Discussions about the nuclear energy revival have become almost commonplace in media and investment circles. Recent public and regulatory acceptance, including inclusion in sustainable taxonomies, is now translating into financial backing. A crucial trend is emerging as nuclear projects start securing construction finance.
It cannot be said, of course, that funds for the nuclear industry have been entirely absent before. As Robert Bryce wrote in his book “A Question of Power: Electricity and the Wealth of Nations”, nuclear energy startups received USD 381 million in investments in 2020. In 2021, this figure reached USD 3.4 billion and continued to rise. The U.S. Infrastructure Investment and Jobs Act providing for USD 1.2 trillion in finance is another example. Of this, USD 6 billion is allocated to prevent the decommissioning of existing nuclear power plants, and USD 2.5 billion is earmarked for an advanced reactor demonstration program (launched in 2020).
For all that, startup companies are not yet installations approved by the regulator. Decommissioning is not commissioning, and advanced reactor projects in the U.S. remain startups, with the overwhelming majority yet to receive regulatory approval. Therefore, a landmark event would be securing finance for construction, especially for large-scale reactors requiring substantial investments. This is what IAEA Director General Rafael Grossi and WNA Director General Sama Bilbao y León have emphasized over the past few years.
Nations interested in preserving and developing their carbon-free and reliable nuclear capacities have begun allocating large funds to finance nuclear projects.
Russia and China lead in nuclear energy investments. China dominates domestic construction, while Russia excels internationally. Financing assistance is one of the options Rosatom offers its clients during the negotiations of contract terms. Additionally, Rosatom and its affiliated organizations secure ‘green’ loans from commercial banks to fund nuclear projects.
Gradually, nuclear projects in other countries are also beginning to receive funding. Here are several recent examples.
In March, the French President’s office announced that the government had agreed to provide EDF, which owns the country’s nuclear power plants, with a subsidized loan covering at least half the cost of constructing six reactors. The financing-related matters are expected to be resolved within the coming weeks. Subsequently, documents will be submitted to the European Commission for approval.
French President Emmanuel Macron announced plans to build a series of new reactors in early February 2022. Media reports mentioned six power units with EPR2 reactors, with an option to construct eight more. These new units are intended to partially replace those being decommissioned and increase the total installed capacity of French nuclear power plants.
In 2022, costs for the six units were estimated at around EUR 50 billion. However, in March 2024, French media cited sources indicating EUR 67.4 billion. It is not improbable, though, that the figure may rise further. According to EDF data from November 2023, total costs for constructing Unit 3 of the Flamanville Nuclear Power Plant were estimated at EUR 22.6 billion. Flamanville 3 is the only unit built in France in the 21st century and can be considered as a benchmark for expenditures.
Polish President Andrzej Duda signed a law allocating PLN 60 billion (USD 14.4 billion) for constructing the country’s first nuclear power plant at the Lubiatowo-Kopalino site in Pomerania. Earlier this year, in January, the Polish government approved the funding, followed by parliamentary approval in February.
The law provides for covering 30% of the capitalization of the state-owned utilities company Polskie Elektrownie Jądrowe (PEJ), which is in charge of construction. Another 70% is expected to come from external sources. Thus, the total amount of investments acquired should reach EUR 48 billion.
The project has been under review by the European Commission since December 2024. PEJ is negotiating with the general contractor, a consortium of Westinghouse and Bechtel. Construction of the first unit is expected to begin in 2026, with the plant to generate its first electricity in 2033.
India has focused on small-scale generation capacity. The 2025 national budget allocates about USD 2.5 billion for designing and deploying small modular reactor (SMR) nuclear power plants. India’s Department of Atomic Energy is working on the design of a 200 MW BSMR-200 reactor. It is a natural circulation pressurized heavy water reactor (PHWR) expected to run on low-enriched uranium. The conceptual design of the BSMR is complete and awaiting approval. The estimated construction time is 60 to 72 months from the project approval. India is also developing a similar 55 MW reactor design. By 2033, India aims to have at least five operational power units with domestically designed small modular reactors.
Additionally, India continues its large-scale nuclear power plant construction program. In February this year, Finance Minister Nirmala Sitharaman confirmed the Indian government’s plans to increase the country’s total installed nuclear capacity to 100 GW by 2047 (it currently stands at 7.55 GW). Six units with an aggregate capacity of 4.7 GW are under construction. Four of these units are the second and third phases of the Kudankulam Nuclear Power Plant with Russian-designed VVER-1000 reactors. The Russian and Indian parties are discussing the construction of six large-capacity units at a new site in India, as well as an SMR plant.
