In the spring amended budget for 2026, the government sought authorisation from the parliament – the Riksdag – to acquire 60% of the shares in Videberg Kraft for a maximum of SEK1.8 billion (USD190 million), together with a framework for future capital contributions. It requested authorisation to adjust the ownership in the range of 51–65% until the reactors are completed and put into operation. Authorisation was also requested to be able to contribute capital to the company of a maximum of SEK34.3 billion during the construction period, provided that other owners also contribute their share of the capital. Funds for future capital contributions are estimated from 2030 onwards. Both of these authorisations shall be valid until the reactors are put into routine operation, and until 2045 at the latest.
Following approval from the Riksdag the government has now said a shareholder agreement will be concluded between the state, Vattenfall and Industrikraft regarding the management of the company. The state has also negotiated the main terms of the state support for the company.
Videberg Kraft is currently owned 80% by the state-owned Vattenfall and 20% by Industrikraft, a consortium of some of the largest industrial companies in Sweden. The state’s acquisition is taking place through a purchase agreement that means that Vattenfall’s share will be reduced to 20%. The formal transfer of the shares to the state is expected to take place during the second half of 2027.
The main terms and conditions for the state support and nuclear waste management negotiated between the government and Videberg Kraft during the spring are also included as an annex to the purchase agreement. The support consists of state loans, price hedging in the form of so-called two-way contracts for difference and a risk and profit-sharing model.
With the agreements on state ownership in place, the government will submit a notification of state aid to the European Commission. A decision on state aid can be expected from the Commission in late-2027.
“Building new nuclear power is expensive and complicated, but important for us to have a better functioning energy system,” said Minister for Financial Markets Niklas Wykman. “The fact that the state, Vattenfall and the large industrial companies in Industrikraft have now agreed is a statement of strength for Sweden. The agreement enables new nuclear power while protecting taxpayers’ money and ensuring order in public finances. We can now move forward and take this to the EU Commission for consideration.”
Desirée Comstedt, acting CEO of Videberg Kraft, said: “For Videberg Kraft, the government’s announcement to become the majority owner is very welcome and gives us all the conditions to enable new nuclear power on the Värö Peninsula. We are in an intensive phase where many processes are running in parallel. The fact that there are also agreements in place for risk sharing and financing is crucial for this to happen.”
“Today’s announcement from the government is extremely welcome news,” said Karl-Henrik Sundström, newly appointed Chair of the Board of Industrikraft. “New nuclear power requires very substantial investments and exceptionally long payback periods. State ownership is therefore crucial, as it provides both financial stability and a clear demonstration of long-term commitment.”
In May last year, 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 sited at the same location and have a total installed output of at least 300 MWe. 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.
Videberg Kraft applied for state aid in December to support proposals for either five GE Vernova Hitachi BWRX-300 reactors or three Rolls-Royce SMRs to provide about 1,500 MW capacity at the Ringhals site on the Värö Peninsula. Earlier this month, after a three-year process, Videberg Kraft selected Rolls-Royce SMR as supplier for its project.
The Videberg Project would be Sweden’s first nuclear power plant in more than four decades and ultimately add about 1.5 GW capacity to the grid. The project is targeting a first operating unit in the mid-2030s.
