The private sector no longer wants to invest in nuclear power

While few private companies have invested in the construction of new reactors in recent years, they do remain very active in the operation of existing reactors. There has been a new commitment from private actors in recent years, particularly in the Small Modular Reactors (SMR) sector.

There is no denying that few private companies have embarked on the construction of new nuclear power plants in the last two decades. The construction of the Vogtle 3 & 4 reactors remains the most significant, privately funded project of the last decade [1]. Whether in Europe or the United States, it would nevertheless be wrong to say that private companies have withdrawn from the nuclear power industry.

Private companies are still very active in the operation of power plants

While they have shunned investment in the construction of new reactors, many companies continue to operate nuclear power plants around the world. Most American nuclear power plants are, for example, operated by private companies. Closer to home, Engie, whose capital is mainly private, operates several nuclear reactors in Belgium, and this will last through at least 2035 [2].

Is a reversal of the situation in progress?

The opinion of private investors regarding nuclear energy does seem to be changing, for at least three reasons. First, Small Modular Reactor companies promise to drastically reduce the initial investment required to build nuclear reactors, opening the door to new investors. The investment of GAFAM in new nuclear power projects is also a major change, whether for the construction of SMRs or the reopening of nuclear reactors that had been stopped [3].

New funding mechanisms on the horizon?

Finally, banks now seem more inclined to finance the nuclear sector, as evidenced by the joint statement of 14 large banks pledging to strengthen their support for the nuclear power sector [4]. Nevertheless, this reluctance of private investors when it comes to nuclear energy deserves attention. How can we attract private capital to fund the construction of new nuclear power plants? 

Today, more and more governments are considering new risk-sharing mechanisms that limit the risk borne by the investor for construction. This could reduce the final cost passed on to the consumer while promoting private investment [5].