IEA report shows nuclear sector booming despite costs

According to the report, The Path to a New Era for Nuclear Energy, the sector is set for continued growth, despite cost overruns and project delays in many countries. Construction of new projects is at one of its highest levels in 30 years, with over 70 gigawatts of capacity in progress across more than 40 countries.

“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.

“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.”

Commenting on the IEA report, GE Vernova’s Nomi Ahmad also flagged the potential for SMRs to buck the trend of spiralling nuclear costs. It was reported by the Financial Times earlier this week that the final cost of the UK’s Sizewell C nuclear plant is likely to reach £40bn – double the estimate from 2020 – although this figure was described as ‘speculative’ by a spokesperson for the Department for Energy Security and Net Zero (Desnz). According to Ahmad, CEO of GE Vernova's Financial Services business, SMRs can help bring nuclear costs back in line with other energy infrastructure, if the right framework is provided.