Despite the associated safety risks, nuclear power is back on the menu for many countries across the world.
Wood Mackenzie recently released a report considering the future of nuclear energy in more detail, where the uranium-based energy source can play a multi-faceted role.
“Critical to long-term net zero emissions pathways, nuclear power also addresses several challenges facing the world today – the need for reliable, low-carbon energy supply,” WoodMac Energy Transition Service director David Brown said.
“Nuclear is a key part of addressing the energy trilemma, by limiting the role of higher cost marginal supply sources, such as natural gas.”
Countries all across the world are adopting renewed nuclear strategies, including the UK, France, Sweden, Poland and Turkey in Europe, as well as the US, Canada, South Korea and Japan.
In February 2022, the Biden Administration launched a $6 billion program to support the country’s nuclear sector.
Japan, which was previously committed to phasing out nuclear power following the Fukushima nuclear disaster in 2011, announced in late 2022 that it would extend lifetimes of existing reactors to more than 60 years and even consider building new reactors.
But coinciding with a nuclear revival is the need for technology investment.
“Investment in conventional and emerging nuclear technologies will need to expand,” Brown said.
“Currently, 75 per cent of nuclear capacity was built between 1970-1990, most of it in the US and Europe. New reactors with innovative technologies must be brought online, with the dual target of delivering more low-carbon energies at a competitive price point.”
One emerging technology is the small modular reactor (SMRs), which has the potential to lower costs and improve time to market for nuclear, where reactor construction timelines can be in excess of eight years.
“We project that by 2030, SMR costs can fall quickly to be competitive with abated thermal capacity,” Brown said. “By 2050, SMR costs could fall even further to be competitive with thermal capacity.”
While the nuclear future might seem bright, the energy source still has its hurdles to overcome, with operational safety, speed of regulatory approvals and cost competitiveness key action points.
But Brown is optimistic.
“The energy industry has a track record of technological breakthroughs during periods of high commodity prices and strong policy support,” Brown said. “If these areas are addressed, a (nuclear) renaissance is possible.”
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