Jessica Johnson, communications and advocacy director at Nucleareurope, outlines the role of nuclear energy in achieving Europe’s sustainability goals and urges policymakers to establish a balanced net-zero energy system.
Europe is at a critical energy crossroads. To remain competitive and resilient, and to keep climate neutrality on track, we need to make difficult decisions and quickly. The challenge is clear. These are: decarbonisation, securing energy supplies, protecting industrial competitiveness and maintaining energy affordability.
For more than 70 years, nuclear power has provided reliable, clean electricity across Europe. In fact, as highlighted by the Program for Nuclear Illustrations (PINC), nuclear energy offers significant advantages in:
Building a decarbonized EU energy system. It ensures the stability of power systems by contributing not only inertia but also flexibility. Supporting the competitiveness of European industry.
With this in mind, Nuclear Europe calls on policymakers to ensure technology neutrality and a level playing field between all net-zero energy technologies, including nuclear and renewables.
Bridging net-zero technology to a competitive Europe
The challenges are huge. Europe needs 24/7 access to clean and affordable energy sources. The contribution of all net-zero technologies is therefore essential. Nuclear power, renewables, hydrogen, storage, grid infrastructure – these are all key to ensuring that European industry has access to the energy it needs, when it needs it. Furthermore, the focus should be on producing as much net-zero energy as possible in Europe to meet urgent increases in electricity demand (such as from the AI revolution) while promoting the rapid electrification of energy-intensive industries. We must reduce our dependence on energy imports and strengthen Europe’s energy sovereignty.
To achieve all this, we recommend the following:
Significant increase in electrification: One of the best ways to reduce CO2 emissions and move away from fossil fuel imports is to electrify all possible processes. If the European economy does not electrify quickly enough, reaching net zero will be delayed, transition costs will be high and energy sovereignty will be at risk. This must go hand in hand with support for the significant uptake of nuclear and renewable energy on European soil, while ensuring that tax policy does not discriminate against technologies that contribute to electrification, and eliminating unfair taxes and charges that hinder the competitiveness of European industry and exacerbate the EU’s competitiveness with its competitors. Additionally, all system costs must be considered to ensure the most affordable approach. Strengthening the nuclear supply chain: The European Union (EU) nuclear supply chain is critical to ensuring the long-term sustainability, safety and competitiveness of nuclear energy within Europe. However, the supply chain faces several challenges that need to be addressed to maintain a reliable and resilient nuclear energy sector. The EU therefore needs to introduce policies that support the rapid expansion of manufacturing capacity, including fuel cycle facilities where the EU has real assets, in order to increase the security of supply in Europe. This closely aligns with the need to establish a clear long-term vision for the nuclear industry. To reduce dependence on external imports, Europe needs to ensure a safe, diverse and sustainable supply of nuclear material and fuel. The fuel supply chain is a strategic asset for Europe, and long-term policy certainty regarding third-country market access will provide European actors with the confidence and stability they need to invest in domestic production capacity. Cost-effective balancing of power systems: This is key to reducing system costs and thereby prices, as well as developing a portfolio of fossil-free and stable dispatchable assets to accommodate fluctuations of different frequencies and durations. To reduce both electricity costs and prices, demand-side flexibility, storage and nuclear power must be used as balancing technologies. Encouraging clean hydrogen production in the EU: In sectors that cannot be electrified, low-carbon hydrogen can play a role. In this regard, the European Commission needs to ensure support for all clean hydrogen sources, including nuclear, to make this hydrogen more affordable. Moreover, relying on hydrogen imports will not help solve the problem of Europe’s dependence on energy imports. Tackling the skills issue: Many European industries are struggling because Europe lacks a skilled workforce. It is therefore vital that the Commission commits to implementing horizontal activities to equip young people with the right basic skills and encourage them to consider a career in the nuclear industry.
In addition to the five points above, adequate financing must be available. This requires a combination of long-term policy vision and a comprehensive approach.
policy and investment
Policymakers play a key role in leveraging public and private investment. The first step is to realize a long-term vision that gives investors the confidence they need for long-term projects. However, this must be accompanied by non-discriminatory policies, funding and financing mechanisms focused on supporting all technologies that can tackle the challenges Europe faces.
Why is it important? In 2023, the Nuclear Union of EU member states set an ambitious target of 150 GW of nuclear installations in the EU by 2050. Nuclear-related investments typically require large amounts of capital and are financed through a combination of equity and debt, with the ratio of the two varying depending on the project. Private investors can finance projects by providing equity or debt, but the cost of privately financed projects can be higher as a result of the risk profile of nuclear-related investments. As with any capital-intensive investment, financing costs are one of the major factors that affect the total cost of a project. Public financing through loans and guarantees from Member States or the EU has the potential to reduce financing costs and total project costs, and ultimately lower costs for consumers. Clear and understandable mechanisms for accessing public loan guarantees and financing will enable project developers and owners to undertake new investments. Additionally, access to public financial support will also help bring private investors into projects.
Nucleareurope therefore recommends the introduction of the following policies and measures to encourage increased investment in nuclear projects:
To provide predictability to investors, the EU needs to present a concrete long-term vision with a non-discrimination policy that supports all technologies that help achieve the EU’s goals. Therefore, it is essential that nuclear power be treated on an equal footing with renewable energy. Looking specifically at the next Multiannual Financial Framework (i.e. the EU Budget), any new funds (or rollovers of existing funds) envisaged under the next MFF should be technically neutral and therefore not contain provisions that lead to the exclusion of nuclear projects, as they currently are. From an innovation point of view, the next Euratom program should give more funding to nuclear fission projects. The approval process for state aid should be streamlined and expedited.
This article will also be published in the quarterly magazine issue 25.
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