New nuclear power is an investment in society that requires the state to assume a new role

Sweden’s base load needs to be more fossil-free to enable electrification, for increased security of supply and to ensure competitive electricity prices. In addition to environmental reasons, the recent disruptions to energy supplies due to international conflicts provide further justification for such investments. At the same time, it is important to take responsibility for public finances and taxpayers’ money when building new nuclear power facilities. A financing model for new nuclear power is in place, and companies looking to invest in new reactors can apply for state aid.

“The aim is to limit the initial actor’s share of fixed costs with the expectation of additional reactors being built, which will ultimately share in the overall fixed costs. We are already seeing interest from several actors in the construction of nuclear power facilities in Sweden,” says Acting Minister for Climate and the Environment Johan Britz.

“In this project, we combine Vattenfall’s experience in operating nuclear power plants with industry know-how – and state ownership provides even greater stability. State ownership provides greater security for taxpayer’s money,” says Minister for Financial Markets Niklas Wykman.

“Sweden is a nuclear power nation, and will now be an even stronger one. As industry electrifies and the need for electricity grows, so too does the demand for long-term solutions. The Government is now taking the next step to clarify the state’s role and responsibility in the further expansion of nuclear power,” says Minister for Energy, Business and Industry Ebba Busch.

“The Sweden Democrats have always seen the need for nuclear power in Sweden and understand both the historical and future links between nuclear power, the state and industry. New construction of nuclear power facilities is a prerequisite for future robust industry and is a societal interest, which is why state ownership is warranted,” says Tobias Andersson, Chair of the Parliamentary Committee on Industry and Trade.

In December 2025, Videberg Kraft AB applied for state aid to build new reactors on the Värö Peninsula in Varberg Municipality. The project is expected to produce a total electrical capacity of around 1 500 MW, comprising three to five small modular nuclear reactors. With a capacity of 1 500 MW, Videberg Kraft AB’s project would account for roughly 30 per cent of the approximately 5 000 MW in total proposed capacity. This is the capacity that the Government determined the total state aid for investments in new nuclear power reactors should cover, as proposed in the Government bill Financing and risk-sharing for investments in new nuclear power (2024/25:150). The Government now proposes several authorisations in the Spring Amending Budget for 2026 related to the project.

State majority ownership of Videberg Kraft AB

In the Spring Amending Budget for 2026, the Government seeks the Riksdag’s authorisation to acquire shares in Videberg Kraft AB that will give the state a voting and ownership share of 60 per cent, and authorisation to decide on an initial capital contribution to the company totalling up to SEK 1.8 billion. Wholly state-owned Vattenfall AB currently holds 80 per cent of shares in the company, with the remaining 20 per cent being held by Industrikraft i Sverige AB. This is a consortium of some of Sweden’s largest industrial companies.

The Government plans to enter into agreements to acquire shares in Videberg Kraft AB in 2026. The formal transfer of shares is expected to take place in the second half of 2027. 

Possibility to adjust state’s share of ownership

Building new reactors is a complex undertaking, and associated with considerable uncertainty. The Government considers that it should be possible to increase or decrease the state’s share of votes and ownership in the company, and thus requests authorisation to be able to adjust its shareholdings between 51 and 65 per cent until the reactors have been completed and commissioned.

The Government also requests authorisation to be able to inject capital in the company totalling up to SEK 34.3 billion during the construction phase, provided that other shareholders also contribute their share of the capital.

These two authorisations would apply until the reactors have been commissioned for routine operation, but no later than 2045.

Fixed costs of a new nuclear waste management system for new reactors

It is necessary to clarify the applicable conditions for financing the management of spent nuclear fuel and radioactive waste from new nuclear power reactors in a new nuclear waste management system for actors seeking to build new reactors. The Government requests authorisation to enter into agreements with Videberg Kraft AB in 2026 and 2027 concerning the proportion of the fixed costs and fixed cost increases in a new nuclear waste management system for which the company and the state will be responsible for, respectively.

The expected fixed costs for a new nuclear waste management system based on established technology are estimated at around SEK 122 billion in total at the 2026 price level. The Government considers that the fixed costs should be shared between the actors investing in new nuclear power in the same manner as they are for existing nuclear power. The Governments has determined that state involvement is justified, as this will ensure that Videberg Kraft AB, the largest actor in a new nuclear waste management system will not risk having to pay all fixed costs and assume sole responsibility for the new system.

Under the proposal, the state would be able to negotiate with the first actor as regards undertaking financial responsibility for a share of the fixed cost, with the expectation that new actors would be able to subsequently take part in a new nuclear waste management system based on established technology. The proposed authorisation would total SEK 122 billion, with an additional SEK 61 billion for potential increases at the 2026 price level for the years 2035–2159, which would only serve as a framework within which the state could negotiate and conclude agreements. Such agreements can only be concluded if the state aid is compatible with EU state aid rules.

The state’s undertaking will be set out in agreements in proportion to the initial actor’s share of fixed costs. The state’s undertaking will decrease as each new actor invests in new nuclear power and takes part in a new nuclear waste management system using established final disposal technology. With investments in new nuclear power providing a total electrical capacity of approximately 5 000 MW, the state’s share of the forecast fixed costs under the nuclear waste management system can be expected to end, as those costs will be borne by the investing actor.

The proposals are based on an agreement between the Government and the Sweden Democrats.