Government rolls out ambitious energy reform plan to curb soaring costs: 'This is the way to get an approval'

Sweden sees nuclear power as key to its clean energy future — and the government is stepping in to make that future a reality. The country just unveiled a proposal to help fund the building of new nuclear power plants, hoping to make the process more viable for energy companies.

As part of the proposal, the Swedish government plans to offer state loans to energy companies building nuclear power plants. It also intends to set fixed electricity prices for the energy produced by the plants, giving companies predictable income to reduce the risk of their initial investment once the plants are operational.

As Reuters reported, the proposal supports Sweden's ongoing plan to increase electricity production while reducing planet-warming carbon pollution. Applications for funds will begin as soon as August.

"It is a limited, well-balanced, responsible support to enable something we have not done for a very long time — namely build new nuclear reactors," Sweden's financial markets minister, Niklas Wykman, said in a statement. The country's current reactors were constructed in the 1970s and 1980s, per Reuters.

Wykman added: "It is also our judgment that this is the way to get an approval from the European Commission with broad support." 

European Union countries need approval from the European Commission to use subsidies to finance new nuclear plants, per EU state aid rules.

The Swedish government wants to build 10 new nuclear reactors by 2045, shifting the country away from dirty fuels while still keeping up with energy needs. But Reuters reported that energy companies have been concerned over the profitability of building these expensive reactors, prompting the government to partially fund construction costs.

It's projected to cost approximately 400 billion Swedish krona, or around $41 billion, to expand Sweden's nuclear power to where the government wants it to be. 

Reuters reported that utility companies are receptive to the proposal, saying it makes building new reactors more commercially viable.

Nuclear power — though historically misunderstood — is an affordable and reliable source of clean energy. Nuclear power generates electricity without burning dirty fuels like coal, oil, and gas. This means it produces less planet-warming pollution than traditional grid electricity. 

Which of these factors would most effectively convince you to support nuclear energy projects in your area? Lower energy bills 💸 Safety and reliability ✅ More local jobs 👷‍♀️ Environmental benefits 🌎 Click your choice to see results and speak your mind.

While other green energy alternatives like wind and solar are essential for a clean energy future, their power isn't always reliable, especially when demand is high. Nuclear power, however, can provide stable, high-volume power, making it a strong partner to these alternative energy sources. 

And, yes, nuclear power is safe. Our World in Data estimates that nuclear power is the second-safest form of energy behind solar. The U.S. Department of Energy says that eating a banana exposes people to more radiation than living next to a nuclear plant. 

Sweden is often recognized as a leader in climate policy. However, the Climate Change Performance Index highlights that the current Swedish government has rolled back some of the country's more progressive climate action. Despite this, the government's support for nuclear power could pave the way for other countries to embrace nuclear energy to hit climate targets — all while keeping the lights on.

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