Sweden new nuclear power plans have taken a decisive step forward after the Swedish government signed an agreement on state support for new reactors at the Ringhals nuclear power plant, south of Gothenburg. The deal gives the state a majority role in the project and sets the framework for public financing, but it still requires approval from the European Commission.
State support for new nuclear power
The agreement concerns Videberg Kraft AB, the project company planning to build new reactors at Ringhals, on the Värö Peninsula in western Sweden. According to the Swedish government, the state will acquire 60 percent of the company, while Vattenfall AB and Industrikraft i Sverige AB will each hold 20 percent.
The state’s acquisition follows a decision by the Riksdag on 9 June 2026, which authorised the government to buy the shares for up to SEK 1.8 billion (about €160 million). The formal transfer of shares is expected in the second half of 2027.
The support package includes government loans, two-way Contracts for Difference and a model for sharing risks and profits. The government says the structure is intended to reduce financing risks while protecting public finances.
Minister for Financial Markets (Finansmarknadsministern) Niklas Wykman said the agreement allows Sweden to move forward with a notification to the European Commission for a state aid assessment.
Three SMR reactors planned at Ringhals
The new reactors are planned for the Ringhals site, one of Sweden’s existing nuclear power locations. Earlier in June, Videberg Kraft selected Rolls-Royce SMR as supplier for the project.
The plan currently involves three small modular reactors, each with an output of 470 MW. Vattenfall says the reactors could produce around 12 TWh of fossil-free electricity per year, which would be a significant addition to southern Sweden’s electricity system.
The technology is based on pressurised water reactors, the same broad reactor type already used at Ringhals. The company argues that modular construction could reduce on-site delays by moving more of the manufacturing process into controlled industrial settings.
Why Sweden is returning to nuclear energy
The Swedish government presents the project as part of a wider strategy to secure future electricity supply, support industrial electrification and reduce exposure to volatile power prices.
Sweden’s electricity mix is already largely fossil-free, with hydropower, nuclear and wind as the main sources. The political argument for new nuclear power is therefore less about replacing fossil fuels in today’s system and more about preparing for higher future demand from industry, transport and electrification.
The government has said that state aid for new nuclear energy is limited to projects with a total installed capacity of around 5,000 MW, roughly equivalent to four large-scale reactors.
The Ringhals project is the first concrete agreement under the new Swedish support model. Other applications for state support have also been submitted, including projects linked to Blykalla, Studsvik and Nordic Baseload Power.
The EU still has to approve the deal
The agreement cannot take full effect without a state aid decision from the European Commission. The government expects a decision in the second half of 2027.
This EU review will be central because the Swedish model relies on public financing and risk-sharing mechanisms. Similar arrangements in Europe have often required close scrutiny to ensure that state support does not distort competition beyond what EU rules allow.
The Commission’s decision will also matter politically. A positive ruling would strengthen Sweden’s nuclear strategy and could influence other European countries considering public-backed nuclear investment. A delayed or restrictive decision could slow the project and complicate the government’s timetable.
Critics question cost and timing
The nuclear plan remains politically contested. Supporters argue that new reactors are necessary for stable electricity supply, industrial competitiveness and long-term climate goals.
Critics say the state is taking on large financial risks for technology that could be expensive and slow to deliver. They also argue that renewable energy, especially onshore wind, can often be built faster and at lower cost.
The debate reflects a broader European divide. Several countries, including Sweden and Finland, see nuclear power as part of a low-carbon energy system. Others remain more cautious because of costs, construction delays, waste management and long-term public guarantees.
A new nuclear chapter for Sweden
If approved in Brussels, the Ringhals agreement would mark Sweden’s first new nuclear construction project in more than four decades. It would also confirm a major shift in the role of the Swedish state, from regulator and owner of Vattenfall to direct majority shareholder in a new nuclear project.
For the Nordic region, the decision adds another layer to the debate on how to combine climate targets, industrial competitiveness and electricity security. Sweden’s answer is increasingly based on a mixed model: more renewables, stronger grids and a renewed commitment to nuclear power.
