Olkiluoto 3 EPR (OL3 EPR), currently under construction, was procured as a fixed-price turnkey project from a consortium (Supplier) formed by Areva GmbH, Areva NP SAS and Siemens AG. As stipulated in the plant contract, the consortium companies have joint and several liability for the contractual obligations.
In accordance with the Supplier’s schedule updated in November 2018, regular electricity generation at the plant unit will commence in January 2020. According to the Supplier, nuclear fuel will be loaded into the reactor in June 2019 and the first connection to the grid takes place in October 2019. According to the Supplier’s plant ramp-up program the unit will produce 2–4 TWh of electricity, at varying power levels, during the period of time between the first connection to the grid and the start of regular electricity production.
Most of the construction works for the plant unit have been completed. The installation of the electrical systems, the instrumentation and control system (I&C), and mechanical systems is still in progress. Training of the operating personnel has progressed and first operator licences were granted by Radiation and Nuclear Safety Authority (STUK) in December 2018. The hot functional testing (HFT) was completed in May 2018. In HFT, the nuclear and turbine island operated for the first time together as an entity without nuclear fuel. During HFT, it was noticed that the pressurizer surge line vibrates. Vibrations will be eliminated by modifying surge line's supporting structures.
On 25 February 2019 Radiation and Nuclear Safety Authority
(STUK) gave its statement on operating licence application of Olkiluoto 3
EPR plant unit. STUK does not see any obstacles to grant the licence
as applied until the end of 2038. STUK has reviewed, accordingly with
the Nuclear Energy Act, OL3 EPR plant unit's safety, and also operation
of the TVO Group as entity, such as resources, know-how and nuclear
waste management. The Finnish Government makes the decision on the
operating licence.
The workforce at the site at the end of the period under review was about 1,500 persons. Occupational safety at the site remained at a good level.
The business restructuring plan announced by Areva in 2016 was implemented at the beginning of 2018. The majority of Areva NP’s business was transferred to a company named Framatome, of which 75.5 percent is owned by Electricité de France (EDF). The OL3 EPR project and the means required to complete the project, as well as certain other liabilities remained within Areva NP and Areva GmbH.
A comprehensive settlement agreement between TVO and the OL3 EPR plant supplier consortium companies was signed and it came into force in March 2018. The settlement agreement concerns the completion of the OL3 EPR project and related disputes. More information on the settlement agreement is available in the chapter 11) Pending court cases and disputes.
All realized costs of the OL3 EPR project that can be recognized in the cost of the asset have been entered as property, plant and equipment in the Group balance sheet.
