The safe use of nuclear fuel is ensured at all stages of TVO’s
value chain, from the responsible procurement of uranium to the safe
final disposal of spent nuclear fuel.
TVO’s value chain includes owner and customer values as well as social value, among others. TVO creates value to its owners through the safe, efficient and competitive production of climate-friendly electricity. The electricity received by owners also falls into the category of customer value that benefits TVO’s shareholders – Finnish industries and utilities with 132 municipalities behind them. The fact that TVO produces approximately 17% of all electricity consumed in Finland and thus significantly increases well-being in the society is considered a proof of TVO’s social value. Furthermore, TVO and its contractors create jobs and income for people in Finland. In addition to responsible electricity production, the value chain emphasizes the high domestic content of the production operations as well as the careful selection of contractors and partners.
TVO’s comprehensive supply chain
TVO’s production chain covers the generation of electricity at the Olkiluoto nuclear power plant and the transfer of the electricity into the national grid that distributes the electricity to consumers. TVO’s supply chain covers all functions, structures, and operators from the raw material sources to the consumers of electricity. Key sections of the supply chain include procurement and manufacture of fuel, other procurement operations, generation and delivery of electricity, and nuclear waste management and the final disposal of spent nuclear fuel.
The first issue in the delivery chain is the nuclear power plant’s fuel, uranium. Uranium has been classified as a sensitive material, and strict governance by the authorities is a basic prerequisite for the utilization of nuclear energy. The governance operations are based on the European Atomic Energy Community (Euratom) Treaty. The national authority, the Radiation and Nuclear Safety Authority (STUK), governs operators and licensees as defined by the Finnish Nuclear Energy Act. Read more about the procurement of uranium and the production process.
Nuclear power plant units OL1 and OL2 are boiling water reactors that require a total of 40 tonnes of low-enriched fuel uranium as the raw material for their fuel each year. The fuel assemblies are located in the plant unit’s reactor pressure vessel where water is circulated through the fuel assemblies in the reactor core. This process causes the water to boil and turn into steam. Saturated steam flows through the pressure vessel’s moisture separator and steam dryer into the main steam lines and to the high pressure turbine, further to the reheaters and, finally, to the LP turbines. A shaft connects the turbines to the generator that produces electricity for the national grid. One of the power plant units at Olkiluoto produces about seven billion kilowatt-hours of electricity per year. Read more about the acquisition of products and services.
TVO produces electricity at Olkiluoto for its owners at cost price. This allows utilities and consumers of various sizes to participate in major investments such as nuclear power plants and to benefit from the advantages of large-scale production. Owners cover all of TVO’s operating costs and, in return, receive electricity produced by TVO pro-rata to their ownership. The owners consume the power themselves or sell it on to third parties. In addition to the electricity, TVO is responsible for the fuel cycle starting from the excavation of uranium and ending with the final disposal of the spent nuclear fuel. Read more about nuclear waste management and final disposal.
In TVO’s vision, the nuclear power-generated electricity produced by the company commands a competitive price and holds a strong position in the production and investment palette of TVO’s electricity consumers. Read more about the production of electricity. In addition to the cost price electricity produced at Olkiluoto, owner value is increased by the operational stabilization of OL3, profitability and cost-efficiency, and customer-orientation.
In addition to owner value, the electricity produced by TVO benefits TVO’s shareholders, Finnish industries, Finnish energy companies, and Finnish municipalities as customer value. Olkiluoto provides Finland with steady base load power. The fact that TVO produces approximately one-sixth of all electricity consumed in Finland and thus significantly increases wellbeing in the society is considered a proof of TVO’s social value. TVO and its contractors contribute to wellbeing by creating jobs and income for people in Finland. In addition to responsible electricity production, the value chain emphasizes the high domestic content of the electricity production as well as the careful selection of contractors and partners.