Sweden and Nuclear Power

Marcus Palsson
December 6, 2020

Submitted as coursework for PH240, Stanford University, Fall 2020

Introduction

Fig. 1: Electricity production in Sweden from 1980-2015, by source. [11] (Source: Wikimedia Commons)

Nuclear energy in Sweden has its root in a research program started immediately after the conclusion of the Second World War, initially with both commercial and military aims. The first commercially operating reactor, in Oskarshamn, was commissioned in 1965 and went into operation 7 years later, in 1972. [1] Right from the start, nuclear energy proved to be a divisive political issue in the country. Four years later, in 1976, Center Party leader and Prime Minister Thorbjörn Fälldin, promised that no more reactors will be built and that the existing ones will be decommissioned. [1] In 1980, only 8 years after the country's first reactor had begun operating, a national referendum was held on the future of nuclear power. [2] While referendums are not technically binding in Sweden (for example, Swedes voted overwhelmingly against introducing right-hand traffic, but lawmakers made the decision to do so anyway), they are rare and regarded as important. Three options were given, all of which involved a full decommissioning in some form, differing mostly on the proposed timeframe. [1] Following the referendum, parliament decided that all nuclear power was to be phased out by the year 2010.

Electricity and Politics in Sweden

Sweden's location in the north of Europe means that summers are mild and winters cold, particularly in the northern inland parts of the country. This requires large amounts of energy for house heating purposes. Sweden produces more electricity by nuclear power on a per-capita basis than any other country in the world. [2] As seen in Fig. 1, nuclear is vying for the status as the country's largest source of electricity with hydro - with each source accounting for around 60-70 TWh of electricity generated annually, corresponding to between 30 and 40% of the total electricity generation. [3]

Sweden is now a net electricity exporter, with one of the highest electricity exports per capita in the world. But it is clear from the above figures that it would be no small feat for the country to completely get rid of nuclear power. [4] Indeed, as the share of electricity coming from nuclear power did not show signs of decreasing as the phase-out year of 2010 approached, it was perhaps not surprising when the Swedish parliament announced in 2009, with scarcely a year left to the deadline, that it would lift the moratorium on construction of new nuclear reactors, effectively ending the phase-out policy it had enacted in 1980. [5] As the country is trying to become carbon-neutral and run entirely on renewable energy by 2040, it became increasingly clear that it would not be possible to do so while also phasing out nuclear as early as 2010. [6]

Despite ending the phase-out policy, there were still obstacles on nuclear power production in Sweden. Importantly, there remained a tax in place on nuclear power producing capacity, which meant that nuclear reactors were operating at a net financial loss. The tax brought in around SEK 4 billion (US $488 million) in annual revenue. In 2016, following statements by the partly state-owned electricity producer Vattenfall that they would have to shutter their remaining reactors if the tax were not abolished, the Swedish government opted to lift said taxes on nuclear power capacity, shifting some of them onto households instead. [6] In addition, the government cleared the way for constructing up to 10 new reactors in the coming years, completing a near full reversal of the original 1980 policy. [6] The goals of carbon-neutrality and exclusively renewable energy by 2040 were mentioned in the announcement from the legislature, and it was emphasized that this does not mean that nuclear power will be phased out after 2040, either.

Future of Swedish Nuclear Power

Even as public sentiment, and de facto policy, has warmed to nuclear power, its future in Sweden is not set in stone. As part of the 2016 legislation, it was agreed that the number of reactors in Sweden was to be capped at 10. [7] However, recently three of the seven parties in the Swedish parliament have tried to open the question again, wanting to expand Sweden's nuclear capacity even more. [8] Researchers are also divided as to what path Sweden should take. A 2020 study concluded that there "is little economic rationale for Sweden to reinvest in nuclear power" and that "abundant hydropower allows for a low-cost renewable power system without nuclear". [9] On the other hand, a 2015 study (prior to the lifting of the nuclear tax) estimated that the production potential for remaining reactors in Sweden is as much as 2100 TWh, and that making use of this (as opposed to getting the same energy from other sources) would prevent 1.9-2.1 gigatonnes of CO2 emissions, as well as 50,000-60,000 energy related deaths. [10] If a phase-out policy was agreed on in 1980 and overturned 30 years later, a lot can happen in the 20 years between now and 2040, the year by which Sweden aims to be fully carbon-neutral.

© Marcus Palsson. The author warrants that the work is the author's own and that Stanford University provided no input other than typesetting and referencing guidelines. The author grants permission to copy, distribute and display this work in unaltered form, with attribution to the author, for noncommercial purposes only. All other rights, including commercial rights, are reserved to the author.

References

[1] "Kärnkraftens Historia i Sverige," Svenska Dagbladet, 28 Apr 02.

[2] T. Kåberger, "History of Nuclear Power in Sweden," Estudos Avançados 21, 225 (2007).

[3] "Sweden to Cut Taxes on Nuclear Power Generation," Reuters, 10 Jun 16.

[4] L. Söder, "På Väg mot en Elförsörjning Baserad på Enbart Förnybar el i Sverige," Swedish Royal Institute of Technology, 22 Jun 14.

[5] T. Macalister, "Sweden Lifts Ban on Nuclear Power," The Guardian, 5 Feb 09.

[6] R. Milne, "Boost to Nuclear Energy as Sweden Agrees to Build More Reactors," Financial Times, 10 Jun 16.

[7] "M och L Will Lagstifta om Framtida Kärnkraft," Sveriges Television Nyheter, 26 Jul 20.

[8] O. Svensson, "Tar Strid För Mer Kärnkraft - Kräver att S Väljer Väg," Aftonbladet, 29 Oct 20.

[9] X. Kan, F. Hedenus, L. Reichenberg, "The Cost of a Future Low-Carbon Electricity System Without Nuclear Power - the Case of Sweden," Energy 195, 117015 (2020).

[10] S. A. Qvist and B. W. Brook, "Environmental and Health Impacts of a Policy to Phase Out Nuclear Power in Sweden," Energy Policy 84, 1 (2015).

[11] "Energiläget 2020," Statens Energimyndigheten, Maj 2020.