Sweden plans new nuclear reactors by 2035, will share costs - Reuters
Sweden plans new nuclear reactors by 2035, will share costs | Reuters
Sweden plans new nuclear reactors by 2035, will share costs
A Swedish flag hangs outside a store on a busy street as visitors walk past in the background in the old town of Stockholm, Sweden, July 14, 2023 REUTERS/Tom Little/File Photo Acquire Licensing Rights
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STOCKHOLM, Nov 16 (Reuters) - Sweden's government said it aimed to build the equivalent of two new conventional nuclear reactors by 2035 on Thursday to meet surging demand for clean power from industry and transport and was prepared to take on some of the costs.
By 2045 the government wants to have the equivalent of 10 new reactors, some of which are likely to be small modular reactors (SMRs), smaller than conventional reactors.
Energy Minister Ebba Busch said the government was planning a "massive build out" of new nuclear power by 2045.
"It's decisive for the green transition, for Swedish jobs and at heart for the welfare of our citizens," she told reporters.
Countries like Poland, the Czech Republic, and Britain are looking at expanding nuclear power as societies transition to a fossil-fuel free future.
But critics have pointed to the huge costs and the private sector's reluctance to invest without guarantees or other incentives - like Britain's deal with French nuclear developer EDF for its new Hinkley Point C plant which gave price guarantees.
Sweden's government has already offered 400 billion crowns ($37.71 billion) of loan guarantees to support new nuclear power, which it says is needed to power developments like fossil-fuel free steel production, but said it was now willing to shoulder more of the burden.
"Guarantees are very important, but that won't be enough," Finance Minister Elisabeth Svantesson said. "For this type of infrastructure it is going to require the state to take part and share the risk."
The government said it had not yet decided what kind of funding model it would adopt, but stressed that the private sector was ready to invest in building new plants given the right circumstances. Energy Minister Busch said state-owned Vattenfall, Finland's Fortum and Germany's Uniper were among those who had expressed interest.
Sweden voted to get rid of nuclear power in 1980, and has only six of an original 12 reactors still in production.
The current right wing government wants to replace old reactors and expand the fleet to drive the electrification of industry and transport.
The government has forecast that electricity demand will rise to around 300 Twh by 2045 as a result of the transition to a fossil-free society, up from around 140 Twh currently.
($1 = 10.6072 Swedish crowns)
Reporting by Simon Johnson; Editing by Chizu Nomiyama and Elaine Hardcastle
Our Standards: The Thomson Reuters Trust Principles.
Related Knowledge Center: ENERGY BASICS: nuclear
Nuclear energy provides almost 20 percent of the U.S. electricity supply. Advocates have called for an expanded role for nuclear as an emissions-free fuel source. But the economics of building new reactors are daunting. In addition, lingering safety concerns are an institutionalized part of the calculation of nuclear regulation, and highly radioactive nuclear waste remains a can that public officials have been inclined to kick down the road. The Energy Information Administration projects a sharp decline in nuclear power generation over the next decade, as new nuclear plants — two are planned — are more than offset by anticipated retirements of several operating reactors.