2. Executive Summary
In 2008, 30% of electricity was generated through nuclear power
Finland has four nuclear power plant units with a total net capacity of 2,656 MW
Overview It is estimated that 4,800 MW of new nuclear generating capacity is required by 2030 to
meet domestic demands
meet domestic demands
A new nuclear plant is under construction and three more are expected by 2020
Growth in energy intensive industries
Market Rise in net electricity imports
Characteristics Credit issues faced by players in the market
Rising electricity price and cost effective electricity generation
Legislations governing nuclear activity
Legislations governing nuclear activity
Procedure for establishing a nuclear facility in Finland
Regulations Guidelines for obtaining a construction license for a nuclear power plant
Guidelines for obtaining an operation license for a nuclear power plant
The market is dominated by a few players which include
– Elektrobudowa
Major Players – Teollisuuden Voima Oy
– Fennovoima Oy
– Fortum Power & Heat Oy
NUCLEAR ENERGY – FINLAND.PPT 2
4. Nuclear Energy in Finland is the primary source of electricity
generation
Overview Electricity Production
TWh
•Nuclear energy accounted for 30% of total Nuclear power
90
electricity generated in 2008 80
82
79 78
74
Hydro power
•Finland's four nuclear power plant units have a 70 27% 68
28% 29%
Natural gas
30%
total net capacity of 2,656 MW 60 33%
Coal
18% 14% Biofuel
The annual load factors of all the units have 50 18%
23%
40 12% 20% 12% Peat
averaged at ~ 90% since its inception 13%
30 9%
19% 3%
13% 20% 15% Others
•Major uranium mining areas include
M j i i i i l d 20 10%
17%
11%
12% 13% 7% 13%
Eno in eastern Finland, Askola in southern Finland 10
8% 4%
13% 12%
4% 8% 4% 8% 2% 8% 2%
as well as in the Uusimaa, Northern Karelia and 0
Lapland provinces 2004 2005 2006 2007 2008
•It has been projected 4,800 MW of new
It has been projected 4,800 MW of new Growth in Nuclear Generation
generating capacity is required by 2030
Finland needs new capacity both to meet new TWh
demand growth and to replace old capacity, 69.2
70
primarily coal‐fired plants +5%
60
•Nuclear power development is expected to be 50
the primary measure to cut the CO2 emissions 40
30
towards meeting the countries emission 22.2
20
targets
10
0
2008 2030e
NUCLEAR ENERGY – FINLAND.PPT 4
5. The country currently hosts four nuclear plants while
another facility is under construction
Existing Nuclear Power Plants Upcoming Nuclear Power Plant
•A fifth nuclear power plant – Olkiluoto 3 – is
Plant Olkiluoto 1 & 2 Loviisa 1 & 2 under construction
Teollisuuden Fortum Power & •The plant will have a 1,600 MW European
Operator
Voima Oy (TVO) Heat Oy
pressurized reactor
Commercial •Areva in collaboration with Germany's Siemens
1979 & 1982 1977 & 1981
Operation
is building the plant for electricity firm TVO
is building the plant for electricity firm TVO
Licensed Till 2039 & 2042 2027 & 2030 •It is expected to go online in mid 2012
Boiling Water Pressurized •The plant was initially expected to be
Type
Reactor Water Reactor functional by mid 2009 but has been stalled
Power (MWe)
P (MW ) 2 x 860
2 860 2 x 488
2 488 due to operational delays
d i ld l
Production Areva has invested USD 810 mn on the Olkiluoto
14.4 TWh 8.1 TWh project in the first half of 2009
(’07)
Load Factor The delay of the project is estimated to lead to an
95.6%
95 6% 95.4%
95 4% additional costs of USD 3.4 bn
dditi l t f USD 3 4 b
('07)
NUCLEAR ENERGY – FINLAND.PPT 5
6. Players are capitalizing on the opportunities in the market
and developing new nuclear plants
Other Nuclear Project Expected to be Established
Operator TVO Fennovoima Fortum
Municipalities of Pyhaejoki,
p y j ,
Site
Sit Olkiluoto
Olkil t Hastholmen in Loviisa
H th l i L ii
Ruotsinpyhtaeae and Simo
Capacity (MW) 1,000‐1,800 1,500‐2,500 1,000‐1,800
Pressurized water reactors European Pressurized reactor, Pressurized water reactors (VVER‐
Reactor Type (PWR) and Boiling Water Boiling Water Reactor (SWR‐ 1000), ABWR, Economic Simplified
Reactor (BWR) 1000) or Advanced BWR (ABWR) BWR
Toshiba, GE‐Hitachi, Mitsubishi Toshiba, GEHitachi or a Russian
Supplier alternatives Areva and Toshiba
or a Korean supplier supplier
Construction date 2010 2012 NA
Application for
Apr‐08 Jan‐09 Feb‐09
