Slide 1:New Nuclear Power Plant Project in Finland Veijo RyhänenTVO Energy Conference Lisbon, 22 February 2006


Contents :Contents Supply of electricity in Finland Role of nuclear power Arguments supporting nuclear new build Status of nuclear waste management New OL3 power plant Concluding remarks


Electricity Supply by Energy Sources in Finland 2005 (84.9 TWh) :Electricity Supply by Energy Sources in Finland 2005 (84.9 TWh) Hydro 16.0 % Wind 0.2 % Peat 5.3 % Biomass 10.5 % Nuclear 26.3 % Natural gas 10.5 % Coal 8.2 % Oil 1.8 % Net imports 20.0 % Waste 1.2 % Source: Finnish Energy Industries


Slide 4: Loviisa LO1 PWR 488 MW 1977 LO2 PWR 488 MW 1980 OL1 BWR 840 MW 1978OL2 BWR 860 MW 1980 Olkiluoto Loviisa Helsinki Nuclear Power Plants in Finland Olkiluoto


TVO :TVO Company Privately owned generating company established in 1969 Personnel about 630 Turnover about EUR 200 mill. Sells electricity only to the shareholders at cost basis Existing Nuclear Power Plant Units (Olkiluoto 1 and 2) 840 and 860 MWe, BWR, Westinghouse Atom Start of operation in 1978 and 1980 Modernization and uprating programmes since 1982 New Nuclear Power Plant Unit (Olkiluoto 3) 1600 MWe, PWR, Framatome/Siemens consortium Start of operation in 2009 Other Power Plants 45% share in 565 MW coal-fired power plant (Meri-Pori) 1 MW wind power plant at Olkiluoto Subsidiaries Posiva Oy (60 %) responsible for the final disposal of spent fuel TVO Nuclear Services Oy (100 %) specialized in know-how consulting


Olkiluoto Power Plant Site in 2004 :Olkiluoto Power Plant Site in 2004


Electricity Consumption in Finland :Electricity Consumption in Finland TWh Statistic Forecast Source: Finnish Energy Industries


Arguments for a New Nuclear Plant Unit :Arguments for a New Nuclear Plant Unit Covers partly the additional electricity demand and replaces old power plants Enables, together with renewables, the fulfilment of the Kyoto commitments Secures stable and predictable electricity price Reduces the dependence on electricity import


Slide 9:Olkiluoto 1 and 2 Electric Power Production (TWh) and Capacity Factor (%)


Slide 10:Power Generating Costs with Emission Trading Premium


Greenhouse Gas Emissions 1990-2004 and Finland’s Commitment :Greenhouse Gas Emissions 1990-2004 and Finland’s Commitment Source: Statistics Finland


Current Status of Waste Management Programme :Two underground repositories for LLW/ILW in operation since 1992 (Olkiluoto) and 1998 (Loviisa) Spent fuel Site selected for the deep repository (Olkiluoto) Construction of the underground site characterisation facility (ONKALO) started in 2004 Start of final disposal in 2020 Funds collected for future costs of nuclear waste management EUR 1.4 bill. in 2005 Current Status of Waste Management Programme


Spent Fuel Management :Spent Fuel Management Interim storage in water pools at the power plant sites (total accumulation 1380 tU by the end of 2004) Preparations for final disposal since the early 1980s (R&D, siting, EIA) ”Decision in Principle” process (1999-2001) for implementation of final disposal; decision of the Government in 2000, ratification by the Parliament in 2001 Direct disposal in crystalline bedrock; site selected for the deep repository (Olkiluoto in the municipality of Eurajoki) Construction of the underground rock characterisation facility (ONKALO) started in 2004


OL3 Project in a Nutshell :OL3 Project in a Nutshell Licensing Decision in Principle – application in 2000, the Government’s decision ratified by the Parliament in 2002 Construction licence in 2005 Supplier: Consortium formed by Framatome ANP and Siemens Power plant Reactor type EPR (PWR) Net electrical output 1,600 MW Estimated annual production 13 TWh Investment cost EUR 3 billion Start-up of operation – 2009


Slide 15:Nuclear Licensing Process in Finland ENVIRONMENTALIMPACTASSESSMENT Ministry of Trade and Industry DECISIONIN PRINCIPLE Government Parliament CONSTRUCTIONPERMIT Government OPERATING LICENSE Government


April 2005 :April 2005


October 2005 :October 2005


January 2006 :January 2006


OL3 Status - February 2006 :Engineering, licensing, manufacturing and construction proceed, more than 900 subcontracts signed; number of designers in excess of 1000 Licences and permits needed for the construction granted Owner’s work completed at site, construction site handed over to the Supplier Certain civil works and manufacturing over six months behind the original schedule; however, electricity production estimated to start in 2009 Financing and insurances in place Civil work proceeding, manpower at site about 600, over 20 nationalities Recruiting in progress, training of operating personnel (41 persons) has commenced OL3 Status - February 2006


Olkiluoto in 2009 :Olkiluoto in 2009


ONKALO Site in 2005 :ONKALO Site in 2005


Spent Fuel Repository around 2050 :Spent Fuel Repository around 2050 Source: Posiva


Facts Supporting Use and New Build of Nuclear Power in Finland :Facts Supporting Use and New Build of Nuclear Power in Finland Positive technical and economical experiences of nuclear power over 25 years Competitive generating costs and long-term price predictability CO2 free energy form in line with national targets Efforts to reduce dependence on import and to increase security of supply Suitability of TVO’s ownership for long-term investment (cost base model) Politically accepted spent fuel disposal and waste management solutions, as well as proper funding arrangement for future costs