Sweden's nuclear plans are becoming more concrete: New reactors are to go online in ten years

The plans of the Swedish state-owned energy giant Vattenfall for the expansion and renewal of nuclear power in the northern European kingdom are becoming more concrete. In Ringhals, around 60 kilometers south of Sweden's second-largest city, Gothenburg, the company now plans to build modern small reactors—better known by the acronym SMR (Small Modular Reactors)—in addition to the two reactors that have been operating there for decades.

On Thursday, Vattenfall announced which partners are still in the running for the multi-billion euro investment: The US company GE Vernova and Rolls-Royce from Great Britain prevailed from a total of 75 potential reactor manufacturers. "This decision is a further step on the path to the first Swedish nuclear power plant construction in more than 40 years," said the head of the state-owned company, Anna Borg.

According to Vattenfall, the new nuclear facilities at the site on the west coast will have a capacity of 1,500 megawatts. This could be achieved either with five GE Vernova reactors or three Rolls-Royce SMRs. With an annual operating time of 8,000 hours, such a plant could produce around 12 terawatt hours (TWh) of electricity. According to the ambitious plans, the first small reactor on Swedish soil is scheduled to go online as early as 2035.

The only storage facility for radioactive waste in eastern Germany is being upgraded. Radioactive scrap will be stored near Greifswald until the next century. And the EWN is to assist in the dismantling of reactors in the western part of the country.

Vattenfall's plans for the construction and expansion of nuclear power are politically desirable—at least within the ranks of Prime Minister Ulf Kristersson's conservative minority government. It took office in 2022 with the promise that construction of new reactors would begin within the legislative period running until 2026. It has consistently justified its commitment to nuclear power with the argument that it is an extremely climate-friendly and sustainable form of energy generation.

However, this view is not shared by all political forces in the Stockholm parliament. Large sections of the opposition are more skeptical, even opposed, and all critics of the government's plans are united in the view that new nuclear power plants are by no means a solution to the already severe electricity shortage in Sweden. For example, Rickard Nordin of the Center Party calls for tax incentives for the expansion of solar and wind energy, as well as for making existing hydroelectric power plants more efficient. Only by promoting renewable energies can the high electricity prices for consumers, particularly in the south of the country, be reduced.

The Green Party rejects the plans as far too ill-conceived and "completely unrealistic." Their energy policy spokesperson, Linus Laakso, points to lengthy approval procedures, especially since the EU Commission also has a say. Furthermore, the costs could spiral out of control, he warns: "The government is relying on a technology that is still under development."

At least the largest parliamentary group in the Riksdag, the Social Democrats, are willing to engage in dialogue. In Sweden, they, like the powerful unions, have traditionally been quite open to nuclear power. Nevertheless, it appears that at least some parties are keen to use the issue in the upcoming election campaign.

Prime Minister Kristersson also feels this, and he accordingly used bold language on Thursday when, together with his coalition partners, he emphatically welcomed Vattenfall's nuclear plans. The conservative politician called on the opposition parties to forge a national consensus on the issue of nuclear power. He compared this to his country's decision, supported by large parts of the opposition, to abandon its neutrality and join NATO in the wake of Russia's war of aggression against Ukraine.

"The economy now expects politicians to pull themselves together and create a long-term framework," warns Kristersson. This was primarily aimed at his government's commitment to co-finance the construction of the new reactors with state loans of up to 300 billion kroner. This equates to around 27 billion euros. This must be maintained, the Prime Minister demands. Because only the more favorable interest rate at which the state can borrow money on the capital markets can make the construction of new reactors possible in the first place, it was stated in the spring when a corresponding law was introduced.

Vattenfall announced on Thursday that it is now officially applying for the state loan. The state-owned company doesn't intend to handle the project entirely on its own, but has also partnered with the Industrikraft consortium, a consortium comprising 17 of Sweden's largest industrial companies. As an incentive, the government plans also include a state-guaranteed purchase price for nuclear power that is significantly above the actual market level for at least four decades.

Two conventional pressurized water reactors, in which Vattenfall owns almost 70 percent, are currently operating in Ringhals on Sweden's west coast. They are expected to remain in operation for at least another 20 years, possibly until 2060 or 2065. Vattenfall CEO Anna Borg has announced that, in the long term, the two decommissioned reactor units on the site, which are being dismantled, will also be replaced with new ones. The current SMR project is the start of further planning in this direction.

According to representative surveys, the majority of Swedes support the civilian use of nuclear power. Similar to Germany, the northern European kingdom has made several political decisions to phase out nuclear energy. However, the final shutdown of all reactors has never been implemented.

Unlike in Germany, the final storage issue has already been decided in Sweden: The radioactive waste is to be stored in Forsmark, north of the capital Stockholm. The final storage facility, which will be blasted deep into almost two-billion-year-old granite rock not far from existing nuclear power plants, is scheduled to become operational in 2037.