Fortum Calls for Early Policy Action to Enable Nuclear Investment and Strengthen Nordic Energy Competitiveness

Fortum Calls for Early Policy Action to Enable Nuclear Investment and Strengthen Nordic Energy Competitiveness

(IN BRIEF) Fortum is advocating for early planning and policy development to support new nuclear power in Finland, positioning it as a key driver of economic growth, energy stability, and industrial competitiveness. Drawing on recent studies, including analysis by AFRY Management Consulting, the company argues that nuclear energy projects cannot currently proceed on market terms alone and require structured support mechanisms. While large reactors remain the most established option for baseload generation, emerging technologies like small modular reactors could offer flexibility, though their cost competitiveness is still uncertain. With electricity demand in the Nordic region expected to nearly double by 2050, nuclear energy is presented as a stabilizing complement to renewable sources, helping to avoid volatility in supply and pricing. Financing remains a critical barrier, with risk-sharing mechanisms such as Contracts for Difference highlighted as essential tools for reducing costs and improving project viability. Fortum is actively seeking partners and preparing for potential investments, underscoring its view that nuclear energy will play an important role in the region’s future energy mix and economic development.

(PRESS RELEASE) ESPOO, 21-Apr-2026 — /EuropaWire/ — Fortum is calling for early and structured discussions on the future role of nuclear energy in Finland, arguing that decisions taken now will shape long-term economic growth, industrial competitiveness, and job creation. With nuclear power projects requiring extended development timelines, the company believes the present moment is critical for evaluating new capacity in the Finnish energy system.

Recent analytical work has provided a foundation for this debate. A study commissioned by Finland’s Ministry of Economic Affairs and Employment and conducted by AFRY Management Consulting Oy outlines pathways for expanding nuclear energy, assessing both economic implications and impacts on the country’s electricity markets. The findings contribute to a broader conversation about how Finland can design an energy system capable of reducing emissions while supporting economic prosperity.

Fortum emphasizes that new nuclear capacity is unlikely to materialize under purely market-driven conditions. Its earlier research into Finland and Sweden’s nuclear landscape concluded that such projects require additional frameworks beyond market mechanisms—a conclusion echoed across Europe, including in countries such as Sweden, France, and the Czech Republic. The AFRY analysis reinforces this view, highlighting structural challenges in financing and deploying new nuclear assets.

The discussion also extends to technological approaches. Large-scale nuclear reactors continue to offer cost advantages in baseload electricity generation due to economies of scale and established track records. At the same time, small modular reactors (SMRs) present new opportunities through flexible, modular construction and the potential to be located closer to urban or industrial centers. These smaller units could also support district heating, further enhancing their value proposition. However, cost certainty for SMRs in Western markets remains limited, with early projects—such as those underway in Canada—expected to provide more clarity in the coming years.

At the heart of the argument lies the anticipated growth in electricity demand. Electrification is expected to nearly double consumption across the Nordic region by 2050, driven by decarbonization efforts in industry and broader society. Relying exclusively on weather-dependent renewable energy sources to meet this demand could result in significant price volatility and uncertainty in supply. In contrast, nuclear energy is positioned as a stabilizing force, offering consistent output and contributing to more predictable electricity pricing.

This stability is seen as essential for industrial investment and long-term economic planning. Reliable access to energy at stable prices enables businesses to expand operations, invest in new technologies, and create jobs. From this perspective, nuclear power is not solely an energy issue but a broader economic strategy tied to national competitiveness and prosperity.

A central challenge remains financing. Nuclear projects are capital-intensive and span long development periods, making them difficult to fund without public-sector involvement or risk-sharing mechanisms. Estimates suggest that financing costs could exceed 10 percent if projects rely solely on market-based borrowing. By contrast, introducing guarantees or partnerships with credible institutions could reduce these costs significantly, potentially to around 3 percent.

Among the mechanisms under consideration is the two-way Contract for Difference (CfD), which provides revenue stability by setting a fixed price for electricity output. Under this structure, producers return excess earnings when market prices exceed the agreed level, creating a balanced and predictable financial framework. While no model is flawless, CfDs are viewed as a more equitable approach compared to earlier incentive schemes such as feed-in tariffs, and they are already widely used across Europe in renewable and nuclear projects.

Another important component is attracting investors. Governments can play a role by creating frameworks that ensure reasonable returns while limiting excessive profits, thereby encouraging participation from institutional investors. Such approaches are already being explored in Sweden, where state-backed initiatives aim to stimulate interest in nuclear development.

Fortum continues to explore partnerships and strengthen its readiness for future projects. The company is actively identifying potential investors and collaborators while developing its internal capabilities to support new nuclear initiatives. This preparation also aligns with longer-term considerations, including the eventual replacement of existing nuclear capacity.

Looking ahead, Fortum maintains that nuclear energy can form a meaningful part of a balanced and resilient electricity system in the Nordic region. With sufficient commitment and the right policy environment, the company believes progress toward new nuclear capacity is achievable.

Media Contact:

Laurent Leveugle
Vice President, New Nuclear
+358 40 542 2001
laurent.leveugle@fortum.com

SOURCE: Fortum