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Fortum expects good availability in existing nuclear units but is worried about energy sector operating environment in Sweden

06 November 2015, 16:00 EET

FORTUM ONLINE NEWS 6 November 2015

On 6 November 2015 Fortum together with other owners of Swedish nuclear power plants met with Swedish energy minister Ibrahim Baylan. Fortum’s Tiina Tuomela, Executive Vice President, Nuclear and Thermal Power Division, highlighted that despite expected high nuclear availability, the operating environment for energy production in Sweden is troubling. “It is important to ensure the competitiveness of the existing CO2-free production capacity when going forward,” she said. 

“A combination of unusually low wholesale market prices and high costs is a challenge for all energy production. We do not see that the recent decision to increase subsidized production until 2020 is a right one,” said Tuomela. 

“Both hydro power and nuclear production are taxed higher than ever in Sweden. Nuclear safety is always our first priority, but heavy safety investments together with the Swedish unique capacity tax pose a negative, totally unreasonable burden on nuclear power. Likewise, hydropower is unreasonably hit by taxation - despite its important role in energy system and in balancing the increasing amount of volatile wind and solar power. All this makes investments and development of the future energy solutions difficult.”

Solutions to combat climate change and increase the share of renewables demand a long term policy, clear pricing mechanisms and incentives. Emission trading as the primary steering mechanism is a correct tool to steer future investments in CO2-free production. 

Fortum Corporation
Corporate Communications

Further information: 
Göran Hult, Vice President, responsible for co-owned nuclear power in Sweden, tel. +46 70 344 54 98
Fredrik T Karlsson, Vice President, Corporate Communications Sweden, tel. +46 76 866 77 25

Fortum’s purpose is to create energy that improves life for present and future generations. Fortum’s expertise is in CO2-free and efficient electricity and heat production. The company also offers energy-related products and expert services to private and industrial customers and energy producers. Fortum’s main areas of operation are the Nordic and the Baltic countries, Russia and Poland. In 2014, the annual sales (excluding the divested electricity distribution business) totaled EUR 4.1 billion, and comparable operating profit was EUR 1.1 billion. The company employs approximately 8,000 people. Fortum’s share is listed on Nasdaq Helsinki.