Loviisa nuke plants granted operating licence until 2050

The government on Thursday granted an operating licence to Fortum Power and Heat Oy (Fortum) for nuclear power plants units Loviisa 1 (LO1) and Loviisa 2 (LO2) allowing energy production at the plant units until the end of 2050, said the Ministry of Economic Affairs and Employment in a press release.

The current operating licences for Loviisa 1 is scheduled to expire at the end of 2027 and Loviisa 2 at the end of 2030.

In addition, an operating licence was granted for the units until the end of 2055, as required by preparations for their decommissioning.

Fortum was also granted an operating licence to use the buildings and warehouses necessary for nuclear fuel and nuclear waste management, with the necessary extensions, until the end of 2090.

A condition for granting the licence was a positive statement from the Finnish Radiation and Nuclear Safety Authority (STUK), based on an extensive safety assessment of the plants.

According to a statement submitted by STUK to the Ministry of Economic Affairs and Employment on January 26, Fortum has the required capabilities, procedures, competence and resources to continue safe operations.

The Government’s view is that it is well-founded to continue the operations of the Loviisa power plants for reasons of security of electricity supply in Finland.

The plants strengthen Finland’s self-sufficiency in electricity, which contributes to lowering the price level of electricity in Finland, thus benefiting households, businesses and all other electricity users.

For securing industrial competitiveness, it is essential to secure the supply of electricity at a reasonable price level. The prospect of stable and affordable electricity prices far into the future increases investors’ interest towards Finland.

The continuing use of the plant will support security of electricity production, as the plant currently produces about 10 per cent of Finland’s electricity needs, with annual production of about 8 TWh.

The operating licence is also a prerequisite for storing and handling at the Loviisa power plant decommissioning waste from the decommissioned research reactor (FiR 1) located in Otaniemi.

The operation of the nuclear power plant also requires security of supply for fuel deliveries.

On November 22, 2022, Fortum announced that it had signed an agreement with Westinghouse Electric Company to supply a new fuel type for the Loviisa power plant.

Taking the new fuel into use is a multi-year project requiring regulatory approvals. As a condition of the licence, Fortum is required to report to the Ministry of Economic Affairs and Employment on procurement arrangements for the new nuclear fuel by December 31 at the latest.

Meanwhile, Fortum in the press release said that over the course of the new licence period, the plant is expected to generate up to 170 terawatt hours of CO2-free electricity.

”This decision is an important and welcome one not only for Fortum, but for a clean and prosperous future for Finland. Continuing production at Loviisa is above all an investment in providing the power the Finnish society needs to meet its ambitious climate targets. Decarbonisation of our industries requires large volumes of clean and reliable electricity that cannot be covered by new additional and intermittent sources only. At the same time, nuclear as a stable production form, is also a key enabler for growth of wind and solar in the Nordic power system,” said Fortum’s President and CEO Markus Rauramo in the press release.