In 2014, VTT Technical Research Centre of Finland * conducted independent research on the economic impacts of the new nuclear power investments in Finland**. The following information refers to the research report of VTT, unless otherwise stated.
According to the research, the Hanhikivi 1 nuclear power plant investment of Fennovoima will increase domestic investments by nearly 1 per cent in the 2020s and the gross domestic product by more than 0.25 per cent. Nearly half of the growth of the gross domestic product is related to increased investments throughout the 2020s.
Effects on employment
The investments related to the project will increase employment, especially in the construction industry. The effect on employment growth will be about one-third of the additional domestic product growth. The growth of industrial investment in the 2020s is subject to sectors manufacturing capital goods. Other export industry investments will start to grow by the 2030s.
According to estimates from Pöyry Finland (formerly Pöyry Energy Oy)*** in 2008, the employment effects of the power plant construction are 24,000 – 36,000 person-years in Finland, if the domestic content is 45 per cent. The nuclear power plant is being built by up to 4,000 people, and during the operation phase, the power plant will directly employ 400 – 500 people.
The building of new nuclear power gives birth to significant additional investments, not only within the energy sector and construction, but also in capital goods-producing industries.
Increased purchasing power of households
The additional income that is created by the investments will increase the purchasing power of households and stimulate consumer demand. The purchasing power of households will also be improved as the price of energy will rise more moderately than without the construction of new nuclear power.
The moderate energy price development is very important for Finland, because it improves the competitiveness of the whole country. The growth in the purchasing power of households will increase investments in the fields of trade and of private services in the 2020s.
In the model calculations from VTT Technical Research Centre of Finland, the basic estimate of electricity demand was based on the basic scenario of the 2013 Energy and Climate Strategy of Finland, which takes into account, inter alia, short-term economic forecasts.
* Lehtilä, Honkatukia & Koljonen (2014) Ydinvoimapäätösten energia- ja kansantaloudelliset vaikutukset. Tutkimusraportti VTT-R-03704-14, VTT Technical Research Centre of Finland. ** Fennovoima's proportion of the economic impacts presented in VTT's study has been calculated by dividing the values presented in the study equally between new nuclear power plant projects.
*** Pöyry Energy Oy (2008) Aluetaloudellisten vaikutusten arvioinnin taustaselvitys.
Economic impacts during 2015-2016
In December 2016 to January 2017, Fennovoima and Pohjois-Pohjanmaan Yrittäjät conducted together for the first time a web survey about the local economic impacts of the Hanhikivi 1 project during the years 2015 – 2016.
Approximately 42 % of the respondents indicated that the Hanhikivi 1 project has already had some positive impact on their company, but the actual impact on turnover remained still close to €0 (72 %) or under €23,000 (15%). Only 2.2% of the respondents reported an impact on turnover between €1 million and €20 million.
In total, 53 % of the respondents expect the Hanhikivi 1 project to have a positive impact on their turnover during the years 2017 – 2018.
The respondents were mainly SMEs from Northern Ostrobothnia (90%) with 1 to 5 employees (52%) and with a turnover under €500,000 (53 %). Approximately 90% of the respondents were from companies that employed under 50 employees and had a turnover under €5 million. The survey got 316 responses.