The Swedish government has included in its 2026 budget bill a financial framework to support the revival of the civilian nuclear sector. The allocation provides up to $23.4bn in state loans over a twelve-year period for new reactor construction projects. The scheme also allows for the signing of electricity price hedging contracts, effective for forty years after the plants become operational.
Strict conditions to access government support
Public support will be restricted to projects built on existing nuclear sites, with a minimum installed capacity of 300 MWe. The loans are capped at the equivalent of four large-scale reactors, or approximately 5,000 MWe of installed capacity. Since the legislation took effect on 1 August, interested companies have been able to apply for financial support.
Contracts for Difference will only be signed once reactors are fully operational and licensed to produce at full capacity. Each agreement will be negotiated individually with the state, depending on the project’s technical and financial characteristics. The government stated that approval from the European Commission is required for each aid package, which may lead to adjustments in the final agreements.
Vattenfall positions itself at the Ringhals site
State-owned energy company Vattenfall announced it has shortlisted two small modular reactor (SMR) technologies for the existing Ringhals site: the BWRX-300 developed by GE Vernova Hitachi and the solution proposed by Rolls-Royce SMR. The company plans to submit an official request for support to the Swedish government, alongside final supplier selection.
Negotiations with the state regarding loans and other financial instruments are expected to begin in 2026 and continue into 2027. For price hedging, the government forecasts future annual expenditures of between $106mn and $318mn over forty years, a figure subject to change based on electricity prices and actual construction costs.
Administrative capacity to be reinforced
The government also plans to increase the 2026 budget for relevant administrative authorities by $17.1mn. Additional funds will be allocated to the Swedish Radiation Safety Authority, the Swedish Environmental Protection Agency, county administrative boards, the Swedish National Debt Office and relevant environmental courts.
The aim is to streamline permit processing through more efficient procedures while maintaining the quality of environmental assessments. A new national authority for environmental assessment will be created as of 1 July 2027. It will assume certain responsibilities currently held by local administrations, with potential expansion to specialised courts at a later stage.
