Introduction

Finland is highly dependent upon imports of primary energy sources. Indigenous fuels and hydropower cover around 30% of the energy demand, and 70% of the primary energy used (oil, coal, natural gas, uranium) is imported. Russia accounts for more than half of these imports. However, most of the processed end products of energy usage are domestically produced.

To curb greenhouse gas emissions and to secure supplies, Finland has chosen to expand its nuclear power capacity. Finland has two nuclear power plants (NPPs), each with two units, and in 2009 nuclear energy accounted for 33 % of total electricity production.

Public opinion is in favour of nuclear, since 61% of the Finns polled in the Eurobarometer on Radioactive Waste declared that they were in favour of nuclear energy.

Country Profile

Executive Summary

Finland is highly dependent upon imports of primary energy sources. Indigenous fuels and hydropower cover around 30% of the energy demand, and 70% of the primary energy used (oil, coal, natural gas, uranium) is imported. Russia accounts for more than half of these imports. However, most of the processed end products of energy usage are domestically produced.

To curb greenhouse gas emissions and to secure supplies, Finland has chosen to expand its nuclear power capacity. Finland has two nuclear power plants (NPPs), each with two units, and in 2009 nuclear energy accounted for 33 % of total electricity production.

Public opinion is in favour of nuclear, since 61% of the Finns polled in the Eurobarometer on Radioactive Waste declared that they were in favour of nuclear energy.

Security of supply

Finland has scarce primary energy sources. Its primary indigenous energy resources are hydro power, wood, wood waste, pulping liqueurs and peat. Indigenous fuels and hydropower cover around 30% of the energy demand. So, 70 % of the primary energy used in Finland is imported; namely oil, coal, natural gas and uranium. Finland is, therefore, highly dependant upon energy imports. Russia accounts for more than half of these imports. However, district heat for local use is completely produced in Finland, and 90% of all electricity and 75% of oil products are refined there.

Finland has a diversified and decentralised electricity supply, because electricity is generated using many different technologies and energy sources (2001-2003: hydro power 13.2%, wind power 0.1%, nuclear power 28%, condensing power 17.6%, cogeneration 14.6%, district heating 17.7%, net import 10.7%) in more than 400 power plants. Finland has two NPPs (each with two units). In 2009, nuclear energy accounted for 33% of  total electricity production.

Finland is part of the Inter-Nordic electricity market, together with Sweden, Norway and Denmark. The region’s electricity market is already an open one, whereas the EU is gradually creating a single electricity market. The Finnish electricity grid is connected to Sweden and Norway. Finland imports a significant amount of electricity from Sweden and a small amount from Norway. It also exports small amounts to both of those countries. Finland, Sweden, Norway and Sjaelland (in Denmark) make up the Nordic power system, which is linked with the continental European system.

In April 2003, power companies from Estonia, Latvia and Finland signed an agreement for the laying of a 315-MW underwater electricity cable linking Finland and Estonia. The “Estlink” line is part of the “Baltic Ring” project and became operative in the beginning of 2007. It enables the Baltic States to be integrated into the Inter-Nordic electricity market. Electricity is also imported from Russia as a result of a long-term agreement. In addition, Finland is also planning the laying of an underwater cable to connect the Leningrad NPP west of St. Petersburg to Finland. The project, which will cost about $350 million, was approved in 2004 by the Finnish foreign and trade and industry ministries, and by the Russian government.

Nuclear Policy

Finland has clearly opted for nuclear energy as part of the solution to tackle the issues of security of supply and climate change. In 2002, the Finnish government gave permission for the building of a new NPP unit, Olkiluoto 3. The new unit is being built for TVO by Areva and Siemens and is an EPR (European Nuclear Pressurised Water Reactor). The reactor will be a 1600 MWe unit and will make use of the most advanced technology available. Construction started in September 2005. It is due to start commercial operation in 2013. Areva has been awarded a contract by TVO for the supply of uranium and fuel fabrication services for the future EPR. TVO estimates the cost of the EPR to be around €3 billion. In 2004, the European Commission gave a positive opinion under the EURATOM treaty on the construction of the country’s fifth nuclear power reactor. It judged that Finland’s fund for spent nuclear fuel management would be sufficient to cover liabilities and that the project would help combat global warming and provide the necessary amount of electricity.

A report, Energy - A key For Competitiveness of Finland, which was published in September 2004, recommends the building of further nuclear units. The report shows that the need to reduce CO2 emissions stresses the importance of using forms of energy that do not emit carbon, including nuclear energy. It estimates that about 25% more generating capacity will be needed by 2020; that is to say, around 7500 MW of new generation capacity. Olkiluoto 3 will only add 1600 MW of new power capacity, that’s why additional nuclear capacity is required. The decommissioning funds set aside to cover future liabilities are owned and managed by the State Nuclear Waste Management Fund and are independent of the operators.

