Finnish electricity company TVO said Wednesday it had scrapped plans to build a new nuclear reactor in Finland because of delays and problems with an EPR reactor being built by Areva and Siemens.

The Finnish government had given TVO until June 30, 2015 to request a building permit for a fourth reactor at the Olkiluoto plant in western Finland, where a first European Pressurized Reactor has been under construction since 2005.

TVO said Wednesday it would not exercise its option due to "the delay of the start-up of Olkiluoto 3 plant unit."

"In this situation it is impossible to make significant Olkiluoto 4 related decisions necessary for the construction license application," it said.

TVO's shareholders are to vote on the decision at an extraordinary general meeting.

In July 2010, the Finnish parliament authorised the construction of two new reactors, in addition to the four in service and fifth under construction.

One of the new projects has moved ahead: parliament voted in December 2014 for the construction of a new nuclear plant in Pyhajoki in western Finland. It is expected to begin producing electricity in 2024.

The EPR has however been plagued by cost overruns and delays, and is now expected to begin producing electricity in 2018, nine years late, according to Areva.

hh/po/bc

AREVA

SIEMENS