BRUSSELS: The European Union’s ambitious plans to expand its nuclear energy capacity will require a staggering €241 billion (US$278 billion) in total investments, according to a draft report by the European Commission.
In a preliminary analysis of the sector’s investment needs—scheduled to be published today—the Commission noted that EU member states aim to increase nuclear power capacity from 98 gigawatts (GW) today to 109 GW by 2050. This includes both new nuclear projects and the extension of existing facilities.
Of the total required investment, €205 billion is expected to go into constructing new nuclear power plants, while another €36 billion will be needed to extend the operational lifespan of current reactors. Funding will need to come from both public and private sources.
Last year, nuclear energy contributed approximately 24% of the EU’s total electricity generation.
However, recent nuclear projects in Europe have suffered from major delays and cost overruns, raising concerns among private investors. In response, the Commission stressed the need for new financial tools to mitigate investment risks and manage the high upfront costs.
“A five-year delay in planned nuclear projects could increase total costs by an additional €45 billion by 2050,” the draft warns.
To address this, the report suggests a mix of funding sources along with de-risking instruments, such as government-backed guarantees or long-term power purchase agreements (PPAs).
Although nuclear energy has long divided EU member states—France strongly supports it, while Germany has moved away from it—the Commission now appears to be taking a more pragmatic approach. Unlike renewable energy, nuclear has not been traditionally targeted for EU subsidies or incentives, and the bloc’s main budget does not currently support the construction of new nuclear facilities.
Nevertheless, in a significant policy shift, the draft report reveals that the European Commission and the European Investment Bank will jointly launch a €500 million pilot programme for PPAs, for which nuclear projects will qualify.
At present, 12 out of the EU’s 27 member states operate nuclear reactors. France remains the dominant player with the largest fleet. Meanwhile, countries like Slovakia and Hungary have reactors under construction, and Poland is among those looking to build their first.