Decision‐in‐Principle
Operational Date 2020 2020 2020
Cost USD 4.4‐5.9 bn NA USD 5.9‐8.8 bn
• The existing infrastructure at • Plant will provide electricity for • Facility will be used for combined
Olkiluoto which includes its owners at production cost, heat and power production
nuclear waste management with each partner getting a • The spent nuclear fuel will be
Other Facts
and the basic organization share of output in proportion to disposed of at Olkiluoto in Eurajoki
will benefit the operator its share of ownership • Electricity generated will be to all
electricity users
l i i
NUCLEAR ENERGY – FINLAND.PPT 6
8. Market Characteristics
Rising electricity price and cost Growth in energy intensive
effective electricity generation industries
Market
Characteristics
Credit issues faced by players in
the market Rise in net electricity imports
NUCLEAR ENERGY – FINLAND.PPT 8
9. The country comprises of major industries with large energy
requirements forwarding growth in nuclear power
Major energy intensive industries Segmentation of electricity consumption
•Majority of the power consumed in Finland is
Industry
by the industrial sector
25.8% 19.8% Household & Agriculture
•The country comprises of industries which are Services & Construction
major consumers of power such as pulp and 3.3% Losses
paper, metal and engineering industry, and
shipbuilding
p g
•According to a survey by TNS Gallup, for
51.0%
Finnish power company TVO, it has been
inferred that electricity demanded will
increase in Finland in the next 10 30 years
increase in Finland in the next 10‐30 years
•The main reasons for the increase in electricity
consumption are expected to be the growth of 11.0% Forest
industrial production, the increase in Meat Processing
15.3% Chemicals
automation, the electrification of traffic, and a
automation the electrification of traffic and a
55.8% Others
general increase in the standard of living
17.9%
NUCLEAR ENERGY – FINLAND.PPT 9
13. Regulations
Guidelines for obtaining an
Legislations governing nuclear
operation license for a nuclear
power plant activity
Key
Regulation
s
Guidelines for obtaining a
Procedure for establishing a
construction license for a nuclear
power plant nuclear facility in Finland
NUCLEAR ENERGY – FINLAND.PPT 13
14. Legislations governing nuclear activity
• It establishes general principles governing the regulation of the use of nuclear energy, the
establishment of a licensing procedure and nuclear waste management
• States that a license is required for the manufacturing, production, handling, use and storage of
nuclear materials
The Nuclear
Energy Act, 1987 • Radioactive waste management is regulated by this act. It allocates responsibilities between waste
producers and government authorities, incorporates waste management criteria into the licensing
procedure and provides the basis for financing the waste management system
• A license must be procured under this act for the transportation of nuclear materials and waste
issued by the STUK
• Aims to protect human health from the adverse effects of radiation
• Regulates all activities that cause or may cause exposure to radiation
The Radiation
The Radiation t as d e e t e e s o ce s g equ e e ts a d app es to o s g, o o s g a d atu a
• It has different levels of licensing requirements and applies to ionising, non‐ionising and natural
Protection Act, radiation
1991
• To obtain a license under this act an application is given to the STUK with information regarding the
equipment and protective shields used in the activities, quality of personnel and work standards, and
the system followed for the disposal of radioactive waste
• All mining activities are regulated by this act
• The act forwards that in order to execute mining or enrichment operations for producing uranium or
The Mining Act thorium requires a license by the Government which may be granted to Finnish citizens, corporations
or foundations as well as to individuals, entities or authorities residing within the member states of
the European Union
NUCLEAR ENERGY – FINLAND.PPT 14
15. Legislations governing nuclear activity
• It makes the operators of nuclear power plants responsible for damages caused to third parties
The Nuclear
• The total liability of a nuclear power plant situated in Finland has been limited such that the plant
