Sweden’s nuclear energy plans to cost $38 billion

Sweden’s ambitious nuclear energy expansion, aiming to add 2.5GW of new capacity by 2035 and build ten new reactors by 2045, is projected to cost around Skr400 billion ($38 billion), according to a government-appointed commission. Despite the government’s goals, private sector investment has been lacking due to concerns over the return on large, fixed capital investments.

The commission recommended that the Swedish government offer loans covering 75% of the construction costs for new power plants, with the remaining 25% to be contributed by the plant owners. Additionally, the commission suggested guaranteeing investors a fixed electricity price of around Skr0.8 per kilowatt-hour for 40 years to mitigate financial risks.

To maximize cost-effectiveness, the commission advised constructing four or five new nuclear plants with a combined capacity of 4-6GW. Sweden, which currently relies on nuclear power for about 40% of its energy needs, has shown renewed interest in reviving its nuclear industry after reversing its 1980 decision to phase out nuclear power in 2010.

Last week, Sweden further solidified its commitment to nuclear energy by signing a memorandum of understanding with the United States, focusing on bilateral cooperation in nuclear policy, research, innovation, and supply chain development.