Is Nuclear Powering the Future or Fading into Obsolescence?

From Amazon addressing energy demands with nuclear energy projects to Google boosting data centre power with nuclear sources, nuclear power is reemerging as a reliable clean energy source as the world grapples with the urgent need to reduce carbon emissions and ensure energy security.

But nuclear does not come without controversy and challenges with its sustainability credentials under scrutiny, in part due to concerns around nuclear waste and financial hurdles.

Yet its ability to provide reliable, low-emission baseload power means nuclear energy offers a compelling solution to some of the most pressing challenges facing the global energy sector. 

The renewed interest in nuclear power is driven by several factors. As Dr Valentina Dedi, Lead Economic Advisor at engineering, procurement, construction and services company KBR, explains: “Concerns over safety and long-term waste disposal have negatively affected perceptions of nuclear energy, but with the emergence of carbon emissions reduction as a pre-eminent issue, nuclear has become more of an attractive option. 

“In a historic milestone, COP28 concluded with a strong consensus on the role nuclear energy can play in helping nations reach their net zero targets. Geopolitical events leading to price volatility in energy markets — especially following Russia’s invasion of Ukraine and the recent developments in the Middle East — are causing governments to rethink strategies as they look to ensure energy security while decarbonising their economies.”

As well as this, the International Energy Agency (IEA) has repeatedly emphasised the prominent role of nuclear energy in achieving net zero globally. The body’s report, Nuclear Power and Secure Energy Transitions: From Today’s Challenges to Tomorrow’s Clean Energy Systems, looks at how nuclear energy could help address two major crises — energy and climate — facing the world today.

“Historically, nations in Europe, North America and Asia have successfully leveraged nuclear power to strengthen their energy security,” Valentina continues. 

“While nuclear energy comes with certain benefits, its deployment has remained concentrated with its potential varying by country, depending on factors such as existing energy mix, financial capabilities and public acceptance.” 

In the UK, for example, 15% of the country’s electricity is generated from about 6.5GW of nuclear capacity, according to the World Nuclear Association. Despite this heavy weighting, the last nuclear reactor was commissioned almost three decades ago.

The government is, however, proposing the biggest expansion of nuclear power for 70 years to “create jobs, reduce bills and strengthen Britain’s energy security”. Its roadmap sets out how the UK will increase nuclear generation to 24GW by 2050.

“Since the last nuclear reactor was commissioned, we’ve seen nine Prime Ministers in the UK and stop-start policy commitment. That’s been a problem for the industry which needs confidence to invest,” says Alan Sinclair, Director and Head of UK Natural Resources at multinational professional services company Turner & Townsend.

Now, with a new Labour government in situ, Alan hopes for talk to turn into action. 

He adds: “The key issues on the table are progress on the small modular reactor (SMR) agenda being led by Great British Nuclear and how this is delivered alongside the UK’s nuclear megaprojects, as well as decisions over decommissioning and waste management. The economic backdrop is still uncertain and this adds to a risk of reluctance to make financial decisions. 

“While we do need clarity from government, we also need to build confidence within the industry over our ability to get schemes delivered. 

“That relies on tight project controls, working collaboratively with the supply chain and deploying digital tools in a way that wasn’t possible 30 years ago.” 

Building capacity to meet nuclear ambition

Building industry capacity is critical to achieving the UK’s nuclear energy ambitions, as well as that of other countries worldwide. 

Alan says there are specific steps he believes are necessary to attract and develop the skilled workforce and supply chain needed for the construction of new nuclear reactors to ensure ample nuclear infrastructure is available to meet undeniably growing demand.

“Making the case for nuclear power in the first place is an important starting point and then we need to show how careers spring from that,” Alan advises. “We already have an extensive pool of expertise to draw on in the UK, thanks particularly to our work in defence, research and decommissioning.

“The newly established Nuclear Skills Taskforce looks at these industries together, so we’re not just thinking about how we build nuclear, but how we sustain the sector long term. 

“More widely we need to lower barriers to entry into nuclear careers — helping those already in the industry, as well as students and apprentices, to access professional training. Importantly, this applies to construction and the supply chain, not just to technological roles.”  

