Fennovoima was established for a number of reasons. While the owners have a clear vision and objective to receive reasonable- and stable-priced electricity, the Hanhikivi 1 project also serves the bigger picture not only from a national point of view but also from the EU's point of view.
Higher Self-sufficiency for Finland in Electricity Production
Almost 20% of Finland’s electricity consumption has been covered with imports in recent years. Finland is one of the few EU countries structurally dependent on the electricity import. This strong dependency weakens Finland’s current account, employment and security of supply. Finnish Energy organisation has assessed that Finland will lose several thousand megawatts of electricity production capacity by the year 2030, so new energy investments are needed.
The benefits of decreased electricity imports, improved current account and increased household purchasing power are approximately half a billion euros a year for the Finnish national economy.
Domestic investments to Fennovoima’s project go up to approximately 2 billion euros. This means a substantial boost to the economy in Northern Finland in particular. The economic impact can also be felt outside the power plant area, as the demand for services grows.
Market-based Investment Supporting EU Objectives
Fennovoima requires no subsidies. The Hanhikivi 1 project is a market-based private investment and Finland does not grant state aid to nuclear power. Furthermore, Fennovoima is a non-profit co-operative: the owners will receive electricity at cost price in proportion to their ownership share. This is called as the Mankala-principle.
The operating life of the Hanhikivi 1 power plant is 60 years. Fennovoima will sell all the electricity it produces at cost to its owners in proportion to their shareholdings. When the power plant starts producing electricity, the price of electricity is estimated to cost 50 euros per MWh at a maximum. This price includes e.g. the operating costs of the plant, fuel, nuclear waste management, financing costs and Fennovoima’s organisational costs.
There are a number of ways by which Fennovoima’s Hanhikivi 1 project supports the EU objectives:
- By reducing energy imports and improving Finland’s energy self-sufficiency, Fennovoima also strengthens power generation within the EU: electricity for European consumers will be produced inside the EU according to EU standards.
- Fennovoima’s promotes the diversification of energy sources of the EU: also, the fuel supplier can be tendered globally after the initial operational phase.
The investment stimulates Europe’s economy, generates jobs, and facilitates climate protection.
Climate Friendly Form of Energy
Nuclear energy is CO2 free i.e. it produces no carbon dioxide emissions. It is therefore the choice of a climate friend. Finland is committed to cutting its carbon dioxide emissions as a part of the prevention of climate change. Nuclear power is one part of the energy solution aiming to reach these emissions goals.
A nuclear power plant produces a great deal of energy with a small land footprint and low life-span emissions. The Intergovernmental Panel on Climate Change, working under the auspices of the UN, defines nuclear power as one part of the solution for controlling climate change.