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Sweden Today

Swedish news in English

Wednesday, October 9, 2024

Sweden's Nuclear Power Funding Dilemma

Published: 2024-08-12

The Swedish government is exploring ways to finance new nuclear power projects, as current state credit guarantees of 400 billion SEK are deemed insufficient.

A report by economist Mats Dillén is expected to propose solutions, potentially including a "contract for difference" model, which would guarantee a minimum electricity price to attract investors.

This approach, already approved by the EU, aims to reduce financial risks for developers.

However, the plan faces criticism for potentially sidelining other renewable energy sources and burdening taxpayers.

Experts like Markus Wråke and Björn Sandén emphasize the need for careful consideration of the economic and political implications, warning against over-reliance on nuclear power.

The debate highlights the challenges of balancing energy needs with financial and environmental responsibilities in Sweden's energy policy.