Liability Act,
1972 must compensate for damages to a maximum of 175 mn Special Drawing Rights
• Finland’s international agreements makes contracting countries compensate the injured
Finland s international agreements makes contracting countries compensate the injured
Transportation • Regulates all modes of transportation of radioactive substances
of Dangerous
Substances Act • Applies to international and domestic transport
Electricity
y
Market Act
• Opened up access to distribution networks and allows foreign ownership in electricity supply
Opened up access to distribution networks and allows foreign ownership in electricity supply
Act on
Competition • Activities must be compatible with the European Community law on competition
Restrictions
Land Use and • Requires a land use plan for power plants and other facilities to be built on plant sites, and provides
l d l f l d h f l b b l l d d
Building Act guidelines for their planning
Environmental
Protection Act
• Lays down various requirements relating to environmental protection
Law on Water
L W t
Resources
• Permits are required from environmental authorities for the use of cooling water in power plants
Law on Air
Protection
• States the limits that the government must impose for non‐radioactive atmospheric emissions
Law on
Law on
•S
States the measures that operators must take while building the facility in the event of a nuclear
h h k hil b ildi h f ili i h f l
emergency
preparedness emergency
NUCLEAR ENERGY – FINLAND.PPT 15
16. The procedure for establishing a nuclear facility in Finland
Developing a nuclear power plant
• There are primarily 4 stages towards the development of a nuclear facility
Environmental
Decision in Construction Operation
Impact
Principle License License
Assessment
• Operator files an
fl
application to the
Government for a • Before the
• Coordinated by the • Once the DiP is
Decision‐in‐Principle construction of the
Ministry of affirmed the
( )
(DiP) p
plant is on the verge
g
Employment and
l d operator applies for
t li f
• EIA report is of completion, the
Labor a construction
attached to the operator applies for
• Operator carries out license
application an operating license
an environmental • This license is issued
• Government carries for the facility
impact assessment
p by the Government
y
out a safety
out a safety • The Government
The Government
on the construction after a rigorous
appraisal from STUK issues this license
and operation of the assessment
and a statement based on various
nuclear facility procedure
from the considerations
municipality in the
area
NUCLEAR ENERGY – FINLAND.PPT 16
17. Guidelines for obtaining a construction license for a nuclear
power plant
Environmental
Government Parliament
Impact Assessment
Ministry of Trade and
Submits the Government a Application moves to the
pp
Environment (KTM)
Environment (KTM)
review addressing issues of Parliament for approval
waste management including
methods proposed, safety and
Preliminary safety environmental aspects, cost and
Grant of the license is
Application for assessment from suitability to Finnish conditions
still contingent upon
a construction
t ti STUK public safety, workforce
license protection,
forwarded by environmental
the operator protection, town
planning and building
Safety assessment by the
y y Application is approved
pp pp
requirement, technical
i t t h i l
areas and neighboring or disapproved by the
expertise, financial
municipal councils Government
resources and final
decommissioning
Applicant provides
pp p
Consultation with government agencies such as the Ministry of Defense, concerned State Provincial Office,
C lt ti ith t i h th Mi i t fD f d St t P i i l Offi
information for
Regional Council and Regional environment Centre and Advisory Committee on Nuclear Energy
public consultation
• Construction and operation of nuclear facilities is prohibited without a license
• Licenses are granted to those entities under the jurisdiction of the EU member status
Licenses are granted to those entities under the jurisdiction of the EU member status
• The Government must reject the proposal if the municipal council responsible for the proposed site opposes the application
NUCLEAR ENERGY – FINLAND.PPT 17
