NIB to finance safety systems upgrade in Finnish nuclear power plant units

Nordic Investment Bank (NIB) and Finnish energy company Teollisuuden Voima (TVO) have signed a €65m loan agreement for financing safety systems upgrade in two nuclear power plant units in Finland.

The 10-year loan will be used for the refurbishment project by to TVO’s to upgrade the safety systems in the Olkiluoto 1 and Olkiluoto 2 units at the nuclear power plant in south-western Finland.

The total project cost is around €200m.

A major component of the project is the renewal of the emergency diesel generators (EDGs), a critical part of the nuclear power plant’s security of supply.

The existing EDG units are the original units, which have been in use since the plant was inaugurated almost 40 years.

TVO will also install an additional EDG to increase backup power supply.

The project will also involve the replacement of the reactor internal pumps and their frequency converters, as well as the installation of a new alternate coolant injection system.

Olkiluoto 1 and Olkiluoto 2 are major electricity production units in Finland, and their smooth operation is vital for the security of supply of wider NordPool power markets.

Currently, nuclear electricity generated at TVO’s Olkiluoto plants covers nearly one-sixth of the electricity consumption in Finland.

NIB president and CEO Henrik Normann said: “Having top-quality safety systems in the nuclear plants benefits the entire member region of the Bank.

“This project will also bring increased reliability and efficiency of electricity supply to Finland.”

TVO is a non-listed public limited liability company that produces electricity for Finnish industrial and energy companies.

The company has recently received a license from the Finnish government to operate Olkiluoto units 1 and 2 until the end of 2038.

NIB is a financial institution owned by eight member countries – Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden.

The bank finances private and public projects in and outside the member countries.