Swedish officials proposed a sweeping financial package worth 220 billion kronor ($23.4 billion) to back new nuclear reactor construction, representing one of Europe’s boldest bets on atomic energy expansion.
The 2026 draft budget proposal would support the development of approximately 5 gigawatts of new nuclear capacity over 12 years — equivalent to roughly four large-scale reactors. The framework is a dramatic reversal for a nation that voted to phase out nuclear power in a 1980 referendum.
“We are facing a decisive moment for Sweden’s energy,” Energy Minister Ebba Busch said at a press conference. “A secure supply of electricity is a fundamental function of society.”
The government’s roadmap targets the construction of at least two large reactors by 2035, with up to 10 new reactors, including small modular designs, operational by 2045. Sweden currently operates six reactors that generate about 30% of the country’s electricity.
State-owned utility Vattenfall in 2024 shortlisted GE Vernova and Rolls-Royce SMR as potential suppliers for small modular reactors at the existing Ringhals plant in southwestern Sweden. The first units could deliver approximately 1,500 megawatts of capacity in the early 2030s.
Beyond construction loans, the proposal includes price hedging agreements providing 1-3 billion kronor annually for 40 years after reactors begin operation, aimed at guaranteeing stable returns for operators.
The government also plans to streamline environmental permitting, allocating 161 million kronor to create a new authority for faster approvals while maintaining assessment quality. Loan agreements could begin as early as 2026, pending parliamentary approval and European Commission authorization.
The initiative follows Sweden’s 2023 policy shift from targeting 100% renewable energy to 100% fossil-free energy, explicitly including nuclear power in its decarbonization strategy.
Financial Markets Minister Niklas Wykman emphasized that the loans represent a negotiating framework rather than final costs. “It’s not a price tag… it is a loan framework that is needed to be able to conduct sharp negotiations,” he said.
Sweden joins a growing number of European nations reconsidering nuclear energy amid concerns about energy security and climate targets, particularly following disruptions to natural gas supplies and the need for reliable baseload power to complement intermittent renewable sources.
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