After decades of stagnation in Western nuclear markets, there is a genuine renaissance underway in nuclear energy sector investments globally. A combination of energy security concerns, climate commitments and the promise of advanced nuclear technologies is driving a wave of new projects — though significant challenges around cost and construction timelines remain.
New Build Activity: East Leads West
China’s energy strategy remains the most active nuclear construction market by far, with more reactors under construction than the rest of the world combined. Chinese state-owned nuclear companies have mastered a standardised approach to nuclear construction that has significantly reduced costs and timelines compared to the bespoke projects that have struggled in Western markets.
South Korea, India’s growing energy demand and several Eastern European countries are also actively building new nuclear capacity. The US and UK have seen renewed interest, with several advanced reactor projects in development and the first new reactors in a generation under construction.
Small Modular Reactors: The Technology Bet
Much of the Western nuclear renaissance excitement centres on small modular reactors (SMRs) — compact, factory-built reactors in the 50–300 MW range that proponents claim will be cheaper and faster to build than conventional large reactors. Several SMR designs are in advanced development in the US, Canada and UK, with first commercial plants targeted for the late 2020s and early 2030s.
The Challenge: Cost and Time
The history of recent Western nuclear construction projects — including Hinkley Point C in the UK, Vogtle in the US and Flamanville in France — has been marked by significant cost overruns and construction delays. Resolving these execution challenges is essential for nuclear to play the role its proponents envision in the energy transition progress.
