Green light for a new model for financing and risk sharing for investments in new nuclear power
Published
Sweden faces considerable problems with volatile electricity prices for households and businesses and imbalances in the electricity system. To deal with this, the fossil-free base load needs to be expanded. In March 2025, the Government adopted the Financing and risk sharing in new nuclear power Government Bill, which included proposals for state aid to companies that want to invest in nuclear reactors. The Riksdag has now decided to adopt the Government’s proposal.
"This is a historic announcement that takes responsibility for public financing and tax payers’ 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," says Minister for Financial Markets Niklas Wykman.
The Act that the Riksdag has passed establishes a framework for how the first reactors might be financed. The state aid is limited, and is planned to include investments of up to a total installed capacity of approximately 5 000 MW, which is equivalent to four large-scale reactors. Companies wishing to receive state aid for investing in new nuclear power are invited to submit their applications to the Government. Aid is provided in the form of government loans and two-way Contracts for Difference (CfD). These two components provide financial support at different stages of a project:
Government loans are provided for the construction and testing of new nuclear reactors, and for planning and other preparatory measures. It is not possible to borrow the full investment amount; rather, an injection of share capital is also required. Government loans must be repaid in instalments once a nuclear reactor becomes operational.
Two-way Contracts for Difference are a form of hedging arrangement that applies when a new reactor has become operational and has been licensed to produce electricity at full capacity. The hedging arrangement could entail either a cost or revenue for central government depending on the price of electricity. If the average annual electricity price in the bidding zone where a new reactor is located is less than the predetermined strike price, the company receives remuneration for the difference from central government. If the reverse applies, and the average annual electricity price exceeds the strike price, the company must pay the difference to central government.
The conditions for state aid also include a mechanism that regulates risk and profit sharing between a company and central government.
The new Act on state aid for investing in new nuclear energy enters into force on 1 August 2025. Interested companies may apply for the aid from this date.
Press contact
Press Secretary to Deputy Minister for Finance, Minister for Financial Markets Niklas Wykman
Phone (switchboard) +46 8 405 10 00
Mobile +46 76 137 89 04
email to Victoria Ericsson
Detailed information on nuclear financing
Detailed information on how the state aid works is provided on government.se. Once the ordinance that stipulates how companies’ applications should be structured is adopted, the webpages will be updated with details of the application process.
