The game is changing in energy: Why is nuclear energy on the rise again?

Nuclear power is technically considered a clean energy technology because it produces virtually zero carbon dioxide and greenhouse gas emissions. However, the last 20 years have not been a great time for nuclear power, due to both its safety risks and cost, as well as the boom in solar and wind energy. While nuclear is an important part of the energy mix in some countries, no power plants were built on time or on budget in Europe and North America during this period. As renewable energy costs fell, already expensive nuclear projects in the US, UK, and Finland faced delays and major cost overruns. However, this has changed recently. US STATEMENT THAT ‘NUCLEAR ENERGY IS MORE AMERICAN’ Upon taking office, US President Trump first stated that investing in renewable energy sources was a “waste of time.” Last month, the US Department of the Interior issued a stop-work order on the Revolution Wind wind power project off the coast of Rhode Island, which was 80% complete. In recent weeks, Trump’s team has emphasized its willingness to fund nuclear energy over wind and solar power, calling it “more American.” Jarrod Agen, director of the U.S. Energy Sovereignty Council, stated that nuclear energy is more likely to be produced from U.S.-made components than wind and solar power plants, and that the administration is more willing to provide financial assistance from the U.S. Loan Programs Office and support tax incentives. Agen said, “Nuclear energy is a new field because we need to invest in it to move forward, and that’s the long-term strategy the president wants to implement. There hasn’t been proper investment. It hasn’t been a focus like some other intermittent energy sources.” He also noted that American companies are leading the way in nuclear reactor construction. On August 25, nuclear technology firm Fermi and Westinghouse announced a partnership that will seek approval for the construction of four of Westinghouse’s large AP1000 reactors in Amarillo. PRESIDENT ERDOĞAN: “WE WILL BREAK THE DEVIL'S LEG WITH AKKUYU” Türkiye frequently emphasizes nuclear energy as much as it does investments in renewable energy. Minister of Energy and Natural Resources Alparslan Bayraktar, regarding nuclear power plant projects, stated, “Russia is interested in the Sinop project, but China, Canada, and South Korea are also among the countries we are negotiating with.” Minister Bayraktar also announced that they aim to submit a regulation to parliament regarding small modular reactors in the field of nuclear energy in the new legislative term. Finally, in a statement following the cabinet meeting on Monday, President Erdoğan stated that 416 nuclear reactors would be operational in 31 countries by 2025, adding, “62 reactors are being built in 15 countries, including Türkiye. If we want to reduce our dependence on foreign energy and reach the 2053 goals, we absolutely must include nuclear energy in our production portfolio. With the commissioning of Akkuyu, we will, so to speak, break the devil's leg.” Erdoğan stated that nuclear energy would prevent 35 million tons of carbon emissions annually, saying, “It will contribute a total of $50 billion to our domestic gross product. If opposition to nuclear power plants is not the product of ignorance, it can only be explained by ulterior motives. Such a shallow mindset will do no good to either the country, the nation, or our brothers and sisters in Sinop.” WHAT IS THE REASON FOR ‘NUCLEAR OPTIMISM’? The growing nuclear optimism reflects three developments. According to The Economist, the first reason is the increasing need for a more secure and independent electricity source by governments in many Western countries. The second reason is the longing for reliable energy and concerns about emissions by big tech companies. The third is the idea that new operational and financial models could improve the risky economics of nuclear power. Sama Bilbao Leon, President of the World Nuclear Association, emphasizes how much the process has changed by saying, “Something is different this time.” THE BIGGEST CHANGE IS IN THE US Nowhere is this shift in attitude more evident than in the US, of course. Trump is demanding a quadrupling of domestic capacity to 400 GW by 2050. While this goal is ambitious, it has also mobilized the political system. The One Big Beautiful Bill, passed in July, provides tax breaks for the sector in this regard. Even officials in New York, a Democratic-dominated state that shuttered a major nuclear power plant in 2021, want the state-owned energy company to build a new one. Meanwhile, on the other side of the ocean, the European Commission announced a roadmap in June that projects nuclear capacity to increase from 100 GW to 145 GW by 2050. Germany also ended its opposition to the classification of nuclear energy as “green” in European legislation, facilitating France’s construction of six new power plants. In July, the UK government made its final decision to proceed with the Sizewell C project, two massive reactors that could cost over £38 billion. Image: Sizewell B Nuclear Plant – Associated Press SMR BOOM IN THE INDUSTRY Meanwhile, Sweden recently confirmed plans for SMRs, or Small Modular Reactors, small generators that can be manufactured in factories and transported to suitable locations. It has persuaded more than 120 companies to develop SMRs. Barclays projects that net nuclear capacity excluding China and Russia is likely to more than halve between 2030 and 2050, reaching over 450 gigawatts (GW), with SMRs accounting for 40–60 percent of the total, representing a $1 trillion market. Dozens of startups are also pursuing nuclear fusion, a much riskier venture that offers virtually unlimited clean energy potential. TECH GIANTS ALSO INVESTING IN SMR FOR ENERGY Tech giants are funding both technologies to meet their energy needs. SMR startups have raised more than $2 billion since the beginning of 2024. In June, Oklo, backed by Sam Altman, CEO of Open AI, raised $460 million, and TerraPower, founded by Bill Gates, raised $650 million. Google signed a deal to help Kairos Power develop an SMR fleet by 2035. However, fusion startups are also attracting large investors. Commonwealth Fusion Systems, also backed by Gates, announced $863 million in new funding on August 26. In total, fusion startups have raised $2.6 billion through July. Google’s Michael Terrell says his industry needs “clean and reliable energy” from nuclear to complement renewables. He maintains that he supports nuclear energy “in the short, medium, and long term.” He believes that lifespan extensions and restarts will have a significant impact in the short term. But it’s not just big tech companies pouring money into the sector. Nuclear developers and supply chain companies are also raising hundreds of millions of dollars through IPOs. Shares of publicly traded nuclear companies have skyrocketed since Trump issued executive orders supporting the sector. NUCLEAR COMPANIES ARE HAPPY WITH THE ATTENTION. “There’s no longer a reliance on government money mentality, so we can get plenty of shots on goal,” Oklo’s CEO, Jacob DeWitte, said in an assessment. All of this contributes to the nuclear optimism. That is, the emergence of new financial models and operating practices that cope with the adverse economic conditions of nuclear power plant construction. According to a Barclays analysis, both standard nuclear power plant and SMR costs currently exceed market energy prices. However, China and South Korea have proven that it is possible to build large reactors in five years and on budget. Both countries have standardized designs, built multiple reactors per facility, and rapidly transitioned between projects to keep workers and supply chains active. All of this has helped keep costs low. Despite innovations in the nuclear transition, experts say, the economics remain challenging. Overregulation remains a hurdle, and efforts to reduce red tape risk backlash. Supply chains are underdeveloped and skilled labor is scarce. But experts say there are more opportunities now than at the dawn of the commercial nuclear era in the 1960s, and even more could soon follow. *Images courtesy of Shutterstock and the Associated Press.