In March 2007, Finnish power companies Teollisuuden Voima Oy (TVO) and Fortum said that they would carry out separate environmental impact assessments (EIA) that could lead to building two additional units – one each at their respective nuclear plants of Olkiluoto and Loviisa. In February 2008, the EIA for the possible construction of a fourth reactor at Olkiluoto NPP was submitted to the Ministry of employment and energy. In April 2008, the one for the possible construction of a reactor at Loviisa was also sent to the Ministry. In January 2008, Fennovoima (a new Finnish energy company that aims at constructing a new 1,500–2,500 MW nuclear power plant in Finland) launched an EIA in Kristinestad, Pyhäjoki, Ruotsinpyhtää and Simo for the potential building of a NPP. The EIA report was submitted to the Ministry of employment and economy in October 2008. Fortum, TVO and Fennovoima, have submitted applications for a decision-in-principle on the construction of the new reactors. On 21 April 2010, Mauri Pekkarinen, Finland's Minister of Economic Affairs, announced that the Finnish government has given its "preliminary permission" to the Finnish utility TVO and to Fennovoima (a consortium including German utility E.On AG) to build two more nuclear reactors in Finland. 

On 1 July, the Finnish parliament voted with a clear majority (120-72 and 121-71) in favour of the applications submitted by TVO and Fennovoima for the construction of two more nuclear reactors in Finland, thereby ratifying the “decision in principle” that the Finnish government reached in April 2010. The parliament also approved the building by Posiva of an extended spent fuel repository in Eurajoki municipality.

Safety and Waste Management

The Loviisa NPPs on the southern coast are owned by Fortum, and started commercial operation in 1977 and 1980. The Olkiluoto NPPs on the western coast are owned by TVO and started commercial operation in 1979 and 1982. The Loviisa NPPs are equipped with two Russian VVERs (Pressurised Water Reactors) and the Olkiluoto NPPs with two Swedish BWRs (Boiling Water Reactors). The units are second-generation units, which represent a safe, economic and reliable form of nuclear technology. Finland ratified the Convention on Nuclear Safety in 1996. Safety regulations have been implemented since then. The Radiation and Nuclear Safety Authority (STUK) is responsible for ensuring that radiation equipment, radioactive materials, nuclear energy and other nuclear materials are all used safely. STUK is also responsible for controlling the handling of radioactive materials and radiation exposure in workplaces, at home and within the environment.

In accordance with the Nuclear Energy Act, all nuclear waste produced in Finland must be handled, stored and finally disposed of in Finland. Spent fuel from the reactors is stored for a few years in fuel pools near to the reactor buildings. It is then transferred to interim spent fuel storage areas at the NPP sites. Fortum and TVO are responsible for both the acquisition of fuel and the management of spent fuel. Posiva is responsible for the specific Olkiluoto research that is carried out on the final disposal of spent fuel and for the construction and operation of the final disposal facility. The decommissioning of the final disposal facility will also be carried out by Posiva. Posiva's also provides other expert services in the field of nuclear waste management for Fortum, TVO and other customers. In December 2000, the Finnish government approved in principle the decision to build the final disposal facility for spent fuel near to the Olkiluoto NPP. The necessary facilities will be built between 2010 and 2020, and disposal is expected to start in 2020. Repositories for medium and low-level waste are already in use at the Olkiluoto and Loviisa sites. You can access the report at : http://www.energia.fi

Climate Change

Finland ratified the Framework Convention on Climatic Change in 1994 and has also ratified the Kyoto Protocol. According to the burden sharing agreement reached between EU countries, Finland is committed to reducing its emissions to the 1990 level by 2012. Meeting the Kyoto requirements seems difficult without first expanding the use of nuclear power or significantly increasing electricity imports. The National Climate Strategy approved by the government in 2001 sets guidelines to help meet Finland’s emission targets. In 1990, Finland was the first country to implement an energy tax on carbon. The taxes are currently imposed on the use of electricity by industries and certain other consumers. One of the reasons why the government decided to increase nuclear power capacity was to curb greenhouse gas emissions. One objective of building a new reactor is, precisely, to reduce carbon emissions.

Public Opinion

Public opinion is in favour of nuclear, since 61% of the Finns polled in the Eurobarometer on Radioactive Waste , June 2008, declared that they were in favour of nuclear energy.

Moreover, a study conducted by Finergy, “Finnish Attitudes towards Energy Issues”, between 1986 and 2008 shows that the number of people in favour of the building of a fifth reactor in Finland is now greater (43%) than those who are against it (36%). A major shift in public opinion was first seen in 1986, when the Chernobyl accident resulted in a more negative attitude towards nuclear power in Finland. However, public opinion has become more favourable to the building of a fifth nuclear power plant since 2002 (support: 2002= 36%, 2004= 44%, 2005= 46%, 2006= 46%, 2007= 43%, 2008=43%). There are various reasons to explain this evolution. One of them is undoubtedly the intense and passionate public debate that took place following the decision to increase nuclear capacity in Finland and the resulting opinions expressed by the different interest groups. Although there was no referendum, citizens were very well informed about the issue. The poll result is also a consequence of the natural social and psychological evolution process that is going on in Finland. The Eurobarometer on Radioactive waste is available at: http://ec.europa.eu/public_opinion/archives/ebs/ebs_297_en.pdf
You can have access to the study at: http://www.sci.fi/~yhdys/eas_06/english/eng_luku2.htm