Sweden will offer public loans to fund new nuclear power projects as the nation seeks ways to meet an expected surge in demand for electricity.
The total debt package offered will cover financing for as many as four new large-scale reactors, Financial Markets Minister Niklas Wykman said at a press conference in Stockholm. The loans will be financed by the government since it can secure financing at lower rates than individual companies, he added.
Sweden’s current center-right government made new nuclear power one of its key election pledges, but the plans have been widely criticized for being too expensive and slow to come online. The move reverses a decades-long policy to shut down the country’s ageing reactors and replacing them with renewable energy.
“Today Sweden takes a step to continue to be a leading nuclear nation,” Energy Minister Ebba Busch said at the same press conference.
Wykman said applications for the financing are expected to open on Aug. 1, but that hinges on the passing of a bill that will be presented to parliament on Thursday. Debt repayment will start when the power station is operational, according to the government.
Source: Bloomberg
