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The project will finance the promoter's investment programme to improve safety, enhance reliability and support lifetime management of Units 1 and 2, which are in operation at the Olkiluoto Nuclear Power Plant. It includes plant modifications such as the replacement of a safety-related mechanical component inside the reactor and the implementation of the Instrumentation and Control Modernisation and Ageing (ICMA) programme. These measures are required under EU and national regulations.
The aim is to contribute to improve in safety and reliability of low-carbon electricity supply.
The Project will replace internal reactor components to prevent potential mechanical failures and ensure safe and reliable operation with considerations for possible future power upgrade of the units. Moreover, it will implement the instrumentation and control system lifetime management program.
The project will contribute to the Bank's lending priority policy on competitive and secure energy supporting low carbon power generation. The project components comply with the EIB's screening and assessment criteria for nuclear energy projects. The Project contributes to the REPowerEU initiative of the Bank. The overall rating of the project's contribution to policy goals is rated 'good'. The investment contributes towards increasing security of supply by enabling production of dispatchable low-carbon energy.
The investments contribute to the improvement of the reliability and safety of units 1 and 2, so to maintain safe and stable production and high load factors. The project is justified financially and economically, with benefits of security of supply of nuclear generation as well as broader benefits related to energy security. The promoter possesses sufficient experience and track record in the sector to manage the implementation of the project.
The proposed loan will contribute to the diversification of the borrower's financing sources and thus strengthen the overall financing position of the company. Long tenor of the EIB loan is considered highly beneficial for the promoter's capex needs. Furthermore, the Bank's financing support to the promoter will provide a positive signalling effect to the local financing markets by demonstrating confidence in the project's viability.
Based on preliminary information received about the scope and technical characteristics of the project components, they do not fall under the categories listed in Annex I and II of the Environmental Impact Assessment (EIA) Directive 2011/92/EU as amended by Directive 2014/52/EU, therefore they are not subject to environmental impact assessment. The project works are planned to be implemented at an existing authorized operational site and they are related to replacement of obsolete equipment. No construction works are foreseen. The project components are not expected to have significant impact on the environment. The appraisal will review the environmental details of the project and the Promoter's procedures to confirm that they are in line with the Bank's standards and good industry practice.
The promoter is a private company operating in the utilities sector; however the electricity sector in Finland, based on an exemption granted by the European Commission, is not subject to EU rules on public procurement.