The Critical Role of Nuclear Power in the Global Energy Discussion
Next-gen computing and vehicle electrification are driving greater demand for electricity. Nuclear may be a source to help meet it; find out how in our latest Off the Cuff video with Ashley Misquitta, CFA, Senior Portfolio Manager and Investment Strategist.
What are some of the key benefits of nuclear power?
Nuclear power has gained a greater role in the global energy discussion because it’s one of the few solutions to increase electricity production without expanding fossil fuel consumption and carbon emissions. Unlike intermittent energy sources like solar and wind power, nuclear power is capable of operating twenty four-seven to meet baseload demand, more adequately matching the demand of large industries and transportation, which could speed up the electrification of these sectors.
Nuclear power is also the second largest source of low carbon power globally, second only to Hydroelectric.1 In a report released by the International Atomic Energy Agency, Nuclear released comparable amounts of CO2 per Kilowatt hour as wind but much less than solar.2 This is an important consideration as countries around the world enact policies to meet their climate commitments.
Finally, another key benefit of nuclear power is that it’s really energy dense. That means it can generate a large amount of electricity from a small amount of fuel, creating a lower carbon footprint. Because of this energy density, nuclear power generation is also the most land-efficient source, requiring eighteen to twenty-seven times less land than on-ground solar per unit of electricity.3
Isn’t nuclear waste detrimental to the environment?
That’s actually a common misconception. The volume of nuclear waste is relatively small. To put this in perspective, if you were to line up all the casks that contain nuclear waste generated since the nineteen-fifties, they would fit onto a single football field to a height of about ten yards.4 And that’s according to the United States Department of Energy.
But that’s not all. Ninety-six percent of spent nuclear fuel by volume can be reused to manufacture new fuel, which will then supply more electricity.5 We are already seeing this take place in countries like France.6
This is in contrast to the waste produced by natural gas, coal or even the waste products made by processing the materials used in the production of solar panels, many of which are released into the atmosphere.
From 1971 to 2009, research suggests that nuclear power systems have prevented 1.84 million air pollution-related deaths.7
What countries currently lead in the adoption of nuclear power, and how might this change in the future?
Globally, around thirty-two countries currently use nuclear energy to generate electricity.8 I’ve got three data points for you. First off, France is actually leading the way in terms of the proportion of electricity on the grid that is generated by nuclear power.
Nuclear power currently generated 70% of France’s electricity on the grid.9
But by volume, the U.S. is the largest producer, with ninety-four reactors.10 What’s more, Energy Secretary Granholm recently called for the US to add 200 Gigawatts of nuclear power to meet the US’ net zero goals by 2050. And remember that the recently built AP1000 reactors built in Georgia are 1.1 gigawatts, so we’re talking in the range of one hundred and eighty or so new reactors.11
And then you have China who have ramped up new construction with seventeen reactors under construction, and seventy more planned before 2035. This is on top of their existing fifty-five reactors.12
The rapid adoption by China and the west is also driven by geopolitical imperatives.
From China’s perspective, accelerating their nuclear power production enables them to reduce their dependence on foreign oil relying instead on neighboring Kazakhstan for uranium to drive part of their electricity production.