18. Guidelines for obtaining an operation license for a nuclear
power plant
Intermediate
Government
Authorities
KTM assess the financial security
requirements based on the act
b d h
related to waste management
Application for
operational
Application moves to the
license
license government for approval
f l
forwarded by STUK assess the safety, physical
protection, emergency planning,
the operator non‐proliferation requirements
and the financial guarantee that
the operator can cover the
possibility of a nuclear damage
ibili f l d
caused by the facility
• Operating licenses are granted for a fixed period of time
• License period is subject to change during the period of its validity by the Government
• The license can be revoked if it undermines any of the acts basic principles, if it dies, loses legal capacity or if the institution becomes
y p p , , g p y
bankrupt or ceases to operate the facility for any other reason
• License requirements of the Nuclear Energy Act are reinforced by provisions for criminal offences
Offences include use of nuclear energy without the appropriate license, infringement of particular provisions of the act, failure to
observe license conditions, failure to comply with safety, physical protection or emergency planning requirements, or interference
with equipment installed by STUK to monitor nuclear power facilities
The STUK has the authority for search and entry, to access records, take samples and install monitoring devices. It require the operator
to submit reports and provide information regarding the method of production of fuel or the manufacture of equipment to be used
NUCLEAR ENERGY – FINLAND.PPT 18
20. Government Policies & Initiatives
Policies towards reducing
CO2 emission
CO2 emission
Key
Policies
P li i
Introduction of a windfall Major research and
profits tax
fi development activities
d l i ii
NUCLEAR ENERGY – FINLAND.PPT 20
21. The governments targets to reduce carbon dioxide
emissions will benefit the nuclear power industry
Policies towards reducing CO2 emission
• The government has two major targets to be met due to international agreements
The European Union has forwarded directives to cut CO2 emissions by at least 20% by 2020, compared to 1990 levels
Under the Kyoto Protocol, the country must reduce their greenhouse gas emissions by a total of 8% from the 1990 level by the
first commitment period of 2008–2012
– The most significant greenhouse gas, carbon dioxide, accounts for over 80% of all greenhouse gas emissions in Finland
• The State of Finland will contribute to this goal by acquiring on average 2 mn tons of emission reductions per
year with the help of the Kyoto flexible mechanisms
• It has been estimated that the government shall forward initiatives to develop 4,800 MW of new nuclear power
capacity by 2030 in order to meet the targets
Electricity Procurement by Source of Energy in Finland
2005 2011
The share of emission‐
Gas
free energy sources is Gas
11% Nuclear expected to grow from
Coal, Oil 16%
26% 54% to 66% Nuclear
10% Coal, Oil
Coal Oil 34%
7%
Imports 7%
20% 12%
Imports Wood Waste
15%
5% 17%
16% y ,
Hydro, Wind 4%
Peat
P
Hydro, Wind Wood Waste
Peat
NUCLEAR ENERGY – FINLAND.PPT 21
22. Major research and development activities carried out by
the State towards developing this segment
Overview Sources of Funding
•R&D activities have largely focused on safety
and operational performance of the power 4.0% Power Companies
3.0%
3 0%
plants, and the management and disposal of
l d h d di l f 4.0%
Research Funds
waste 11.0% VTT
Tekes
•Annual funding for national nuclear energy 8.0% EU
research is ~USD 69.2 mn Others
Additi
Additional funding is received from Tekes, the
l f di i i df T k th 70.0%
70 0%
Finnish Funding Agency for Technology and
Innovation
•The country has no institutes dedicated to
nuclear research Research Areas
Most research takes place at the VTT Technical
Research Centre of Finland
10.0%
•National research programmes on nuclear 0.4% Nuclear Waste
energy Management
Nuclear Power Plant Safety (SAFIR2010), 2007– Reactor Safety
28.4% Fusion
2010
61.2% Others
Research Programme on Nuclear Waste
Management (KYT2010), 2006–2010
Euratom – Tekes Fusion Energy Cooperation
Euratom Tekes Fusion Energy Cooperation,
2007–2011
NUCLEAR ENERGY – FINLAND.PPT 22
