The Planned Fifth Nuclear Reactor in Finland,and its Institutional Framework

Abstract

The institutional framework and the role of the companies are of key importance in considering an investment in new nuclear capacity in a country. In Finland, Teollisuuden Voima Oy (TVO) is a privately owned power company, which supplies electricity to its shareholders at cost. TVO received 24.5.2002 a positive decision in principle from the Finnish Parliament, which enables the construction process of a new nuclear unit. In this paper the arguments for more nuclear power and cost comparison of power generation are described. Also the capacity in Finland and Scandinavia, the need of new power plants and the political decision process of a new nuclear unit are discussed. One argument of TVO's application was the need of competitive and CO₂ free generating capacity. The higher than expected growth of electricity consumption, the rise of electricity price and the increase in carbon dioxide emissions have made these arguments even more valid.