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Released May 01, 2015 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)-Falling profits and rising costs have been blamed by Sweden's state-owned power utility Vattenfall AB (Stockholm, Sweden) for its decision to shut two nuclear reactors early.
The company said that it will now shut the Ringhals 1 and 2 reactors up to seven years early between 2018 and 2020, instead of the previous date of 2025. The reactors are the oldest of the company's seven operational nuclear reactors and will result in the loss of 1,000 jobs. Ringhals 1 and 2 have generating capacities of 881 -megawatts (MW) and 865 MW, respectively.
Sweden's minority-led government wants to phase out nuclear power completely. Earlier this year, Vattenfall shelved plans to build a new nuclear power at Ringhals. For additional information, see January 28, 2015, article - Sweden's Nuclear Future Frozen.
"Unfortunately, we see market conditions with continued low electricity prices in the coming years," said Torbjörn Wahlborg, Head of Business Area Generation, Vattenfall. "At the same time, we are facing increasing production costs. Vattenfall's decision is business-driven. It is, of course, regrettable to close down well-functioning production units, but sometimes this is inevitable."
The company said that it's five other nuclear reactors--Ringhals 3 and 4, and Forsmark 1, 2 and 3--will not be affected by the decision and will continue to operate for at least 60 years, until the beginning of the 2040s.
Sweden operates 10 reactors in total, which supply 39% of the country's electricity.
Vattenfall's announcement on the Ringhals closure comes on the back of weak first-quarter financial earnings for 2015. Lower production volumes and continued falling electricity prices had a negative effect on Vattenfall's earnings, which fell 15% to $892 million.
Magnus Hall, President and CEO of Vattenfall, said: "Demand for electricity remained weak during the first quarter of the year, and electricity prices have continued to fall. The protection we have in the form of forward contracts entered into at higher price levels is gradually decreasing, entailing that the current low wholesale prices are having a gradually bigger impact on Vattenfall's earnings".
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
The company said that it will now shut the Ringhals 1 and 2 reactors up to seven years early between 2018 and 2020, instead of the previous date of 2025. The reactors are the oldest of the company's seven operational nuclear reactors and will result in the loss of 1,000 jobs. Ringhals 1 and 2 have generating capacities of 881 -megawatts (MW) and 865 MW, respectively.
Sweden's minority-led government wants to phase out nuclear power completely. Earlier this year, Vattenfall shelved plans to build a new nuclear power at Ringhals. For additional information, see January 28, 2015, article - Sweden's Nuclear Future Frozen.
"Unfortunately, we see market conditions with continued low electricity prices in the coming years," said Torbjörn Wahlborg, Head of Business Area Generation, Vattenfall. "At the same time, we are facing increasing production costs. Vattenfall's decision is business-driven. It is, of course, regrettable to close down well-functioning production units, but sometimes this is inevitable."
The company said that it's five other nuclear reactors--Ringhals 3 and 4, and Forsmark 1, 2 and 3--will not be affected by the decision and will continue to operate for at least 60 years, until the beginning of the 2040s.
Sweden operates 10 reactors in total, which supply 39% of the country's electricity.
Vattenfall's announcement on the Ringhals closure comes on the back of weak first-quarter financial earnings for 2015. Lower production volumes and continued falling electricity prices had a negative effect on Vattenfall's earnings, which fell 15% to $892 million.
Magnus Hall, President and CEO of Vattenfall, said: "Demand for electricity remained weak during the first quarter of the year, and electricity prices have continued to fall. The protection we have in the form of forward contracts entered into at higher price levels is gradually decreasing, entailing that the current low wholesale prices are having a gradually bigger impact on Vattenfall's earnings".
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
