Nuclear power is on track to reach record electricity production levels in 2025, driven by strong demand and growing global investment, according to the International Energy Agency (IEA).
The report, The Path to a New Era for Nuclear Energy, highlights the potential for nuclear energy to play a key role in securing clean and reliable power, especially as electricity demand accelerates worldwide.
It also discusses innovations such as small modular reactors (SMRs) and emphasizes the need to address major challenges including financing, project delays, and supply chain concerns.
Despite making up nearly 10% of global electricity today, nuclear power faces significant hurdles, such as financing and project overruns. While more than 70 gigawatts of new nuclear capacity are under construction, the IEA stresses that successful implementation depends on overcoming key issues, including on-time delivery and cost management.
Additionally, most of the new projects are concentrated in China and Russia, highlighting the geopolitical risks related to nuclear fuel production and enrichment, as over 99% of global enrichment capacity is controlled by just four countries.
The report points to SMRs as a promising innovation in nuclear technology, offering faster construction timelines and potential cost reductions. However, achieving widespread adoption of SMRs will require reducing financing costs and ensuring competitive pricing, similar to large-scale renewable projects.
While the global nuclear market holds significant potential, attracting sufficient private investment is essential, and governments must provide stable regulatory frameworks to support growth.
