Finnish power company Teollisuuden Voima Oyj (TVO) has said that an arbitration tribunal has resolved all the issues regarding the supply of backup diesel generators from Wärtsilä Finland Oy. The court had settled all the demands presented by the parties regarding the delivery schedules, additional costs and fines for delay with respect to delivery of the diesel generators for the Olkiluoto NPP.
In 2013, TVO and Wärtsilä signed an agreement for the delivery of nine standby diesel generators and their auxiliary systems to the Olkiluoto 1 and Olkiluoto 2 (the so-called EDG project). TVO opened arbitration proceedings against Wärtsilä regarding the installation and commissioning schedule of the generators in October 2020. Wärtsilä filed a counterclaim in July 2021, demanding approximately €40 million as monetary compensation for additional costs.
According to the court decision, Wärtsilä must install and commission the diesel generators within a schedule determined by the court and must also pay TVO a fine for late payment as well as interest in compensation for the court costs incurred from the arbitration procedure. The court did not oblige TVO to make any payments to Wärtsilä.
Under the EDG project, the existing eight backup diesel generators at Olkiluoto were to be replaced with new, earthquake-resistant diesel generators and a ninth, completely new backup diesel generator would also be built. The ninth generator operates as a separate power plant, which enables the operating generators to be replaced one at a time during operation of the NPP.
Image: Finland's Olkiluoto nuclear power plant (courtesy of TVO)