Switzerland Moves to Lift Ban on New Nuclear Power Plants

(Bloomberg) — The Swiss government has presented draft legislation to end its ban on building new nuclear power plants, reversing a policy adopted in 2018 to phase out the technology.

The plan, a counter-proposal to the popular initiative “Stop the Blackout,” would allow companies to apply for licenses to construct reactors — if approved by parliament and upheld in a potential referendum.

The popular initiative, meanwhile, wants the shift to be constitutionally enshrined, which would be more difficult to achieve than a legislative change.

Lifting the ban would mark a major shift in Switzerland’s energy policy. Proponents argue nuclear will be needed alongside renewables to meet rising electricity demand, cut emissions and stabilize the grid. Critics counter that new reactors carry high costs, waste disposal challenges and potential public pushback. Neighboring Germany exited nuclear power completely in 2023.

“Lifting the ban does not necessarily mean that new nuclear power plants will be built,” a spokesperson for Swiss utility Axpo Holdings AG said. The company, which operates 60% of Switzerland’s nuclear capacity said that although it could work on fresh construction, it currently has no plans to build or invest in a new project.

“A company such as Axpo cannot bear the regulatory and financial risks alone. Some form of risk sharing is needed,” the spokesperson added.

The government is urging voters to reject the “Stop the Blackout” initiative, arguing a legal change is faster and avoids the uncertainty of a constitutional amendment. Lawmakers have until August 2026 to decide on both proposals. Unless the initiative is withdrawn, voters will have the final say in a plebiscite.

–With assistance from Bastian Benrath-Wright.

(Updates with response from Axpo in graf 5 and 6)

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