The Role of Nuclear Power in an International Energy System

The global energy landscape has in recent years been shaped by unexpected events and geopolitical shifts. At the same time, Sweden must achieve its climate and sustainability goals on schedule. The purpose of this project is to examine the potential role of nuclear power in Sweden’s energy transition: how can an expansion of nuclear power contribute to a sustainable and robust energy system, and which economic and institutional factors affect the incentives to invest in new nuclear generation capacity?

In one subproject, the role of nuclear power in an international electricity market is analyzed. Specifically, the study investigates how changes in Swedish nuclear power production influence electricity generation, consumption, and prices in Finland, Norway, Denmark, Germany, and the Baltic states. Based on these results, the analysis also explores the incentives to subsidize Swedish nuclear power with public funds, since a non-negligible share of the positive effects of an expansion is likely to occur in other countries.