Olkiluoto 2 outage expected to raise electricity prices in Finland

The outage of the Olkiluoto 2 nuclear power unit is expected to drive up electricity prices in Finland, according to Pekka Salomaa, the director responsible for energy markets at Energiateollisuus. Today, TVO announced that the production from Olkiluoto 2 would be halted for at least three weeks due to generator issues, with a more precise timeline anticipated as investigations progress. The second reactor’s output accounts for nearly 10% of Finland’s electricity production.

Salomaa noted that with a significant power production resource offline, there will be less supply available as demand increases, leading to higher electricity prices. In the short term, the impact on prices might be mitigated by considerable wind power generation currently available. However, a decrease in wind could likely result in a price increase. Salomaa added that mild autumn weather is helping to curb drastic spikes in market prices for now.

Looking ahead, the implications of the outage on Olkiluoto 2 are challenging to evaluate, as there are simultaneous changes affecting electricity availability. Last week, the transmission company Fingrid reported a temporary limitation on the capacity to transfer electricity from Sweden to Finland due to maintenance work. Additionally, the Estlink 2 electricity cable, which connects Finland and Estonia and had been out of service since January, is now back in commercial operation.

Salomaa expressed surprise over the issues at Olkiluoto 2 arising just four months after a comprehensive annual maintenance period, stating, “It was a surprise to me that the failure occurred after such thorough annual maintenance, but anything can happen.”