Better tell Bowen.Thursday, 20 June...

Better tell Bowen.

Thursday, 20 June 2024

https://oilprice.com/Alternative-Energy/Nuclear-Power/Electricity-Prices-Plunge-By-75-As-Finland-Opens-New-Nuclear-Power-Plant.html

The commencement of regular output from a much-delayed Finnish nuclear reactor in April saw electricity prices in the country decrease by more than 75 percent.

The Olkiluoto 3 (OL3) nuclear plant completed the transition from testing to regular output last month to become Finland’s first new nuclear plant in more than four decades. It is expected to produce up to 15 percent of the country’s power demand.

And while the plant’s production is still in its early days, its launch has had a considerable effect on Finland’s energy prices, lowering the electricity spot price in the country from €245.98 per megawatt-hour (MWh) in December to €60.55 per MWh in April, a reduction of more than 75 percent, according to physical electricity exchange, Nord Pool.

Energy prices had risen sharply in the Scandinavian country after the Finnish government banned electricity imports from neighboring Russia last year due to the ongoing conflict in Ukraine. The utilization of nuclear power will be welcomed by Finnish consumers, particularly given the fact that Finland has the highest per-capita electricity consumption in the European Union.

“We have had more stability in the system because of OL3. It’s a huge nuclear plant, one of the biggest in the world, connected to a small system,” said Jukka Ruusunen, chief executive of Finland’s national grid operator Fingrid. “It has its own risks, which we are happy to follow up on,” he added.

Last month, Poland secured $4 billion in U.S. funding to help build 20 small modular reactors across the country by 2029, while Hungary is focused on expanding its Paks nuclear power plant.

The Finnish example is a testament to how nuclear can play a part in solving the current energy crisis, with consumers still paying sky-high fees for energy in many European countries.