The Effects of Nuclear Power Investments on the Firms’ and Households’ Electricity Prices

Studies 109 Ville Haltia, Pasi Holm, Jaakko Kiander, Eero Lehto, Katariina Maliniemi, Markku Ollikainen

Abstract

This study examines the economic influences of additional nuclear power in Finland. Particularly, the aim is to compare, how the effects vary depending on which company, i.e. Fennovoima, Fortum or TVO, puts the project into action. The study analyses the distribution of economic benefits in economic life, as well as the effects of additional nuclear power on market price of electricity for households. According to the results, the economic benefits would be distributed most equally and broadly between listed and local energy companies, industries and trade in the Fennovoima case. The TVO case would emphasize the benefits of forest industry at the expense of other industries and trade. In the Fortum case, the economic benefits would remain in the company itself. Roughly one third of Finnish households are clients for shareholders in Fennovoima. Those households would benefit approximately 10 per cent from cheaper electricity price in the Fennovoima case.

Publication Information

Haltia, V., Holm, P., Kiander, J., Lehto, E., Maliniemi, K., & Ollikainen, M. (2009), Ydinvoimainvestointien vaikutukset elinkeinoelämän ja kotitalouksien sähkön hintaan, Pellervo Economic Research Institute Reports No. 218.