Sweden unveils plans for nuclear power expansion with 400 billion kronor investment

A recent investigation presented at a press conference alongside the Minister of Financial Markets outlines plans for the expansion of nuclear power in Sweden. The proposed investment is estimated to cost nearly 400 billion kronor, aimed at generating between 4,000 to 6,000 megawatts of energy, equivalent to four to five large-scale reactors.

The financing structure consists of three components. First, the government would provide a loan covering 75% of the total costs, or 300 billion kronor. The remaining 25%, amounting to 100 billion kronor, would be raised as equity. This loan would initially have a risk-free interest rate during the construction phase, gradually increasing during the operational phase, thereby incentivizing owners to replace the public funding with private loans.

Second, a price hedging agreement is proposed to last for 40 years, setting a price of 80 öre per kilowatt-hour, financed through a tax proportional to electricity consumption. This price mechanism is two-way; if the market price falls below the set price, the government would supplement the difference, while excess prices would require nuclear companies to compensate the state.

Finally, a risk and profit-sharing mechanism is set to be activated as needed, based on a market valuation of the project company two years post-standard operational start.

The study anticipates a temporary increase in Sweden’s national debt over the next 10 to 15 years, with a potential return to profitability for the state thereafter.