This sentiment is echoed by Valentina. She is quick to assert that nuclear projects are highly complex, capital-intensive endeavours with long development times — averaging around seven years but often extending much longer. This means that there’s a ticking clock when it comes to building infrastructure in line with and keeping up with growing demand.

For example, a single nuclear reactor can cost between US$4bn and US$10bn, which cannot be raised without substantial financial commitment and often government support.

And Hinkley Point C — the UK’s first new nuclear power plant since 1995 — has been under construction since 2016. Originally scheduled to become operational in 2025, the completion date has now been pushed back again to the end of this decade, with costs significantly exceeding original estimates.

This is evident in a country with a history of nuclear power — with the story exacerbated in other geographies worldwide.

Valentina says: “Both timelines and costs become even more difficult to predict accurately for countries building their first nuclear power plant.”

This is significantly longer compared to the scaling time of renewable projects like wind and solar farms.

“Wind — mainly referring to onshore — and solar projects are generally less capital-intensive and can be deployed more rapidly,” Valentina continues. “They offer greater flexibility in terms of project size and location, allowing for incremental scaling as demand grows or technology improves.

“Wind and solar, while still requiring skilled personnel, generally have lower barriers to entry in terms of regulatory requirements and specialised knowledge. They also tend to face less public opposition compared to nuclear power, which can affect the speed and ease of project development.

“The deployment of Small Modular Reactors (SMRs) and other innovative nuclear technologies may improve the economic and practical viability of nuclear power in the future, potentially making it more accessible to countries. However, the technology’s development remains modest.”

The nuclear-renewables mix

Renewables aren’t just a comparable energy source when looking at nuclear — the two can be combined to provide a reliable and predictable, secure energy mix.

Nuclear can be utilised as a baseload power supply that can complement the intermittent nature of renewable sources, with nuclear’s reliability helping maintain grid stability and ensuring consistent electricity supply — even when weather conditions aren’t in renewable generation’s favour.

Nuclear energy boasts the highest capacity factor among all energy sources.

A single large-scale nuclear reactor is capable of generating more than 1,600MW of power, substantially surpassing other low-carbon alternatives and establishing itself as an efficient method for producing vast quantities of clean electricity. 

In contrast, hydropower — which has the next largest capacity — can generate approximately half the output of nuclear, reaching up to about 800MW, the IEA says.

Valentina adds: “If compared to wind and solar, the capacity factor can be three times or even more for nuclear. That makes it an important low-carbon option, contributing to significant emissions reductions.

“These benefits can be particularly important for countries which rely on imported fuels to enhance their energy security while diversifying their energy mix.”

Is nuclear a viable long-term option?

The viability of nuclear power as a long-term energy solution varies significantly across different countries and regions.

Valentina asserts: “Nuclear power can be a viable option to achieve energy transition goals where governments have the financial capacity and technical knowhow to support such projects. However, it might not be considered as a priority for countries which lack the requisite financial capital and policy or where there is a stronger economic and strategic rationale to prioritise less capital-intensive or faster-to-adopt alternatives.”

She emphasises that the long-term viability of nuclear power is heavily influenced by a country’s economic circumstances and overall energy strategy. While some nations are phasing out nuclear power, others are actively expanding nuclear capacity or considering it as a future option to meet climate goals and ensure energy security.

“Four of the biggest economies in Asia are taking this route,” she details. “China plans to generate 10% of its power from nuclear energy by 2035 and 18% by 2060. Japan is aiming for nuclear power to provide about 20% of its electricity by 2030, despite the 2011 incident in Fukushima, and South Korea is now targeting a minimum nuclear share of 30% by 2030. India is also aiming for a 70% increase in nuclear power capacity by 2029.”

Alan adds, concluding: “Investors need certainty to back nuclear projects. To attract private funding, the nuclear sector needs to receive commitments from governments that go beyond electoral cycles. 

“Exploring innovative financing and delivery models that better balance risk and reward is essential. The UK’s Nuclear Energy (Financing) Act of 2022 introduced the option to fund nuclear energy through a Regulated Asset Base model, which we’re still seeing developed. This is used successfully in other industries including utilities and aerospace and is one route to help balance risk between government and private investment.”

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