IEA Predicts ‘New Era of Growth’ for Nuclear Energy

Nuclear energy is seeing a resurgence of interest as demand for electricity is growing around the world and companies and countries are seeking clean, readily available sources of power.

The International Energy Agency (IEA) recently released its report on the The Path to a New Era for Nuclear Energy, which indicates there are “opportunities for nuclear energy to address energy security and climate concerns.” The report found that nuclear power is set to reach a new record in 2025, but challenges remain to building more capacity.

Nuclear is clean energy, due to the fact it produces no greenhouse gas emissions, and can be used to power everything from homes to artificial intelligence. It is always available for use, unlike the intermittent nature of some renewable energy sources. The report shows that in 2023, nuclear accounted for just under 10% of power generation globally.

However, there are wide differences between countries. France leads all countries, with 65% of its energy produced by nuclear generation, while in the United States it accounts for 18%. Nuclear energy is more prevalent in European countries that lack other energy sources.

Although many countries are building new nuclear power plants, with more than 70 gigawatts (GW) under construction around the world, it is becoming harder to do so. This is due to the fact that much of the technology needed for nuclear power comes from Russia and China. The two countries have dominated the nuclear technology market since 2020, the IEA report determined.

There are other growing worries in the United States and the European Union due to the fact that China is set to overtake both in nuclear power capacity by the end of the decade. Many of the plants in the United States are over 40 years old, which means they are reaching the end of their life span. The former Biden administration outlined a framework to rapidly increase nuclear energy use in the United States, however there are many roadblocks facing that plan.

Uranium, which is integral to nuclear power, is primarily concentrated in very few countries, with Russia accounting for 40%. Having greater diversity in uranium production would make it easier and more accessible for countries to switch to nuclear power.

Another big issue is funding. Nuclear power plants are extremely expensive to build and take years to construct. “Given the scale of the infrastructure investment required, the rollout of new projects cannot rely exclusively on public finances,” the report states. It suggests continuing work to reduce construction costs and attract private capital is necessary.