Sweden Considers €26 Billion Loan to Finance New Nuclear Reactors

Sweden is exploring the possibility of borrowing 300 billion Swedish kronor (€26 billion) to fund the construction of a new fleet of nuclear reactors over the coming decades. A government report released on Monday in Stockholm outlines the preferred model to provide investors with certainty. The proposed financial instruments include public loans to support construction and guaranteed revenues for 40 years through a contract for difference (CfD).

The Nordic nation urgently needs new energy capacity, as demand is expected to double with the increased electrification of the economy. Currently, Sweden operates six reactors that supply approximately one-third of its energy, while hydropower and wind turbines cover most of the remaining demand.

Financing remains one of the biggest challenges for nuclear energy, as reactors are expensive to build and take years to complete, often driving up costs. The proposed model focuses on financing a program of up to 6,000 megawatts, equivalent to four large-scale reactors, and draws inspiration from the Czech Republic’s plans to finance new units at the Dukovany complex.

“We have looked closely at the Czech model,” said Mats Dillen, who led a government-appointed study, during a press conference in Stockholm. “It was recently approved by the European Commission, making it attractive for us, as it allows us to adopt a support model that we know has the Commission’s approval.”