TVO, Wärtsilä tribunal concludes

18 August 2022

An arbitration tribunal has resolved all the claims presented by the parties in proceedings between Teollisuuden Voima Oyj (TVO) and Wärtsilä Finland Oy concerning a 2013 contract for emergency backup generators at the Olkiluoto nuclear power plant.

Olkiluoto 1 and 2 (Image: TVO)

The proceedings relate to an agreement signed by TVO and Wärtsilä for the delivery of nine emergency diesel generators and their auxiliary systems to the Olkiluoto 1 and 2 units. Emergency diesel generators ensure a supply of power to a nuclear power plant to keep critical systems operating if a loss of off-site power should occur. The project included replacement of the eight existing emergency diesel generators at Olkiluoto with new, earthquake-resistant diesel generators, and construction of a ninth, completely new, emergency diesel generator which can act as a separate power plant.

In October 2020, TVO initiated arbitration proceedings concerning the installation and commissioning schedule of the diesel generators. Wärtsilä in July 2021 submitted a counterclaim for additional costs of approximately EUR40 million (USD41 million) in the same proceedings.

The arbitral tribunal has now resolved all the claims presented by the parties. "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," TVO said.

Researched and written by World Nuclear News