Sweden’s Vattenfall Applies for State Aid for New Nuclear Reactors

Wedoany.com Report-Dec.24, Swedish utility Vattenfall has submitted an application for state financing to construct new nuclear reactors at its Ringhals facility, marking the first such request under the government's support framework aimed at expanding nuclear power capacity.

The application, submitted on December 23, 2025, comes from Videberg Kraft AB, a majority-owned subsidiary of state-owned Vattenfall, backed by several large Swedish industrial corporations through the Industrikraft i Sverige AB consortium.

Videberg Kraft plans to deploy small modular reactors (SMRs) on the Värö Peninsula in south-west Sweden, at the existing Ringhals nuclear site where two reactors remain operational and two have been permanently shut down.

"State support will be critical for the project," Desiree Comstedt, head of new nuclear power at Vattenfall, said in a statement.

The government has indicated that the scale and terms of any financing will be determined through negotiations with Videberg Kraft, with final approval required from the European Commission.

The support scheme, enabled by legislation effective from August 1, 2025, includes low-cost loans and price guarantees to share costs and risks for up to approximately 5,000 MW of new capacity, equivalent to about four large-scale reactors.

In August 2025, Vattenfall shortlisted Britain's Rolls-Royce SMR and U.S.-based GE Vernova as potential suppliers. The project considers either three Rolls-Royce SMR units or five GE Vernova BWRX-300 reactors, delivering a total capacity of around 1,500 MW.

A final supplier selection is expected in 2026, while the overall investment decision is targeted for 2029.

"New fossil free electricity production is critical for the electrification of Sweden's transport and industry," Prime Minister Ulf Kristersson said on X.

Sweden's current six operating reactors, built in the 1970s and 1980s, contribute about 30% of the country's electricity, alongside hydropower (around 40%) and wind (around 20%), resulting in nearly fossil-free production overall.

The government aims for new nuclear capacity equivalent to roughly 10 full-size reactors by 2045 to support growing demand from electrification in industry and transport.

Vattenfall has also indicated interest in a subsequent phase to add another 1,000 MW of SMR capacity at the site where Ringhals 1 and 2 are located.

This initiative reflects efforts to ensure reliable, low-carbon electricity supply through advanced modular technology, which offers advantages in construction efficiency and site suitability.

The Ringhals location benefits from existing grid infrastructure, nuclear expertise, and regional demand, facilitating potential rapid deployment.