Sweden passes passes law to fund new generation of nuclear reactors

STOCKHOLM, May 21 (Reuters) - Sweden's parliament passed legislation on Wednesday to finance a new generation of nuclear reactors the government says are key to energy security and achieving net zero emissions by 2045.

The government plans four large-scale reactors - with installed capacity of around 5,000 MW - or the equivalent in small, modular reactors (SMRs). Half of those should be on-stream by 2035.

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"We need more stable, fossil-free electricity at a competitive price," Energy Minister and Deputy Prime Minister Ebba Busch said on X. "This is the way we can support growth, our defence capabilities, and make sure Swedish families get electricity at a reasonable price every day."

Sweden currently has six reactors in operation, all of which were built in the 1970s and 1980s. Electricity production is already almost entirely fossil-free, with hydro-power accounting for around 40% of output, nuclear 30% and wind 20%.

Electricity demand is expected to double to around 300 terrawatt hours over the next two decades. The government says that without nuclear power, key new industries like green steel, bio-fuels and large-scale hydrogen production will go elsewhere.

The government says it supports all fossil-free energy production, but that only nuclear can supply reliable, predictable power.

Officials did not say how much the new programme would cost or how this would be shared among consumers.

A white paper published in August last year, which proposed a similar model, said the state could need to lend nuclear developers between 300-600 billion crowns ($31-62 billion). Price guarantees would stay in place for 40 years.

Critics say nuclear power will be too expensive and too slow to build and would squeeze out cheaper wind and solar they say are the only way to meet increased demand in the short term.

"It is an item of religious faith for this government to build nuclear power whatever the price," Birger Lahti of the opposition Left Party said.

While the bill is a major step forward in the minority coalition's plans for what it has called a "massive" build-out of nuclear power, its future remains uncertain.

Sweden's opposition parties all voted against the bill and the country holds a general election next year.

State-owned Vattenfall has the most advanced plans for new reactors but has said it will not take an investment decision until the end of the decade.

Reporting by Simon Johnson; editing by Anna Ringstrom; editing by Mark Heinrich

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