23. The State plans on implementing a windfall profit tax for
The State plans on implementing a windfall profit tax for
nuclear and hydro power facilities
Introduction of a windfall profits tax on nuclear and hydro power plants
• The Finnish government plans on implementing a windfall profit tax on the existing nuclear
and hydro power facilities by 2011
and hydro power facilities by 2011
Overview
• The Ministry of Employment and the Economy has instated a working group which will look
into the specifics of the tax
• The tax is intended to offset windfall profits that utilities with nuclear and hydropower
Purpose
generation make selling their free CO2 allocations
generation make selling their free CO2 allocations
Application • The tax would apply to nuclear and hydropower plants built before 1997
• The tax levied conforms to EU regulations
Major • It should not hamper the competitiveness of Finland's energy intensive industry
Considerations • Outcome of the tax should not lead to an increase in electricity prices for consumers and
industry
Expected Tax
• The tax rates is expected to range from USD 1.5 to USD 14.7 per MWh
Structure
• Depending on the level, the government has estimated that it will generate between USD 48.6
Financial mn and USD 486 mn in annual revenue
Benefits • This tax is expected to add to the state funds which can be implemented to further the energy
sector in Finland
NUCLEAR ENERGY – FINLAND.PPT 23
25. Nuclear Waste Management
Developments in nuclear waste
Current scenario
management
Nuclear Waste
Managemen
t
Provisions of nuclear waste
management Classification of nuclear waste
NUCLEAR ENERGY – FINLAND.PPT 25
26. Developments in nuclear waste management
2004‐2009: Ground‐level service and monitoring buildings for
ONKALO under construction. Excavation of the access tunnel to
reach a depth of 420 metres at an investment of USD 103 mn
1983: The Finnish Government set the overall schedule on the 2009‐2011: Research on the mechanical characteristics of the
Finnish nuclear waste management programme and began
Finnish nuclear waste management programme and began bedrock, and layout adaptation of the repository
bedrock, and layout adaptation of the repository
scanning potential sites for final disposal of spent fuel 2012: Posiva plans on submitting an application for a construction
1987: Interim storage of spent nuclear fuel started in Olkiluoto license for the final disposal facility
with wide scale field research in 5 municipalities for the final 2015: Construction of the final disposal facility to begin
disposable site
1970 1980 1990 1995 2000 2005 2020
• 2003:
• 1970: Plans • 1988: • 2000:
• 1994: Municipality
for nuclear • 1977‐1978:
1977‐1978: Construction
Construction Olkiluoto
Olkiluoto
Parliament of Eurajoki
waste Operation of of low and was selected • 2020: Final
banned the issued a
management reactors intermediate as the site disposal is
import and permit for
began with started in level waste for final expected to
export of ONKALO ‐ an
construction Loviisa and repository in disposal of begin
nuclear underground
of the plants Olkiluoto Olkiluoto spent
waste characterizat
began
b nuclear fuel
l f l
ion facility
Interim storage 1992: Final disposal of low and intermediate level waste started in Olkiluoto
began in
began in 1993: Construction of low and intermediate level waste repository started in Loviisa
1993: Construction of low and intermediate level waste repository started in Loviisa
Loviisa 1995: Posiva Oy was established to manage the final disposal of spent nuclear fuel
NUCLEAR ENERGY – FINLAND.PPT 26
27. Classification of nuclear waste
Types of nuclear waste under the Nuclear Energy Act
Current nuclear waste scenario in Finland
Current nuclear waste scenario in Finland
High‐Level Waste
Operating Waste
p g Decommissioning Waste
g
(including spent nuclear fuel)
(i l di t l f l)
• Operating waste consists
of low (LLW) and
of low (LLW) and • The four nuclear power
The four nuclear power • Decommissioning refers to
Decommissioning refers to
intermediate level (ILW) plants produce ~ 70 nuclear waste
waste tonnes of spent fuel a year management actions taken
LLW includes protective • Spent nuclear fuel can be after a nuclear power
plastic sheets, tools, reprocessed but that is not plant has been closed
