State aid for investment in new nuclear energy in Sweden

Sweden needs to build new nuclear reactors to safeguard future electricity needs, increase the security of supply in the electricity system and help ensure competitive electricity prices for customers nationwide. To incentivise companies to invest in new nuclear reactors, there is a need for tailored support focused on the risks involved in such investments. A memorandum is also now being referred for consultation, containing proposals for a new ordinance that regulates the specific information that should be contained in an application for aid.

An application for aid must be submitted to the Government. The application must contain information about the company, its management and ownership. The company applying must also present a project plan containing information about the planned location of the nuclear reactors, an implementation plan and an assessment of the owners’ capital investments in the company.

The Government estimates that the state aid should cover investments up to a total installed capacity of approximately 5 000 MW, which corresponds to investments in four large-scale reactors.

The new Act governing the aid, as well as the ordinance governing the content of the application for the support, is proposed to enter into force on 1 August 2025.

“We now have a financing model in place that enables companies to invest in new reactors, which can protect households from electricity price spikes, create conditions for new jobs in electricity-intensive industries, and attract new industry to Sweden,” says Minister for Financial Markets Niklas Wykman.

“Sweden has been a nuclear nation for over 50 years. Through the funding model we have now put forward, we are taking another step towards a new phase of nuclear energy in Sweden. Securing the electricity supply, safeguarding competitiveness and tackling a serious security situation requires more than vision – it requires investment, and that is what we are laying the groundwork for now,” says Minister for Energy, Business and Industry Ebba Busch. 

“The nuclear renaissance is in full swing, and now policymakers are taking a decisive step to ensure the large-scale construction of much-needed baseload power generation. In doing so, we are ensuring a long-term and stable supply of electricity to Swedish households and industries. Sweden is a major industrial nation thanks to previous expansion of nuclear energy, and we are now guaranteeing that we can remain one for a long time to come,” explains Tobias Andersson, Chair of the Parliamentary Committee on Industry and Trade.

“Nuclear energy is the key to a climate transition propelling Sweden forward – not pulling it backwards. It is laying the groundwork for our ability to expand wind and solar energy and electrify industry while continuing to grow. With a strong and stable electricity system, Sweden can become the world’s first fossil-free industrial nation – an example of both growth and climate responsibility,” notes Cecilia Rönn, Liberal Party Economic Policy Spokesperson.