Many have opinions on the proposal for new financing of nuclear power that the government has sent out for review. Among the responses, there are both those who are positive and those who are strongly critical – and in both camps, a more technology-neutral model is requested, where not only nuclear power is subsidized.
Many, even those who are positive, warn that there is an obvious risk that the state's investment in nuclear power will push aside investments in other power sources, including wind power. These investments are needed in the short term, since it takes time to build new nuclear power.
"At the same time as we support the proposed model, it is important that other fossil-free technologies also get the opportunity to contribute on equal terms in the future," writes Svenskt Näringsliv's CEO Jan-Olof Jacke in a comment.
Says No
The proposed model consists of three parts – favorable state loans, a guaranteed price of 80 öre per kWh for 40 years, and a risk- and profit-sharing mechanism. Additionally, all electricity customers will pay a tax as part of the financing.
A heavy contribution comes from the Energy Market Inspectorate (Ei), which says no to the entire proposal. It is too poorly investigated and therefore cannot be assessed what consequences it will have for the electricity market or for society.
Even the National Institute of Economic Research (KI) believes that more thorough analysis is needed, since it is "not clear that a large-scale investment in new nuclear power in the short term can be motivated from a societal economic perspective".
In defense of the investigator, it must be said that he did not have the task of analyzing whether an investment in nuclear power is motivated. The directive from the government was simply to develop a model for how new nuclear power should be financed.
Jubilation Calculation
In a debate article, the market-liberal think tank Timbro, among others, believes that the investigation's calculations risk becoming a jubilation calculation.
But some review instances are positive. These include the nuclear power operator Fortum, Svenskt Näringsliv, and the industry organization Energiföretagen. They believe that the state needs to share the risk when the electricity system needs to be expanded so strongly.
Some of the investigation's proposals:
The program includes four to five large-scale reactors, which together can produce 4,000–6,000 megawatts.
Building these is estimated to cost 400 billion kronor at today's prices, and of this, the state will provide 300 billion in loan capital and the owners will contribute 100 billion in equity capital.
An additional security for nuclear power owners is a price guarantee agreement. For 40 years, nuclear power companies will be guaranteed at least 80 öre/kWh in payment from the state.
A third component is a risk- and profit-sharing mechanism. It will be activated as needed, based on the outcome of a market valuation of the project company two years after the routine start of operations.
The government's goal is for new nuclear power equivalent to at least two large-scale reactors to be in place no later than 2035.
