The Nordic nuclear shift
Norway and Sweden are turning to small modular reactors to secure low-carbon power for industry, with opportunities opening fast for suppliers, investors and innovators. By Firdaus Azman, Energy Consultant, EIC Kuala Lumpur

Per-capital energy consumption in the Scandinavian region is among the world’s highest, driven by cold climates and electrification trends. Despite renewables dominating electricity generation – hydropower in Norway, a mix of nuclear and hydropower in Sweden – both countries face escalating energy security challenges as demand surges from rising industrial electrification and emerging sectors such as artificial intelligence.
To future-proof their energy systems, both Norway and Sweden are exploring small modular reactors (SMRs) to provide baseload power for their energy-intensive industries. Although nuclear is well-established in Sweden, SMRs are a novel frontier technology in both countries.
SMRs: The new nuclear frontier
The rise of SMRs features prominently in both nations’ recent power development plans. In Sweden, this shift aligns with the country’s updated “100% fossil-free” goal – an ambitious target that replaced its earlier renewable-only commitment in 2023. Norway, meanwhile, is turning to SMRs to diversify beyond its traditional reliance on hydropower. With electricity demand expected to soar by 65% by 2050, Norway faces a hard truth: its hydropower capacity is nearing its limit.
Sweden, too, is feeling the pressure. Despite its robust mix of large-scale nuclear and hydropower, the country is grappling with surging energy needs from heavy industries including metallurgy, and pulp and paper.
In both countries, SMRs are emerging as a timely solution – particularly as investor enthusiasm for large conventional nuclear projects wanes. The costly delays seen at the UK’s Hinkley Point C and Finland’s Olkiluoto plant have left many wary.

Compact power, big potential
To achieve rapid decarbonisation and maintain reliable low-carbon baseload power, SMRs offer a unique advantage: seamless integration with renewables. Their compact size and enhanced safety features, such as passive cooling, enable flexible siting and reduced operational risks. The scalability and modular nature of SMRs’ construction also mean they require lower upfront costs than conventional nuclear power plants. This makes SMRs an ideal solution for providing consistent baseload power during renewable intermittency, supporting clean energy transition.

Alliances fuel momentum
Robust public-private partnerships are a major driver of SMR proliferation. In Norway, Norsk Kjernekraft has partnered with local municipalities such as Halden and Lund to form joint ventures to pursue similar assessments. Funding can also be obtained from foreign governments, as seen in the Korea Overseas Infrastructure & Urban Development Corporation. This provided funds for the SMR study that is being conducted by DL Energy for its assessment of SMRs at the Mongstad Oil Refinery in Norway.
In Sweden, the Re:Firm South SMR Programme, which aims to deploy carbon-free energy in energy-intensive industries, is working with project developer Karnfull Next to conduct feasibility studies in numerous municipalities. The government also plans to provide long-term state loans of more than US$38m for the construction of four new reactors.

Overcoming roadblocks
While the benefits of SMRs are significant, their successful integration into the energy mix faces challenges. One of these is that Sweden’s stringent regulatory framework demands costly and time-consuming compliance, even for minor design alterations. In Norway, supply chain limitations threaten to derail projects such as the Ringhals SMR project, potentially prompting a pivot to conventional large reactors.
Public perception of nuclear is also important. In Sweden, the proliferation of nuclear remains generally popular, with only 6% of people in favour of abolishing nuclear, according to a 2023 national study. In Norway, where nuclear energy is relatively new, a conclusive survey is not yet available. As such, the government will need to proactively conduct public awareness campaigns to foster informed understanding of the benefits and risks associated with SMRs.

Nordic launchpad for SMRs
Norway and Sweden are emerging as prime export markets for SMRs due to strong government support and openness to international collaborations. Early-stage contracts, such as that awarded to DL Energy, focuses on critical studies involving geological surveys, electricity and transmission markets, regulatory frameworks and technical analyses. However, supply chain gaps highlight the need for specialised expertise and services.
Companies such as Blykalla have already partnered with ABB to integrate automation and digital solutions into SMR projects in Sweden. This dynamic environment presents significant opportunities for businesses to enter the transformative nuclear sector. With global interest in nuclear energy rising, this is the moment for innovators to lead the charge in driving energy transition goals worldwide.
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