TVO denied extension to decision in principle
The Finnish government has decided not to grant Teollisuuden Voima Oyj (TVO) an extension to its 2010 decision in principle for the construction of a fourth unit at the Olkiluoto nuclear power plant.
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 - 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.
"We had valid reasons to apply for the OL4 decision in principle and we do not understand why our application was rejected at this phase of political proceedings."
Jarmo Tanhua
TVO president and CEO
In a statement from the ministry of employment and the economy, the government said that setting a new deadline for acquiring a construction licence for Olkiluoto 4 (OL4) "is not in line with the overall good of society." In a 10-3 vote, the cabinet decided to reject TVO's request for an extension of its decision in principle.
TVO's application will therefore not proceed to the parliament for ratification and its current decision in principle will expire on 30 June 2015.
The government said, "It is impossible to reliably evaluate whether or not TVO will be able to proceed with its OL4 project all the way to the submission of a construction licence even if a new deadline is set." It noted, "In its report, TVO's board has not announced that it would commit to the investment by the requested deadline."
The ministry said the existing decision in principle has a significant impact on the functioning of the electricity market and on competition in the field. It said, "One player in the field cannot retain possession of a decision in principle about a project with a deadline of over five years in whose progress significant uncertainties are involved."
TVO president and CEO Jarmo Tanhua said, "We had valid reasons to apply for the OL4 decision in principle and we do not understand why our application was rejected at this phase of political proceedings. The Finnish parliament once found the project to serve the overall good of society with clear majority. It would have been just and reasonable that the parliament would have been enabled to have a say also to the extension application."
He added, "We have worked on the project for a long time, since 2006, and our Finnish shareholders have invested nearly €100 million ($127 million) in it. I am baffled that it seems to be so difficult to make a major industrial investment in Finland."
A TVO spokesman earlier told World Nuclear News, "If after next summer we decide to go ahead with the OL4 project, it means we have to go through the entire application process again."
Last week the government approved an amendment to Fennovoima's decision in principle for its proposed Hanhikivi plant, allowing it to include Russia's AES-2006 reactor model. Fennovoima now has until the end of June 2015 to submit an application for a construction licence to build the plant.
Researched and written
by World Nuclear News
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