Nuclear Power Production Expected to Reach Record Level in 2025

What Happened? 

Nuclear power production is on track to reach record levels in 2025 according to the International Energy Agency. 

Fatih Birol, director of the International Energy Agency, said that even after record levels of nuclear energy are produced in 2025, growth will continue because “more than seventy gigawatts of nuclear capacity is under construction globally, one of the highest levels in the last thirty years.”

Why it Matters

The U.S. Energy Information Agency recently released a report which argued “the market, technology and policy foundations are in place for a new era of growth in nuclear energy over the coming decades.” Several factors have combined to fuel the growth of the nuclear energy sector.

One factor is technological. Small modular reactors and advanced modular reactors can be produced on a factory floor then installed, meaning they can be built and set up much faster and for less cost than traditional large scale nuclear reactors and energy plants. 

Modular reactors do have a downside, as many of these type of nuclear reactors often generate far more nuclear waste than traditional plants.

Another factor is market driven. Technology companies are investing significantly in new data centers and stand-alone power centers for those data centers, and they see nuclear energy as a solution because it allows them to meet their power and climate goals simultaneously. 

Several new data centers under construction will have their own nuclear power plant to provide their energy needs.  

The increase in production and demand for nuclear power has also generated a fierce debate. At issue is whether the best way to increase nuclear power production is by building new plants or revitalizing ones that have already been built. 

Revitalization could allow existing nuclear plants to extend their lifespan by decades, and these would not require any resources to find and purchase real estate.

China and Russia are both leaders in the construction of new nuclear reactors according to the U.S. Energy Information Agency. EIA data shows that of fifty-two new nuclear reactors under construction since 2017, twenty-five are being built in China and twenty-three in Russia. 

The supply chain for nuclear energy does face potential bottleneck risks, since four countries account for nearly all the enrichment capacity globally, with Russia making up forty percent of that.

How it Affects You

Infrastructure investments needed to help bring new nuclear power sources online cannot rely exclusively on public sector dollars. Private investors are increasingly viewing nuclear power as a good investment because it can provide a clean power source capable of serving energy intensive operations such as data centers needed to support artificial intelligence operations. 

Today nuclear plants produce ten percent of the world’s energy supply, and it’s the second largest source of low emissions production after hydropower. That number is expected to grow significantly by 2030.