Fennovoima was founded to meet its owners’ needs. Once completed, Fennovoima’s Hanhikivi 1 nuclear power plant will cover approximately 10 percent of Finland’s need for electricity – reliably, and with no emissions.
In recent years, some 20 percent of Finland’s electricity needs have been supplied through imports. Finland is one of the few EU countries that is structurally dependent on the import of electricity. This strong dependence has an adverse effect on the country’s balance of trade, while also reducing jobs and impairing security of supply. According to Finnish Energy, Finland’s electricity production capacity will decrease by thousands of megawatts by 2030. This means that new investments in energy are needed.
The Hanhikivi 1 power plant will improve Finland’s energy self-sufficiency. The benefits of the ensuing reduction in electricity imports, improved balance of trade and increase in households’ purchasing power are estimated at EUR 0.5 billion annually.
Finnish investments account for around EUR 2 billion of the total investment in Fennovoima’s project. This will significantly boost the national economy, particularly in northern Finland. In addition, the ripple effects of the plant will increase the demand for services in the surrounding areas.
Reliable electricity for companies and households at a stable price
The service life of the Hanhikivi 1 plant will be 60 years. No one can reliably predict the market price of electricity over that time. Fennovoima’s owners need stably priced electricity, and the long service life of the plant makes the cost of energy more predictable.
Fennovoima is a company operating under the Mankala principle; that is, it sells all the electricity it generates to its owners at cost price, in proportion to their ownership. At the time of commissioning of the plant, the price of electricity will not exceed EUR 50 per MWh. The price includes items such as the cost of operation, fuel, nuclear waste management, financial expenses and Fennovoima’s organizational costs.
By making a commitment to nuclear energy, municipalities will also be able to stabilize their finances by reducing the financial risk related to fluctuations in electricity prices. Any adoption of stricter emission targets may have a major effect on the energy market before the commissioning of the plant in 2024.
Consumers will also benefit from Hanhikivi 1, as it will increase households’ purchasing power. After the commissioning of the plant, energy prices are likely to increase more moderately than they would without this additional nuclear power capacity.
Climate-friendly energy form
Nuclear power production is clean and environmentally friendly. It is a climate-friendly choice, as it generates no carbon dioxide emissions. Finland is committed to decreasing its CO2 emissions as part of combatting climate change. Nuclear power is part of an energy solution that will make it possible to achieve Finland’s emission targets.
Nuclear power plants produce massive amounts of energy with low life-cycle emissions, while only occupying a small area of land. The UN’s Intergovernmental Panel on Climate Change (IPCC) considers nuclear power to be part of the solution to mitigate climate change.