Sweden to offer state loans to support construction of nuclear reactors

The Swedish government will offer state loans and guarantees on electricity prices. It aims to help companies finance the construction of four new nuclear power plants. The plan is part of the government’s strategy to increase electricity generation and reduce carbon emissions, Reuters reports.

According to the government, the Nordic country may need ten new large nuclear reactors by 2045. Transport and industry are moving away from fossil fuels, and electricity demand is forecast to rise from 135 terawatt-hours (TWh) in 2023 to approximately 300 terawatt-hours.

Expert studies estimate construction costs at tens of billions of dollars. The government has therefore acknowledged that it will need to help with financing.

„This is limited, balanced and responsible support that will make possible something we have not done for a long time: building new nuclear reactors,” said Financial Markets Minister Niklas Wykman of the government proposal. „In our judgment, this is also a way to secure the European Commission’s approval,“ he added.

Under state aid rules, European Union countries need the European Commission’s approval to offer subsidies to finance new nuclear power plants.