The Swedish Parliament has agreed to abolish a tax on nuclear power.
It will be completely phased out in two years starting in 2017.
The current tax stands at €0.75/kWh (0.59p/kWh).
The government also plans to allow the construction of 10 new reactors to replace old plants built in the 1970s/80s.
Nuclear power provides around 40% of the country’s electricity.
The agreement was reached between the Social Democrats, the Conservatives, the Green Party, the Centre Party and the Christian Democrats.
In a statement they said: “The parties agree that Sweden should have a robust electrical system with a high delivery reliability, low environmental impact and electricity at competitive prices. It creates long term perspective and clarity for market participants and brings new jobs and investment in Sweden. It is the Swedish model: to take joint responsibility for Sweden is competitive now and in the future.”
Sweden has also set a target to source 100% of its electricity from green energy by 2040.