European Union countries’ plans to expand nuclear energy will require 241 billion euros ($278 billion) in investments, and new funding instruments to make these huge costs less risky for private investors, the European Commission said on Friday.
EU countries have set out plans to expand their nuclear power capacity to 109 gigawatts by 2050, up from 98 GW today, the Commission said in a draft analysis of investment needs for the sector, due to be published on Friday.
Those plans would require investments of 205 billion euros in new nuclear power plants, plus 36 billion euros to extend the lifespan of existing reactors, including both public and private money, the draft said.
Nuclear power generated around 24% of the EU’s electricity last year.
With recent nuclear projects in Europe running over budget and facing long delays, the Commission said more financial instruments were needed to attract private investors put off by these risks and huge upfront costs.
A five-year delay to planned new projects would add an extra 45 billion euros to the estimated cost of them by 2050, it said.
“A combination of diverse sources of financing complemented by de-risking instruments may be the response,” the Commission said.
The draft document was first reported by Bloomberg News.
EU countries have long disagreed over whether to promote nuclear power to achieve CO2 emissions targets. At the centre of the debate are France, which relies on nuclear power as its top electricity source, and Germany, which under previous governments opposed it.
As a result, EU energy policies have typically not singled out nuclear with incentives or targets, and the EU budget does not support the building of new nuclear power plants.
The draft document said the Commission and the European Investment Bank will launch a 500-million-euro pilot programme of power purchase agreements, for which nuclear projects will be eligible.
Twelve of the EU’s 27 member countries currently have nuclear reactors, with France holding by far the biggest fleet. Slovakia and Hungary have new reactors under construction, while countries including Poland hope to build their first plants.
($1 = 0.8666 euros)
(Reporting by Kate Abnett and Julia Payne)
