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The construction site at the Olkiluoto III nuclear reactor.

In a devastating pair of financial reports that might be called "The Emperor Has No Pressure Vessel," the New York Times has blazed new light on the catastrophic economics of atomic power. The two Business Section specials cover the fiasco of new French construction at Okiluoto, Finland, and the virtual collapse of Atomic Energy of Canada. In a sane world they could comprise an epitaph for the "Peaceful Atom". But they come simultaneous with Republican demands for up to $700 billion or more in new reactor construction. The Times's "In Finland, Nuclear Renaissance Runs Into Trouble" by James Kanter is a "cautionary tale" about the "most powerful reactor ever built" whose modular design "was supposed to make it faster and cheaper to build" as well as safer to operate. But four years into a construction process that was scheduled to end about now, the plant's $4.2 billion price tag has soared by 50% or more. Areva, the French government's front group, won't predict when the reactor will open. Finnish utilities have stopped trying to guess. Finnish inspectors say Areva allowed "inexperienced subcontractors to drill holes in the wrong places on a vast steel container that seals the reactor." The Finns have also cited Areva for "the attitude or lack of professional knowledge of some persons."

"French nuclear giant AREVA were force to issue a profit warning yesterday. It has had to find an extra 400 million euros to cover the additional costs of building its so-called flagship European Pressurised Reactor at Olkiluoto in Finland. This is on top of 2.3 billion euro provisions put aside in previous years and brings the current estimated overrun to an eye-watering 2.7 billion euros. The initial cost of the project was 3.2 billion euros. While the rocketing costs of the OL3 EPR have dragged down AREVA's results for years, this is the first time that they have sent the company into the red. The company's financial health has already been suffering thanks to the Olkiluoto project, as it struggles to build up its reserves for planned future investments. But that's not the end of it. This announcement of another enormous cost overrun will not be the last. This newly announced 400 million is based on the assumption that OL3 will be operational by end of 2012 and not the middle of 2012. However, it became clear last week that the end of 2012 milestone will - at best - be completion date for construction. It will then take at least another six months before the newly finished power plant can go into commercial operation. That would mean roughly another extra 400 million euros being added to the project's budget."

"Areva SA, the French nuclear-reactor builder, took a new provision for cost overruns at a plant it's building in Finland, leaving the door open for more charges as the project is still 2 1/2 years away from completion. The company said yesterday it will book a charge of about 400 million euros ($491 million) in the first half as Finnish customer Teollisuuden Voima Oyj said this month the OL3 plant will start nuclear operations at the end of 2012 rather than by a previous June 2012 deadline. Areva "has now installed the reactor pressure vessel and continues work on piping, but history suggests further delays are very likely," Alex Barnett, an analyst at Jefferies International Ltd., who recommends buying Areva investment certificates, said in a research note today. The new charge takes total provisions for cost overruns to about 2.7 billion euros for the first-of-its-kind project, which Areva pledged in 2005 to build for 3 billion euros and complete in 2009."

German consortium Areva-Siemens is to take TVO to arbitration in a dispute over delays and cost overruns at the Olkiluoto 3 reactor, the Finnish nuclear plant operator said on Wednesday. In October, TVO was told by the consortium that the 1,600 MW reactor -- the first to be constructed in Western Europe for more than a decade -- would be further delayed to 2012 from its initial start-up target of 2009.

Europe's first new-generation nuclear power plant is now three years behind schedule and will not come on stream until 2012, the Finnish utility behind the project admitted yesterday. The delay raises fresh doubts over the "nuclear renaissance" planned by Britain, France and other European countries to ensure security of energy supplies and combat climate change.

Areva, a French nuclear construction company, said this week that its project to build the world's most powerful reactor remained mired in delays and was over-budget by 2.3 billion euros, or about $3.3 billion. The price tag of the plant in Olkiluoto, Finland - the first of a fleet of so-called evolutionary power reactors that Areva foresees building in coming years - was about $4.3 billion in 2003 and costs have steadily increased. The reactor was meant to have gone online early this summer but Areva no longer is committing to any dates for its completion. Patrice Lambert de Diesbach, an energy analyst with CM-CIC Securities in Paris, said the latest developments were "bad news" for Areva and "should be sanctioned by the market."

Areva, a French nuclear construction company, said this week that its project to build the world's most powerful reactor remained mired in delays and was over-budget by 2.3 billion euros, or about $3.3 billion. The price tag of the plant in Olkiluoto, Finland - the first of a fleet of so-called evolutionary power reactors that Areva foresees building in coming years - was about $4.3 billion in 2003 and costs have steadily increased. The reactor was meant to have gone online early this summer but Areva no longer is committing to any dates for its completion. Patrice Lambert de Diesbach, an energy analyst with CM-CIC Securities in Paris, said the latest developments were "bad news" for Areva and "should be sanctioned by the market."

