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Released June 20, 2016 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Sweden's government has announced plans to revive its ageing nuclear power fleet by allowing the construction of up to 10 new reactors as part of a new energy plan.
The country intends to produce all of its electricity from renewable sources by 2040 but in the meantime the cross-party government has opened the way for developers to replace older nuclear plants. Nuclear power accounts for 40% of the country's total electricity demand, which is supplied by nine operational reactors at three plants: Ringhals, Forsmark and Oskarshamn.
A key element of the proposed revival is the decision to axe a controversial tax that has been levied on nuclear power operators in recent years. The tax has been blamed by some operators for their decision to shut older reactors early because they are costing too much to run. Earlier this year Industrial Info reported that OKG AB (Oskarshamn, Sweden) confirmed plans to permanently shut the Unit 1 reactor at the Oskarshamn nuclear power plant (NPP) in 2017. It cited weak wholesale electricity prices, Sweden's high tax on nuclear power and the cost of future investments in the plants for its decision. For additional information, see February 26, 2016, article - Sweden Shutting Oskarshamn Unit 1 Nuclear Reactor in 2017.
The government has also repealed its Nuclear Power Phase-Out Act and said it "will not be reintroduced."
"The target by 2040 is to have 100% renewable electricity production," it stated. "This is a target, not a deadline for banning nuclear power, nor does it mean closing nuclear power plants through political decisions. Swedish nuclear power needs major investment if it is to meet upcoming safety requirements. The Swedish Radiation Safety Authority has decided that these requirements must be met by 2020, otherwise reactors may no longer be operated. Decisions have already been taken to decommission four reactors by 2020. Nuclear power must cover its own costs, and the principle that nuclear power should not be subsidised remains in place. The tax on thermal output [from nuclear plants] will be phased out gradually over a two-year period beginning in 2017."
Vattenfall AB (Stockholm, Sweden) welcomed the new energy agreement.
"We welcome that a broad parliamentary agreement on the future direction of Swedish energy policy has been reached, giving us the predictability we need," said Magnus Hall, chief executive officer of Vattenfall. "The abolishment of the nuclear capacity tax is an important precondition for us to be able to consider the investments needed to secure the long-term operation of our nuclear reactors from the 1980s. Even with the abolishment of the capacity tax, profitability will be a challenge. Low electricity prices put all energy producers under pressure and we will continue to focus on reducing production costs."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
The country intends to produce all of its electricity from renewable sources by 2040 but in the meantime the cross-party government has opened the way for developers to replace older nuclear plants. Nuclear power accounts for 40% of the country's total electricity demand, which is supplied by nine operational reactors at three plants: Ringhals, Forsmark and Oskarshamn.
A key element of the proposed revival is the decision to axe a controversial tax that has been levied on nuclear power operators in recent years. The tax has been blamed by some operators for their decision to shut older reactors early because they are costing too much to run. Earlier this year Industrial Info reported that OKG AB (Oskarshamn, Sweden) confirmed plans to permanently shut the Unit 1 reactor at the Oskarshamn nuclear power plant (NPP) in 2017. It cited weak wholesale electricity prices, Sweden's high tax on nuclear power and the cost of future investments in the plants for its decision. For additional information, see February 26, 2016, article - Sweden Shutting Oskarshamn Unit 1 Nuclear Reactor in 2017.
The government has also repealed its Nuclear Power Phase-Out Act and said it "will not be reintroduced."
"The target by 2040 is to have 100% renewable electricity production," it stated. "This is a target, not a deadline for banning nuclear power, nor does it mean closing nuclear power plants through political decisions. Swedish nuclear power needs major investment if it is to meet upcoming safety requirements. The Swedish Radiation Safety Authority has decided that these requirements must be met by 2020, otherwise reactors may no longer be operated. Decisions have already been taken to decommission four reactors by 2020. Nuclear power must cover its own costs, and the principle that nuclear power should not be subsidised remains in place. The tax on thermal output [from nuclear plants] will be phased out gradually over a two-year period beginning in 2017."
Vattenfall AB (Stockholm, Sweden) welcomed the new energy agreement.
"We welcome that a broad parliamentary agreement on the future direction of Swedish energy policy has been reached, giving us the predictability we need," said Magnus Hall, chief executive officer of Vattenfall. "The abolishment of the nuclear capacity tax is an important precondition for us to be able to consider the investments needed to secure the long-term operation of our nuclear reactors from the 1980s. Even with the abolishment of the capacity tax, profitability will be a challenge. Low electricity prices put all energy producers under pressure and we will continue to focus on reducing production costs."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
