TVO's most important financial goals in 2022 included achieving the desired production cost level and reaching the planned electricity delivery volume. The most important indicators of economic responsibility are presented in the financial statements of 2022.
TVO operates according to the cost price principle, and produces electricity to its shareholders at cost price. The shareholders cover all of TVO’s operating costs and, in return, receive electricity pro-rata to their respective shareholding. They consume the electricity themselves or sell it on to third parties. The cost price model allows electricity companies and electricity consumers of different sizes to participate in major investments, such as those required for nuclear power, and take advantage of the benefits of large-scale production. TVO’s shareholders include 131 municipalities, which means that the benefits of stable costs and predictability based on cost-price electricity are enjoyed across Finland. Due to the cost price principle, conventional financial indicators cannot be applied to TVO, as they were created for comparing profit-making companies. Indicators that are important to TVO and the shareholders include the amount of electricity produced and the load factors of the plant units.
Stable production and modernisations
The year 2022 was overall a good production year for TVO's Olkiluoto nuclear power plant. Olkiluoto 1's (OL1) electricity production was 6.90 TWh (billion kilowatt hours). The production result of Olkiluoto 2 (OL2) was 7.5 TWh. Olkiluoto 3 (OL3) production result during the test production was 1.9 TWh.
The total electricity production of the OL1 & OL2 power plant was 14.4 TWh in 2022. The OL1 & OL2 plant combined load factor of the plant units was 93.0 percent. Olkiluoto 3 plant load factor during the test production unit was 16.9 percent.
TVO makes investments to improve the availability, profitability, and safety of its nuclear power plant. In 2022, TVO's investments totalled EUR 339.0 million.
Financing complies with plans
TVO's financing situation has developed according to plans, with the Company using a versatile mix of financing sources. In addition to international capital market, the Company obtains long-term financing from banks and other financial institutions. In terms of obtaining capital market financing, credit ratings play an important role.
Financing ensures TVO's solvency under all circumstances. TVO's basic principle is to raise about three quarters of the funding required for investments from the financial markets, and about one quarter comes from the shareholders. TVO prefers long-term financing arrangements and financing is always sought for the Company, not for individual projects.
The investments made by TVO are large-scale and their financing arrangements require strong trust. While major projects are in progress, it is important to maintain the trust of investors. From the point of view of investors, the electricity production of OL1 and OL2 is very valuable, as the plant units have been generating electricity for over 40 years with high load factors, and most of the original investments have already been amortised.
TVO's shareholders, banks, and investors strongly trust in the operations of TVO. This has been reflected in e.g. the significant reorganisations of bank financing and the issuing of a new bond.
Read more about financing from TVO's Investors page.