The Path to a New Era for Nuclear Energy

Status of nuclear energy

  • Nuclear bolsters energy security and contributes to addressing climate concerns. In 2023, more than 410 reactors were in operation in over 30 countries, with nuclear energy providing 9% of global electricity supply. Nuclear was the second-largest source of low-emissions electricity after hydropower, producing 20% more than wind and 70% more than solar PV, and also providing heat for industry, district heating and desalination in several countries. Since 1971, nuclear energy has avoided 72 Gt of CO2 emissions by reducing the need to build power plants that run on coal, natural gas or oil, and has strengthened energy security in many countries by reducing their need to import fossil fuels.
  • Nuclear energy plays a bigger role in the advanced economies, which are home to more than 70% of the reactors in operation worldwide today, but this fleet is relatively old. Their average age is over 36 years, compared with 18 years in the emerging economies. The share of nuclear in electricity generation is highest in France, at 65%, and the Slovak Republic, at over 60%. The European Union (EU) share has declined from a peak of 34% in 1997 to 23% today. In the United States, which has the largest fleet of nuclear reactors in the world, it is less than 20%.
  • Emerging economies are moving towards market leadership in nuclear energy. Of the 52 reactors that have started construction worldwide since 2017, 48 are of either Chinese or Russian design. As of the end of 2024, there were 63 nuclear reactors (71 GW) under construction, of which three-quarters are in the emerging economies and half in China alone. China now has the third-largest nuclear fleet in operation in the world.
  • The last few years have seen renewed interest in building new nuclear plants and extending the lifetimes of existing ones, and 2025 is set to see generation from nuclear plants reaching an all-time high. This is being driven by energy security concerns, a strengthening of policy support, technological advances and growing needs for dispatchable low-emissions power. Global ambitions to expand nuclear energy now encompass an initiative to triple nuclear energy capacity by 2050 and supportive policies in over 40 countries. Investment in nuclear has risen to about USD 65 billion in 2023, nearly double the level a decade ago. Small modular reactors (SMR) are attracting particular interest, with investors planning up to 25 GW of SMR capacity, mainly to power data centres.
  • The nuclear industry will need to overcome several hurdles for it to achieve a true comeback and contribute fully to clean energy transitions. In particular, the construction of large-scale reactors in advanced economies has seen in recent years substantial delays and large cost overruns. The highly concentrated market for nuclear technology providers could hinder development.
Next Outlook for nuclear investment