Swedish government shifts nuclear power financing strategy amid energy sector concerns

The government has shifted its stance from stating that new nuclear power plants should be built under market conditions to indicating that the state will participate in financing. The goal is to have two large reactors operational in ten years, with a total of ten reactors by 2045. However, energy companies have been hesitant due to high costs and uncertainties. Consequently, the government has commissioned a review to determine how financial risks should be shared between energy companies and the state.

The proposal to support four large reactors includes three main components:

1. **Government loans with low interest rates for construction costs**: The state would cover 75% (300 billion kronor), while companies would contribute 25% (100 billion kronor).

2. **Electricity price guarantee**: Energy companies will be guaranteed an electricity price of 0.80 kronor per kilowatt-hour for 40 years. If the market price falls below this rate, the government will cover the difference, funded by a new tax on electricity customers. Conversely, any surplus generated if prices exceed this level will go to the government.

3. **Financial safety net for companies**: If costs escalate, financial terms such as interest rates will be adjusted to ensure project continuation. Should the project become profitable quickly, the state will claim a share of the profits.

Some experts believe the review has underestimated the costs of building new nuclear power plants, with certain countries experiencing significantly higher expenses. The energy sector is advocating for a higher guaranteed price. Ultimately, the option of not building new nuclear reactors will lead to costs for households due to necessary investments in the electricity system and renewable energy. The government is facing pressure to find the most economical solution to these energy challenges.