Europe’s largest nuclear reactor has finally begun regular electricity production 14 years later than planned, delivering a boost to the region’s energy independence. The 1,600-megawatt plant, known as Olkiluoto-3, sits on a rocky island that juts into the Baltic Sea on Finland’s west coast and is the first new atomic reactor in the Nordic countries since the mid-1980s, and the first in its home nation in more than four decades.
The delays in implementing the reactor have been long and costly, with the plant’s initial completion date set to be in 2009. The plant, constructed by Paris-based energy company EDF, is now estimated to cost over €7.5 billion, a figure that is more than double the initial cost estimates.
The new facility is expected to produce around 30% of Finland’s electricity and the hope is that the additional supply of energy will further reduce the country’s dependence on energy imports. According to government figures, Finland already obtains around 80% of its electricity from domestic sources, but the country relies heavily on imported nuclear power from Russia and Sweden, as well as gas from Russia.
While many Finns remain concerned about nuclear safety, the majority of public opinion has been positive, and the plant is backed by a number of infrastructure funds, including Norway’s giant sovereign wealth fund and Finnish pension giant Ilmarinen.
The facility is now expected to meet the country’s growing energy needs for decades, supplying approximately 10 million Finnish households with electricity for at least 60 years. The reactor, one of Europe’s biggest of its kind, is one of the last of its generation, with no new nuclear power projects planned in Europe due partly to safety, cost and public opinion concerns.
At the same time, the European Union is accelerating its efforts to cut emissions by investing in renewable sources of energy such as wind and solar. While nuclear plants do not emit greenhouse gases, their waste can last for millennia, making them a potentially dangerous long-term risk. As a result, the European Union is focused on cleaner sources of energy, and Finland recently announced plans to phase out coal consumption by 2029.
The commissioning of Olkiluoto-3 provides a reminder that with the right technology and infrastructure, nuclear power can still play an important role in Europe’s energy mix. Despite the 14-year delay and the enormous cost overruns, the plant’s successful launch demonstrates the potential of nuclear power as an affordable and clean source of energy.
Source: >Bloomberg
