EIB Grants €90M Loan to Upgrade Finland’s Olkiluoto Nuclear Power Plant

The European Investment Bank (EIB) has approved a €90 million loan to Teollisuuden Voima Oyj (TVO), Finland's largest energy supplier, to finance major safety and modernization upgrades at the Olkiluoto nuclear power plant. The project, located on the island of Olkiluoto in southwest Finland, will help extend the lifespan and efficiency of two of the plant's nuclear reactors—Olkiluoto 1 and 2—ensuring the continued production of safe, reliable, and low-carbon electricity in compliance with European Union (EU) and Finnish nuclear safety standards.

This investment marks a significant step in Finland's ongoing transition toward sustainable energy security, aligning with the EU's Green Deal, Energy Roadmap 2050, and broader efforts to achieve emission-free power generation across Europe.

Ensuring Long-Term Energy Security and Decarbonization

The €90 million financing package will be used to upgrade the automation and control systems and to replace key components such as steam separators in the Olkiluoto 1 and 2 units. These improvements will enhance operational safety, reduce maintenance downtime, and ensure continuous compliance with evolving nuclear safety regulations.

The upgrades are part of TVO's long-term investment programme, designed to maintain the high operational standards of its nuclear facilities while reinforcing Finland's energy independence and climate resilience.

"By supporting safety upgrades at Olkiluoto, we are helping Finland strengthen its energy mix with reliable, low-carbon power," said EIB Vice-President Karl Nehammer. "This investment supports Finland's energy independence and contributes to the EU's goals of ensuring secure and clean electricity for homes and businesses."

Nuclear power remains a cornerstone of Finland's decarbonization strategy. In 2024, TVO's three nuclear units—Olkiluoto 1, 2, and 3—collectively generated around 28% of the country's total electricity supply, equivalent to 83 terawatt hours (TWh). This contribution helps Finland maintain one of the cleanest electricity mixes in Europe, with over 90% of national power already derived from low-carbon or renewable sources.

Supporting Nuclear Safety and EU Climate Objectives

The modernization project responds to mandatory safety and performance requirements under Finnish nuclear legislation and the EU's Nuclear Safety Directive, which mandates continuous improvement in plant safety and emergency preparedness.

The planned upgrades will be implemented progressively over the next several years to ensure uninterrupted power generation and stringent safety oversight. These measures will further strengthen the resilience of Finland's energy infrastructure against technical, environmental, and regulatory risks.

The EIB's involvement reflects the Bank's broader mandate to finance projects that support the EU's clean energy transition, reduce dependence on fossil fuels, and promote energy security amid growing geopolitical and market pressures.

"Long-term financing from the EIB is an excellent complement to our capital market-based debt funding," said Lauri Piekkari, TVO's Senior Vice-President for Treasury. "It enables us to carry out the necessary safety and reliability upgrades at Olkiluoto while maintaining our strong financial position."

A Milestone in Finland's Clean Energy Transformation

The Olkiluoto nuclear complex, operated by TVO, plays a critical role in Finland's path to carbon neutrality by 2035. The site houses three nuclear units, including the state-of-the-art Olkiluoto 3, which became fully operational in 2023 and is among the largest nuclear reactors in Europe.

Together, these reactors generate nearly one-third of Finland's electricity, significantly reducing reliance on energy imports and stabilizing power prices.

The EIB's latest investment follows a previous financing operation in 2016, which supported efficiency and safety improvements at the Olkiluoto plant. The Bank's continued engagement underscores its confidence in TVO's technical expertise, environmental stewardship, and role as a national energy leader.

Nuclear Power: A Key Component of the EU's Clean Energy Strategy

The operation contributes to the EU's strategic energy objectives, particularly the goal of achieving a competitive, emissions-free, and secure energy system. The European Commission's Energy Roadmap 2050 recognizes nuclear power as an important transitional technology for member states that choose to include it in their energy mix.

By providing consistent, low-carbon baseload power, nuclear energy complements renewable sources such as wind and solar, ensuring grid stability and resilience during periods of fluctuating generation.

The Olkiluoto upgrade also supports the EU Taxonomy for Sustainable Activities, which classifies specific nuclear energy projects as contributing to climate mitigation when meeting the highest safety standards.

"The EIB remains committed to financing projects that secure Europe's clean energy future," added Nehammer. "Investments like Olkiluoto ensure that nuclear power continues to serve as a reliable backbone for the EU's green transition, complementing renewables while maintaining strict environmental and safety criteria."

Advancing Innovation, Safety, and Public Confidence

TVO has long been at the forefront of innovation and transparency in nuclear operations. Its safety record, rigorous maintenance procedures, and continuous improvement initiatives have positioned Finland among the world's most trusted nuclear operators.

The modernization program will not only extend the operational life of Olkiluoto 1 and 2 but also integrate digital technologies and advanced automation systems to further enhance monitoring, predictive maintenance, and emergency response capabilities.

Moreover, the project is expected to generate high-skilled employment across Finland's energy and engineering sectors, reinforcing the country's expertise in nuclear technology and sustainable energy systems.

EIB: Financing Europe's Clean Energy Future

The EIB has been a consistent supporter of Europe's energy transition, financing projects that expand renewable generation, improve energy efficiency, and enhance grid infrastructure. Between 2020 and 2024, the Bank allocated over €100 billion to energy-related investments under its Climate Bank Roadmap, aiming to align all its operations with the Paris Agreement.

In Finland alone, the EIB has co-financed several flagship initiatives, including wind and bioenergy projects, grid upgrades, and earlier phases of the Olkiluoto modernization program.

The new €90 million loan further cements the Bank's position as a strategic financial partner in ensuring Europe's energy security, decarbonization, and technological innovation.

A Balanced Path Toward Carbon Neutrality

Finland's energy strategy combines nuclear power, renewables, and digital innovation to build a resilient, carbon-neutral energy system. Nuclear generation provides stable baseload power that complements intermittent renewables, ensuring both security of supply and affordable electricity prices for households and industries.

The Olkiluoto upgrade exemplifies this balanced approach — blending climate ambition with technological modernization and long-term safety assurance. It reflects a national consensus that energy independence, environmental responsibility, and economic competitiveness must advance together.