The arbitral tribunal gave its conclusion in the arbitration proceedings regarding the delivery of emergency diesel generators
The arbitration proceedings between Teollisuuden Voima Oyj (TVO) and Wärtsilä Finland Oy (Wärtsilä) have concluded. The arbitral tribunal resolved all the claims presented by the parties to each other concerning the delivery schedules, additional costs, and delay liquidated damages of the diesel generators, which act as an emergency power source of the Olkiluoto nuclear power plant.
TVO and Wärtsilä signed an agreement on the delivery of nine emergency diesel generators* and their auxiliary systems to the Olkiluoto 1 and 2 plant units (the so-called EDG project) in 2013. In October 2020, TVO initiated arbitration proceedings against Wärtsilä concerning the installation and commissioning schedule of the diesel generators. Wärtsilä submitted its counterclaim in the same proceedings in July 2021, demanding a monetary claim for additional costs of approximately EUR 40 million.
According to the award, Wärtsilä is obligated to install and complete the commissioning of the diesel generators according to the schedule provided by the arbitral tribunal. In addition, Wärtsilä was ordered to pay TVO delay liquidated damages including interest, as well as to compensate the majority of legal costs accumulated to TVO from the arbitration proceedings. The arbitral tribunal did not obligate TVO to make payments to Wärtsilä.
* Emergency diesel generators ensure the power supply of nuclear power plants in a possible loss-of-power situation of a nuclear power plant. In the EDG project, the eight existing emergency diesel generators are replaced with new, earthquake-resistant diesel generators, and a ninth, completely new emergency diesel generator is built. The ninth diesel generator acts as a separate power plant, with the help of which the existing diesel generators can be replaced one-by-one during the use of the plant units.
Teollisuuden Voima Oyj has produced electricity for its shareholders, Finnish industrial and energy companies, safely and reliably for over 40 years. Nuclear electricity generated at TVO's Olkiluoto plant covers approximately 30 percent of Finland’s electricity demand once Olkiluoto 3’s regular electricity production has started. Climate-friendly nuclear electricity not only benefits society but also reduces the environmental impact of energy production. Moreover, the world's first final disposal facility for spent nuclear fuel is under construction in Olkiluoto.