Sweden’s Government has unveiled a major legislative proposal to fund the construction of new nuclear reactors, a move that has stirred intense national debate. Presented jointly with the Sweden Democrats (Sverigedemokraterna), the plan includes generous state-backed loans, long-term price guarantees for energy companies, and a new tax on electricity users.
Government proposal promises 300 billion SEK in loans and long-term support for energy companies
The proposal outlines a framework in which the state would provide loans of up to 300 billion SEK (approximately €26 billion) to support the construction of four to five large-scale nuclear reactors. These facilities are projected to deliver between 4,000 and 6,000 megawatts of electricity once operational. The full cost of the program is estimated at around 400 billion SEK (€34.8 billion), with the remaining 100 billion SEK (€8.7 billion) expected from private capital.
Price guarantees and shared risks
One of the plan’s core features is a price guarantee mechanism. For a period of 40 years, nuclear energy providers would receive at least 80 öre per kilowatt hour (kWh) from the state, regardless of market fluctuations. To finance this subsidy, the Government proposes a tax on all electricity consumers. According to early calculations, this could mean an extra 50 SEK (€4.35) per month for an average household, and up to 500 SEK (€43.50) for agricultural or small industrial operations.
Energy Minister Ebba Busch (Christian Democrats, Kristdemokraterna) defended the initiative, stating: “I think many can imagine paying a few tens of kronor more per month for a price guarantee to ensure we have more guaranteed electricity in the system.” She described the reform as a “decisive step” to maintain Sweden’s status as a strong nuclear power nation.
Missing figures and mounting criticism
Despite the broad outline, many of the proposal’s financial and operational details remain unspecified. Exact amounts, eligibility requirements, and the full scope of risk-sharing are expected to be negotiated in future agreements with interested companies and released with the government budget later this year.
The lack of specifics has prompted harsh criticism from a range of actors, including the Energy Markets Inspectorate (Energimarknadsinspektionen), energy researchers, and even pro-business groups such as the Confederation of Swedish Enterprise (Svenskt Näringsliv). Critics argue that the government is overly optimistic in its projections, and that prioritizing nuclear investments could delay urgently needed developments in renewable energy, particularly wind power.
“The proposal lacks alternatives and fails to assess the broader consequences for the energy mix,” said one review body. Others have raised concerns that taxpayers may ultimately shoulder the financial risks if the reactors underperform or suffer cost overruns—a common issue in nuclear projects globally.
2025 legislation aims for reactors by 2035
The Government insists that the plan represents a responsible and balanced approach. Finance Minister Niklas Wykman (Moderate Party, Moderaterna) stated, “For us, it is crucial to protect taxpayers’ money and public finances,” adding that loan repayments will begin once the reactors start generating electricity and revenue.
The legislative goal is to have two large-scale reactors operational by 2035. However, with details still pending and opposition mounting, the future of the plan remains uncertain.
If passed, the law would mark a significant shift in Sweden’s energy policy and financing model—one that could shape the country’s electricity market for decades to come.
