How can markets ramp up nuclear power deployment?

Nuclear power deployment is being held up by high costs.

Governments, developers as well as investors will need to collaborate to enable the expansion of nuclear deployment, Wood Mackenzie reported. 

In a report, Wood Mackenzie recommended that governments need to set out clear rules for planning, permitting, regulation and safety. 

Nuclear power deployment is being held back by high costs with First-of-a-kind small modular reactors costing between US$6,000 and US$8,000 per kiloWatt.

Read more: High cost hinder uptake of nuclear, small modular reactors: report

There will also be a need to expand the supply chain for uranium, following the disruption stemming from Russia’s invasion of Ukraine. 

“Wood Mackenzie projects uranium demand to double under its base-case scenario and triple under its Paris-compliant Global Pledges Scenario,” the report noted.

“Russia is currently a key supplier to both low and highly enriched uranium markets, especially to Eastern Europe and France.”

Developers also need to ensure the expertise and skill set needed to operate nuclear plants are established. This could lead to cost savings and faster deployment, Wood Mackenzie added.

Moreover, offtake agreements need to highlight the value of nuclear energy in addressing the climate challenge.