Nuclear Decision

Prime Minister Fredrik Reinfeldt and the leaders of the three other parties in the coalition described the deal that was included in a sustainable energy and climate policy as "historic."

The government that took office in October 2006 had initially agreed not to discuss building more reactors or decommissioning any of the 10 reactors currently operated during its current four-year term.

But the debate about climate change and need to secure long-term energy production however forced policymakers to take a new look at the issue.

The agreement was seen as a sizeable concession by the Center Party, which in the 1970s was an outspoken opponent of nuclear power. The issue triggered the collapse of one non-socialist coalition government in that decade.

Center Party leader Maud Olofsson, who is also minister for energy and enterprise, told reporters she could "live with the fact that nuclear power would remain part of the energy system."

New deal puts old disputes aside

"The row over energy policy during all these years has been paralyzing for those who want to invest, for employment and for the political debate," Olofsson said.

Olofsson said that while her party remained skeptical about nuclear power, "we need a compromise" and the deal also set up "ambitious climate goals."

The goals included reducing greenhouse-gas emissions by 40 percent as of 2020, deciding that 50 percent of energy production would derive from renewable sources like wind and wave power, and making a committment that 10 percent of the transport sector would rely on renewables.

Sweden aimed to reduce greenhouse gas emissions by 20 million tons compared to the 1990 level. Reinfeldt said fuel taxes would likely increase as a result of hiked carbon-dioxide fees, but no estimates for the cost had been made.

Liberal Party leader Jan Bjorklund, who has pushed for new reactors, hailed the agreement as "good for Sweden, good for jobs" and energy-dependent industry sectors like steel and paper.

Bjorklund said that at most, 10 nuclear reactors would be operated at the same time.

"It would likely take 13, 15 years before a new reactor is built," Bjorklund said citing the time needed to pass legislation and secure permits.

Any new reactors would be built on the three current nuclear plant sites, Bjorklund said, adding that possible new reactors were not to receive state subsidies.

Bjorklund also questioned "if there was free competition" in the current ownership structure of nuclear power reactors where three energy groups owned stakes in plants operated by other groups, referring to state-controlled Vattenfall, Germany's E.O N and Finland's Fortum.

The premier said Olofsson would invite the opposition to talks in an effort to secure bipartisan support for the deal.

The opposition Social Democrats were likely to lean closest to the government's deal, but have under the tenure of new party leader Mona Sahlin coordinated policies more closely with the Green Party and Left Party, which remain oppposed to nuclear power.

A blow to renewable energy?

Tomas Eneroth, energy spokesman for the Social Democrats, appeared cool to the idea, saying "10 new nuclear reactors is not a serious basis for talks. It is a sabotage against the development of renewable energy."

Left Party leader Lars Ohly said his party opposed replacing old reactors with new reactors.

The Confederation of Swedish Enterprise welcomed the deal, saying it offered "conditions for a more rational, climate-effective energy policy" but said bipartisan backing was necessary for the long-term.

Sweden has operated 12 nuclear reactors at most. Two at the Barseback plant in southern Sweden have been decommissioned, the most recent in May 2005.