Economic Effects of the Nuclear Power Plant Investment

The nuclear power plant is a major investment, the effects of which extend to the whole of Finland and the national economy. The building of new nuclear power gives birth to significant additional investments not only within the energy sector and construction but also capital goods-producing industries.

According to the research of the VTT Technical Research Centre of Finland (2014), the Hanhikivi 1 nuclear power plant investment of Fennovoima will increase nearly one per cent domestic investments in the 2020's and the gross domestic product more than 0.25 per cent. Nearly half of the growth of the gross domestic product is related to increased investment throughout the 2020’s.

Effects on employment

The investments related to the project will increase employment, especially in the construction industry. The effect on employment growth will be about one third of the additional domestic product growth. The growth of industrial investment in the 2020’s is subject to sectors manufacturing capital goods. Other export industry investments will start to grow by the 2030’s.

Effects on the purchasing power of households

The additional income, which is created from the investments, will increase the purchasing power of households and stimulate consumer demand. The purchasing power of households will also be improved as the price of the energy will rise more moderately than without the construction of new nuclear power. The moderate energy price development is very important for Finland because it improves the competitiveness of the whole country. The growth of the purchasing power of households will increase investments with the fields of trade and of private services in the 2020's.

If measured in Euros, the reduction in energy import, the improvement of the current account balance and the growth of the household purchasing power would benefit the national economy about half a billion Euros every year.

In the model calculations of the VTT Technical Research Centre of Finland, the basic estimate on the electricity demand was based on the basic scenario of the 2013 Energy and Climate Strategy of Finland, which takes into account, inter alia, the short-term economic forecasts.

Fennovoima project is a billion-class investment

The construction of the Hanhikivi 1 nuclear power plant is a 1.8-2.7 billion domestic investment. According to the estimates of Pöyry Finland, the employment effects of the power plant construction are 24 000-36 000 person-years in Finland, if the domestic content is 45 per cent. The nuclear power plant is at the most built by about 4000 people, and during the operation phase, the power plant directly employs 400-500 people.