HELSINKI, March 24 (Xinhua) -- Finnish energy company Fortum said on Monday that building new nuclear power plants in Finland and Sweden is not economically feasible without government support, citing low electricity prices in the Nordic market.

The state-majority-owned utility published the results of a two-year study examining the prospects for nuclear energy in the region. The study concluded that new nuclear capacity is commercially unviable due to long construction timelines, high upfront costs, and uncertain electricity prices after commissioning.

"Electricity prices would need to double to reach continental European levels for nuclear expansion to be financially viable," Fortum CEO Markus Rauramo said.

While Fortum highlighted nuclear power's role in providing a stable electricity supply valued by industrial customers, it warned that new projects are unlikely to move forward without government risk-sharing mechanisms.

Rauramo pointed to Sweden's recent efforts to support nuclear development. The Swedish government has proposed allocating more than 1 billion crowns (95 million U.S. dollars) in 2025 to accelerate fossil-free electricity production, including support for nuclear pilot projects and faster permitting processes for new reactors.

In Finland, then Environment and Climate Minister Kai Mykkanen said in January that state financing for new nuclear projects was under consideration, though no decisions have been made.

Nuclear power currently accounts for about 30 percent of electricity generation in Sweden, with six reactors in operation, and about 40 percent in Finland, which operates five reactors, according to official data.

Despite the economic hurdles, Fortum said nuclear energy remains vital for ensuring a stable and competitive low-carbon energy system in the Nordic region. The company said it would continue developing nuclear as a long-term option to meet projected growth in customer demand.

Over the next five to 10 years, Fortum expects growing energy needs to be met through a combination of wind and solar power, energy storage, and life extensions of existing reactors. However, it argued that doubling Nordic electricity production by 2050 cannot rely solely on weather-dependent sources, as this would risk volatility in supply and pricing.

The study reviewed both small modular reactors and large-scale nuclear plants, incorporating discussions with technology providers, potential partners, and policymakers. Enditem

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