POLICY & FINANCE | RENEWED NUCLEAR MOMENTUM
Above: The IEA believes the share of large-scale nuclear construction starts using designs
from advanced economies rises from less than 10% in recent years to 40% by 2030 and over 50% thereafter, spurred by new projects in Europe, the United States, Japan and South Korea
Reducing the risk of cost overruns and delays is a
prerequisite for expanding finance, both public and private, and protecting the interests of consumers. “This requires a multifaceted approach. Adopting well-established reactor designs and then building them in series can greatly help to build up capacity, supply chains, and a strong and skilled workforce. Standardisation allows for a streamlined construction process, reducing the time and cost associated with building each reactor, and lowering costs over time through learning.” According to IEA, SMRs can dramatically cut the overall
investment costs of individual projects to levels similar to those of large renewable energy projects such as offshore wind and large hydro. “This makes SMRs less risky for commercial lenders, once first-of-a-kind projects are established and technologies are proven. The more modular design of SMRs significantly cuts construction times, with projects expected to reach cash flow break-even up to 10 years earlier than for large reactors. The strong credit rating of the technology players behind data centres
can also facilitate financing for SMR projects targeting this sector.” The report concludes that governments have a unique
capacity to provide the strategic vision, and the policies, incentives and public finance that can move the nuclear sector forward. Not all countries see a role for nuclear technologies, and nuclear power is only one of multiple fuels and technologies that are required globally for a safer and more sustainable energy future. But nuclear can provide services and scale that are difficult to replicate with other low-emissions technologies. “Taking advantage of this opportunity requires a broad
approach from governments, encompassing robust and diverse supply chains, a skilled workforce, support for innovation, de-risking mechanisms for investment as well as direct financial support, and effective and transparent nuclear safety regulations, alongside provisions for decommissioning and waste management. There are multiple signs pointing towards a new era for nuclear; the task now is to build it.” ■
STEPS: US$ 1.7 trn 10%
APS: US$ 2.5 trn 7%
NZE Scenario: US$ 2.9 trn 6%
17%
27%
33%
73%
66%
61%
New build - large reactor
New build - SMR
Lifetime extension
Notes: Investment is in 2023 dollars. STEPS = Stated Policies Scenario; APS = Announced Pledges Scenario; NZE = Net Zero Emissions by 2050; SMR = small modular reactor. Source: IEA analysis based on IEA (2024), World Energy Outlook 2024.
Above: Cumulative investment in nuclear energy by scenario and type, 2024-2050 32 | February 2025 |
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