Global nuclear power generation is projected to hit record levels by 2025, driven by rising electricity demand, new projects, and technological advancements, according to the International Energy Agency (IEA) report The Path to a New Era for Nuclear Energy. The report outlines the sector’s significant opportunities while highlighting its challenges.
Nuclear power currently provides nearly 10% of global electricity, making it the second-largest source of low-emission electricity after hydropower.
As global electricity demand is expected to grow six times faster than overall energy consumption, nuclear energy is increasingly seen as a vital solution for stable and flexible power generation.
“The strong comeback for nuclear energy that the IEA predicted several years ago is well underway, with nuclear set to generate record levels of electricity in 2025,” said IEA Executive Director Fatih Birol.
More than 70 gigawatts of new nuclear capacity are under construction worldwide, marking the highest level in three decades.
Over 40 countries have plans to expand their nuclear energy capabilities, with small modular reactors (SMRs) playing a key role.
SMRs are smaller, faster to construct, and potentially more cost-effective. By 2040, SMRs could achieve a total capacity of 80 gigawatts, contributing 10% of global nuclear capacity.
However, the nuclear sector faces significant challenges, including project delays, cost overruns, and a highly concentrated uranium enrichment market.
Currently, over 99% of the world’s enrichment capacity is held by four countries, with Russia dominating at 40%.
The report emphasizes that stable regulatory frameworks and government incentives are crucial for attracting private investment, as annual nuclear investment must double to $120 billion by 2030 to meet growth targets.
Emerging markets, led by China and Russia, are spearheading nuclear expansion, while advanced economies focus on managing aging reactors. Of the 52 reactors under construction globally since 2017, 25 are Chinese designs, and 23 are Russian.
With growing private-sector interest in using nuclear energy for high-demand applications like data centers and artificial intelligence, the report concludes that robust collaboration between governments and industry is essential to unlock a new era for nuclear power.
