- Renewed Political Momentum: Europe is shifting its focus toward nuclear energy, driven by geopolitical pressures, decarbonization goals, and the creation of initiatives like the European Nuclear Alliance and the SMR Alliance to accelerate development.\n\n-
- Key Challenges and Opportunities: The adoption of small modular reactors (SMRs) presents an opportunity to revolutionize nuclear construction with standardized, factory-based production, though financing, regulatory adaptation, and public perception remain significant hurdles.\n\n-
- Strategic Financing and Policy Shifts: The proposed EU competitiveness fund and changes to the European Investment Bank’s priorities could provide critical support for nuclear energy projects, complementing the EU Net Zero Industry Act\u2019s streamlined permit process.
Europe is showing renewed political momentum toward developing nuclear power infrastructure after years of prioritizing investments in renewable energy. During an industry conference in Brussels on December 17, government and industry officials emphasized the urgent need for a new business model to support nuclear energy investments. The focus is on the development of small modular reactors (SMRs) and the establishment of a competitiveness fund to capitalize on this shift in priorities.
Hungary’s State Secretary for Energy and Climate Policy, Attila Steiner, stressed that nuclear energy is an “inevitable” energy choice for his country and likely for Europe as a whole. Hungary, which has held the rotating presidency of the European Union for the latter half of 2024, has been a leading voice in policy negotiations among the EU’s 27 member states. Steiner highlighted the formation of the European Nuclear Alliance, an initiative launched by France in May 2023 and now supported by 15 EU countries, as evidence of growing political support for nuclear power. However, he emphasized that the critical challenge lies in translating this political will into actionable financing mechanisms and sector-specific regulations.
Andre Autrand, CEO of the Belgian Infrastructure Fund, noted that Europe has fallen behind regions like Asia and parts of the United States, which have maintained consistent funding for nuclear infrastructure over the past two decades. While the EU has concentrated on renewable energy projects, the creation of a European Industrial Alliance on Small Modular Reactors marks a pivotal change. Massimo Garribba, Deputy Director-General for Energy at the European Commission, explained that this alliance, launched in February 2024, brings together nuclear power companies, financial institutions, research organizations, training centers, and non-profit groups. Its aim is to expedite the deployment of SMRs across Europe, with the first units expected to be operational by the early 2030s.
Stefano Soro, head of the EU Commission’s Net Zero Industries Unit, underscored the necessity of utilizing all available decarbonized energy sources, including nuclear power. He dismissed concerns that the U.S. Inflation Reduction Act had placed the EU at a competitive disadvantage, pointing instead to the EU Net Zero Industry Act, which explicitly allows for accelerated permits for nuclear energy projects. Soro also highlighted the potential for a new competitiveness fund proposed by Commission President Ursula von der Leyen, aimed at supporting strategic technologies. The fund, expected to be debated as part of the next EU budget for 2028 to 2034, could play a crucial role in financing nuclear energy initiatives, including through the European Investment Bank (EIB).
The EIB has historically favored renewable energy investments but may reconsider its stance on nuclear energy. EIB President Nadia Calviño has signaled openness to funding SMR projects, though she has not committed to supporting large reactors or extending the operational life of existing nuclear plants. Alan Woods, Director of Strategy and Business Development at Rolls Royce SMR Ltd., acknowledged the market potential for nuclear energy but cautioned that the industry’s reputation for cost overruns and delays remains a significant barrier. Woods argued for a standardized, factory-based production model for SMRs, which he believes would demonstrate reliability and efficiency to investors and insurers. Massimiliano Tacconelli, Vice President for Nuclear and Big Science at Walter Tosto, echoed this sentiment, emphasizing the importance of presenting credible, well-defined projects to secure financing.
Legal and regulatory frameworks must also evolve to address the unique challenges posed by new nuclear technologies. Ximena Vasquez-Maignan, legal counsel at White & Case, pointed out that while Europe’s existing legal structures provide a foundation, they require adaptation to address emerging questions about safety and liability related to SMRs. She characterized the current moment as a “new era” for nuclear energy, driven by the urgency to diversify energy sources and reduce carbon emissions.
This shift toward nuclear energy comes in the wake of geopolitical and environmental pressures. Disruptions to natural gas supplies following Russia’s 2022 invasion of Ukraine and the recognition that renewable energy alone may not suffice to meet decarbonization goals have softened Europe’s longstanding opposition to nuclear power. Recent elections across the EU have also seen a decline in support for Green parties skeptical of nuclear energy, with voters favoring center-right groups more open to its development.
Despite this momentum, challenges remain. The new team of European Commissioners, approved on November 27, includes figures who have previously opposed nuclear energy development. Their positions could influence decisions on whether to classify nuclear energy as a clean energy source eligible for broader support. Nevertheless, the growing political will and new initiatives such as the SMR Alliance suggest that Europe is moving toward a more balanced energy strategy that integrates nuclear power as a key component of its decarbonization efforts.
