Nuclear power at the crossroads of liberalised electricity markets and CO2 mitigation - Case Finland

Nuclear energy policy is in turmoil in many Western European countries after the Fukushima accident in March 2011. We review the nuclear energy policies in European countries with emphasis on recent changes. Differences in the energy policies of different EU country groups have become more pronounced, contrary to the EU goal of speaking with one voice in energy issues. Since the beginning of European and US electricity market liberalisation in the 1990s, it has often been claimed that nuclear power is not competitive in liberalised electricity markets. We challenge this statement with the example of Finland, which is part of the liberalised Nordic market since the mid-1990s. One nuclear plant is currently under construction and two new nuclear power plants, out of three applications, were recently approved by the Finnish Parliament. The retirement of existing fossil fuel plants and old nuclear power plants will cause increased net import needs, which is in contradiction with the Government targets. By the year 2030, the need for additional new capacity will be 6 GW. This situation is by no means unique to Finland, but rather is set to emerge throughout Europe. (C) 2012 Elsevier Ltd. All rights reserved.