Sweden has taken a significant step towards expanding its nuclear power capabilities, with the government announcing that companies can now apply for state aid to build new reactors. The move is seen as a key part of the country’s efforts to ensure a secure supply of electricity and meet its climate targets.
As of August 1st, 2025, companies seeking to build reactors will be able to submit applications for state aid in the form of government loans and two-way contracts for difference – a type of hedging arrangement. The state aid is limited, with a total installed capacity of approximately 5,000 MW planned.
The new legislation was approved by the Riksdag in May and builds on an existing act that enables state aid for investment in new nuclear power. However, the new ordinance sets out more detailed requirements for applications, including information about the company’s ownership structure, project plan, and reactor technology or model alternatives.
The application process consists of two steps: a mandatory initial step that requires all applicants to provide basic information, followed by a second step that only applies to those deemed suitable. If an application is approved for the second step, the Government Offices will request additional information, including costs for the planned investment alternatives.
The state aid review will be conducted by the European Commission, and the government has emphasized the need for companies to meet strict criteria to qualify for funding. “A global race is underway for new nuclear power,” said Minister for Energy, Business and Industry Ebba Busch. “We are well-positioned for this work, and the final piece of the puzzle is now in place to enable companies to apply.”
The move is seen as a significant step towards securing Sweden’s energy future and meeting its climate targets. The country aims to double electricity production to 300 TWh by 2045, and new nuclear power is expected to play a key role in achieving this goal.
“Tidö parties are creating conditions for new investment in nuclear power in Sweden,” said Tobias Andersson, Chair of the Committee on Industry and Trade (Sweden Democrats). “Now we’re clarifying how to apply for state aid to be part of Sweden’s nuclear power renaissance.”
Applications for state aid will be accepted from August 1st, 2025, and are expected to generate significant interest from companies both domestically and internationally. With the new legislation in place, Sweden is well-positioned to capitalize on the growing demand for nuclear energy globally.
Timeline:
- May 2025: Riksdag approves an act enabling state aid for investment in new nuclear power.
- August 1st, 2025: Applications for state aid open.
Key Figures:
– Total installed capacity: approximately 5,000 MW
– Projected total capacity of new reactors: four large-scale reactors
Countries Involved:
Sweden