Nuclear power stations are being built again worldwide. A decade ago, the nuclear industry seemed destined for decline. Safety concerns, high costs, and radioactive waste issues had dimmed hopes for this once-promising energy source.
Today, nuclear energy is gaining renewed interest. Investments from tech giants like Microsoft and Google and rising carbon reduction pressures are fueling this shift. But is nuclear power truly on the brink of a comeback?
Early Promise and Catastrophic Setbacks
In the 1950s and 1960s, nuclear power emerged as a groundbreaking innovation. Governments were thrilled by the potential to generate vast amounts of energy from minimal fuel. Just one kilogram of uranium could produce 20,000 times more energy than a kilogram of coal.
However, the risks became evident after disasters like Chernobyl in 1986. The radioactive contamination spread across Europe, intensifying public fears and slowing the industry’s growth. The 2011 Fukushima disaster in Japan reignited these concerns. Following the accident, Japan shut down all reactors, restarting only 12 since then. Germany, in response, opted to phase out nuclear power entirely.
Between 2011 and 2020, global nuclear power capacity fell by 48GW, according to the International Atomic Energy Agency. Still, development continued in nations like China. In 2011, China operated 13 reactors; now, it has 55, with 23 under construction. Nuclear energy remains vital for meeting China’s growing electricity demands.
New Drivers of Nuclear Revival
Developed nations are revisiting nuclear power to balance energy needs and carbon emission reductions. As 2024 is projected to be the warmest year on record, the urgency to address climate change is critical. Geopolitical tensions, including Russia’s invasion of Ukraine, have also underscored energy security concerns.
Countries like South Korea reversed decisions to phase out nuclear energy. Instead, South Korea plans to expand its reactor fleet. France, already generating 70% of its electricity from nuclear, plans to construct eight more reactors. The United States aims to triple nuclear output by 2050, aligning with a global consensus to accelerate nuclear adoption as a low-emission energy source.
Tech companies are also driving demand. The rise of artificial intelligence requires data centers, which depend on consistent, reliable electricity. Data centers already account for 3.5% of U.S. electricity use, a figure expected to rise to 9% by 2030.
Microsoft, for example, signed a 20-year deal to buy power from the Three Mile Island plant, once infamous for its nuclear accident. Meanwhile, Google supports Small Modular Reactors (SMRs), a promising new technology aimed at reducing costs and deployment challenges. SMRs, using standardized parts, can be assembled quickly and placed near demand centers. Although over 80 SMR designs are in development, commercial viability remains unproven.
Challenges and Future Prospects
Nuclear power faces hurdles despite its promise. Building new plants is expensive and complex. The UK’s Hinkley Point C project is five years behind schedule and £9 billion ($11.5 billion) over budget. Similarly, reactors at Georgia’s Plant Vogtle opened seven years late, costing over $35 billion—double the initial estimate. SMRs could address these issues, but they remain in the testing phase.
Supporters argue nuclear energy is critical for meeting climate goals. Rod Adams of Nucleation Capital emphasizes its safety record and reliability. Critics, like Professor M.V. Ramana, counter that nuclear is one of the costliest ways to generate power. He advocates investing in cheaper, low-carbon alternatives for greater emissions reductions.
A key unresolved challenge is radioactive waste management. Waste remains hazardous for thousands of years, and long-term solutions are scarce. Geological disposal, burying waste in deep underground tunnels, shows promise. Finland is the only country with a functional facility, though environmental concerns persist.
The resolution of waste issues will likely shape nuclear power’s future. Whether the industry experiences a true renaissance will depend on overcoming these challenges and public acceptance.