In March, the U.S. Department of Energy disbursed USD 56.8 million from a USD 1.52 billion bank guarantee for the Palisades Nuclear Generating Station restart project. Its only 800 MW unit was shut down in May 2022 and later acquired by Holtec International. Initially planning to decommission the unit, the company decided to restart it instead. The March disbursement is the second under the bank guarantee; the first disbursement was made in September last year.
Companies are finding alternative investment vehicles. For instance, Czech energy company ČEZ closed a deal in March this year to purchase a 20% stake in British Rolls-Royce, a developer of small modular reactors. According to Czech Prime Minister Petr Fiala, the investment amounted to ‘several hundred million pounds’. Later this year, ČEZ and Rolls-Royce plan to discuss terms for supplying the first power unit. The companies aim to deploy small modular reactors with a combined capacity of up to 3 GW. ČEZ also intends to participate in deploying British small modular reactors in other countries. If the project reaches implementation, the deal will facilitate Rolls-Royce’s entry into the Czech electricity market and provide ČEZ with component supplies for Czech and international small modular reactors.
Another option is raising funds through public platforms. In early March, South Korea’s Korea Hydro & Nuclear Power Co (KHNP) issued green bonds worth HKD 1.2 billion (USD 154 million). Proceeds will finance research and development programs related to nuclear power plants and nuclear safety enhancement. The company stated that issuing green bonds would enable it to raise funds for nuclear projects at lower interest rates.
This form of investment in nuclear energy is preferred by tech companies. Last autumn, Microsoft, Google, and Amazon struck deals with nuclear power plant operators and developers for the supply of electricity to data centers. Google partnered with Kairos Power, Amazon with X-Energy. Microsoft opted not for startups but for restarting the shut-down unit of the Three Mile Island Nuclear Generating Station (owned by Constellation Energy).
We have highlighted just a few options of financing major nuclear projects. Smaller projects exist, such as the development of a new 1,000 MW heavy water Candu Monark reactor design, with the Canadian government to provide CAD 304 million (USD 212 million) in financing over four years.
Some investments still await approval. South Africa’s budget provides for ZAR 1.2 billion (about USD 66 million) to be allocated for constructing a multi-purpose reactor in Pelindaba. The budget requires parliamentary approval. However, the funds will fall short. The government’s task is to find partners who will provide not only the lacking funds but also technology.
In late March, the Swedish government submitted a nuclear energy investment bill to the parliament. If passed, the bill will secure public support and subsidized government loans for the design, engineering, construction and tests of four nuclear power units with a combined electrical capacity of 5 GW, and also establish a price-setting mechanism based on contracts for difference. Public finance is expected to be included into the 2026 budget draft. Starting August 1, interested organizations can apply to construct new units. Future supply prices are planned to be negotiated between applicants and the government.
There are also complex structured projects like the service life extension of Doel 4 and Tihange 3 in Belgium. The financing of these projects involves partial nationalization of Electrabel, transferring spent fuel management obligations from the energy company to the Belgian government, and payments.
Nations interested in preserving and developing their carbon-free and reliable nuclear capacities have begun allocating large funds to finance new capacity constructions, life extensions, and even restarts.
The most common form of finance is government-subsidized loans or government loan guarantees.
Also widespread is the contract for difference mechanism, where the government and energy company agree on electricity tariffs. If the market price falls below the tariff, the government compensates the company, and vice versa if it is higher.
Companies use equity and debt financing, or long-term power purchase agreements. This is possible due to the high resilience of nuclear generation to changes in nuclear fuel prices.
Most strikingly, banks — whose functions include financing projects, including energy ones — do not appear among organizations investing in nuclear energy. It is true that 14 banks supported tripling nuclear capacities by 2050 in September last year, but there is no news of loans issued for constructing nuclear power plants so far. It is also true that IAEA Director General Rafael Grossi welcomed progress toward lifting the World Bank’s unjustified ban on financing nuclear energy. However, ‘progress toward’ and expressions of support are not signed contracts or money reaching the accounts of those actually designing, building, launching, and operating nuclear plants.
It can be said therefore that the flywheel of nuclear energy investments was finally put in motion, but it is still only gaining momentum.
Photo by: Wikipedia, The IAEA, X-Energy
