Decision nears on Finnish approval amendments

Finland's minister of economic affairs is recommending that the government approves a supplement to Fennovoima's decision in principle for the Hanhikivi plant. He is also proposing it rejects an extension to that of Teollisuuden Voima Oyj (TVO) for the fourth unit at Olkiluoto.

Fennovoima received a positive decision in principle from the government in 2010 for the construction of a new nuclear plant of 1500-2500 MWe capacity at Hanhikivi. However, in early March, the company applied to amend that decision in principle to include Rosatom's AES-2006 plant, which uses a 1200 MWe-class reactor.

Minister of economic affairs Jan Vapaavuori today said, "I will propose to the government that the application by Fennovoima to supplement the decision in principle should be approved, with one precondition for the construction permit: at least 60% of the shares must be in Finnish ownership." He added, "If the parliament approves the proposal, the decision will be politically binding for future governments as well."

Fennovoima noted that Finland's Voimaosakeyhtiö SF is its majority owner, with a 66% stake. The remaining 34% of Fennovoima is held by RAOS Voima Oy, a Finnish subsidiary set up by Russia's Rosatom specifically for holding a stake in the company. Voimaosakeyhtiö's shareholders have so far confirmed they would take a combined 54.7% stake in Hanhikivi project. Negotiations continue with new potential owners, Fennovoima said.

Vapaavuori said, "In the processing of the construction licence application, an assessment will be made on whether or not the ownership base of the company is at a level required by the overall good of society. The issue concerns the national interest in securing the manoeuvrability and supply security of the country's energy policy on the one hand, and the overall legitimacy of the project on the other hand."

He noted that Fennovoima's decision in principle will expire if the company does not submit its construction licence application by the end of June 2015.

No extension for TVO

In May, TVO requested a five-year extension to its 2010 decision in principle to construct a fourth reactor at the Olkiluoto plant. Such an extension would have meant that the company would have until the end of June 2020 in which to submit a construction licence application for the new unit. Delays in the start-up of unit 3 at Olkiluoto (OL3) - the first of a kind EPR - prompted its request. Earlier this month TVO asked the government to consider a new deadline for the end of March 2019.

However, Vapaavuori has now said he will propose the government rejects TVO's application for an extension. "Owing to uncertainties connected with the OL3 project it is not possible to reliably evaluate if TVO would be able to proceed with the project all the way through the investment and submission of the construction licence even under a new deadline."

He noted, "The existing decision in principle has a significant impact on the workings of the electricity market and on competition in the field. Good governance requires that players in the field must be treated even-handedly and that the licensing process should be predictable. It is inconceivable to give one player in the field the possession of a decision in principle, if significant uncertainties are connected with both the realization of the project and its timetable."

"We were expecting a different resolution," said TVO president and CEO Jarmo Tanhua. "The hearing process carried out regarding the application and various favourable statements confirmed the wide support OL4 enjoys from the entire society and the Finnish industry. The nuclear power project is strategically important. The project was once found to serve the overall good of society, and this has not changed in a few years."

Vapaavuori said the ministry of employment and the economy will present its proposals to the Finnish government on 18 September.

Researched and written
by World Nuclear News