Euradwaste '08 - EU Bookshop - Europa

As in all industrial activities, "Polluter pays" principle is valid for nuclear power, too. Considering
the long lead times in radioactive waste management, the financial provisions for waste management
must be secured in advance and collected in phase with electricity production. The present
generations that take the advantage of nuclear electricity shall have the burden to bear the waste
management costs and not push them forward to future generations.
The financing of waste management necessitates reliable assessment of waste management costs.
The cost calculations are, however, not too straightforward especially when related to high level
waste management. Prediction of future costs over a time span of one hundred years is very challenging
while bearing in mind that the technology is continuously developing. In all activities related
to nuclear power "Safety first" principle is mandatory. The application of this in financial provisions
implies that conservatism is included in cost calculations.
It should be noted that sufficiently accurate information of waste management costs is needed also
for the evaluation of the economics of nuclear power, i.e. when new nuclear power plant projects
are considered. Such calculations can utilise the same data base although they might be based on
different premises and boundary conditions.
The purpose of this presentation is to discuss the costs of spent fuel management, first using the
Finnish situation as an example and then trying to generalize our experiences and conclusions into
an international framework as far as possible. Some long-term perspective is available on the basis
of the past evolution of our cost estimates but an extrapolation into the future is doubtful at its best.
2. Basis for calculation of waste management costs in Finland
2.1 Legal framework for assessing financial liabilities
Preparations for nuclear waste management were commenced in Finland already in the 1970s when
the power plants were still under construction. In 1983, the Government confirmed a target schedule
for spent fuel management, in which the construction of the final disposal facility was scheduled
for the 2010s and the start of final disposal for 2020.
The Nuclear Energy Act regulates the implementation of nuclear waste management in Finland.
According to the Act, the operators of the NPPs bear the responsibility for nuclear waste until final
disposal has taken place. All nuclear waste generated in Finland, including spent fuel, must be handled,
stored and permanently disposed of in Finland.
The financial side of final disposal is also covered by legislation. The assets required for the management
of wastes produced in nuclear power plants are collected in advance from the waste producers
and transferred to the State Nuclear Waste Management Fund. The two nuclear power companies,
Teollisuuden Voima Oy (TVO) and Fortum Power and Heat Oy (Fortum), are responsible
for the safe management of the their waste and for all associated expenses. TVO and Fortum established
a joint company, Posiva Oy, in 1995 to implement the disposal programme for spent fuel
from their NPPs, whilst other nuclear wastes are handled and disposed of by the power companies
themselves.
The State Nuclear Waste Management Fund is a reserve for future costs. The Fund was introduced
in the Nuclear Energy Act of 1987 and is operative since 1988. It is not included in the budget of
the state, but is an external fund controlled by the Ministry of Employment and the Economy
(TEM). The Finnish Fund fulfils the two globally accepted principles for such funds: the funds are
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