Sweden Proposes State Support for New Nuclear Reactors

As part of its climate policy, Sweden's government is committed to transitioning to fossil-free energy, primarily through electrification. To maintain a high rate of electrification and provide stable and competitive prices, the country needs more fossil-free electricity, which is where new nuclear reactors come in. The government has now proposed financial frameworks for companies to apply for state support to build new nuclear reactors, with the goal of securing 5,000 MW of electrical power.

Key Takeaways:

• The Swedish government has proposed state support for companies to build new nuclear reactors, with a goal of securing 5,000 MW of electrical power.
• The government has established a financing model for new nuclear power, which involves financial powers to enter into agreements and decide on loans for investments in new nuclear power.
• The state's costs are affected by the final cost of building reactors, which may deviate from the expected cost, and the future development of electricity prices.
• The government support is limited and planned to cover investments totaling up to approximately 5,000 MW of electrical power.
• The government aims to handle applications corresponding to approximately half of the total support in 2026.
• The government is proposing reinforcements of a total of SEK 161 million for permit review of new nuclear power.
• The new authority will handle the reformed environmental assessment and certain tasks will be transferred from the county administrative boards to the new authority from 1 July 2027.

Statistics:

• Expected lending for the construction of new reactors: SEK 220 billion over twelve years.
• Expected future annual expenses for price hedging: an average of SEK 1-3 billion per year for 40 years after the reactors have been put into operation.
• Total government support planned: up to approximately 5,000 MW of electrical power.
• Proposed reinforcements for permit review of new nuclear power: total of SEK 161 million in 2026.
• Increase in appropriations for the Swedish Radiation Safety Authority, the Swedish Environmental Protection Agency, the county administrative boards, the Swedish National Debt Office, and the Swedish Courts: total of SEK 161 million in 2026.

Sources:

• Swedish government, Budget bill for 2026.
• Swedish Environmental Permit Commission, Report on proposals for reformed environmental assessment.