The Swedish government has received the very first application for public funding under the new legislation on nuclear project financing. Videberg Kraft AB, backed by Vattenfall AB and several major Swedish industrial groups under the banner Industrikraft i Sverige AB, has submitted a request to construct two reactors on the Värö Peninsula, near the Ringhals nuclear facility.
A project driven by Sweden’s heavy industry
The reactors planned by Videberg Kraft AB would be located on the former sites of Ringhals 1 and 2. The targeted electricity generation capacity amounts to approximately 1,500 megawatts, equivalent to two medium-sized nuclear units. The application is currently being reviewed by the Secretariat for Nuclear Financing at the Ministry of Finance, the body responsible for handling such requests under the law that came into force on 1 August 2025.
The framework allows the state to provide direct loans for construction, testing, and planning phases, as well as to establish two-way contracts for difference. This mechanism guarantees a minimum level of remuneration for the operator, while setting a revenue cap above which any excess must be repaid to the state.
Towards a revival of nuclear construction in Sweden
The legal framework permits aid for projects totalling up to 5,000 megawatts of installed capacity, the equivalent of four large-scale reactors. Each application includes a negotiation phase between the company and the government to determine the specific terms of support, followed by validation by the European Commission’s Directorate-General for Competition, which assesses compatibility with EU state aid rules.
This first request is part of a broader dynamic, as Swedish authorities have held preparatory discussions in recent months with other sector stakeholders expressing interest. The official filing by Videberg Kraft AB could pave the way for similar initiatives in the near future.
A political and industrial signal
The Minister for Financial Markets, Niklas Wykman, stated that the reception of this first application demonstrates that Swedish industrial players want to actively participate in the development of new nuclear capacity. The stated goal is to create the necessary conditions for building new reactors within a financially stable and EU-compliant framework.
