During the height of the Cold War, nuclear power was seen as one of the major breakthroughs of the era, providing countries with the possibility of delivering energy too cheap to meter.
Yet, in the wake of high-profile accidents like Three Mile Island, Chernobyl, and Fukushima, the momentum behind nuclear energy stalled, while public opposition grew, regulatory burdens increased, and innovation slowed.
Today, nuclear energy accounts for just 9% of the global electricity mix, sliding from roughly 18% near the end of the 1990s, according to analysts at the Goldman Sachs Global Institute.
But, they argued, following decades of underinvestment, the need to harness more electricity to underpin artificial intelligence models, as well as intensifying geopolitical competition, are converging to position nuclear energy for a "renaissance."
However, the Goldman analysts including George Lee flagged, "the next nuclear age will look different from the last."
"While nuclear energy is typically associated with nuclear fission on account of its commercialization decades ago, there are actually two distinct forms of nuclear energy that exist, fission and fusion. Innovations in fission like small modular reactors are shaping what the revival of traditional nuclear fission could look like. Separately, the advent of fusion energy represents a technological breakthrough that could revolutionize how energy is generated, with the potential to disrupt global energy markets," they wrote.
Taken together, they said advancements in fission and fusion could change "not just how nuclear power is produced, but how nations compete cooperate, and secure their energy futures."
Fission, which is currently utilized in nuclear plants, splits atoms to produce energy and radioactive waste. Fusion, the power source of stars, brings together light atoms such as hydrogen to create helium and a less radioactive energy source, although it needs much hotter and more complex conditions to harness.
Globally, countries that master cutting-edge nuclear technology stand to gain "not only energy security" but also "longstanding commercial relationships, soft power, and the ability to shape global norms," the analysts predicted. To capture the opportunity, more investment, along with new regulatory frameworks and forms of government support will be required, they said.
While President Donald Trump’s promise to quadruple nuclear power generation by the middle of the century may be the "starting gun" for America’s race to reassert its dominance in the field, U.S. policymakers and corporate executives must contend with a domestic industry that has become "less competitive" compared to those in country’s like China and Russia, the analysts said.
At the moment, they added, China is specifically the "most prolific investor in nuclear energy in the world," putting it on pace to leapfrog the U.S. in terms of generation of the power source by 2030. Russia, meanwhile, is more focused on "international influence" rather than a domestic buildup, with the state-backed Rosatom State Atomic Energy Corporation now building 19 reactors across the world.
Still, some advanced economies may face "greater challenges" scaling up their nuclear power capabilities, they warned, noting that the U.S. in particular has allowed its "domestic nuclear industry and supply chains to erode." The workforce required to meet Trump’s 2050 nuclear energy demands would also need to triple from its present levels, they said.
In order for the U.S. to build out nuclear plants faster, the country will need to streamline regulations and lean on its technological advantages, especially in AI, the analysts said. They highlighted a recent $100 million deal between data analytics giant Palantir and a nuclear deployment company to develop AI-driven software systems for the construction of nuclear reactors, along with a collaboration between Westinghouse Electric Company and Google’s Cloud AI division to accelerate the construction of new Westinghouse nuclear reactors and optimize existing facilities.
Source :
https://www.investing.com/news/stock-market-news/these-analysts-say-nuclear-energy-is-positioned-for-a-renaissance-heres-why-4270741
