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Sweden Considers Borrowing for Nuclear Fleet, Raising Concerns

Affordable Financing Options Explored

Sweden is exploring borrowing options to finance a new fleet of nuclear power plants. The government is considering borrowing around 300 billion Swedish kronor (285 billion) to cover the costs of the project. This approach contrasts with the financing scheme for Hinkley Point in the United Kingdom, which has a total cost estimate of about 479 billion (612).

Government Study on State Aid

Recommendations for Financing

In December 2023, the Swedish government commissioned Mats Dillén to produce proposals for financing new nuclear power plants. The report, created by an international EY team, proposes recommendations for funding these projects.

Skepticism Over Nuclear Power

The government's pursuit of nuclear energy has faced skepticism from some quarters. Critics argue that the cost of nuclear power remains high and that the technology poses safety and environmental risks.

High Costs and Uncertainties

The Swedish government estimates that it will cost around Skr400bn (38bn) to carry out its nuclear power plans. These costs include the construction of new plants, as well as the decommissioning and waste management of existing ones.

Government's Commitment to Nuclear Energy

Despite the concerns, the Swedish government remains committed to nuclear energy as a key part of its energy mix. The government is seeking to pave the way for new units through legislation and studies.