Sweden: State Loans Proposed For New Nuclear Reactors

The Swedish government has proposed a new law regarding state support for nuclear power investments.

In the bill – submitted to parliament on 27 March, 2025 – it proposes providing state loans to finance four new nuclear reactors as well as a contract-for-difference power price mechanism.

“In the bill, the government proposes a new law on state support for investments in new nuclear power,” the government said.

“The law regulates the basic conditions and forms of state support for companies for investments in new nuclear power reactors in Sweden.”

It added: “Government loans may be provided for the construction and test operation of new nuclear power reactors, as well as for design and other preparatory measures for construction.”

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 said that several project companies may be eligible and there is the possibility for other private actors and the state to take shares in project companies.

“Two-way contracts for difference may be concluded for the routine operation of new nuclear power reactors. Support shall be subject to conditions regulated in agreements between the state and the company receiving support,” it added. These are aimed at reducing market risk.

The bill contains different scenarios for future electricity prices. In a scenario with lower electricity prices, it is assumed that the strike price is around SEK0.02 (USD0.002) per kWh higher than the electricity price.

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. “If there are special reasons, the government may decide to grant support even if the reactors have a total installed electrical output of less than 300 MW,” it said.

The new law is proposed to enter into force on 1 August this year. 

Vattenfall – which aims to have a new reactor in operation at its Ringhals site in the mid-2030s at the earliest – welcomed the government’s proposals for risk sharing for new nuclear power.

“The state taking a clear role in financing is a basic prerequisite for it to be possible to invest in new nuclear power,” said Desirée Comstedt, the company’s head of new nuclear power. “The bill is therefore a crucial step on the path towards us being able to realise new nuclear power on the Värö peninsula near Ringhals. Nuclear power is not being built anywhere in the world without some form of government support.

“The next step is for us to read the bill to review what an application should contain and prepare to submit our application as soon as possible. Ultimately, the levels of the parameters in the model will of course be an important factor, but these levels are set later in the process, after we have submitted an application.”

Source: World Nuclear News