Sweden takes next major step towards new nuclear power

“The fact that the state, Vattenfall and the large industrial companies that own Industrikraft have reached an agreement is a sign of strength for Sweden. Building new nuclear power is expensive and complicated, but important to ensuring that we have a better functioning energy system. The agreement enables new nuclear power, while protecting taxpayers’ money and ensuring proper management of public finances. We can now move forward by submitting this to the European Commission for a state aid assessment,” says Minister for Financial Markets Niklas Wykman.

In the Spring Amending Budget for 2026, the Government sought authorisation from the Riksdag to acquire 60 per cent of shares in Videberg Kraft for a maximum of SEK 1.8 billion, together with a framework for future capital injections. The Riksdag approved the Government proposal on 9 June.

Wholly state-owned Vattenfall currently holds 80 per cent of shares in Videberg Kraft, with the remaining 20 per cent being held by Industrikraft, which is a consortium of some of Sweden’s largest industrial companies. The state’s acquisition is being made through a purchase agreement which will see Vattenfall’s shareholding decrease to 20 per cent. The formal transfer of shares to the state is expected to take place in the second half of 2027. 

An appendix to the purchase agreement sets out the principal terms and conditions for the state aid and nuclear waste management negotiated between the Government and Videberg Kraft during the first half of this year. The state aid consists of government loans, hedging arrangements in the form of two-way Contracts for Difference and a risk- and profit-sharing model. 

With the state ownership agreements in place, the Government Offices will submit a notification of state aid to the European Commission. A decision on state aid is expected from the Commission in the second half of 2027.