In October 2022, Sweden’s incoming centre-right coalition government adopted a positive stance towards nuclear energy. In November 2023, it unveiled a roadmap which envisages the construction of new nuclear generating capacity equivalent to at least two large-scale reactors by 2035, with up to 10 new large-scale reactors coming online by 2045.
In May this year, Sweden’s parliament – the Riksdag – approved the government’s proposals for providing state aid to companies that want to invest in new nuclear reactors in the country. The loans – aimed at lowering the cost of financing new nuclear – will be limited to the equivalent of four large-scale reactors (about 5000 MWe of capacity). The government noted that support may only be granted if the new reactors are located at the same location and have a total installed output of at least 300 MWe. The two-way Contracts for Difference may be entered into once a new reactor has become operational and has been licensed to produce electricity at full capacity.
The new act on state aid entered into force on 1 August, since when interested companies have been able to apply for the aid.
Last month, Vattenfall said it had decided to choose small modular reactors for new nuclear capacity at the existing Ringhals plant site, with a shortlist of two technologies: GE Vernova Hitachi’s BWRX-300 and the Rolls-Royce SMR. At the time it said an application to the government for state risk-sharing was to be submitted and a final supplier selected.
The government has now proposed that the budget bill for 2026 include financial frameworks for it to negotiate with companies applying for support. They involve financial powers to enter into agreements and decide on loans for investments in new nuclear power and on price hedging agreements that fall within these frameworks. Agreements can be signed in 2026 and 2027. The frameworks are based on an expected lending for the construction of new reactors of a total of SEK220 billion (USD23.4 billion) over 12 years and expected future annual expenses for price hedging of an average of SEK1–3 billion per year for 40 years after the reactors have been put into operation.
The government said the exact terms of the agreement will be negotiated with each project company individually, based on the individual project’s conditions. It noted that in order to provide support to a company, the government needs approval from the European Commission, which may lead to further adjustments to each individual agreement. The state’s costs are also affected by the final cost of building reactors, it said, “which may deviate from the expected cost, and the future development of electricity prices”.
It said: “Given that the basis for calculating the expected costs cannot be determined today, the proposal for financial frameworks for the various parts of the support does not constitute a price tag, but an upper limit for the upcoming negotiations.”
The government said it aims to be able to handle applications corresponding to about half of the total support in 2026, and bases its proposal in the budget bill on this.
Preparing for permit reviews
“Effective permitting processes for new nuclear power in more locations are an important part of a climate transition that drives Sweden forward,” the government said. “The government is working to ensure that a permitting process adapted to large and small players, and that can handle both established and new technology, is in place by 2026.”
It is said it is therefore investing in a “multi-part package of measures” in which the 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 will increase by a total of SEK161 million in 2026.
“The reinforcements create the conditions for an efficient examination and well-prepared supporting documents for the environmental process,” it said. “This lays the foundation for faster permits with local acceptance – so that new nuclear power can coexist with other interests.”
In addition, the government said it is taking the next step to streamline environmental review by creating a new authority. Certain tasks will be transferred from the county administrative boards to the new authority for environmental assessment from 1 July 2027. At a later stage, certain tasks at the land and environmental courts are also planned to be transferred to the new authority.
