“Kekkonen aika” speculates on the electricity market: Who will pay for a new nuclear power plant?

The price of electricity fluctuates strongly in freezing weather, and the need for a new nuclear power plant is being discussed again.

Fortum has practically stated that the construction of a large nuclear power plant is not possible with the current market prospects without partners and state support.

Pohjolan Voima are on different lines.

“Yes, market conditions are a bit challenged here. If we start talking about subsidy models or regulations, it often happens that those operators who believe in subsidies, wait and see what kind of subsidy model will be, and those who don’t believe in subsidies, wait and perhaps do nothing”, reflected the CEO of PVO Ilkka Tykkyläinen In the live broadcast of Talousam.

PVO owns Olkiluoto nuclear power Industrial Power through as well as plenty of hydropower. The company’s owners are industrial and energy companies. Forest industry company UPM owns more than half of PVO.

Tykkyläinen considers how the existing production would be treated in the situation of the new support model.

“We are currently discussing the extension of the useful life of Olkiluoto 1 and 2. What kind of market environment we will have in the future is central to these solutions.”

Nuclear power is a very long-term investment, so a new project always requires a predictable operating environment, says Tykkyläinen.

However, Sweden intends to support the construction of nuclear power plantswhich worries Tykkyläinen.

“Time will tell what kind of models will be there. But of course it is worrying in the sense that we are a unified market area with Sweden.”

Would it be like a comeback Kekkonen times, if the taxpayers would take the sting out of it?

“I don’t know exactly how things went during Kekkonen’s time, but of course always when market operations are interfered with by regulation or support models, it causes uncertainty.”

Regulating power would be available at pumped power plants. PVO is investigating the current project in Kemijärvi.

Small nuclear power plants are a hot potato in the energy sector. How is PVO involved in this development?

“We are monitoring the development of the market and we are involved in various consultancy studies on what kind of profitability outlook these power plants have. For now, it is more monitoring on the side of where the world is going.”

See the interview and Talousaamu broadcast in its entirety below.