After an Epic Nuclear Project Disaster,Finland implements its first Renewable Energy FIT Scheme to promote Wind Power

Finland Dependent on Nuclear Energy which is becoming very costly and time consuming

Finland is a Fossil Fuel Deficient country getting 30% of its power from Nuclear Energy and 28% from mostly Biomass and Hydro Energy.It is constructing more Nuclear Power to meet it future needs but a Recent Nuclear Plant has caused massive headache.Finland’s Power Sector has been in the news recently for all the wrong reasons.A Nuclear Plant being built on a Baltic Sea Island of Olkiluoto has entered the annals of Project Finance as one of the biggest Disasters.The main contractor Areva which is the worlds’ leading nuclear equipment supplier has surprisingly totally messed up.The original plan of builing the 1600 MW nuclear reactor for 4 billion Euros has doubled to 8 billion Euros.There are reports of faulty concrete bases and steel containers.There is already a blame game between the constructing companies Areva,EDF,Siemens and the government.The time and cost delay has truly been of epic proportions.Areva which is a giant conglomerate has suffered losses on account of just this one project.

In Finland, Nuclear Renaissance Runs Into Trouble – NY Times

So Areva turned to Finland, where utilities and energy-hungry industries like pulp and paper had been lobbying for 15 years for more nuclear power. The project was initially budgeted at $4 billion and Teollisuuden Voima, the Finnish utility, pledged it would be ready in time to help the Finnish government meet its greenhouse gas targets under the Kyoto climate treaty, which runs through 2012.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. But Areva said it was not cutting any corners in Finland. The two sides have agreed to arbitration, where they are both claiming more than 1 billion euros in compensation.In addition, nuclear safety inspectors in France have found cracks in the concrete base and steel reinforcements in the wrong places at the site in Flamanville. They also have warned Électricité de France, the utility building the reactor, that welders working on the steel container were not properly qualified.

Finland to Promote Wind and Biomass Energy through FIT

Finland is trying to promote other Greener forms of Energy now with Wind Energy to get a very generous Euro 8-10 cents/Kwh Feed in Tariff.Wind Energy is almost non-existent accounting for just 0.3% of Finland’s Energy Mix.Biomass Energy accounts for a whopping 20% though not a surprise given Finland’s abundant forests.However to increase the share of renewable energy from 28 to 38% by 2020 according to the EU target,Finland’s need other forms of power like Wind as well.Finland has also planned the world’s first Green Highway and this is the second major Green supporting measure.Note Finland did not have any Green Subsidy support like FIT,RPS etc till date which is surprising for a Developed Country.Given the royal disaster that the Nuclear Plant in Olkiluoto has been,it makes sense for Finland to diversify its Green Energy Sources.Biomass Energy is also getting a Euro 5c/Kwh in Subsidies to further enhance the Renewable Energy Share.

Finland to Push for Renewable, Wind Energy With Feed-In Tariffs – Bloomberg

Finland will promote renewable energy with fixed prices for wind and biogas power to encourage producers to meet emission targets set by the European Union.Feed-in tariffs, a set price guaranteed to producers, come into force on Jan. 1 and will last for 12 years, the government in Helsinki said today in an e-mailed statement.

The motion will tomorrow be sent to parliament for approval. Finland had 118 wind turbines at the end of 2009 with a combined capacity of 147 megawatt-hours, the Finnish Wind Power Association said on its website.The target for the feed-in tariffs will be 83.50 euros ($109) a megawatt-hour, the government said. Electricity from biogas will get an additional 50 euros a megawatt-hour for combined heat and power generators. For the first three years, wind power would be paid 105 euros a megawatt-hour to ensure implementation, the government said.