Billions of euros thrown away? Norway reveals the dark side of investing in nuclear power plants

The Norwegian government presented a report on nuclear energy, in which it noted that although nuclear energy is a stable and emission-free source of energy, European experience shows that the construction of power plants takes a long time and can be up to four times more expensive than the original assumptions.

The document was prepared in connection with the growing demand for energy and the return of the nuclear debate. The previous similar report was created in 1978. In recent years, a total of 10 initiatives to build nuclear power plants have been reported in Norway, including the project in Svalbard.

The authors of the latest report claim that nuclear energy could ensure stable electricity supplies regardless of weather conditions and support the energy transformation. Its low-emission nature and its potential role in meeting the growing demand were emphasized, including: from the industry.

The report also took into account the possibility of developing small modular reactors (SMRs). Norwegian experts believe that they can be cheaper and more flexible than traditional power plants. At the same time, it was emphasized that the implementation of this technology is associated with great uncertainty.

The main barriers to nuclear development in Norway include: high investment costs, long implementation time and lack of competences and infrastructure in a country that does not have nuclear energy. The risk of delays and budget overruns was also highlighted, which – according to the report – are of a systemic nature in Europe.

The most frequently cited examples are the Olkiluoto 3 power plant in Finland, the construction of which began in 2005 and was launched only in 2023 instead of in 2010, while the cost increased from approximately EUR 3 billion to approximately EUR 11 billion. In France, the Flamanville 3 unit, built since 2007 with a plan to launch in 2012, was only connected to the grid in 2024, and its cost increased from approximately EUR 3.3 billion to over EUR 13 billion. In the UK, the Hinkley Point C project, started in 2016, was supposed to be launched in 2025, but now the date has been postponed to 2030–2031, and the cost has increased from the equivalent of approximately EUR 21 billion to as much as EUR 46 billion.

The most realistic way to improve energy security for Norway is to modernize hydropower, which currently covers 99%. demand, development of transmission networks and increasing the efficiency of energy consumption.

Norway had two research reactors, in Halden and Kjeller, which were closed in 2018 and 2019 respectively for economic and technical reasons. The authorities do not currently plan to build new nuclear facilities of this type.

From Oslo Mieszko Czarnecki (PAP)

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