ith the right combination of policy support from governments and project delivery by industry, the report projected that over 1,000 SMRs could start operating by mid-century. 

Power generation from nuclear power set to reach a record high in 2025: IEA report

More than 70 GW of new nuclear power capacity is under construction globally— one of the highest levels in the past 30 years, the report says

As demand for electricity grows globally and governments focus on securing their energy needs from cleaner sources, a new report by the International Energy Agency (IEA) predicts that there is likely to be a renewed momentum for nuclear energy across the world. 

According to the report, some 63 nuclear reactors are currently under construction, representing more than 70 gigawatts (GW) of capacity, one of the highest levels seen since 1990.

Generation from the world’s fleet of nearly 420 reactors is on track to reach new heights in 2025, the report said. With the right combination of policy support from governments and project delivery by industry, the report projected that over 1,000 SMRs could start operating by mid-century. 

Share of nuclear energy in total electricity generation by country, 2023

Commercial work to begin


Nuclear power produces just under 10% of global generation and is the second-largest source of low-emissions electricity today after hydropower, the report found. Japan is likely to restart production, maintenance works are scheduled to be completed in France, and new reactors begin commercial operations in various markets, including China, Europe, India and Korea.

The report said that interest in nuclear energy is now at its highest level since the oil crisis in the 1970s. Over 40 countries around the world have plans for expanding the use of nuclear power, it added.

Concentrated markets

While advanced economies are still home to most of the world’s nuclear fleet, these reactors are relatively old; their average age is more than 36 years, twice the average elsewhere.

A shift in market leadership is underway as half of the projects that are under construction today are in China, which is on course to overtake both the United States and European Union in installed nuclear power capacity by 2030.

For the moment, the renewed momentum behind nuclear power is heavily reliant on Chinese and Russian technologies. Of the 52 reactors that have started construction worldwide since 2017, 25 of them are of Chinese design and 23 of them of Russian design, the report said.

Nuclear power capacity under construction by region and national origin of technology, as of December 2024


The report pointed out that highly concentrated markets for nuclear technologies, as well as for uranium production and enrichment, represent a risk factor for the future and underscore the need for greater diversity in supply chains. 


Cost of SMRs

According to the report, innovation is quickly changing the technology landscape, with the first Small Modular Reactors (SMRs) set to start commercial operations around 2030. 

Demand for firm, dispatchable and clean power from the private sector is a major driver of interest in these emerging technologies, and there are plans of varying maturity for up to 25 GW of SMR capacity, in large part to meet growing electricity demand for data centres. 

Under today’s policy settings, total SMR capacity reaches 40 GW by 2050. If construction costs for SMRs are brought down over the next 15 years to parity with large-scale reactors built on budget, the report estimated, this could see the cost-effective uptake of SMRs increase by a further 60%, with deployment reaching 190 GW by 2050.


Funds to facilitate progress

Public funding alone will not be sufficient to build a new era for nuclear as private financing will be needed to scale up investments, said the report. The long timelines for permitting and construction make nuclear a tough proposition for commercial lenders, as they can push the breakeven point for a new large reactor to 20-30 years after the project start, the report noted. 

The report said that the predictability of future cash flows is key to bring down financing costs and attract private capital to the nuclear sector. Governments have a unique capacity to provide the strategic vision, and the policies, incentives and public finance that can move the nuclear sector forward. Reducing the risk of cost overruns and delays is a prerequisite for expanding finance, both public and private, and protecting the interests of consumers, said the report.  

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