New Energy Finance

Nuclear has an important role in the future low carbon energy economy, but analysts differ widely in their assessment of future nuclear power developments. The sector has to overcome many challenges, including the need for multi-billion dollar investments; issues around the disposal of spent fuel; security and proliferation concerns. However, Government support for nuclear power is increasing as it offers a low carbon alternative to fossil fuel generation, and helps address energy security concerns.

Global nuclear power generation capacity is forecast to increase from 370GW in 2009 to nearly 700GW by 2030. A total of 31 countries in the world now operate nuclear power generation plants, and a further 12 are considering joining the nuclear ‘club’. Nuclear power generation expansion will be led by the rapidly developing Asian market within existing established nuclear markets like Japan and Korea, as well as the burgeoning markets of China and India. Western and Eastern Europe, including Russia and the former Soviet Republics, is forecast to grow by 75% through 2030. The US should add 30GW through government loan guarantees and pre-payments by utility customers.

Bloomberg New Energy Finance forecasts investment of $950 billion in nuclear power generation capacity to 2030. Billion dollar investment opportunities also exist in other areas, such as large component forgings, fuel enrichment, and fuel reprocessing facilities. New technology development will require venture investment, and service provider opportunities will be created across the value chain.