government considers whether "the construction project is in line with the overall good of society". In particular, the government pays attention to the need of the facility with respect to country's energy supply and to the suitability of the proposed site of the nuclear facility and its effects on the environment. For the decision, the Radiation and Nuclear Safety Authority (STUK) has to make a preliminary statement on the safety of the facility and the host municipality must state its acceptance of siting the facility. A positive decision can only be made by the government if the municipality's statement is positive and no safety or other reasons have been presented that would show that there are not sufficient prerequisites to fulfil the requirements of the Nuclear Energy Act. Finally, a positive decision still has to be endorsed by parliament.
As preparatory actions before filing of an application for the decision-in-principle from the government and parliament for a new nuclear power plant unit, the nuclear power companies Fortum and TVO carried trough the Environmental Impact Assessment procedure for new nuclear power plants at either Olkiluoto or Loviisa sites. The environmental impact assessment reports for both locations were submitted in August 1999 for review to the contact authority, Ministry of Trade and Industry. The Ministry gave its final statements February 2000.
On 15 November 2000 TVO submitted an application for a decision-in-principle to the government for the construction of a new nuclear power plant unit. The application for a decision-in-principle proposes that the unit be constructed either in Eurajoki, Olkiluoto, or in Loviisa, Hästholmen, near the already operational power plants. The nuclear power plant unit is to be equipped with a light water reactor, either a boiling water or pressurised water reactor with an electrical output of 1000 - 1600 MW. Each of the municipalities of the alternative sites has accepted the construction of a new nuclear power unit.
A preliminary safety assessment of the project by STUK, the Radiation and Nuclear Safety Authority of Finland was completed in February 2001. The government made a decision-in-principle on the construction of the new nuclear power plant unit on 17 January 2002. By virtue of the Nuclear Energy Act, the decision was still to be subjected to the ratification by parliament. This ratification took place on 24 May 2002.
The decision-in-principle will be in force for five years from the ratification. The company launched competitive bidding late 2002 and received offers in spring 2003. The TVO owners will make their final decision on the choice of the plant type on the basis of the result of this bidding late 2003. The company submitted the constriction permit application in the beginning of 2004. It chose the plant site Olkiluoto in October 2003.
The Finnish government granted TVO a construction license on 17 February 2005. The construction of the reactor building started in August 2005. The construction will probably take approximately four and a half years. At the final construction stage TVO must submit a statutory application for an operating licence to the government. The processing of this licence application is expected to take around a year. After granting the operating licence, the commissioning of the plant unit could take place in 2009. There have been several delays in the project due to quality deficiencies in some heavy components manufacturing processes and building concrete deliveries.
The energy policy decision now ratified supports the implementation of the National Climate Strategy adopted last year. Finland is now better equipped to meet its international emissions reduction commitments. The decision-in-principle now ratified is based on the view that the nuclear power option is the most cost-effective alternative, both in terms of central government finances and national economy, for generation of baseload power within the framework of the Kyoto Protocol. In addition, it will lead to a more stable electricity prices in Finland.
Parliament also ratified a separate decision-in-principle on the final disposal of spent nuclear fuel in the new nuclear power plant unit. Thus the spent fuel of the possible new nuclear power plant unit would also be disposed in the bedrock of Olkiluoto.
The amendment to the Nuclear Energy Act in 1994 halted Loviisa nuclear power plant's spent fuel shipments to Russia (Chelyabinsk) in 1996. Fortum and TVO agreed on co-operation in nuclear waste management concerning spent fuel treatment and disposal. The two companies founded in 1995 a joint company, Posiva Oy, of which TVO owns 60% and Fortum 40%. However, the final responsibility for nuclear waste management stays with the company which produced the waste.
In May 1999, Posiva Oy completed the Enviromental Impact Assessment reporting on construction of the final disposal facility for spent nuclear fuel. The report covered four alternative locations. At the same time Posiva Oy submitted an application for a decision-in-principle to the Council of State based on one site: the Olkiluoto nuclear power plant site. The municipality of Eurajoki accepted the construction of the facility in Olkiluoto. On 21 December, the government made a decision in principle and in May 2001 parliament endorsed the government decision with a vote in favour of the proposal 159-3.
The decision applies to the spent nuclear fuel from the existing power plants. In accordance with the decision, the maximum amount of the fuel to be disposed of in the final repository is 4000 tonnes, which is the amount generated by the existing nuclear power plants during 60 years of operation. The construction licence for the facility should be applied for before 2016. The operation is planned to start around 2020. The final disposal of the spent fuel generated by potential new nuclear power plant unit included in this repository.
An independent university group has conducted public opinion surveys on energy alternatives since 1983. Figure 5 indicates how the attitudes towards nuclear power have evolved over the years. It can be seen that the public attitude was rather favourable towards nuclear power before the Chernobyl disaster. The survey taken immediately after the accident showed a drastic change in opinion. At that time only 14% were in favour of increasing nuclear capacity. The confidence lost in 1986 quickly returned by 1988 and the trend has been slowly improving since then. The latest poll of showed that 45% favoured expanded use of nuclear, while 28% were opposed. The change after the decision-in-principle of the fifth Finnish reactor is clear.
