ASEAN can tap global expertise to fuel nuclear energy growth: World Nuclear Association

Key Concepts

• Alternative Energy: Energy sources that are alternatives to fossil fuels, such as nuclear energy.
• Net Zero Carbon Emissions: A state where the amount of greenhouse gases emitted into the atmosphere is balanced by the amount removed.
• Nuclear Energy: Energy released from the nucleus of an atom, typically through nuclear fission.
• Small Modular Reactors (SMRs): Smaller, factory-built nuclear reactors that can be deployed more quickly and affordably than traditional large-scale reactors.
• Capacity Factors: A measure of how much electricity a power plant actually produces compared to its maximum potential output over a given period.
• Global Supply Chain: The interconnected network of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer on a global scale.
• Energy Independence: A state where a country or region can meet its energy needs without relying on imports from other countries.
• Public-Private Partnerships (PPPs): A cooperative arrangement between one or more public sector entities and one or more private sector entities to deliver a project or service traditionally provided by the public sector.

Nuclear Energy's Growing Role in Asia

The Singapore International Energy Week highlights the increasing momentum behind alternative energy sources, particularly nuclear energy, as Asia grapples with its growing power demands and the global imperative to transition away from fossil fuels towards net-zero carbon emissions by 2050. Asia is identified as the primary driver of global nuclear growth, with the International Energy Agency (IEA) predicting its global share to reach 30% by 2030.

World Nuclear Association Performance Report

Sama Bilba Leon, Director General of the World Nuclear Association, shared insights from their performance report, indicating that the world generated more nuclear energy in 2024 than ever before. This growth is attributed to both the high generation levels and record-high capacity factors, demonstrating the excellent performance of the existing nuclear fleet. The focus is on maintaining and enhancing this performance while simultaneously constructing new nuclear power plants.

Corporate Investment and Dual Approach

Large technology companies like Meta, Google, Microsoft, and Amazon are increasingly engaging in long-term nuclear power deals to meet the substantial energy needs of their data centers. This engagement takes a dual approach:

• Short-term: Securing energy from existing nuclear power plants through long-term contracts.
• Medium-term: Investing in new reactor technologies, including Small Modular Reactors (SMRs), with companies like Kairos and X-Energy receiving investment.

Bottlenecks and Challenges in Asia

While countries like China and India face fewer bottlenecks in their nuclear energy development, other parts of Asia, particularly ASEAN countries, are newcomers to the nuclear space. These emerging markets require significant development in:

• Legal and Regulatory Frameworks: Establishing robust legal and regulatory structures.
• Infrastructure: Building the necessary physical infrastructure for nuclear facilities.
• Financing: Securing adequate financial resources for projects.
• Supply Chains: Developing reliable supply chains for nuclear components and fuel.
• Workforce: Training and developing a skilled workforce for the nuclear industry.

Regional Connectivity and Nuclear's Role in Southeast Asia

Southeast Asian countries are investing approximately $100 billion by 2045 in cross-border electricity sharing and power grid development. Reliable nuclear energy is seen as essential to this initiative, enabling the sharing of generated capacity across the region. This regional approach, similar to successful models in Europe and North America, is expected to be highly beneficial for ASEAN countries.

Lessons from Japan and Other Asian Nations

Japan, despite having numerous nuclear reactor plants, is experiencing challenges with its electricity grids keeping pace. The country is accelerating the restart of existing units and contemplating the construction of new ones to meet its 2050 energy demand targets. Japan's extensive experience is expected to be valuable for other ASEAN countries. South Korea and China are also highly experienced in nuclear energy. China, with over 20 plants under construction, is primarily focused on its domestic market but also supports nuclear development in Pakistan, indicating a willingness to share its expertise with ASEAN nations.

Global Nature of the Nuclear Industry

The nuclear industry is inherently global, with multinational teams collaborating on projects worldwide (e.g., UAE, Bangladesh, Turkey, UK, Czech Republic, France). This global supply chain, know-how, and expertise provide assurance for achieving energy independence, even with diverse reactor designs and technologies.

Singapore's Exploration of Small Modular Reactors (SMRs)

Singapore, a city-state by the sea, is exploring nuclear energy, with a particular interest in SMRs. For Singapore to integrate nuclear into its energy mix, it must adhere to stringent global safety standards and international conventions governing the design, construction, operation, and maintenance of nuclear power plants. Floating reactor designs are among the many options available for city-states like Singapore, offering potential solutions for energy provision.

Advancements in Reactor Safety and Affordability

The nuclear industry has continuously learned from over 60 years of operation, leading to enhanced safety and operational practices. Advanced reactor designs, including SMRs, are designed to be more effective, built modularly in factories, and are expected to be more affordable and faster to deploy, making them suitable for locations like Singapore.

Financing Hurdles for Nuclear Projects

While the finance community is keen to invest in nuclear projects, a key hurdle is the need for clarity on the long-term viability and profitability of these projects. Public-private partnerships (PPPs), where governments provide a clear long-term vision, are proving to be a successful model for securing financing. The financing of Sizewell C in the UK, involving a collaboration between private investors and the UK government, is cited as a prime example.

Conclusion

The discussion at the Singapore International Energy Week underscores the significant and growing role of nuclear energy in meeting Asia's power needs and achieving net-zero targets. While challenges exist, particularly for newcomer nations in developing necessary infrastructure and securing financing, the global nature of the industry, advancements in technology like SMRs, and successful financing models like PPPs offer promising pathways forward. The focus remains on leveraging existing nuclear capacity while strategically investing in new, safer, and more efficient technologies to ensure a sustainable energy future.