Fortum’s President and CEO Tapio Kuula talks about energy policy and nuclear power in reviewing Fortum’s quarterly financial results.
“In light of Japan’s Fukushima accident, it is understandable that the heightened concern all over the world about the nuclear safety has implications on nuclear power investments and their timing. For Fortum it is very important that nuclear power has wide political and social acceptance. Safety reviews of nuclear power plants and an open dialogue about the risks are necessary in order to restore public confidence towards the industry.
In May, Germany announced plans to abandon nuclear energy by 2022, outlining a reversal of its previous policy. The decision was made in the wake of the Fukushima disaster aiming to replace nuclear power with renewable energy sources. Phasing out nuclear power within a decade will be a challenge and may affect the industry across Europe.
In June, the new Finnish Government announced its program. The new policy framework for the coming four-year period states that the Government will not make any new decisions-in-principle on nuclear power. Furthermore, the Government proposes to investigate a possible implementation of a windfall tax and a uranium tax. The Government will also review support schemes for renewable energy.
We must, however, not forget that climate change is – and will remain – a serious global challenge in need of solutions. Curbing emissions and the scarcity of natural resources are weighed against the increase in energy consumption that is driven by population and economic growth. Energy efficiency must be increased when bringing electricity and modern energy systems to a growing number of people. On the other hand, the need to improve energy efficiency emphasizes the role of electricity and offers business opportunities for Fortum. As investments in power and heat generation are highly capital intensive, Fortum stresses the importance of a predictable and consistent energy policy and operating environment.”