Sweden’s plans for a rapid expansion of its nuclear power capacity are likely to cost around 400 billion crowns ($38bn, €34bn) and should be financed by a mix of government loans and price guarantees, a government commission has recommended.

In a study released on 12 August (Swedish only) the commission proposed a programme of four or five new nuclear power plants with a total of 4,000-6,000 MW – or four large-scale reactors – of installed capacity in order to make the programme cost-effective.

According to the commission, Sweden could borrow $28.5bn to help finance a new fleet of nuclear reactors.

The study highlighted several features of the commission’s preferred financing model to provide certainty for investors. Funding instruments include government borrowing to support construction, and 40 years of guaranteed revenues through a so-called contract-for-difference or CfD.