Interest in nuclear power is at its highest level for decades, and the sector has a significant role to play in the energy transition. However, growth is not without challenges, including regulatory hurdles, long construction lead times and technical complexity. In this extract from a recent webinar, we look at government support and funding models, lifetime extensions, SMR development and critical issues for investors in key markets around the globe.

Governments and investors increasingly recognise the vital role of nuclear power in delivering low-carbon, reliable baseload electricity. This renewed interest is fuelled by the growing demand for energy from electrification, data centres, and industry, and by the need to balance renewables in the grid.

The sector stands at a crossroads, with significant opportunities presented by emerging technologies such as Small Modular Reactors (SMRs), new Generation IV reactors and the extension of existing plant lifetimes. However, it continues to grapple with substantial challenges, including complex regulatory landscapes, lengthy construction periods, skills shortages, high upfront capital requirements, and supply chain limitations. Addressing these hurdles will require robust government support, innovative financing mechanisms, such as the Regulated Asset Base (RAB) model in the UK, and enhanced international collaboration.

Across major markets, including the UK, US, and Continental Europe, approaches to nuclear expansion and revitalisation differ markedly, shaped by varying policies, public attitudes, and regulatory frameworks. Harmonised regulatory, legal, and financial structures, particularly for new technologies like SMRs, will be crucial in unlocking the sector’s full contribution to a sustainable energy future.