Nuclear energy is experiencing a significant revival, with over 40 countries advancing plans to expand its use amid rising electricity demands. The IEA predicts record nuclear power generation by 2025, driven by sectors like electric vehicles and AI. Challenges include reliance on technology from China and Russia, alongside financial hurdles. Meanwhile, Germany has recently exited nuclear energy, prompting calls, including from Elon Musk, for a reassessment of its nuclear policies.
The Resurgence of Nuclear Energy
Nuclear energy is making a remarkable return to the global stage. Recent findings highlight that interest in nuclear power has surged to levels not seen since the oil crisis of the 1970s.
A study reveals that over 40 nations are actively pursuing the expansion of nuclear energy to satisfy the increasing demand for electricity. This trend is further fueled by the electrification of diverse sectors. The Biden administration has set its sights on boosting nuclear energy as a pivotal component in achieving climate objectives.
Future Outlook for Nuclear Power
According to IEA Executive Director Fatih Birol, nuclear power generation is anticipated to hit record levels by 2025. With over 70 gigawatts of new nuclear capacity currently under construction globally, the momentum for nuclear energy is undeniable. More than 40 countries are formulating plans to enhance the role of nuclear power within their energy frameworks.
The rising demand for electricity stems not only from traditional industries but also from emerging sectors such as electric vehicles, data centers, and artificial intelligence, all of which require substantial energy resources. Presently, the nearly 420 operational nuclear reactors around the globe contribute close to ten percent of the total electricity supply, making nuclear power the second-largest source of low-emission energy following hydropower.
Despite some countries opting to shut down or phase out their nuclear facilities, the global generation of electricity from nuclear sources continues to rise. In particular, regions like Asia and Europe are prioritizing the expansion of nuclear power. Japan is set to resume production, France has completed essential maintenance on its reactors, and new facilities are coming online in China, India, South Korea, and parts of Europe.
The growth of nuclear energy, however, is not without its challenges and risks. The IEA warns that the global expansion of nuclear infrastructure heavily depends on technology from China and Russia, potentially creating long-term political and economic vulnerabilities.
Furthermore, established nuclear nations like the USA and France face hurdles such as delays and escalating costs in upgrading their existing plants. Kazakhstan, which has predominantly relied on coal for power, is increasingly unable to meet rising energy demands.
Financing is another critical factor for the future of nuclear energy. Historically, state funding has driven nuclear development, but the IEA suggests that private investment is essential for significant growth. To meet the goal of rapid expansion, global investments in nuclear power must double to approximately 117 billion euros by 2030.
In mid-April 2023, Germany completed its exit from nuclear energy, shutting down its last three reactors. This decision came after the federal government extended operations due to the energy crisis exacerbated by geopolitical tensions. Initially, the nuclear phase-out was slated for completion by December 31, 2022.
Recently, tech entrepreneur Elon Musk urged Germany to reconsider and expand its nuclear energy capabilities. In a public discussion with AfD leader Alice Weidel on his platform X, Musk stated, “I think it is right to significantly increase the share of nuclear energy in Germany. That would be great.” The Minister of Economics has indicated a willingness to reevaluate the exit from nuclear energy without preconditions, although this stance has drawn criticism.