Wedoany.com Report-Oct. 2, The Swedish government has outlined a financial framework in its 2026 budget bill to support companies seeking loans for new nuclear power projects. This initiative aims to facilitate the construction of new reactors to meet the country’s energy goals.

The Ringhals site, where Vattenfall is proposing to construct SMRs

In October 2022, Sweden’s centre-right coalition government expressed support for nuclear energy. By November 2023, a roadmap was introduced, planning for new nuclear capacity equivalent to at least two large-scale reactors by 2035 and up to 10 by 2045. In May 2025, the Riksdag approved state aid for companies investing in new reactors, with loans capped to support up to four large-scale reactors, totaling about 5,000 MWe. Eligible projects must have a minimum installed capacity of 300 MWe and be located at designated sites. Contracts for Difference will be available once reactors are operational and fully licensed.

The state aid program, effective since August 1, 2025, allows companies to apply for support. Last month, Vattenfall announced plans to develop small modular reactors at the Ringhals site, shortlisting GE Vernova Hitachi’s BWRX-300 and Rolls-Royce SMR. The company intends to apply for government risk-sharing and select a final supplier.

The 2026 budget proposes financial frameworks for negotiating loans and price-hedging agreements with companies. The government anticipates lending up to SEK220 billion (USD23.4 billion) over 12 years for reactor construction, with annual price-hedging costs of SEK1–3 billion for 40 years post-operation. Terms will be tailored to each project, pending European Commission approval, which may adjust agreements. The government noted that costs depend on construction expenses and future electricity prices, describing the framework as an upper limit for negotiations, not a fixed cost. It aims to process applications for half of the total support in 2026.

To streamline permitting, the government is enhancing processes for 2026, allocating SEK161 million to agencies like the Swedish Radiation Safety Authority and the Swedish Environmental Protection Agency. These funds will improve environmental assessments and permit efficiency, ensuring local acceptance and balanced interests.

The government also plans to establish a new authority by July 1, 2027, to handle environmental assessments, transferring tasks from county administrative boards and, later, from land and environmental courts. “Effective permitting processes for new nuclear power in more locations are an important part of a climate transition that drives Sweden forward,” the government said, emphasizing readiness for both established and emerging technologies.