Unlocking financing for nuclear energy infrastructure in the COVID-19 economic recovery

Abstract

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.