Kåberger and other experts were invited to a meeting in the Riksdag's finance committee on Thursday on the theme of financing new nuclear power.
The government has set a goal of having nuclear power in place equivalent to two large-scale reactors by 2035.
Affecting Generations
To make this possible, an investigation proposes a new financing model. The three components of this are government loans, a price guarantee agreement – with a guaranteed price of 80 öre/kWh – and a risk and profit-sharing mechanism.
You can imagine that for a normal Swedish household, this price guarantee agreement would cost around 50-60 kronor per month, says Finance Market Minister Niklas Wykman (M).
At the same time, Tomas Kåberger at Chalmers University of Technology warns that many nuclear power projects around the world have become more expensive than initially stated, and if the state gets involved, taxpayers risk being heavily affected.
This is a proposal with very large economic consequences for many decades. It is a decision that will be made by one generation, and by people who not only risk their own money, but also that of future generations.
He points to two projects in the USA that were abandoned despite already investing around 100 billion kronor in them.
The risk that you ultimately run is that these projects are not completed, says Kåberger about the Swedish nuclear power plans.
Risk until 2040
In Sweden, the cost of nuclear power could amount to 600 billion kronor or more, he says. Kåberger also highlights that the cost of solar and wind power continues to fall.
Another expert on the panel, Mia Bodin at Bodecker Partners, pointed out that the financing model risks the profitability of all existing electricity production and new production until 2035-2045, when nuclear power can be in place.
This risks Swedish industry's green transition and competitiveness, she says.
Even from the opposition's side, the criticism is harsh.
The analysis we saw at the hearing shows that this will become terribly expensive for ordinary consumers and industry, says the Centre Party's spokesperson Martin Ådahl.
Some points from the investigation's proposal for government financing of new nuclear power:
The program covers 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. This 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.