protective clothing and
protective clothing and the case in Finland. Spent
h i Fi l d S •SSome of the structures in a
f h i
towels used in service work
fuel is allowed to cool in a plant become radioactive
ILW consists of the ion‐
exchange resin used to water pool for a few years, over time. One of the most
purify the process water after which it is transferred important structures in
• Operating Waste
Operating Waste to interim storage facilities
g this respect is the reactor
p
Olkiluoto 150‐200 m3/yr on the plant site pressure vessel
Loviisa 100‐150 m3/yr
NUCLEAR ENERGY – FINLAND.PPT 27
28. Provisions of nuclear waste management
Provisions under the Nuclear Energy Act
• ”Nuclear waste generated in connection with or as a result of the use of nuclear energy in
Disposal Norm
Disposal Norm
Finland shall be handled, stored and permanently disposed of in Finland”
• Th h dli
The handling, storing and permanent disposal of nuclear waste originating from other countries
t i d t di l f l t i i ti f th ti
Dumping
is forbidden
• The nuclear power companies are responsible for all the costs related to nuclear waste
The nuclear power companies are responsible for all the costs related to nuclear waste
management, including decommissioning
Role of power The power companies bearing the waste management obligations have established a joint company, Posiva
companies Oy, to execute the necessary research and implementation of spent fuel disposal
• The costs of waste management is factored in the price of electricity produced by the nuclear
power plants
power plants
• The purpose of this fund is to collect, store and reliably invest the funds towards developing
Nuclear Waste
facilities as well as carry out research projects for storing nuclear waste in the future
Management
• The fund contains approximately USD 2 2 mn
The fund contains approximately USD 2.2 mn
Fund
• The fund is controlled and administered by the Ministry of Trade and Industry
NUCLEAR ENERGY – FINLAND.PPT 28
29. Nuclear waste management is dominated by existing
companies in the nuclear energy segment
Nuclear Waste Management Scenario in Finland
• Posiva Oy, established in 1995, is an organization responsible for nuclear waste management
Overview in Finland
• The company had a turnover of ~ USD 81 mn in 2008
• Posiva is owned by Teollisuuden Voima Oyj (60%) and Fortum Power & Heat Oy (40%) which
Ownership
p are the largest companies in nuclear power generation
• Both companies share the cost of nuclear waste management
• Its activities include the final disposal of spent nuclear fuel of the owners including the
construction, operation and eventual decommissioning and dismantling of the final disposal
Activities facility
y
• It is responsible for research into the final disposal of spent nuclear fuel and also provides
expert nuclear waste management services
• The spent fuel which is stored underground in Louviisa and Olkiluoto is expected to be
New Facility
New Facility transferred from existing water pool storage facilities to a final disposal area in Olkiluoto
transferred from existing water pool storage facilities to a final disposal area in Olkiluoto
• The plant should be functional in around 2020
• The two players in the nuclear power generation market have ownership over the company
Monopolistic Nature which makes it difficult for new players to enter the market considering the importance
placed on nuclear waste management by the Government of Finland
l d l t t b th G t f Fi l d
NUCLEAR ENERGY – FINLAND.PPT 29
31. Players in the Market (1/4)
Company Snapshot: Elektrobudowa
Corporate Information Financial Performance
Headquarters Katowice Revenue
Revenue Profit
fi
USD mn Profit / Loss USD mn
Founded 1953
400 331.7 25
Construction and installation services;
Area of Expertise 300 280.2 20
manufacturing electrical power equipment
191.0 15
Dariusz Manko – Ch i
D i M k Chairman 200
118.7 141.0 10
Key People
Jacek Faltynowicz – President 100 5
0 0
2004 2005 2006 2007 2008
Business Highlights
Business Highlights
• The company operates in various business segments
Power generation sector ‐ Technical consulting, engineering, procurement of materials and equipment, electrical works, testing,
commissioning and start‐up, service of operated equipment
