Vattenfall: Swedish nuclear plans require direct state investments

Vattenfall, the state-owned utility, said that the Swedish government will be forced to invest directly in new nuclear projects due to the large financial commitment.

Right-of-centre Nordic government is looking to revitalize its nuclear energy sector. It offers a combination?of cheap loans and price guarantees for companies that are willing to invest.

Vattenfall’s Videberg Kraft subsidiary is planning to build several small modular reactors, with a combined capacity of around 1,500 Megawatts at the site of its Ringhals Nuclear Facility in south-west Sweden. The company applied for funding back in December.

Anna Borg, CEO of the Swedish project company, said that while a consortium of industrial groups would take a 20 percent stake, it was also intended for the Swedish government to have a direct share.

Borg stated that the size of the project was large, and therefore we would not consolidate it on Vattenfall's balance sheet.

She was speaking after Vattenfall announced fourth-quarter earnings before interest and taxes of 9.5 billion Swedish Crowns ($1.1 billion), an increase of 10 times compared to 922 million Swedish crowns one year earlier.

Borg said that the gains were mostly due to 'improved price-hedging for Vattenfall continental European generation, and better availability and pricing for its Swedish nuclear output.

She declined to provide any cost estimates and said that nuclear negotiations were still ongoing with the government?and suppliers.

Vattenfall has allocated the majority of its 165 billion crown investment budget for the next five years to wind power and electric grids.

Borg stated that the major investment volume in new nuclear will be after five years.

(source: Reuters)