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Cost Overruns at Finland Reactor Hold Lessons

In Finland, Nuclear Renaissance Runs Into Trouble

By JAMES KANTER

The New York Times May 28, 2009

OLKILUOTO, Finland — As the Obama administration tries to steer America toward cleaner sources of energy, it would do well to consider the cautionary tale of this new-generation nuclear reactor site.

The massive power plant under construction on muddy terrain on this Finnish island was supposed to be the showpiece of a nuclear renaissance. The most powerful reactor ever built, its modular design was supposed to make it faster and cheaper to build. And it was supposed to be safer, too.

But things have not gone as planned.
After four years of construction and thousands of defects and deficiencies, the reactor’s 3 billion euro price tag, about $4.2 billion, has climbed at least 50 percent. And while the reactor was originally meant to be completed this summer, Areva, the French company building it, and the utility that ordered it, are no longer willing to make certain predictions on when it will go online…………………………Most of the new construction is underway in countries like China and Russia, where strong central governments have made nuclear energy a national priority…………………………….resistance is mounting. In April, Missouri legislators balked at a preconstruction rate increase, prompting the state’s largest electric utility, Ameren UE, to suspend plans for a $6 billion copy of Areva’s Finnish reactor…………………………Areva has acknowledged that the cost of a new reactor today would be as much as 6 billion euros, or $8 billion, double the price offered to the Finns.

Cost Overruns at Finland Reactor Hold Lessons – NYTimes.com

June 1, 2009 - Posted by Christina Macpherson | business and costs, Finland | antinuclear, AREVA, nuclear, nuclear costs, radioactive, uranium