The International Energy Agency (IEA) has released a report titled “The Path to a New Era for Nuclear Energy,” which underscores the renewed interest and potential for growth in nuclear power. According to the analysis, nuclear energy is making a strong comeback globally, driven by energy security and climate concerns.
Nuclear energy is experiencing a resurgence with new projects, policies, and increased investments. Over 40 countries have plans to expand nuclear’s role in their energy systems, and more than 70 gigawatts of new nuclear capacity are under construction globally, which is one of the highest levels in the last 30 years. Nuclear power is expected to reach a record level of electricity generation in 2025.
The report highlights the role of small modular reactors (SMRs) as a pivotal technology in enabling this new era for nuclear energy. SMRs offer potential cost reductions and quicker construction times compared to traditional large-scale reactors.
Despite the momentum, there are significant challenges including high costs, both actual and perceived, political opposition, and construction risks. The report emphasizes the need for overcoming these hurdles through innovation, supportive government policies, and adequate financing solutions.
For a rapid growth scenario, annual investment in nuclear needs to double to about USD 120 billion by 2030. The report discusses the necessity of both public and private financing to scale up nuclear projects, stressing the importance of de-risking mechanisms and policy support to attract investment.
Governments are seen as crucial in providing the strategic vision, policies, and financial support needed to advance the nuclear sector. This includes ensuring robust and diverse supply chains, a skilled workforce, and effective safety regulations.
The IEA’s report suggests that with the right support and strategic approaches, nuclear energy could significantly contribute to meeting rising electricity demands while addressing climate change and enhancing energy security.
Renewed momentum behind nuclear energy has the potential to open a new era for the secure and clean power source as demand for electricity grows strongly around the world, according to a new IEA report. “It’s clear today that the strong comeback for nuclear energy that the IEA predicted several years ago is well underway, with nuclear set to generate a record level of electricity in 2025,” said IEA Executive Director Fatih Birol. “In addition to this, more than 70 gigawatts of new nuclear capacity is under construction globally, one of the highest levels in the last 30 years, and more than 40 countries around the world have plans to expand nuclear’s role in their energy systems. SMRs in particular offer exciting growth potential. However, governments and industry must still overcome some significant hurdles on the path to a new era for nuclear energy, starting with delivering new projects on time and on budget – but also in terms of financing and supply chains.”
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