Global Nuclear Power: A Shifting Landscape

Global nuclear energy production is undergoing a significant change, marked by diverging trends and a changing geopolitical distribution. while some nations are reducing their reliance on nuclear power, others are aggressively expanding capacity, driven by energy security concerns and climate change mitigation efforts.

Asia Leads Expansion

the most dramatic growth is occurring in Asia. China is spearheading this expansion,experiencing nearly 13% annual growth in nuclear output.India and South Korea are also demonstrating consistent increases,albeit at a more moderate pace. This surge in Asian nuclear capacity signals a clear shift in the global power dynamic, moving away from traditional dominance by Western democracies towards countries prioritizing long-term infrastructure investments supported by state-level agendas.

North America: Stability and Aging infrastructure

The United States remains the world’s largest nuclear energy producer, generating approximately 850 terawatt-hours (TWh) annually, representing 29.2% of global nuclear output. However, this stability masks a gradual decline in older plants and a historical lack of new construction.2023 and 2024 saw a significant milestone with the commissioning of Vogtle units 3 and 4 in Georgia – the first new nuclear power plant built in the U.S. in over three decades. These reactors added over 2,200 megawatts of capacity, enough to power more than a million homes, but the project was characterized by considerable delays and cost overruns.

Canada’s nuclear output has decreased from 106 TWh in 2016 to 85 TWh in 2024, attributed to plant maintenance and policy changes. Mexico’s production has fluctuated considerably, potentially indicating operational issues.

Europe: Divergent Paths

Europe presents a contrasting picture. Western European nations are generally reducing their nuclear capacity:

France, historically a leader in nuclear reliability, has seen output decline from 442 TWh in 2016 to 338 TWh in 2024, due to maintenance challenges and political uncertainty.
Germany has completed its nuclear phase-out, reaching zero nuclear output.
Belgium, Switzerland, and Sweden are pursuing a mix of plant retirements and life extensions.

Japan has restarted some reactors,but production remains significantly below pre-Fukushima levels – 84 TWh in 2024 compared to over 300 twh in 2010.
Taiwan is phasing out nuclear power, with production falling from 42 TWh in 2016 to 12 TWh in 2024.
Pakistan and Iran are experiencing steady, albeit modest, growth in nuclear output.

Looking Ahead

The global nuclear energy landscape is becoming increasingly polarized. Nations prioritizing energy security and climate goals are investing in nuclear power, while others are moving away from it. The focus of growth is shifting from traditional Western producers to countries willing to commit substantial long-term capital and policy support.

For investors,Asia and the Middle East are likely to be the primary drivers of future growth,rather than Europe and North America.This shift also presents environmental benefits, especially in China, where replacing coal-fired power with nuclear energy offers a significant possibility to reduce carbon emissions.Each gigawatt of capacity shifted from coal to nuclear in China represents a substantial step towards mitigating climate change.