Vattenfall earns billions but sees risks ahead

State-owned Vattenfall’s cash flow will improve by 4 billion kronor annually, as a result of the political agreement to abolish the output tax on nuclear power and lower the tax on hydropower. Additionally, with the risk of massive write-downs reduced, since the utility does not need to close reactors ahead of time, Vattenfall may be able to turn loss into profit.

Just days after the agreement, Vattenfall decided to invest in independent core cooling in Forsmark’s three reactors and the intention is to make a similar investment in two of the reactors at Ringhals, thereby extending the life of the reactors to the 2040s.

Vattenfall is critical of the decision by politicians to subsidise the expansion of renewable energy. Torbjörn Wahlborg, head of Vattenfall Generation, says there is a clear risk that electricity prices will be low for years to come, which will have an impact on all electricity producers.