New government in Sweden impacts the energy sector
As of the 18th of October 2022, Sweden has a new government. The political parties who constitute the new Swedish government have, together with the Sweden Democrats party, come to an agreement for collaboration that largely impacts the area of climate and energy. The former political energy goal has been altered from the aim of 100 percent renewable energy to the aim of 100 percent fossil-free energy. We have summarised the main changes to come for the Swedish energy sector as a result of the agreement.
Nuclear power
The agreement contains commitments to strengthen the conditions for investments in new nuclear power and to achieve an expansion of the nuclear power activity in Sweden. To enable an increased nuclear power activity in Sweden the agreement states the following planned measures:
- The introduction of specific state credit guarantees.
- A reform of the Swedish environmental code to remove the present prohibitions of:
- allowing new nuclear reactors located in different places than the already existing ones,
- having more than ten nuclear reactors active simultaneously, and
- restarting closed nuclear reactors.
- The development of regulatory frameworks which will enable the building, and use, of small modular reactors.
- A reform of the Swedish environmental code to ensure a shorter environmental authorization process and a certain fast track-procedure of applications concerning new nuclear power.
- A reduction of the current application fee for new nuclear reactors.
Renewable energy
The agreement contains planned measures relating to renewable energy sources, such as:
- A pause of the current review of environmental permits of hydroelectric power and the development of a new framework for the review of environmental permits.
- The former plan in Sweden to let the power distribution grid actors subsidise the ocean-based wind power connections to the electricity grid is discarded. Instead, the actor who connects to the electricity grid, for the purpose of ocean-based wind power, shall be the one responsible for all costs relating to the connection.
Bird&Bird monitors the developments and its legal implications for our clients.
