Fortum Data Shows Nuclear Cost Gap in Finland
Fortum calculations indicate Finnish nuclear projects face a significant revenue shortfall, potentially requiring state subsidies to remain viable.
New nuclear power plants in Finland face a structural funding gap, with market revenues projected to fall short of full lifetime costs. According to calculations cited by GN auto stocks/utilities: power plant, the difference between the cost of nuclear generation and expected electricity prices is €105 per megawatt-hour. This figure encompasses all construction and operational expenses based on market data from October 2025. The shortfall suggests that without external financial support, new nuclear infrastructure may not be economically feasible under current market conditions.
Jukka Ruusunen, CEO of transmission system operator Fingrid, estimated that a 1,000 MW nuclear facility would require approximately €1 billion in annual operating support. His assessment relies on indicators provided by Fortum. While wind and solar remain the cheapest generation methods, Fortum’s data shows that onshore wind revenues also fail to cover costs when a 66% capacity factor is assumed. In contrast, nuclear plants are modeled with a 100% capacity factor, yet the cost disparity persists across the energy mix.
Fortum Estimates Nuclear Generation Costs
Fortum places the full lifetime cost of nuclear electricity between €150 and €200 per megawatt-hour. The company attributes this wide range to potential risk-sharing arrangements and various support mechanisms. These estimates highlight the financial uncertainty surrounding new nuclear builds in the Finnish energy landscape. The cost structure remains a central factor in determining whether private investment can proceed without substantial public backing.
Google Contract Narrows Revenue Gap
Google has agreed to purchase half the output of the Loviisa nuclear plant for over 20 years. Following the disclosure of agreement details, Fortum shares rose more than 15%. The company stated this contract increases return on invested capital by approximately 1.4 percentage points. However, senior analyst Henri Parkkinen from OP estimated that Google’s price only reduces the cost-revenue gap from €105 to €75 per megawatt-hour. This reduction is insufficient for new construction but may support the modernization of existing facilities.
State Support and Flexibility Measures
A study published last spring estimated required nuclear support between €330 and €820 million. Finland is concurrently launching investment support for new capacity that is independent of weather conditions and capable of quick startup. Biogas turbines are cited as potential examples of such flexible generation. Fortum aims to ensure the readiness of 2,500 MW of new solutions for energy system flexibility and balancing by the end of 2028, including demand management and energy storage.
