Sweden's commitment to combating climate change through nuclear power expansion comes with a hefty price tag, according to a recent report. A government-appointed commission has estimated that the cost of building new nuclear power plants will reach around €35 billion.
The government's vision includes the addition of 2,500 MW of new nuclear power by 2035, equivalent to two new reactors, followed by ten more reactors within the next decade. However, private investors have been hesitant to participate due to the high upfront costs, long project timelines, and potential risks associated with such long-term investments.
To address these concerns and attract private investment, the commission recommends a financing model where the state provides loans for 75% of the construction costs, with the remaining 25% coming from private investors. Additionally, the government would guarantee a minimum electricity price for 40 years to ensure investor confidence and financial viability.
The commission also suggests building four or five new power plants with a combined capacity of 4,000-6,000 MW to achieve cost-effectiveness.
While the Swedish government views nuclear power as essential for providing reliable and stable energy, particularly when renewable sources are unavailable, critics point to the high costs and potential delays often associated with nuclear projects. They argue that alternative solutions, such as renewable energy and energy efficiency measures, should be prioritised.
Despite these concerns, the government remains steadfast in its belief that nuclear power is crucial to achieving its ambitious goal of net-zero emissions by 2045. The country currently has six operational reactors, all built in the 1970s and 1980s, and this expansion plan marks a significant shift in Sweden's energy strategy.
The proposed financing model aims to strike a balance between public and private investment, ensuring that the financial burden is shared while incentivising private sector participation. However, the ultimate success of Sweden's nuclear power expansion will depend on overcoming the challenges of high costs, potential delays, and public acceptance.
