Fortum has signed a 22-year electricity purchase agreement with Google covering up to half of the Loviisa nuclear plant's capacity, more than 500 megawatts from 2028, Yle reported. The plant's two units have a combined capacity of 1,014 megawatts.
Fortum CEO Markus Rauramo said the deal is a very important and good agreement for Loviisa and Finland's electricity system. It provides financial certainty for power upgrades and extending the plant's life to 2050. Rauramo said Fortum's cash flows are strengthening, third-quarter results improved, and the balance sheet is very strong with liquidity over six billion euros and equity of eight billion euros.
Fingrid forecasts electricity consumption in Finland will nearly double by 2035, driven mainly by data centers and industry. Rauramo said Finland currently has Europe's cheapest and almost cleanest electricity. Big investors come to Finland because they believe electricity will remain very competitive, he said.
The price will continue to fluctuate strongly, and consumers can protect themselves with fixed-term contracts.
Fortum and Google have agreed to develop new solar, wind, batteries, pumped hydro, and new nuclear power, Rauramo said. Similar talks are underway with steel, aluminum, and hydrogen companies. Fortum has signed an agreement with Google for use of a battery storage system at the Kajaani data center.
It has eight gigawatts of renewable projects in permitting in the Nordics, nearly equal to its current capacity. By the end of 2028, Fortum targets 1.2 gigawatts of construction-ready renewable capacity and 2.5 gigawatts of new flexibility and balancing solutions. Rauramo said new wind and solar projects require customers to pay 50-60 euros per megawatt-hour.
Finland's average price from January to now has been 57.20 euros per megawatt-hour, or 5.20 cents per kilowatt-hour, including 25.5% VAT 6.53 cents. For new nuclear, that price is not enough. Fortum has acquired land near Loviisa and submitted an application to Sweden's nuclear program to negotiate with the state.
Rauramo said a series of reactors is needed to bring investment costs to a reasonable level. Before any decision, clarity is needed on technology, cost, construction time, and financing.