STOCKHOLM (Reuters) – Sweden is considering taking a stake in the new nuclear power plants it wants the private sector to build over the coming decades to meet an expected surge in demand for fossil-free electricity, the government said on Tuesday.
“We haven’t closed the door to that,” Markets Minister Niklas Wykman told reporters on Tuesday. “In that case, it would be on strictly commercial terms.” He said no decision had been made and gave no further details.
The government forecasts demand for electricity will double to around 300 terawatt hours by 2045 as fossil fuels are phased out, and wants the equivalent of two full-scale nuclear reactors to be built in the next decade.
But with worries over profitability hampering interest from the private sector, the government has accepted it will need to help finance construction costs, estimated to be around 400 billion Swedish crowns ($36.61 billion).
A commission said the government should be ready to provide loans to cover 75% of the total amount and to guarantee prices for 40 years.
Critics say recent projects like Hinkley Point C in Britain and Flamanville 3 in France show that reactors will end up being much more expensive than current estimates, with the taxpayer shouldering the burden.
Supporting nuclear power could also squeeze out other fossil-free alternatives, some critics have said.
“Given the climate ambitions we have, I find it inconceivable it would have any squeeze-out effect,” Wykman said. Sweden aims to reach net zero emissions by 2045.
($1 = 10.9269 Swedish crowns)
(Reporting by Simon Johnson; Editing by Jan Harvey)
