2. Nuclear power and the cost-effective decarbonisation of electricity systems
The NEA encourages governments to take advantage of the post‑COVID‑19 economic recovery to accelerate the energy transition towards meeting climate objectives.
- Post‑pandemic recovery plans to reconcile climate objectives with economic goals need to put system costs at the heart of energy policy.
- Nuclear energy projects achieve deep decarbonisation with optimal use of land and mineral resources.
- Moving to a carbon neutral electricity system without nuclear power would significantly increase system costs and threaten security of supply.
- Achieving cost‑effective decarbonisation requires structural reform of the electricity market.
3. Creating high-value jobs in the post-COVID-19 recovery with nuclear energy projects
Nuclear power is capable of supplying large amounts of low‑carbon electricity and heat cost‑effectively while creating a large number of high‑value jobs in the local and national economies.
- The post‑COVID‑19 economic recovery is a perfect opportunity to create jobs and economic development while continuing to move ahead with the energy transition.
- Investing in nuclear energy creates a large number of high‑skilled jobs, accelerates the transition to a low‑carbon economy, and increases energy resilience.
- Nuclear energy projects are a proven way to create large numbers of long‑term, high‑skilled domestic jobs that pay premium wages.
- Nuclear projects provide high spill‑over investment into the local and regional economy.
4. Unlocking financing for nuclear energy infrastructure in the COVID-19 economic recovery
The sheer size of nuclear projects might be a barrier in some markets where private investors are looking for short‑term paybacks. However, during a period of economic recovery, large‑scale and long‑term energy infrastructure projects, such as nuclear power plants, can galvanise the social cohesion and economic spill‑overs required to relaunch general economic activity
- Governments should incentivise investments in resilient low‑carbon energy infrastructure, such as nuclear energy, in the aftermath of the COVID‑19 pandemic.
- Proper policy and market frameworks to incentivise investment in essential infrastructure that supports low‑carbon electricity security and economic development are needed.
- Transitional, targeted government support for nuclear energy projects will be indispensable to unlock the benefits of nuclear energy in the post‑COVID‑19 economic recovery.
- Government support can and should be leveraged to attract cost‑effective private financing to deliver nuclear energy infrastructure projects.
- There is currently a window of opportunity for governments to support sustained cost reductions in nuclear energy projects through timely new build decisions – thus reinforcing the process of learning by doing and allowing these designs to move along their learning and cost curves.
During the COVID‑19 crisis, nuclear power has continued to generate electricity reliably and around the clock, ensuring the continuous resilient operation of critical services indispensable to cope with the global health crisis and maintain social stability. Nuclear power has been an important source of power system flexibility, helping to maintain electricity security by operating in a load‑following mode, complementing the supply of variable renewable generation.
- Electricity security is an essential public need, at the same level as food security and access to health care.
- Nuclear energy is a key contributor to electricity security and already contributes positively to building a low‑carbon resilient infrastructure at the plant and system levels.
- Nuclear energy, both new nuclear projects and the long‑term operation of existing reactors, can play a key role in the post‑COVID‑19 economic recovery efforts by boosting economic growth in the short term, while supporting, in a cost‑effective manner, the development of a low‑carbon resilient electricity infrastructure in the long term.