Long-term investments in nuclear power for Swedish electricity supply
SWEDEN, October 28 - Press release from Ministry of Finance
Published
Since 1 August 2025, companies seeking to build nuclear reactors in Sweden have been able to apply for state aid. In the Budget Bill for 2026, the Government has proposed economic frameworks that enable agreements on the initial projects to be concluded.
A cornerstone of the Government’s climate policy is the transition to fossil-free energy – primarily through electrification. In order to maintain a rapid pace of electrification, Sweden needs more fossil-free electricity at stable, competitive prices. A financing model for new nuclear power is now in place, and companies seeking to invest in new reactors can apply for state aid.
In the Budget Bill for 2026, the Government has proposed economic frameworks to enable negotiations with companies applying for state aid. This includes the economic authority to enter into agreements and decide on the terms for loans for investments in nuclear power and price hedging agreements within those frameworks. Agreements can be concluded in 2026 and 2027. The economic frameworks are based on expected lending for construction of new reactors totalling SEK 220 billion over 12 years and expected future annual expenditures for hedging arrangements totalling an average of SEK 1–3 billion per year over 40 years, once the reactors have been commissioned.
The exact terms of agreement will be negotiated with each project company based on the conditions of the individual project. The Government requires approval by the European Commission to grant state aid to a company, which may lead to additional amendments to each individual agreement. The central government’s costs will also be affected by the final cost of the reactors’ construction – which may deviate from the anticipated cost – and future developments in electricity prices.
As the data for calculating expected costs cannot currently be established, the proposed economic frameworks for the various parts of the state aid should not be considered a final price, but rather a cap for forthcoming negotiations.
The level of state aid is limited, and is planned to comprise investments concerning a maximum total installed capacity of approximately 5 000 MW. The Government is making preparations to process applications in 2026 corresponding to around half the total scope of the aid, and has based the proposal in the Budget Bill on this.
These proposals are based on an agreement between the Government and the Sweden Democrats.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
