Finland plans a new nuclear energy act. It is set to simplify permitting and support SMRs

On 12 March, the Finnish government submitted a draft new Nuclear Energy Act to parliament. It is intended to replace the current act, which has been in force since 1987. The move is also expected to bring changes to 14 other pieces of legislation, including the Radiation Act.

According to the Ministry of Economic Affairs and Employment, the aim of the reform is to ensure that the use of nuclear energy serves the interests of society as a whole, is safe, and is accompanied by the responsible management of radioactive waste. The new framework is also intended to ensure compliance with European legislation and Finland’s international commitments.

Reform aims to speed up new projects

Prime Minister Petteri Orpo’s government wants the reform to strengthen Finland’s position as an attractive destination for investment in nuclear energy. The new legislation is intended to speed up project preparation, improve cost efficiency, and make preparation and implementation more predictable.

The new act is intended to introduce more flexible approval, licensing and notification processes. This should make it easier to reuse technical solutions that have already been approved, while also developing new concepts, including small modular reactors. The reform is also intended to allow nuclear facilities to be located closer to electricity consumers.

Simpler permitting and STUK’s role

The licensing process is to be simplified primarily in the early stages of project preparation, allowing project risks to be managed more flexibly without lowering safety requirements. For nuclear power plants with a thermal capacity of up to 50 MW, decisions are in principle to be made by the Ministry of Economic Affairs and Employment, while the government will retain this authority for larger projects.

The regulations governing Finland’s nuclear regulator, STUK, are also to be amended alongside the new act. The reform is intended to maintain a high level of safety, limit excessively detailed regulation, and create a more flexible regulatory framework for new nuclear projects.

New act expected to take effect in 2027

Finland’s Minister of the Environment and Climate, Sari Multala, said that the country will continue to need carbon-free, affordable and reliable energy sources, including nuclear power. According to her, the reform will ensure that regulation is better suited to different technological solutions and future technological developments. It is also intended to support a range of implementation models for nuclear projects and improve risk management, investment certainty and access to financing.

The new act is expected to enter into force on 1 January 2027. According to the Finnish government, this would allow applications for decisions in principle to be submitted under the new rules during the current parliamentary term.

Five nuclear units at two power plants are currently in operation in Finland. The Loviisa plant operates two VVER-440/V-213 pressurised water reactors, units Loviisa 1 and 2, which began operation in 1977 and 1981. The Olkiluoto plant operates two boiling water reactors, units Olkiluoto 1 and 2, which entered commercial operation in 1979 and 1982, and the new Olkiluoto 3 unit, an EPR that began commercial operation in 2023. Nuclear power sources now account for around 40% of Finland’s electricity generation.