Power distribution sector ‐ Manufacture of medium voltage and low voltage switchgear assemblies
Power distribution sector ‐ Manufacture of medium voltage and low voltage switchgear assemblies
Industrial automation sector ‐ Executes complex automation projects, data and communication systems for power generation plants,
industrial facilities, civil, industrial and residential construction, public utility facilities
• It signed a contract for the electrical works and the participation in the commissioning of the reactor section of a
nuclear power plant in Finland which is under construction
The signed contract is estimated at USD 9.3 mn
Operations began in Mar 2008 and is expected to be completed by 2011
NUCLEAR ENERGY – FINLAND.PPT 31
32. Players in the Market (2/4)
Company Snapshot: Teollisuuden Voima Oy
Corporate Information Financial Performance
Headquarters Eurajoki Revenue
Revenue Profit
fi
USD mn Profit / Loss USD mn
Founded 1969
400 360.5 0
334.0 331.1
Construction of power plants and electricity 319.3 292.8
Area of Expertise 300 ‐20
generation
Timo Rajala – Ch i
Ti R j l Chairman 200 40
‐40
Key People
Jarmo Tanhua – President and CEO 100 ‐60
0 ‐80
2004 2005 2006 2007 2008
Business Highlights
Business Highlights
• It is a company owned via a public‐private partnership; 43% ‐ government (including 27% by Fortum) and 57% private
• The output of the plants are contracted to each owner based on their share in the company while any unwanted
portion is sold by them to the Nordic market
• The companies presence in the energy market
Owns and operates two nuclear power plant units, Olkiluoto 1 and Olkiluoto 2 at Eurajoki
The Meri‐Pori coal‐fired power plant; plans on developing a carbon capture system in association with Fortum
Operates a wind power plant of 1 MW plant capacity with an annual output of ~2 mn kWh
• The company has been focusing on developing economical safe and environmentally friendly electricity for its
The company has been focusing on developing economical, safe and environmentally friendly electricity for its
shareholders
NUCLEAR ENERGY – FINLAND.PPT 32
33. Players in the Market (3/4)
Company Snapshot: Fennovoima Oy
Corporate Information Company Ownership
Headquarters Helsinki • Enterprises in industry trade and services hold
Enterprises in industry, trade and services hold
approximately 30% share, regional and local energy
Founded 2007
companies own approximately 36% share in
Area of Expertise Operate nuclear power plants Fennovoima
08’ Loss – USD 13.5 mn; ’07: Loss – USD 2.5 • Fennovoima has two owners
Financials
mn
Voimaosakeyhtio has a 66% stake
Key People Juha Rantanen – Chairman E.ON Nordic has a 34% stake
• Altogether it has 64 shareholders including
Business Highlights
Business Highlights
• It plans on constructing a 1500–2500 MW nuclear power plant in Finland
• Fennovoima plans on producing electricity for its owners’ needs at production cost basis where each owner will
receive the share of capacity proportional to its ownership in the company
• It has begun drafting the required studies for constructing the new nuclear power plant. These include studies related
to the site, safety, technical matters and nuclear waste management issues. Fennovoima is conducting the
Environmental Impact Assessment procedure for three sites
• The plant is expected to become operational by 2020 with construction beginning in 2012
NUCLEAR ENERGY – FINLAND.PPT 33
34. Players in the Market (4/4)
Company Snapshot: Fortum Power & Heat Oy
Corporate Information Financial Performance
Headquarters Espoo Revenue
Revenue Profit
fi
USD bn Profit / Loss USD bn
Founded 1998
10 8.3 2.5
Construction of power plants and electricity
Area of Expertise 8
6.6 6.6
2.0
generation 5.6 5.7
6 1.5
Matt Lehti – Chairman
M tt L hti Ch i 4 1.0
Key People
Tapio Kuula – President and CEO
2 0.5
0 0.0
2004 2005 2006 2007 2008
Business Highlights
Business Highlights
• Fortum is a leading energy company in the Nordic countries and the other parts of the Baltic Rim
• The Finnish government has a 51% stake in the company
• Its activities cover the generation, distribution and sale of electricity and heat, the operation and maintenance of
power plants as well as energy related services
