STOCKHOLM — The Swedish government has received its first formal application for state aid to construct new nuclear reactors, marking a historic shift in the nation’s energy policy.
Videberg Kraft AB, a project company majority-owned by state utility Vattenfall AB and backed by a consortium of heavy industrial giants, submitted the application Tuesday to build approximately 1,500 megawatts of new capacity on the Värö Peninsula at the existing Ringhals site.
The move follows a series of legislative reforms by the center-right coalition government aimed at doubling Sweden’s electricity production to meet the demands of a rapidly electrifying economy.
“The fact that we have received this first application confirms that Swedish industrial companies want to get involved in building nuclear power,” said Minister for Financial Markets Niklas Wykman. “This is a decisive step towards getting new reactors in place, and we are ready to receive more applications in the future.”
The application is the first to be filed under a new state aid framework that entered into force on Aug. 1, 2025. The framework offers government-backed loans and “two-way contracts for difference,” which guarantee a minimum price for the electricity produced while capping excess profits for the operator.
Videberg Kraft’s proposal focuses on the Värö Peninsula, situated near the currently operating Ringhals 3 and 4 reactors. While the specific technology has yet to be finalized, Vattenfall has previously indicated it is evaluating both small modular reactors (SMRs) and large-scale designs.
The project is bolstered by Industrikraft i Sverige AB, a consortium of major Swedish corporations—including Volvo Group, SSAB, ABB, and Saab—which recently took a 20% stake in the project company. These companies have expressed an urgent need for stable, fossil-free baseload power to maintain global competitiveness.
The Ministry of Finance’s new secretariat for nuclear financing will now begin processing the bid. The process will involve detailed negotiations regarding the scope of state support and a formal review by the European Commission to ensure the aid complies with European Union competition rules.
Government officials noted that while this is the first application, others are expected shortly as Sweden targets having at least two new large-scale reactors—or their equivalent in SMRs—online by 2035.
“Nuclear power is an important part of securing Swedish growth in the future,” Wykman said. “It is absolutely necessary to meet the electricity needs of the future and to increase the security of supply in the electricity system.”
