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Sweden considers compensation law to reduce nuclear risk

The right-wing government of Sweden said Thursday that it was looking at ways to implement a law to compensate nuclear power developers and owners if future administrations decided to shut down reactors.

Investors are wary of the financing and future profitability of the project, as well as the risk of changing political priorities in the 100 years that a project could last.

Ebba busch, deputy prime minister of Germany, told reporters that "a new nuclear energy owner needs predictability".

"Unfortunately, Sweden has a lot of experience with premature reactor closures. Our nuclear fleet is half closed due to direct or indirect decisions made by politicians.

She said that the compensation scheme will provide additional security to investors along with a funding package approved by the parliament in early this year.

In 1980, Swedes voted to phase out the nuclear power. However, it is making a comeback due to concerns over energy security and climate changes.

Analysts warn that the nuclear building program is in danger if there is no cross-party support at parliament.

Sweden will hold national elections in September 2026. According to polls, the left-wing opposition bloc is leading.

Six of the twelve reactors constructed in Sweden during the 1970s and 80s are still in operation. The decision was made for economic reasons, not political ones.

In Sweden, electricity production is almost fossil-free, with nuclear power accounting for 30%, hydropower 40%, and wind energy 20%.

(source: Reuters)