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Le Monde: French supplier to pay TVO "hundreds of millions of euros" for nuclear reactor delay

The daily says an anonymous source has revealed that French-owned Areva and the Finnish nuclear energy firm TVO have almost reached an agreement on delivery delays. Olkiluoto 3 was supposed to have been completed in 2009.

Olkiluoto ydinvoimala
The Olkiluoto nuclear power plant in western Finland Image: AOP

Le Monde reports on Saturday that the French supplier Areva is looking sure to pay the Finnish nuclear energy company Teollisuuden Voima (TVO) hundreds of millions of euros for the delay of the Olkiluoto nuclear plant's third reactor unit in the western coastal city of Eurajoki.

The paper says negotiations between the two disputing parties will be resolved in a few days.

In 2012, TVO submitted a claim to the International Chamber of Commerce (ICC) that the reactor's main supplier, the French company of Areva, should pay 2.6 billion euros in costs and losses for delay of the Olkiluoto 3 project. Areva joined with its partner Siemens in 2008 already to claim that TVO owed them a total of 3.5 billion euros in delayed payments and alleged loss of profit. Areva has also accused Finland's Radiation and Nuclear Safety Authority of slowing down the process.

The price of the third reactor has tripled since construction began in 2005 to nine billion euros. It was supposed to have been completed in 2009.

Now expected to start ten years late

TVO's Annual Report from 2017 says preparations for Olkiluoto 3 were last updated by the plant supplier in October of last year. The company now says regular electricity production at the unit is scheduled to commence in May 2019.

The report also states that Olkiluoto plant units 1 and 2 generated 13.4 terawatt hours (billion kilowatt-hours) of electricity in Finland last year. This accounts for about 16 percent of all electricity consumed and about 21 percent of all electricity produced in Finland.

In June 2015 TVO decided not to apply for a construction permit for another unit, Olkiluoto 4, due to the unit 3 delays. At the time it said it was prepared to file for a new decision-in-principle later.

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