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Title page 1
Contents 8
Abstract 3
Acknowledgements, contributors and credits 6
Executive Summary 10
Introduction 15
1. Status of nuclear energy 16
Highlights 16
Current role of nuclear energy 17
Nuclear energy is the second-largest low-emissions source of electricity worldwide 17
Nuclear has long been an important source of heat in several countries too 19
Nuclear fleets are oldest in the advanced economies 21
Recent market developments 22
Technological leadership has shifted towards China and Russia 22
Nuclear power plants are taking longer to build in the advanced economies 24
Nuclear investment has been rising in recent years 26
Drivers of renewed interest in nuclear energy 27
Policy support for nuclear energy is strengthening in many countries 28
Nuclear technology development is accelerating and could reshape nuclear market leadership 32
Data centres are emerging as a new dedicated market for nuclear power 39
Opportunities for restarting nuclear plants 42
2. Outlook for nuclear investment 45
Highlights 45
Global outlook 46
Government policy will play a critical role in the future of nuclear energy 46
A growing share of investment is set to go to SMRs 49
Regional outlook 50
China is set to account for the bulk of the growth in global nuclear capacity to 2050 50
A major increase in investment is needed in the coming decade 51
Cutting construction and financing costs is key to making nuclear competitive with other dispatchable options 54
Nuclear market leadership could shift back towards advanced economies 58
Prospects for SMRs 60
Successful SMR development could open up a huge market 60
Several countries are planning to deploy SMRs, led by the United States and China 61
Faster cost reductions could unlock additional SMR deployment 63
Supply chains and workforce requirements 64
The next era of nuclear energy calls for efficient and diversified supply chains 64
Planning for workforce challenges in advance is necessary to avoid bottlenecks 68
Ensuring the safe operation of nuclear reactors is paramount 68
Decommissioning and waste are key considerations 69
3. Financing nuclear projects 71
Highlights 71
Distinctive factors in nuclear financing 72
The cash flow profile of nuclear plants requires a tailored approach to financing 72
Construction risk remains a major hurdle to financing 73
Special treatment of backfitting and accident risk is often required 74
The cost of capital is of particular importance for the financial viability of nuclear investments 76
Who invests in nuclear? How is it financed? 77
State-owned enterprises dominate the nuclear industry today 78
New reactors are generally financed by a mix of debt and equity, while lifetime extensions are debt-financed 80
Public equity and commercial debt are the main sources of finance 81
Private financial institutions hold a generally favourable view of nuclear financing 83
Unlocking more finance for nuclear energy 85
Business models to de-risk nuclear investments can vary depending on country profile and preference 85
Boosting private financing will be critical 88
Greater reliance on equity financing could push up the cost of capital in the near term 91
MDBs could help with financing nuclear energy, but only on a small scale 93
Green bonds and transition finance instruments are expanding 95
SMRs could open the door to greater private sector participation 97
Abbreviations and acronyms 99
Figure 1.1. Global low-emissions electricity generation by source, 2023 18
Figure 1.2. Share of nuclear energy in total electricity generation by country, 2023 19
Figure 1.3. Installed nuclear power capacity by country and age, end-2023 21
Figure 1.4. Nuclear power plant construction starts by national origin of technology, 2017-2024 22
Figure 1.5. Nuclear power capacity under construction by region and national origin of technology, as of December 2024 23
Figure 1.6. Typical development time for selected power plants and electricity grids 24
Figure 1.7. Initial and latest capital cost estimates and construction time for selected recent nuclear projects 26
Figure 1.8. Global nuclear energy investment by type, 2000-2023 27
Figure 1.9. Nuclear CHP applications by temperature ranges and reactor types 38
Figure 1.10. Recent announcements and agreements related to the procurement of nuclear energy for data centres 40
Figure 1.11. Representative daily load curves of data centres and selected clean power sources in winter and summer in France 41
Figure 2.1. Global investment in nuclear energy by scenario and type, 2023-2050 47
Figure 2.2. Cumulative investment in nuclear energy by scenario and type, 2024-2050 48
Figure 2.3. Global nuclear power capacity by scenario and type, 2023-2050 49
Figure 2.4. Capital costs of SMRs in major markets by scenario, 2030-2050 50
Figure 2.5. Nuclear power capacity by scenario and region, 2010-2050 51
Figure 2.6. Investment in nuclear energy by scenario, region and type, 2023-2050 53
Figure 2.7. LCOE and VALCOE of nuclear and other selected technologies in selected regions in the Announced Pledges Scenario, 2040 55
Figure 2.8. Nuclear power construction starts by national origin of technology in the Announced Pledges Scenario, 2017-2040 58
Figure 2.9. Global SMR cumulative investment and capacity additions in the Announced Pledges Scenario, 2025-2050 60
Figure 2.10. SMR installed capacity and number of reactors in selected regions in the Announced Pledges Scenario, 2025-2050 61
Figure 2.11. SMR construction costs in major markets and global installed capacity by scenario and case 63
Figure 2.12. Global uranium production from mines, 2016-2030 66
Figure 3.1. Final cost compared to initial cost of recently built nuclear reactors in selected countries and number of nuclear reactor projects... 73
Figure 3.2. Global average WACC for nuclear, solar and wind companies 77
Figure 3.3. Share of investment in nuclear energy by type of company and region, 2023 79
Figure 3.4. Sources of finance for investment in new-build large-scale reactors and lifetime extensions by country/region, in 2023 82
Figure 3.5. Views from financial institutions on nuclear financing 83
Figure 3.6. Average international uranium and nuclear fuel price and variable cost of nuclear power generation and wholesale electricity price... 88
Figure 3.7. Cumulative investments in nuclear energy by source and type of finance and country/region in the Announced Pledges Scenario,... 92
Figure 3.8. Position of multilateral development banks on financing nuclear energy 93
Figure 3.9. Average annual disbursements by MDBs by sector, 2019-2022 94
Figure 3.10. Indicative capital expenditure per project for selected technologies by country/region, 2040 97
Figure 3.11. Indicative cumulative cash flow profile of an SMR power plant assuming cost parity with a conventional large-scale nuclear plant 98
Boxes 38
Box 1.1. Opportunities for nuclear power plants to provide high-temperature heat for hard-to-abate sectors 38
Box 2.1. IEA scenarios 46
Box 2.2. The value-adjusted LCOE as a metric of competitiveness 57
Box 3.1. Understanding how projects are financed and by whom 78
Box 3.2. Electricity pricing and nuclear fuel costs 88
Box 3.3. Demystifying "risk-taking" by financial institutions: The importance of cash flow predictability for debt providers 91
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