Sweden eyes $38 billion nuclear power expansion with government support

Sweden plans to expand nuclear power to fight climate change, which will cost about 400 billion crowns ($38 billion). A government commission suggests funding through loans and price guarantees.?

The goal is to add 2,500 MW of new nuclear power by 2035, equivalent to two reactors, and ten more reactors a decade later. However, private investors are hesitant due to the high costs, long project timelines, and risks associated with such long-term investments.

“The challenge for those who want to build new nuclear power is that the risks are seen as multiple and very large,” Head of the commission Mats Dillen said.

The commission recommends that the government provide loans to cover 75% of the cost of building nuclear power plants, with the owners providing the remaining 25%. Any cost overruns should be financed in the same way.?

Additionally, the government should guarantee an electricity price of approximately 0.8 Swedish crowns/kWh ($0.0760) for investors over 40 years.

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