Sweden’s Energy Minister discusses nuclear power expansion amid financial concerns

Sweden’s Energy and Business Minister, Ebba Busch, emphasized that the recently presented investigation is just that—an investigation—and it opens up discussions for future proposals. She noted that the government is currently reviewing several investigations that will contribute to upcoming policy suggestions.

The investigation indicates that expanding nuclear power in Sweden could cost around 400 billion kronor and includes plans for installing between 4,000 and 6,000 megawatts of capacity, roughly equivalent to four or five large-scale reactors. The proposed financing plan consists of three main components: first, a government loan covering 75% of the costs (300 billion kronor), while the remaining 25% (100 billion kronor) would be funded through equity. The second component involves a 40-year price guarantee for utility companies at a rate of 0.80 kronor per kilowatt-hour, funded by a tax proportional to electricity consumption. The third component includes a risk and profit-sharing mechanism activated as needed, based on the market valuation of the project company two years after operational startup.

However, there has been criticism, particularly of the guaranteed pricing model. Members of the Green Party have expressed concerns that this may become a significant financial burden for taxpayers. Additionally, the Social Democrats have voiced skepticism regarding the pricing guarantee for utility companies.

Utility companies interested in building new nuclear plants have indicated a desire for political consensus to ensure sustainable investment. Busch stated that the government is open to compromise with other parties, underscoring the need for dialogue aimed at benefiting Sweden as a whole, rather than specific political bases.