The biggest uncertainty seems to concern nuclear waste. A question in a 1999 opinion poll concerned especially the opinion of the inhabitants living in those municipalities that were the candidate host communities for a spent fuel repository in Finland. The results show that a clear majority of the people in Loviisa and Eurajoki would agree to a spent fuel repository being sited in their home community, provided that studies can show that the encapsulation and disposal facility is safe.
Power companies in Finland pay annual contributions to the State Nuclear Waste Management Fund, which operates under the auspices of the Ministry of Trade and Industry. This provision covers all future measures: treatment, storage and final disposal of spent fuel and radioactive waste, as well as decommissioning of the plants. The power companies contributing to the fund are entitled to borrow back 75% of the contributions against securities.
The co-operation between Fortum Power and Heat and TVO does not cover medium and low-level operation wastes, nor the decommissioning of the nuclear power plants and the management of the thereby arising wastes. The first medium-and low-level waste repository located in Olkiluoto was commissioned in 1992. The operational licence was granted in 1998 for the first phase of the second repository for low-level maintenance wastes at the Loviisa nuclear power plant site in Hästholmen. IVO and TVO are independently responsible for funding the repository despite their spent fuel management co-operation.
To ensure that the financial liability is covered, the utilities must each year present cost estimates for the future management of nuclear wastes, including decommissioning of nuclear power plants. The latest cost estimates, based on waste quantities at the end of 2000 and decommissioning of nuclear power plants, arise to about €1 112 million for TVO and Fortum together, with no discounting.
The administrative procedures are described in detail in the nuclear energy legislation. The past and expected future development of the total fund holdings and unfunded liabilities are depicted in Figure 10. As of beginning of 2001, the fund capital amounts to 96% of the liability. The peak of the liability curve in 1994 is due to the termination of Loviisa spent fuel returns to Russia and the subsequent decrease is due to the spent fuel management co-operation agreement between Fortum and TVO. In rough terms, the cost for radioactive waste management, including plant decommissioning, is 0.23 ECU/MW·h (with no discounting), representing about 10% of the total power production cost.
To curb Greenhouse Gas emissions, Parliament passed the national climate strategy (NCS) in June 2001. The NCS focuses on domestic measures as the best way to reduce the country's emissions, and includes an array of programmes in all emission-producing sectors. While a preference for domestic emission cutting measures is planned, Finland will also explore the use of international mechanisms, especially emissions trading. This is especially true given the high variability of Finnish emissions due to climatic reasons (i.e., hydro availability and heating needs in the winter).
If emissions are higher than predicted during the Kyoto window, it will be too late to employ domestic measures which take years to implement. In that case, international mechanisms will be essential. In addition, a great deal of emission cuts are expected to come from the proposed nuclear plant coming on-line in 2009. If the plant is delayed for any reason, Finland will need to cut substantial emissions quickly, for which international mechanisms are well-suited. International mechanisms may also provide Finland with a lower-cost alternative to cutting emissions than the exclusive use of domestic measures.
Appendix 1 - International, Multilateral and Bilateral Agreements
Nuclear facts and figures for OECD
countries
Number of nuclear units connected to the grid;
Nuclear electricity generation (net TWh); Nuclear percentage of total
electricity supply.
IEA energy statistics: Finland
Data available in the following areas: Coal, oil and gas use; Electricity production, supply and consumption; Heat production, supply and consumption; Graphs of sectorial final consumption by source in 1973 and 2001.
The Decommissioning and Dismantling of Nuclear Facilities in OECD/NEA Member Countries: Finland
This compilation of national fact sheets is intended to serve as an authoritative source of reference information on individual NEA member countries. In this context, the term "nuclear facility" includes all facilities associated with the production of nuclear power, from mining of uranium, through fabrication of nuclear fuel, nuclear power plant operation, fuel reprocessing and waste management, including related R&D facilities, and research and demonstration reactors.
Nuclear Legislation in OECD Countries: Finland
Regulatory and Institutional Framework for Nuclear Activities
Each country profile in this valuable reference work provides a detailed review of a full range of nuclear law topics. These include: the general regulatory regime, including mining; radioactive substances and equipment; nuclear installations; trade in nuclear materials; radiation protection; radioactive waste management; non-proliferation and physical protection; transport; and nuclear third party liability.
Energy for a Changing World
A website of the European Commission Directorate-General for Energy and Transport.
Nuclear Energy Data
Nuclear Energy Data is the NEA’s annual compilation of essential statistics on electricity generation and nuclear power in OECD countries. The reader will have quick and easy reference to the status of and projected trends in total electricity generating capacity, nuclear generating capacity, and actual electricity production, as well as to supply and demand for nuclear fuel cycle services.
This is an edited extract from the IAEA Country Nuclear Power Profiles. The complete entry is available from the IAEA.
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