Fortum's Google PPA Sets Floor Under Loviisa Nuclear Plant
Fortum's long-term power purchase agreement (PPA) with Google has put a floor under its Loviisa nuclear plant, according to analysts at AlphaValue/Baader Europe.
The PPA runs for 22 years and serves as a financial hedge, locking in a price outcome while the electricity flows into Finland's grid. The contract price wasn't disclosed, but analysts estimated the impact from Fortum management's guidance, suggesting that once 50% of Loviisa is covered by 2030, Fortum's comparable return on net assets will rise by about 1.4 percentage points over time.
The analysts also expect lower earnings volatility due to less exposure to Nordic spot power prices. They estimate the additional comparable operating profit from this change at around 136 million euros, based on Fortum's first-half 2026 net asset base.
AlphaValue/Baader Europe has lifted its price target for Fortum to 25.3 euros, citing Loviisa looking less like merchant power due to the long-term financial hedge.