A new report out today casts doubt on the ability of the nuclear industry to deliver its promised new reactors. French companies EDF and Areva, who are at the forefront of the new worldwide reactor design and building programme, have been making serious investments in foreign markets where they hope to build new reactors, including here in the UK. As a consequence they are heavily in debt. Today, EDF announced the issue of new bonds in an effort to raise fresh cash. With the outlook for new build looking increasingly uncertain, the future of both EDF and Areva is now also coming under scrutiny.

A new report out today casts doubt on the ability of the nuclear industry to deliver its promised new reactors. French companies EDF and Areva, who are at the forefront of the new worldwide reactor design and building programme, have been making serious investments in foreign markets where they hope to build new reactors, including here in the UK. As a consequence they are heavily in debt. Today, EDF announced the issue of new bonds in an effort to raise fresh cash. With the outlook for new build looking increasingly uncertain, the future of both EDF and Areva is now also coming under scrutiny.

When it is finished, Finland's Olkiluoto 3 (OL3) nuclear reactor will be the biggest the world has ever seen, the excavation site alone is the size of 55 football fields. It was to have been a pilot project for bigger, better, cleaner, Generation III reactors, which would lead the charge back to nuclear power in a continent which had gone cold on atomic energy after the accidents at Chernobyl and Thee Mile Island.

Poor planning has led to rising costs and huge delays for a nuclear reactor going up in Finland, the country's biggest-ever construction project, officials have said. The plant on the island of Olkiluoto in western Finland, to be run by Finnish nuclear power company TVO, was meant to start production this summer. But it is now not expected to open for another three years and Finnish authorities cannot hide their disappointment with Areva-Siemens, the Franco-German contractor running the building operations.

Start-up of Europe's first EPR nuclear power plant, the Olkiluoto 3 under construction in Finland, has been postponed beyond June 2012 because civil construction is taking longer than was previously estimated, according plant owner Teollisuuden Voima Oyj (TVO). Finland's nuclear regulatory agency has, meanwhile, called attention to "deficiencies" in the welding of the plant's cooling system, potentially causing further delays. The Finnish utility said last week that the plant's supplier, an AREVA-Siemens Energy consortium, is responsible for the current schedule, and that it has requested a re-analysis of the anticipated start-up date. Work on the long-awaited nuclear power project began in 2005, and the plant was originally due to come online in 2009, but the project has been consistently plagued with faulty materials and planning problems. AREVA in September revealed that the total cost of the flagship third-generation reactor had risen to some €5.3 billion-up from the originally estimated cost of €3 billion. Costs could go up even more because of timeline uncertainties.

Start-up of Europe's first EPR nuclear power plant, the Olkiluoto 3 under construction in Finland, has been postponed beyond June 2012 because civil construction is taking longer than was previously estimated, according plant owner Teollisuuden Voima Oyj (TVO). Finland's nuclear regulatory agency has, meanwhile, called attention to "deficiencies" in the welding of the plant's cooling system, potentially causing further delays. The Finnish utility said last week that the plant's supplier, an AREVA-Siemens Energy consortium, is responsible for the current schedule, and that it has requested a re-analysis of the anticipated start-up date. Work on the long-awaited nuclear power project began in 2005, and the plant was originally due to come online in 2009, but the project has been consistently plagued with faulty materials and planning problems. AREVA in September revealed that the total cost of the flagship third-generation reactor had risen to some €5.3 billion-up from the originally estimated cost of €3 billion. Costs could go up even more because of timeline uncertainties.

Model for new UK reactors reveals damaging disagreements between Finland and French contractors From the outside, there is nothing unusual about the warehouse by the offices on Finland's Olkiluoto island, site of what should have been the world's first modern nuclear reactor. But inside, stacked on five kilometres of shelving, are 160,000 documents. "If a valve for the reactor is changed, it comes in a small box and a van full of documents," complains Jouni Silvennoinen, project director for Teollisuuden Voima (TVO), the Finnish utility that ordered the plant from the Franco-German consortium Areva-Siemens. The paper mountain helps explain why the reactor, which should have cost €3bn (£2.72bn) and been working this year, will now miss its revised completion date of mid-2012 and will cost at least €5.3bn. In the latest delay, Finland's nuclear safety regulator halted welding on the reactor last week and criticised poor oversight by the sub-contractor, supplier and TVO.

Model for new UK reactors reveals damaging disagreements between Finland and French contractors From the outside, there is nothing unusual about the warehouse by the offices on Finland's Olkiluoto island, site of what should have been the world's first modern nuclear reactor. But inside, stacked on five kilometres of shelving, are 160,000 documents. "If a valve for the reactor is changed, it comes in a small box and a van full of documents," complains Jouni Silvennoinen, project director for Teollisuuden Voima (TVO), the Finnish utility that ordered the plant from the Franco-German consortium Areva-Siemens. The paper mountain helps explain why the reactor, which should have cost €3bn (£2.72bn) and been working this year, will now miss its revised completion date of mid-2012 and will cost at least €5.3bn. In the latest delay, Finland's nuclear safety regulator halted welding on the reactor last week and criticised poor oversight by the sub-contractor, supplier and TVO.