Sweden announced Thursday that it had selected small modular nuclear reactors for its first nuclear expansion in 50 years. According to BSS News, Prime Minister Ulf Kristersson told a press conference that "for the first time in 50 years, new nuclear power will be built in Sweden." State utility Vattenfall confirmed it would pursue negotiations with British group Rolls-Royce and American group GE Vernova for the project.

Vattenfall formally decided on July 18, 2025, to proceed with these two companies after evaluating 75 potential suppliers. The Swedish government is targeting new nuclear power with output corresponding to at least two large-scale reactors by 2035, with further expansion through 2045. The project will take place at the Ringhals nuclear site on the Värö Peninsula in southwest Sweden.

Why This Nuclear Decision Matters

Sweden's choice represents a major shift in the global nuclear landscape. The project addresses rising electricity demand driven by industrial electrification and data center growth. Vattenfall plans either five GE Vernova BWRX-300 reactors or three Rolls-Royce SMR units, providing approximately 1,500 MW total capacity.

Sweden currently operates six reactors accounting for 30% of national electricity production. The government aims to double electricity output by 2045 while maintaining carbon neutrality by that date. Nuclear power provided about 30% of Sweden's electricity in 2024, complementing the country's hydroelectric resources. Parliament approved over SEK1 billion in 2025 funding for fossil-free electricity expansion, including nuclear pilot projects.

Industry Implications For European Energy Markets

This development positions Sweden at the forefront of Europe's nuclear renaissance. The European Commission counts over 80 SMR designs currently under development globally, with Europe advancing its own Industrial Alliance on SMRs launched in February 2024. The Alliance targets deployment of first SMR projects in Europe by the early 2030s.

Sweden's SMR selection reflects broader European recognition of nuclear power's role in decarbonization. The European SMR market was valued at $1.79 billion in 2023 and is expected to reach $1.92 billion by 2033. Countries including France, the UK, and Poland are leading SMR deployment efforts. SMRs offer advantages over conventional reactors including shorter construction schedules, enhanced safety features, and lower initial investment costs.

The Industrikraft consortium, comprising 17 leading Swedish industrial companies including Alfa Laval, Volvo, and SSAB, supports the project. This industrial backing demonstrates how energy-intensive manufacturers view nuclear power as essential for maintaining competitiveness while meeting climate goals.

Further Reading

For deeper insights into global adoption trends, our Alternative Financial Systems Index tracks regulatory frameworks and adoption metrics across 50 countries. The index provides comprehensive analysis of how nations are structuring energy transition financing mechanisms.