Operation of two units in Finland could be extended by as much as 20 years
The European Investment Bank (EIB) is lending Finnish energy supplier Teollisuuden Voima Oyj (TVO) €90m ($104m) to upgrade the Olkiluoto-1 and -2 nuclear power plants in Finland.
The EIB – the long-term lending institution of the European Union, owned by its member states – said in a statement that TVO plans to update automation and control systems and replace components known as steam separators in the two units.
The upgrades, which will be implemented progressively over a number of years, are essential for maintaining high safety standards and operational reliability at the Olkiluoto plant, which has a total of three units, the EIB said.
The planned improvements are required under Finnish and EU nuclear-safety legislation. They are part of TVO’s long-term investment programme to ensure operation of the Olkiluoto plant and follow other EIB-backed enhancements at the site in 2016.
TVO has said plans for Olkiluoto’s long-term operation includes extending the licences for Units 1 and 2, which are currently set to operate until 2038, by up to 20 more years, and potentially increasing their power output.
TVO said in a statement that the operation of the two units contributes to the EU’s objective of having competitive, emissions-free and secure energy. It also aligns with the EU’s Energy Roadmap 2050, which foresees nuclear energy continuing to play a role in the bloc’s energy mix.
“TVO is systematically modernising all three Olkiluoto plant units through annual maintenance and modernisation projects throughout their operational lifetimes,” TVO said.
“The Olkiluoto nuclear power plant is Finland’s most significant electricity producer. Last year, approximately 28% of all electricity consumed in Finland was generated at Olkiluoto.”
The EIB finances nuclear power, but has not financed greenfield nuclear power generation in more than three decades.
A Cautious Approch To Nuclear
Instead, it has taken a cautious approach focused on projects that are “technically, environmentally and economically justified”. Recent financing has included loans for uranium enrichment, upgrades to existing plants and waste management facilities.
The bank recently said nuclear energy projects including the development of small modular reactors could be eligible if they are “bankable” under strict economic assessment criteria.
In April TVO signed an investment loan agreement for €75m with the Nordic Investment Bank for the financing of projects that could lead to extended operation for Olkiluoto-1 and -2.
NIB said in a statement that the 10-year loan would finance key investments aimed at maintaining and improving safety measures and ensuring the possible extended operational lifetime of the two nuclear units.
Olkiluoto-1 is an 890-MW boiling water reactor unit that began commercial operation in 1979. The identical Olkiluoto-2 began commercial operation in 1982. The main contractor for both units was ASEA-Atom, now a part of Westinghouse Electric Sweden.
The third unit at the site, Olkiluoto-3, is a France-supplied 1,575-MW EPR unit that began commercial operation in 2023.
Finland has two other units at Loviisa, owned and operated by Fortum.
In 2024 the five units produced a 39.1% share of Finland’s electricity production, according to International Atomic Energy Agency data.
