Leading think tank: Wind is best for Sweden to achieve its climate goals.

A leading think-tank said that the cheapest way to help Sweden meet its projected rise in electricity demand and achieve net zero emissions by the year 2045 would be to build more wind farms onshore rather than increasing nuclear power plants.

The Swedish government wants to build 10 new nuclear plants by 2045, as the transport and industrial sectors are moving away from fossil fuels. Demand for electricity will also increase to 300 Terawatt Hours (TWh), up from 135 Terawatt Hours in 2023.

SNS said that new nuclear energy would be most expensive, but more wind and solar energy combined with increased production from existing nuclear reactors and hydropower plants would be able meet the demand for electricity without raising Sweden's already low prices.

In a report about Sweden's energy transformation, SNS stated that "the high costs associated with nuclear power means that these types of plants should be built primarily in countries with substantially higher electricity prices."

SNS stated that new nuclear power would be viable commercially in the future if Europe agreed to common standards which would result in much lower costs for building new reactors.

Eurostat reports that Sweden's electricity, which is 98% fossil free at the moment, costs about half as much as the rest of Europe.

According to the Swedish Energy Agency, hydropower will account for approximately 40% of electricity in 2023. Nuclear power will be 29% and wind 21%, while solar is around 2%.

According to a government panel, the government is developing a plan to give low-interest loans to nuclear developers. The scheme could cost up to 400 billion crowns but would eventually be repaid.

According to the government, new reactors will be needed for "base" power during times of low wind. SNS said, however, that energy flexibility measures such as running industrial processes during off-peak times could solve this problem without the need for nuclear power.

SNS said that the government should improve the electricity grid and regulatory structure to support private investments in new energy production. (Reporting and editing by Frances Kerry.)

(source: Reuters)