The newly adopted Act provides a structured framework for financing the initial nuclear reactors, with state aid.
The new Act establishes a structured approach to fund up to 5GW of nuclear power, equivalent to approximately four large-scale reactors. It includes state aid through government loans and two-way contracts for difference (CfDs) to support projects at different stages. Niklas Wykman, Minister for Financial Markets, stated: “This is a historic announcement that takes responsibility for public financing and taxpayers’ money when we enable actors to build new nuclear energy. An expansion of nuclear power is expected to result in greater price stability and lower system costs, which helps households as well as businesses. With new nuclear reactors, we are paving the way for higher growth, more jobs and better conditions to achieve the climate transition.”
Government loans will support the construction and testing phases, including planning and preparatory activities, but will not cover the full investment cost, requiring companies to secure additional capital. Once operational, these loans must be repaid in installments. The two-way CfDs will apply when reactors are fully licensed and operational, providing a hedging mechanism. If the average annual electricity price falls below a predetermined strike price, the government compensates companies. Conversely, if prices exceed the strike price, companies pay the difference to the government. This mechanism includes a risk and profit-sharing arrangement between companies and the state.
The Act encourages companies to apply for state aid starting August 1, 2025. By fostering investment in nuclear energy, the legislation aims to enhance energy reliability, stabilize prices, and support Sweden’s transition to a sustainable energy future while promoting economic growth and job creation.
