The first new European nuclear plant in 16 years has already slashed Finland’s energy bill by three-fourths.
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Olkiluoto 3, or OL3, joins two existing reactor units that have powered Finland’s grid for decades. This latest unit adds 1,600 megawatts to the plant’s production capacity — which means 30% of the nation’s electricity will soon come from just one plant on a tiny island in Western Finland.
When the new OL3 unit was fully activated in April, average spot electricity prices fell to €60.55 ($65.69) per megawatt hour. That’s 75.38% lower than the average spot price in December 2022 (€245.98 per megawatt hour).
While its operating company TVO called it "the greatest single climate act in Finland," others argue that the benefits are hardly worth the risks.
Here’s why most countries are cool on this technology.
Fear
High-profile incidents like at Three Mile Island, Chernobyl and Fukushima have severely impacted the reputation of nuclear energy. Even if an overwhelming number of plants are safe, it only takes one accident to render the land around a plant uninhabitable.
In the U.S., “nukes” (as protesting musicians nicknamed them in the 1980s) continue to be unpopular. The number in the U.S. has dropped from a peak of 107 in 1990 to 93 as of 2022, according to the Pew Research Center.
Roughly 1-in-4 Americans say their government should actively discourage nuclear energy production, which could explain why so few plants have been built over the last 10 years. Yet fear is only part of the equation, as the financial bottom line also plays a crucial role in the lack of any nuclear energy embrace.
Cost
New nuclear power plants are mostly being built in countries where all infrastructure is cheaper to build. China is currently developing 24 new plants — the most in the world. Meanwhile, India is building eight new reactors. It’s simply cheaper to build plants in these regions.
According to the World Nuclear Association, the overnight cost of building a new plant in China, which assumes no interest payments, is $2500/kWe, while the cost in the U.S. is $6041/kWe (short for kilowatt-electric or one thousand watts of electric capacity). This price disparity is another reason why nuclear power isn't favored in the developed world — though the causes go far beyond this.