HELSINKI, Feb 7 (Reuters) – A plan to build Finland’s sixth nuclear reactor hangs in the balance as investors reassess its viability against a weaker economy and lower energy prices and a deadline for final commitments looms.
A main turn-off for investors could be the outlook for energy prices. Nordic power consumption fell 1.6 percent last year along with the decline of energy-intensive industries such as pulp and paper. Meanwhile, the growth of renewable energy, expected to be boosted by government subsidies, is also seen pushing prices down.
The plant is expected to supply its owners with electricity at a price of less than 50 euros ($68) per megawatt-hour. Fennovoima says that is a good deal for the decades to come, although the Nordic system contract for a power delivery in the second quarter trades only at about 30 euros per MWh.
“News from the Finnish manufacturing industry indicate that the demand forecasts might have been too optimistic. It could be we wouldn’t need all the nuclear reactors that are in the Nordic pipeline right now,” said Kinnunen.
Read more at Decision time looms for Finland’s Fennovoima reactor