Profitable investment
Nuclear power is a competitive, CO₂-free electricity production method. In the future, the EU’s stricter and binding emission reduction requirements will further improve the competitiveness of clean energy when compared to fossil fuels.
In 2021, TVO produced approximately one-sixth of the electricity consumed in Finland. TVO’s operations are based on the production of electricity to shareholders at cost price. Owners cover all of TVO’s operating costs and, in return, receive electricity pro-rata to their ownership. They consume the electricity themselves or sell it to third parties. The cost price model allows electricity companies and electricity users of different sizes to participate in major investments, such as those required for nuclear power, as well as reap the benefits of large-scale production. TVO’s owners include 131 municipalities, which means that stable costs and predictability, the benefits of cost-price electricity, are felt all over Finland. Due to the cost price operating principle, TVO cannot be analyzed using conventional financial indicators, as they were created for comparing companies that aim to make a profit. Important indicators to TVO and the owners include the amount of electricity produced and the load factors of the plant units.
One of the benefits of nuclear energy is its stable and predictable price to the owners. Most of the total costs of nuclear electricity are capital costs, while fuel costs remain fairly low. The construction and production of nuclear power do not require any financial support from society.
The amount of uranium fuel that fits into a matchbox is more than enough to produce electricity for one year for a family of four living in a detached house with electric heating.
Nuclear power is an extremely efficient electricity production method: for example, the amount of uranium fuel that fits into a matchbox is more than enough to produce electricity for one year for a family of four living in a detached house with electric heating. Electricity produced in Finland brings well-being and offers the preconditions needed for growth – and it will continue to do so in the future as well.
In the case of nuclear power, competitiveness challenges include rising costs and increased price fluctuations due to weather-dependent production. However, operators in the nuclear industry are actively developing the industry to secure future operational preconditions.