Sweden Selects Rolls-Royce SMR for Historic Nuclear Restart

Sweden has taken its most significant step in decades toward reviving nuclear power. On June 15, 2026, the project company Videberg Kraft selected Rolls-Royce SMR to build three small modular reactors on the country's west coast, ending a multi-year competition that began with 75 potential technologies and culminated in a head-to-head choice between the British firm and GE Vernova .

It is Sweden's first new nuclear plant order in more than 40 years, part of a sweeping government strategy to build at least 5,000 MW of new capacity and double national electricity production by 2045 .

The project: What is being built, where, and by whom

The effort, called the Videberg Project, will place three Rolls-Royce SMRs on the Värö Peninsula adjacent to the existing Ringhals nuclear power station .

Quick project facts:

• Per-unit capacity: 470 MW
• Total project capacity: Approximately 1,410 MW
• Project location: Värö Peninsula, Sweden's west coast
• Supplier: Rolls-Royce SMR, United Kingdom
• Project company: Videberg Kraft, owned by state utility Vattenfall and industrial consortium Industrikraft. The Swedish state is due to become the majority owner

Videberg Kraft estimates the plant will supply roughly 6% of Sweden's annual electricity consumption over a 60-year operating life . Vattenfall aims to have the first reactor operational by the mid-2030s, with the final technology selection having been narrowed from about 75 potential options over a three-year process .

The selection process and the companies involved

Vattenfall began its search for a nuclear technology partner in 2022. An initial screening of 75 potential designs narrowed to a shortlist of five, including large-scale reactors from Westinghouse and Framatome, before the utility focused on two SMR finalists: Rolls-Royce SMR and GE Vernova's BWRX-300 .

Vattenfall publicly shortlisted the two suppliers in August 2025 and spent roughly ten months on detailed final assessments before selecting Rolls-Royce .

Videberg Kraft sits at the center of the deal. It brings together:

• Vattenfall, Sweden's state-owned utility and the project's original developer.
• Industrikraft, a consortium of major Swedish industrial electricity consumers, whose involvement reflects acute private-sector demand for stable, fossil-free power.
• The Swedish state, which is set to become the majority owner as the project moves forward .

The political underpinning comes from Sweden's centre-right coalition government (Christian Democrats, Liberals, Moderates, and Sweden Democrats), which has championed the nuclear revival since taking office, led by Prime Minister Ulf Kristersson .

Sweden's broader 5,000 MW nuclear expansion

The Videberg Project is just the opening move. Sweden's government has legislated a far more ambitious target: at least 5,000 MW of new nuclear generating capacity, equivalent to four large-scale reactors or a larger fleet of SMRs .

The timeline the government has set:

• 2,500 MW of new nuclear capacity by 2035
• The equivalent of 10 new large reactors (including SMRs) by 2045

Parliament passed the framework legislation in May 2025, and the new law enabling state aid for nuclear investments took effect on August 1, 2025 .

State financial support — up to SEK 440 billion

To overcome the high upfront costs that deter private investment, Sweden has assembled one of the most comprehensive government support packages for nuclear new-build in Europe .

Support mechanism	Details
Government loan guarantees	Up to SEK 400–440 billion ($36–47 billion)
Direct government loan capital	SEK 300 billion
Two-way Contracts for Difference (CfDs)	Price guarantees for up to 40 years after commissioning, with an annual allocation of SEK 1–3 billion
2026 budget framework	Up to SEK 220 billion over 12 years for construction support

The CfD mechanism guarantees nuclear operators a minimum electricity price—set at 80 öre/kWh according to European Parliament documentation—while also requiring them to return revenue above a strike price to the state . The support is capped at approximately 5,000 MW of total installed capacity . The package also includes waste management assistance .

Why Sweden is building nuclear again

Three forces converged to reverse Sweden's decades-long nuclear phase-out.

Doubling electricity demand. Sweden's government and the OECD Nuclear Energy Agency project the country's electricity consumption will roughly double by 2045 . The drivers include industrial electrification—green steel, battery factories, and hydrogen production—plus transport and heating electrification.

Legally binding net-zero targets. Sweden must reach net-zero greenhouse gas emissions by 2045 and generate fossil-free electricity by 2040, goals enshrined in its National Energy and Climate Plan . Renewables alone proved insufficient for reliable baseload power.

Energy security and industrial competitiveness. After years of relying heavily on intermittent wind power, the government and heavy industry concluded that only nuclear could provide predictable, large-scale electricity at competitive prices while meeting climate commitments .

The result is a state-backed bet that SMRs can deliver what large reactors struggled to finance: a repeatable, cost-effective path to mass nuclear deployment .