Stockholm, Sweden (May 21, 2025) — Sweden’s Parliament has approved a landmark government proposal to support investment in new nuclear reactors, adopting a financing and risk-sharing framework aimed at strengthening the country’s fossil-free energy base.
“This is a historic announcement that takes responsibility for public financing and taxpayers’ money,” said Minister for Financial Markets Niklas Wykman in a statement on Wednesday. “With new nuclear reactors, we are paving the way for higher growth, more jobs, and better conditions to achieve the climate transition.”
The new law, set to take effect on August 1, 2025, creates a dual mechanism of state support: government-backed loans and two-way Contracts for Difference (CfD). These instruments are designed to ease the financial burden for private companies constructing up to 5,000 megawatts of nuclear capacity — roughly equivalent to four large-scale reactors.
Government loans will be available to cover parts of the construction and testing phases, though companies must also inject private equity. Loans must be repaid in installments once a reactor begins operation.
The two-way CfD agreements will act as a hedge once reactors become operational. If electricity prices fall below a predetermined “strike price,” the government will compensate companies for the shortfall. Conversely, if prices exceed the strike price, companies will return the difference to the state.
“The expansion of nuclear power is expected to result in greater price stability and lower system costs,” Wykman said. “This helps households as well as businesses.”
Applications for aid will open on August 1. The Ministry of Finance emphasized that all applicants must adhere to conditions that include regulated profit and risk sharing between the private sector and the government.
Sweden has been grappling with unstable electricity prices and energy system imbalances, leading to calls for more reliable base load power sources. The adoption of the law marks a major policy shift as the country accelerates its energy transition goals.
