Legislation to enable applications for state aid for investments in new nuclear power

In May, the Riksdag adopted an act that enables state aid for investment in new nuclear power to be provided in the form of government loans and two-way contracts for difference – a form of hedging arrangement. 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. 

The state aid can only be provided to companies whose sole activity is the construction and operation of new nuclear power reactors. Companies with other activities that wish to apply for aid must therefore establish separate project companies.

The application process consists of two steps: the first step is mandatory for all applicants, and the second step only applies to applicants deemed suitable to proceed in the application process.

The Government has now approved a new ordinance that sets out requirements for applications. For the initial step, applications must include:

• details about the company, its owners and management; and
• a project plan with information about the planned construction location, a description of planned or considered reactor technology or reactor model alternatives, the number of reactors and total capacity, and an overall implementation plan.

If a company’s application is approved for the next step in the process, the Government Offices will ask the company to provide additional information in accordance with the new ordinance. This concerns matters such as costs for the planned investment alternatives.

Subsequently, the Government and the relevant company will negotiate the conditions and scope of the state aid. This is followed by a state aid review by the European Commission.

“New nuclear power benefits Swedish households and businesses alike. The Ministry of Finance is prepared to accept applications for investment in nuclear power starting on 1 August. This is a historic opportunity for growth and transition,” says Minister for Financial Markets Niklas Wykman.

“A global race is under way for new nuclear power. There’s a great deal of interest from companies both here at home and abroad looking to invest in Sweden. We are well-positioned for this work, and the final piece of the puzzle is now in place to enable companies to apply,” says Minister for Energy, Business and Industry Ebba Busch.

“The climate transition requires electricity production to double to 300 TWh by 2045. This decision is an important step towards investing in nuclear power that will help us secure the electricity system’s supply to all sectors of our society,” says Minister for Climate and the Environment Romina Pourmokhtari.

“Step by step, the Tidö parties are creating conditions for new investment in nuclear power in Sweden. Now we’re clarifying how to apply for state aid to be part of Sweden’s nuclear power renaissance,” says Tobias Andersson, Chair of the Committee on Industry and Trade (Sweden Democrats).

Applications for state aid for investment in new nuclear power will be accepted from 1 August 2025, which is the date that the new legislation enters into force.