Vattenfall: New nuclear capacity will require direct state participation

With electricity prices rising and ambitious decarbonisation plans in place, some EU countries have begun turning to nuclear power again in recent years. Sweden is no exception, and is no newcomer to the sector. The government has recently been looking for ways to protect new long-term investments. However, Vattenfall representatives say direct state involvement in new nuclear projects will be essential.

Investment in new nuclear capacity has long been a topic of discussion in many European countries, including the Czech Republic. Sweden is one of the countries actively exploring the construction of new units. Last year, the government began examining ways to provide investors with greater certainty and protection against possible policy changes in the future. New nuclear projects typically involve investment horizons measured in decades, and significant changes to the political landscape can occur over such a long period.

However, these guarantees may not be enough for investors, not even for Swedish company Vattenfall, which is 100% state-owned. According to the CEO of Sweden’s largest energy company, the state will have to become directly involved in new nuclear projects. She says the reason is the scale of the financial commitments involved in projects of this size.

“The scale of the project is obviously large, which also means that we will not consolidate it on Vattenfall’s balance sheet,” said Vattenfall CEO Anna Borg, according to Reuters.

Vattenfall is already drawing up specific construction plans. Videberg Kraft, in which the company holds a majority stake, is to oversee the construction of several small modular reactors. They are planned for the site of the existing Ringhals nuclear power plant and would provide a total of 1500 MW of installed capacity. At the end of last year, the company applied for public support for the project.

Talks are underway, with current investment focused on wind and grids

According to Borg, talks are already underway with the Swedish government and potential technology suppliers. However, she declined to provide a cost estimate for the new capacity. Reuters reports that most of the company’s currently planned investment over the next five years is expected to go towards wind power projects and grid development.

“When it comes to new nuclear power plants, the bulk of the investment will come after this five-year period,” Borg added.