Government receives new state aid application for nuclear power
Published
A new application for state aid to build nuclear power reactors has been submitted to the Government. The application was submitted by Studsvik, which is seeking to establish reactors in the municipalities of Nyköping and Valdermarsvik. This is the third application for state aid received by the Government.
“Swedish companies clearly want to be a part of building the fossil-free, base-load power that Sweden needs. Now we’ve received a third application for the financing of nuclear power,” says Minister for Financial Markets Niklas Wykman.
Studsvik AB is applying for state aid for two different projects. One is in Studsvik in the municipality of Nyköping, concerning the construction of two to four modular light water reactors with a total power rating of approximately 600–1400 megawatts (MW). The other is in the municipality of Valdemarsvik, where Studsvik AB has applied to build four to six modular reactors of the same type, with a total power rating of approximately 1200–1600 MW.
This spring, the Government received applications seeking approval for nuclear facilities at these locations, with Studsvik now applying for state aid for the projects. The company is expected to decide at a later stage which of the two projects it will proceed with.
The application will be processed at the Ministry of Finance by the secretariat for financing of new nuclear power. Once an application has been received, the Government initiates the process of deciding on support. Beyond the processing of the actual application, this process also involves negotiations between the Government and the relevant company about the conditions and scope of the support. A continuous dialogue with the European Commission Directorate-General for Competition then leads to a formal evaluation of whether the support is compatible with EU state aid rules.
This is the third application for state aid relating to a nuclear power project received by the Government. In December 2025, Videberg Kraft AB applied to build reactors on the Värö Peninsula outside Varberg. Earlier in June 2026, Blykalla AB applied regarding a project in Norrsundet outside Gävle.
Background: Financing of new nuclear power
As of 1 August 2025, companies that want to build nuclear power reactors in Sweden may apply for financial support from central government.
State aid is provided in the form of government loans and two-way Contracts for Difference. The latter means that a contract is drawn up between a nuclear power plant operator and central government ensuring a minimum level of compensation protection by central government and setting an overcompensation cap for the company.
Central government can provide loans for the construction and testing of new nuclear reactors, and for planning and other preparatory measures. Two-way Contracts for Difference may be entered into for routine operation of new nuclear reactors.
The state aid is limited and is planned to include investments of up to a total power rating of approximately 5 000 MW, which is equivalent to four large-scale reactors.
Applications are submitted to the Government and handled by a special secretariat at the Ministry of Finance. The responsible minister is Minister for Financial Markets Niklas Wykman.
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