• Fortum Power and Heat Oy are subsidiaries engaged in nuclear energy activities
• The company owns and operates the nuclear plant at Loviisa and has minority shares of the Olkiluoto nuclear power
plant and of the Swedish Forsmark and Oskarshamn nuclear power plants
• It plans on constructing a new nuclear power plant unit on the island of Hastholmen in Loviisa with a capacity of
1,000‐1,800 MW at USD 5.9 bn – USD 8.8 bn
NUCLEAR ENERGY – FINLAND.PPT 34
36. Appendix: Government Bodies
Ministry of Employment and the Economy
Ministry of Social Affairs and Health
Ministry of Interior
y
Major Bodies
` Ministry of Environment
Ministry of Foreign Affairs
Advisory Bodies
Finnish Radiation and Nuclear Safety Authority
NUCLEAR ENERGY – FINLAND.PPT 36
37. Government Bodies (1/3)
Ministry of Employment and Economy (previously known as Ministry of Trade and Industry)
• Responsible for the use of nuclear energy in Finland
• Plays a central role in the licensing system
• Supervises and co‐ordinates the long and cumbersome application procedure which involves
other ministries, national and local authorities and public hearings
• Supervises the implementation of the countries statutory provisions on waste management
and administers the State Nuclear Waste Management fund
g
• Supervises research and development work carried out in the field of nuclear safety
Key Bodies • Represents Finland within the European Atomic Energy Community, the International
Atomic Energy Agency, the Nuclear Energy Agency of the OECD, and the Nordic Nuclear
Safety Research Programme
Ministry of Social Affairs and Health
• Develops and guides policies relating to social protection, social welfare and health care
p g p g p
• Drafts legislation and other regulations on radiation protection, draws up official statements
on radiation protection issues, monitors and guides the development and implementation of
radiation issues
• It has administrative and financial responsibilities over the Radiation and Nuclear Safety
Authority which supervises both protection and other radiation legislation issues
NUCLEAR ENERGY – FINLAND.PPT 37
38. Government Bodies (2/3)
Ministry of Interior
• Responsible for the protection of the general public in the event of an emergency such as a
nuclear incident
• It is consulted during various stages of the licensing process under the Nuclear Energy Act
Ministry of Environment
• The ministry is consulted on the regulation of various aspects of nuclear energy and
radiation hazards
Key Bodies • Issues discussed include emergency planning and nuclear waste management
• International hearing of the EIA is executed by this ministry which acts as the contact point
Ministry of Foreign Affairs
• Licensing authorities must seek their advice on certain applications to export nuclear
material
Advisory Bodies
• Advisory Committee on Nuclear Energy and Advisory Committee on Nuclear Safety
Permanent consultative committee on nuclear energy issues
gy
It is appointed by the Government and works in collaboration with the Ministry of Trade and Industry
NUCLEAR ENERGY – FINLAND.PPT 38
39. Government Bodies (3/3)
Finnish Radiation and Nuclear Safety Authority (STUK)
•Functions
Primary functions include
– Regulating the safe use of nuclear energy and radiation including radiation monitoring activities
– Executing research and development projects on radiation protection
– Providing training and information to required personnel
– Participates in the licensing process, imposes and enforces the licensing conditions
– Assists in safeguards and emergency planning in the nuclear context
Key Bodies Controls the safety of the transportation of nuclear waste and radioactive materials for
final disposal
•Structure
Str ct re
Board of Governors carries out the administrative supervision of the authority
Reports to the Ministry of Social Affairs and Health and to the Ministry of Trade and
Industry
•Financial Aspect
l
Its activities are funded by the annual state budget
The nuclear power companies bear the costs of nuclear regulation and the authority is in
a position to set the fee structure based on certain guidelines provided by the Ministry
of T d and I d t
f Trade d Industry
NUCLEAR ENERGY – FINLAND.PPT 39
40. Thank you for your time
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