In recent years, many countries have begun investing in nuclear power again after a period of decline. There are several key reasons driving renewed interest in nuclear power investments. Firstly, nuclear power offers a stable source of electricity that can balance intermittent renewable sources like solar and wind. With global climate goals requiring deep decarbonization, nuclear’s role as a zero-emission baseload source has become more valued. Secondly, new nuclear reactor designs such as small modular reactors promise to lower costs and construction times compared to traditional large reactors. This makes nuclear more economically competitive. Thirdly, the recent energy crisis caused by the Russia-Ukraine war has led many countries to reconsider their energy security. Nuclear power reduces dependence on imported fossil fuels. With these benefits in mind, major economies like the US, UK and EU have pledged billions in funding for nuclear power. India, China and Russia are also expanding their nuclear energy programs. However, challenges around cost, public perception and nuclear waste remain. Wise nuclear power investments require careful project planning and public engagement.
Nuclear power provides steady low-carbon electricity
Nuclear power plants provide steady baseload power, operating consistently at high capacity factors unlike intermittent renewables. For example, US nuclear reactors operated at average capacity of over 90% in 2020. Nuclear is also a zero-carbon source, producing electricity through fission without any direct greenhouse gas emissions. According to the Intergovernmental Panel on Climate Change, achieving net zero emissions will be vastly more difficult without nuclear energy. Hence, with many countries targeting carbon neutrality by 2050, nuclear power is regaining support. Governments see it as a way to decarbonize electricity while ensuring grid reliability as renewables expand.
New reactor designs promise better economics
Advanced small modular reactors (SMRs) under development aim to lower nuclear costs through mass manufacturing and shorter construction times. SMRs have capacities up to 300 MWe compared to 1000 MWe for conventional large reactors. Their modular design allows faster construction through factory production of components. SMR developers claim costs could be lowered by 40% compared to large plants. Governments are funding SMR development to revive nuclear manufacturing and supply chains. In 2021, the US awarded $1.4 billion to demonstration SMR projects. The UK pledged £210 million for SMR development. Canada will provide $1 billion to build an SMR. With costs potentially becoming more competitive, SMRs are reviving interest in nuclear power.
Nuclear enhances energy security
The gas supply crisis in Europe due to the Russia-Ukraine war has made many countries reconsider their energy security. Nuclear power generation from domestically produced uranium enhances energy independence and resilience. Nuclear fuel inventories can last multiple years, unlike gas which requires continuous pipeline supply. For example, France met 70% of its electricity from domestic nuclear power during the 1970s oil crisis. The U.S. Nuclear Regulatory Commission has approved licenses to operate reactors up to 80 years. Thus, new nuclear plants can provide long-term stable power supply. Many governments now see investing in nuclear as prudent to hedge against fossil fuel supply disruptions.
Renewed government investments in nuclear power aim to leverage its low-carbon electricity generation and energy security strengths. While challenges remain around project costs and public perception, next-generation reactor technologies could make nuclear power more affordable and flexible. Balancing nuclear generation with renewable energy sources can enable deep decarbonization of the electricity sector.