We now want to build nuclear power through subsidies, which is also reflected in Finland

The Finnish nuclear debate went on a new track as the government’s plans for supporting new nuclear power came to the public early in the year. The issue is new in Finland’s nuclear power debate, but quite familiar in many European countries, where the attitude towards nuclear power has turned 180 degrees over the last couple of years.

Many countries want nuclear power because, for example, the recent energy crisis has become increasingly clear that in addition to reducing climate emissions, it provides supply and price reliability, stabilizes the electricity networks and markets, and improves energy self -sufficiency.

But over the last couple of decades, market -based investment in electricity generation has been increasingly difficult. Although the price of electricity consists of market terms, especially in many ways supporting renewable production forms, both in Europe and in Finland.

Risks and investment loss

An example is the binding production targets and distribution obligations of renewable energy, as well as EU hundreds of billions of finance packages that are popular with renewable energy production. The certificate system of the renewable energy also offers additional income for producers.

These subsidies, on the other hand, obscure market signals, as money can come in for the second time, even if the electricity itself is sold at a loss.

Adding to this long -standing political hostility towards nuclear power in Europe, long investment times and relatively high investment costs, the willingness to invest in companies have been low.

Many assess whether the change in the direction of politics is permanent, or whether the institutions and projects are prematurely stopped in a few years or decades, as happened, for example in Germany and Belgium.

In order to curb these risks, many governments have proclaimed national nuclear programs and support packages for nuclear power construction. Many countries, including Finland, signed the target one and a half times the production of European nuclear power, or even triple nuclear power, by 2050.

Support mechanisms have been built for construction and production. Minister I guess mykkänen The price pipe mentioned (CFD, price breakdown) is used in the British and planned at least in Poland and Sweden. At least the Czech Republic, Turkey and the United Arab Emirates have concluded long -term state shopping contracts (PPA) with nuclear power builders.

The RAB model, which is also used in other major infrastructure projects, calculated by the Capital Funding Model calculated by the regulatory authority, is thinking about at least in the British and the Netherlands, where the state also earned EUR 5 billion to promote the construction of new big reactors and continue the current reactor.

The United States, on the other hand, has been used in various investment and production tax subsidies, and EDF, an energy company in a monopoly position in France, is in strict political guidance, both good and bad.

However, the nuclear power is desired

In addition to production, construction is also supported, as the impact of interest rates on the benchmark of nuclear power (LCOE) can be up to half. In Sweden, the granting of state loan guarantees is planned, while in the Czech Republic, the state offers the company directly a zero -interest loan for construction. In the United Arab Emirates, the state financed the project directly with a 66 % stake and offered the loan guarantee for the rest of the part. In Poland, this has also been talked about.

In Finland, nuclear power has so far been built with private money, although the state and municipalities have big ownership in energy companies. It has been clear to the next electricity market for some time that large and long -term investments are very difficult to justify without some kind of price guarantee or other support. However, we want nuclear power as it is a great way to produce a lot of clean and reliable electricity in a small area.

The background is the default increase in demand for electricity when heating, industrial steam, steel production, transport and fuels, and the chemical industry are being cleaned of emissions. Data centers are also sought after investment and consume huge amounts of electricity.

Thus, support for nuclear power can be defended by the increase in the need for electricity, the importance of security of supply and stability, and the fact that almost all other production is supported in many different ways.

How to do it best is another issue, but careful should be. However, nuclear power in Europe has become growing again into growth and Finland has rare recent recent experience in nuclear power construction. In addition, the decisions of other countries to support its construction also affect our alternatives.

Rauli Partanen

Country Manager, Deepgeo Finland Oy