Vattenfall is realigning its nuclear strategy. The focus is on extending the operating lives of existing nuclear power plants in Sweden. At the same time, the company is examining the possibility of entering the field of small-module reactor (SMR) technology with new mini-reactors. CEO Anna Borg describes this as a path to predictable generation and stable prices. She also says: “New nuclear energy is on the rise in many countries.” (handelsblatt: 15-02.26)
Extending the operating life of existing nuclear power plants is the core of the strategy
Vattenfall plans to modernize its existing nuclear power plants in Sweden so they can supply electricity for approximately 20 years longer. This requires technical updates, new permits, and clear investment plans. Extending the operating life of these plants doesn’t shift the electricity supply into an uncertain future, but rather into the near future. Borg links this to the goal of providing reliable power and mitigating price fluctuations.
From the company’s perspective, modernization acts as insurance against volatile energy feed-in. Nuclear power provides a constant energy supply over long periods, while wind and solar power fluctuate considerably. However, with each additional year of operation, the requirements for safety, maintenance, and materials testing increase. Vattenfall must address these issues thoroughly to ensure that the extension of operating licenses remains politically and technically viable.
Parallel evaluation of new reactors based on SMRs
In addition to extending operating licenses, Vattenfall is examining the possibility of adopting a new technology class. Borg mentions three to five smaller reactors on the Värö peninsula south of Gothenburg. These are “Small Modular Reactors” (SMRs), modular units with lower power output per module. This puts Vattenfall not only the continued operation of existing reactors but also a potential path to new construction.
SMRs are intended to make construction more predictable because manufacturers can prefabricate components to a greater extent. Several modules can be added gradually at a single site, allowing the total capacity to grow with demand. Furthermore, Borg links this to a cost expectation, stating: “We assume that the construction of modular reactors will lead to cost savings over time.” However, this logic presupposes that mass production actually begins and that projects don’t remain isolated cases.
Price Stability and System Logic as a Line of Argument
Borg presents nuclear energy as the antithesis to weather-dependent sources. She says: “Nuclear energy provides baseload power, which contributes to the stability of electricity prices in Sweden.” While wind and solar generate surpluses on good days, power systems need reliable capacity during periods of low demand. This is precisely where Vattenfall aims to achieve immediate results with extended operating times and supplement them with SMRs in the future.
For countries with strong wind and solar energy development, the problem becomes particularly apparent in extreme situations. High wind and sunshine generate surpluses that grids and storage facilities often cannot absorb. During dark and windless periods, there are then insufficient quantities that must be supplied by imports or reserve capacities. Thus, predictable baseload power as a system component is regaining importance, even if the debate remains politically charged.
Two tracks, one goal: Securing existing assets and opening up options
Extending the operating life of existing plants provides Vattenfall with short-term stability and prevents a supply gap. At the same time, the SMR approach creates an option for new capacity if policy, suppliers, and financing align. Furthermore, the company can gain experience through parallel testing without immediately committing to a single major project. Vattenfall is thus combining asset maintenance with technological advancement, and this dual strategy is precisely what characterizes Borg’s approach.