Finland plans investment subsidies for small nuclear reactors with support possible as early as next year
Finland’s government is preparing new investment subsidies for small modular reactors (SMRs), with the aim of accelerating their construction and potentially rolling out the support scheme in 2025, environment and climate minister Sari Multala (National Coalition Party) has announced, Yle reports.
The new subsidy would be designed specifically for SMR projects, as current technology investment aid cannot be applied to nuclear power. The Ministry of Economic Affairs and Employment will begin drafting the scheme this year, with funding channeled through the existing energy support system, which allocates around €50 million annually.
“Our goal is to trigger multiple investment decisions in the coming years,” Multala said, adding that support levels would be assessed case by case. While the current maximum energy subsidy stands at 40 percent, she noted that SMR funding “must be substantial enough to launch these projects.”
Finland currently has no operational SMRs, but domestic developer Steady Energy estimates its first test plant—a district heating reactor in Helsinki’s Salmisaari—could be completed within two years, with full-scale facilities potentially online by the early 2030s. Around ten major Finnish cities, including Helsinki, Kerava, and Kuopio, are in discussions with the company, while smaller municipalities like Hämeenlinna have also signaled interest, with local councilors proposing an SMR strategy in late March.
The government’s push aligns with its broader pro-nuclear stance, citing clean energy and weather-independent power as key advantages. Multala emphasized that Finland’s expertise in the field could also boost exports: “We have top-tier players and know-how, so I see significant opportunities for Finnish technology and skills on the global market.”
Support tied to project maturity
Eligibility for subsidies will depend on project readiness, Multala clarified, though specific criteria have yet to be defined. She suggested that early support could help reduce long-term reliance on public funding as the technology matures.
Small modular reactors are seen as a potential replacement for aging district heating plants, with cities exploring them alongside other low-carbon alternatives. Hämeenlinna’s city manager, Olli-Poika Parviainen, described the proposal as “an interesting opening” that warrants careful study in the coming months.