From the West’s perspective, growing domestic nuclear capacity will allow us to utilize largely self-contained supply chains for uranium and construction of the nuclear power plants as we strive to meet net zero goals. This is going to reduce reliance on solar power in a world where China will control over eighty percent of global solar manufacturing capacity.13
1Nuclear Power in the World Today”, World Nuclear Association, https://world-nuclear.org/information-library/current-and-future-generation/nuclear-power-in-the-world-today, May 4, 2024
2Source: Schlömer S., T. Bruckner, L. Fulton, E. Hertwich, A. McKinnon, D. Perczyk, J. Roy, R. Schaeffer, R. Sims, P. Smith, and R. Wiser, 2014: Annex III: Technology-specific cost and performance parameters. In: Climate Change 2014: Mitigation of Climate Change. Contribution of Working Group III to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change [Edenhofer, O., R. Pichs-Madruga, Y. Sokona, E. Farahani, S. Kadner, K. Seyboth, A. Adler, I. Baum, S. Brunner, P. Eickemeier, B. Kriemann, J. Savolainen, S. Schlömer, C. von Stechow, T. Zwickel and J.C. Minx (eds.)]. Cambridge University Press, Cambridge, United Kingdom and New York, NY, USA
3Source: Ritchie, Hannah, “How does the land use of different electricity sources compare?”, https://ourworldindata.org/land-use-per-energy-source , June 16, 2022
4Office of Nuclear Energy, “5 Facts about Spent Nuclear Fuel”, https://www.energy.gov/ne/articles/5-fast-facts-about-spent-nuclear-fuel,
October 3, 2022
5Orano Fuel, https://www.orano.group/en/nuclear-expertise/from-exploration-to-recycling/world-leader-in-recycling-used- nuclear-fuels, accessed June 2024
6World Nuclear News, “France sets out long-term nuclear recycling plans”, https://world-nuclear-news.org/Articles/France-confirms-long-termrecycling-plans, March 8, 2024
7Source: Sovacool, Benjamin K., Monyei, Chukwuka G. “Positive Externalities of Decarbonization: Quantifying the Full Potential of Avoided Deaths and Displaced Carbon Emissions from Renewable Energy and Nuclear Power”, April 2021.
8IAEA, Power Reactor Information System, https://pris.iaea.org/pris/worldstatistics/nuclearshareofelectricitygeneration.aspx,
June 2024
9Source: “Nuclear Power in France”, World Nuclear Association, https://world-nuclear.org/information-library/country-profiles/countries-a-f/france, Accessed June 2024
10IAEA, Power Reactor Information System, https://pris.iaea.org/PRIS/WorldStatistics/OperationalReactorsByCountry.aspx, June 2024
11Source: “Remarks Delivered by Secretary Jennifer M. Granholm on Startup of Vogtle Unit 4 and Growth of U.S. Nuclear Industry”, https://www.energy.gov/articles/remarks-delivered-secretary-jennifer-m-granholm-startup-vogtle-unit-4-and-growth-us, May 31, 2024
12Source: “China is building nuclear reactors faster than any other country”, The Economist, https://www.economist.com/china/2023/11/30/china-is-building-nuclear-reactors-faster-than-any-other-country, November 30, 2023
13“China to hold over 80% of global solar manufacturing capacity from 2023-26”, Wood Mackenzie, https://www.woodmac.com/press-releases/china-dominance-on-global-solar-supply-chain/, November 7, 2023
This video includes forward-looking information based on the opinions and views of The Empire Life Insurance Company and Empire Life Investments Inc. as of May 31, 2024 and is subject to change without notice.
The information contained herein is for general informational purposes only and should not be considered a recommendation to buy or sell any security, nor should it be relied upon as investment, tax, or legal advice. Empire Life and its affiliates assume no responsibility for any reliance on, misuse of, or omission of any information contained in this video; and do not warrant or make any representations regarding the use or the results of the information contained herein in terms of its correctness, accuracy, timeliness, reliability, or otherwise, and do not accept any responsibility for any loss or damage that results from its use.
Please seek professional advice before making any investment decisions.
Empire Life Investments Inc. is the Portfolio Manager of certain Empire Life segregated funds. Empire Life Investments Inc. is a wholly-owned subsidiary of The Empire Life Insurance Company.
A description of the key features of the individual variable insurance contract is contained in the Information Folder for the product being considered. Any amount that is allocated to a segregated fund is invested at the risk of the contract owner and may increase or decrease in value. Please read the information folder, contract and fund facts before investing. Performance histories are not indicative of future performance.
All other trademarks are the property of their respective owners.
® Registered trademark of The Empire Life Insurance Company. Empire Life Investments Inc. is a licensed user of this trademark.
July, 2024
