Published by Global Banking & Finance Review®
Posted on February 5, 2026
2 min readLast updated: February 5, 2026
Add as preferred source on GoogleVattenfall urges the Swedish government to invest in nuclear projects due to high costs. The government offers loans and guarantees to boost nuclear power.
By Nora Buli
OSLO, Feb 5 (Reuters) - The Swedish government will have to take a direct stake in new nuclear projects given the size of the financial commitment, the CEO of state-owned utility Vattenfall told Reuters on Thursday.
The Nordic country's right-of-centre government wants to revive its nuclear power sector and is offering a combination of cheap loans and price guarantees to companies willing to invest.
Vattenfall's Videberg Kraft subsidiary plans to build several small, modular reactors with around 1,500 megawatts of combined capacity at the site of its Ringhals nuclear facility in south-west Sweden and applied for funding in December.
While a consortium of industrial groups will take a 20% stake in the project company, the intention is that the Swedish state will also have a direct ownership, CEO Anna Borg said.
"The size of the project is of course large and that also means that we will not consolidate that on the Vattenfall balance sheet," Borg said.
She was speaking after Vattenfall reported fourth-quarter underlying earnings before interest and tax of 9.5 billion Swedish crowns ($1.1 billion), a tenfold rise from 922 million crowns a year earlier.
The gains were mainly driven by improved price hedging of Vattenfall's continental European generation and better availability and prices for its Swedish nuclear output, Borg told Reuters.
She said nuclear negotiations with the government and suppliers remained ongoing, and declined to give any cost estimates.
Most of Vattenfall's 165-billion-crown investment budget over the next five years is earmarked for wind power and electricity grids.
"When it comes to new nuclear the main investment volumes will come after this five-year period," Borg said.
($1 = 9.0101 Swedish crowns)
(Reporting by Nora Buli. Editing by Mark Potter)
Nuclear power is the use of nuclear reactions to generate heat, which is then used to produce electricity. It is a low-carbon energy source and plays a significant role in reducing greenhouse gas emissions.
Investment is the act of allocating resources, usually money, in order to generate income or profit. It can involve purchasing assets like stocks, bonds, or real estate.
Renewable energy is energy derived from natural sources that are replenished at a faster rate than they are consumed, such as solar, wind, and hydroelectric power.
A financial strategy is a plan that outlines how an organization will manage its financial resources to achieve its goals, including budgeting, investment, and funding decisions.
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