NextFin news, On Thursday, October 2, 2025, the Swedish government unveiled a legislative proposal designed to protect and encourage investments in nuclear power by establishing a financial framework for companies building new nuclear reactors in Sweden.
The proposed law, included in the 2026 budget bill, grants the government authority to negotiate and enter into agreements with companies seeking state loans and price hedging contracts to finance new nuclear power projects. The framework anticipates lending up to SEK 220 billion (approximately USD 23.4 billion) over 12 years to support construction of new reactors, with expected annual expenses for price hedging estimated between SEK 1 billion and SEK 3 billion for 40 years after reactors become operational.
This initiative follows Sweden's 2023 roadmap aiming to build at least two large-scale nuclear reactors by 2035 and up to ten by 2045, reflecting the government's commitment to nuclear energy as a key component of the country's climate transition and energy security strategy.
Since August 1, 2025, companies have been able to apply for state aid under the new act, which supports investments in reactors with a minimum total installed output of 300 MWe at the same location. The government emphasized that support will be granted only after reactors are licensed and operational, with contracts for difference to stabilize electricity prices.
Vattenfall AB, Sweden's state-owned energy company, recently announced plans to deploy small modular reactors at the Ringhals nuclear plant site, selecting from technologies such as GE Vernova Hitachi's BWRX-300 and Rolls-Royce SMR. Vattenfall intends to apply for government risk-sharing support under the new framework.
The government also highlighted the importance of efficient permitting processes for new nuclear projects, pledging increased funding of SEK 161 million in 2026 to regulatory bodies including the Swedish Radiation Safety Authority and Environmental Protection Agency. A new environmental assessment authority will be established by July 1, 2027, to streamline environmental reviews and facilitate faster permits with local acceptance.
Sweden's parliament, the Riksdag, approved the initial state aid proposals in May 2025, and the government noted that final agreements with project companies will be negotiated individually, subject to approval by the European Commission to ensure compliance with EU state aid rules.
The government aims to process applications corresponding to about half of the total support in 2026, signaling a strong commitment to expanding nuclear power capacity as part of Sweden's broader energy and climate policy.
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