Vattenfall: Swedish government will have to share risk in building new nuclear units

Like many other countries in Europe and around the world, Sweden is exploring options for building new nuclear units. One important aspect of nuclear projects is how risk is shared among the parties involved. According to a preliminary study by state-owned Vattenfall, government support is essential to underpin new investment.

Swedish company Vattenfall, which is wholly owned by the government, has been exploring options for building new nuclear units since last year. Preliminary findings according to Montel suggest that Sweden could build three to five modular reactors or one large reactor. In total, the plan would involve building around 1.5 GW of capacity near the existing Ringhals nuclear power plant.

"To achieve large-scale production, regardless of the technology, government support will be necessary for the first units. Someone has to take on the risk of the first reactors, and risk costs money," Vattenfall’s head of new nuclear projects, Desiree Comstedt, told Montel.

So whether Sweden opts to build conventional units or small modular reactors, public support will likely be essential. However, according to Comstedt, Vattenfall may not make an investment decision until there is clear, long-term political consensus on the country’s nuclear programme.

"A fair risk-sharing agreement with the government is also essential, whether we build small modular reactors or conventional reactors, as is a financing model for a new final repository for spent fuel," she added.

Asked which financing model the company would prefer, Comstedt did not respond to Montel.

New nuclear capacity will also help with repository costs

According to the study, Sweden’s nuclear programme should include the construction of several units with a total installed capacity of 3 to 4 GW. A larger number of units would also help finance a nuclear waste repository. The units should be built in stages across three phases, allowing lessons from previous construction projects to be applied.

Although Comstedt did not provide a specific cost estimate, the company conducted a survey of suppliers as part of the study. This gives the company, she said, a “good idea” of the cost.

Vattenfall plans to hold consultations with local stakeholder groups this year as it prepares for a potential EIA. According to Montel, the company began buying up land last year for possible new construction. No specific target date for commissioning a potential new unit is known yet.

"We are committed to achieving our goal of having a new reactor in operation in the early 2030s," Comstedt said.