UK-based international data analytics and consultancy company GlobalData has forecast that nuclear energy generation, worldwide, will see a compound annual growth rate of 2% over the period 2024 to 2035. In numbers, this will see an increase from a global total of 2 616 TWh last year to 3 410 TWh in 2035. Global installed nuclear capacity will grow from 395 GW last year to 494 GW by 2035. A key factor in this growth will be the roll-out of small modular reactors (SMRs).

“The growing focus on energy security due to geopolitical tensions, increasing demand for low-demand for low-carbon dispatchable power, government support through regulations and incentives such as grants, loan guarantees, production and investment tax credits, and market-based mechanisms like Contracts for Difference, advancements in SMRs and next-gen technologies, and a surge in electricity demand from data centres are the major reasons behind the increasing adoption of nuclear energy worldwide,” reports GlobalData Power analyst Mohammed Ziauddin.

In addition to the advent of SMRs, described as a “transformative solution”, new large nuclear power plants (NPPs) are also being built and commissioned (especially in Asia), and existing NPPs are having their lives extended. These developments are being facilitated by supportive policies being implemented by countries around the world.

Currently, the US is still the largest nuclear energy producing country, with a total installed nuclear capacity of 97 GW; with this capacity, it generated 787.6 TWh of nuclear electricity last year.  In terms of installed capacity, last year France still ranked second, at 61.4 GW, with China now third, at 56 GW. But China’s younger fleet of NPPs generated more electricity (386.1 TWh) than France’s older fleet (333.3 TWh – which was more than 60% of French electricity generation).    

Typically, SMRs have capacities of less than 300 MW (there are exceptions). Although there are a range of SMR designs and technologies, all of them are compact, have advanced safety features, and can be manufactured in factories, transported to and assembled on site. They can be flexibly deployed, and are very good for remote locations and smaller grids, as well as for industrial applications.

Although only three SMRs were active last year, the SMR “pipeline” was growing fast, with more than 100 at varying stages of development. Of these, six were under construction, four had been financed, and 33 were undergoing permitting. The development of SMRs is being spearheaded by (in GlobalData’s order) the US, Canada, the UK, China, and Russia.

“With growing concerns over climate change and energy security, nuclear power has re-emerged as a crucial pillar in the global energy transition,” highlighted Ziauddin. “Governments across the world are implementing ambitious net-zero targets and investing in clean, dispatchable energy sources to decarbonise their economies. Nuclear energy, with its ability to provide reliable baseload power and reduce dependency on fossil fuels, is playing a vital role in this transition. As countries ramp up their focus on SMRs, lifetime extensions, and advanced nuclear technologies, the nuclear power market is poised for long-term growth, driven by the dual goals of energy resilience and climate neutrality.”