In the Swedish government’s budget bill for 2026, financial frameworks are proposed enabling the government to negotiate with companies that apply for support to construct new nuclear plants, according to a press release from the Ministry of Finance and the Ministry of Climate & Business. They involve financial powers to enter into agreements and decide on loans for investments in new nuclear and on price hedging agreements within these frameworks. Agreements can be signed in 2026 and 2027.
The framework is based on an expected loan for the construction of new reactors of a total of SEK220bn ($23.3bn) over 12 years and expected future annual expenses for price hedging of an average of SEK1-3bn a year for 40 years after the reactors begin operation. The exact contractual terms will be negotiated with each project company separately, based on the conditions of the individual project.
However, in order to provide support to a company, the government will need approval from the European Commission, which may lead to further adjustments to each individual agreement. The state’s costs are also affected by the final cost of building reactors, which may deviate from the expected cost, and the future development of the electricity price. Given that the expected costs cannot be determined today, the proposal does not constitute a price tag, but an upper limit for the upcoming negotiations.
State support is limited and is planned to include investments for a total of up to approximately 5,000 MWe. The government is positioning itself to be able to handle applications corresponding to around half the total support in 2026, and the proposal in the budget bill reflects this.
The government says it is continuing to create the conditions for new nuclear power “to lay the foundation for growth and Sweden’s climate change”. For an effective investigation, the relevant authorities and municipalities need to be supported in their work.
“Effective permit processes for new nuclear power in more locations form an important part of a climate change that drives Sweden forward,” the press release noted. The government is working to ensure that a permit process will be in place in 2026 “that is adapted for large and small actors, and which should be able to handle both established and new technology”.
The government is therefore investing in a package of measures where the grants for the Radiation Safety Authority, the Swedish Environmental Protection Agency, the county administrations, the National Debt Office and Sweden’s Courts will increase by a total of SEK 161m in 2026 “so that new nuclear power can coexist with other interests”.
The government is also taking the next step to streamline environmental testing by creating a new authority. In the budget bill for 2026, the government calculates funds for the new environmental review authority. In the Environmental Permits Inquiry’s report, a large number of proposals were submitted that aim to make the examination more flexible, efficient and predictable. The proposals involve a comprehensive reform of the environmental assessment and the authority structure for environmental assessment. “If all rule changes were to be decided at one and the same time, it would have risked slowing down the trial processes. Therefore, the government chooses to gradually introduce the new authority’s mission.”
The first step will be to create the new authority that will handle the reformed environmental assessment, with certain tasks moved from the county administrations to the new authority from 1 July 2027. At a later stage, certain tasks at the land and environmental courts are also planned to be transferred to the new authority.
Sweden had voted in a non-binding 1980 referendum to phase out nuclear power. Since then six of its 12 ageing reactors have been shut down. The remaining six reactors currently generate about 30% of its electricity needs. However, in 2022, the new centre-right coalition government reversed this policy and in 2023 drew up a roadmap envisaging the construction of new nuclear capacity equivalent to at least two large-scale reactors by 2035, with up to 10 coming online by 2045.
In May this year, the Riksdag (parliament) approved government proposals for providing state aid to companies that want to invest in new nuclear. The new act on state aid entered into force on 1 August, enabling interested companies to apply for support. Later in August, Vattenfall selected small modular reactors (SMRs) for new nuclear capacity at the Ringhals NPP site, shortlisting two technologies: GE Vernova Hitachi’s BWRX-300 and the Rolls-Royce SMR. It said it would apply to the government for state risk-sharing. The wider government support now proposed in the 2026 budget is expected to encourage more companies to put forward new nuclear projects.
