The four NPP units in Finland have been in operation for about 20 years and have a very good operating record. In the mid-1990s, comprehensive modernization programmes were launched with operating licence extension and power uprating as major short-term goals. The licences were extended by 10–20 years, a total of 350 MW new capacity was obtained at a low cost, and PSAs indicate significant improvements in safety level. The current national energy strategy of 1997 and the political agenda of the new government formed in April 1999 keeps the option open for new nuclear power capacity. NPP unit of 1000–1600 MW, to be operational by 2010, was submitted to the government in November 2000. New nuclear power appears competitive in Finnish conditions, and it would be the most cost-effective way of meeting the Kyoto target for 2010. Nationally coordinated research and technology programmes have been established to support continued safety and performance improvements of the operating NPPs, particularly for life extension and severe accident management, and to advance preparedness for a new NPP unit. International collaboration, often within Euratom research programmes, is a key ingredient in the research approach.