Europe’s Energy Crossroads: Nuclear Power Re-emerges as a Pillar of Sovereignty
The ongoing instability in the Strait of Hormuz has sent global energy prices soaring, once again highlighting Europe’s significant vulnerabilities in its quest for energy security. This renewed crisis has forcefully brought the concept of energy sovereignty back to the forefront of discussions in Brussels, prompting the European Commission to unveil a suite of nuclear-focused initiatives as a central component of its updated energy strategy.
While renewable energy sources now account for over 45% of Europe’s primary energy production, the continent remains heavily reliant on imported fossil fuels. According to Eurostat, oil and its equivalents constitute around 38% of the energy mix, with natural gas making up a further roughly 21%. The recent geopolitical turmoil in the Middle East has significantly increased import costs, echoing the price shocks experienced in 2022 following Russia’s invasion of Ukraine. Even in more stable times, European households and industries consistently face some of the highest electricity prices globally, with countries like Germany, Belgium, and Denmark frequently cited by the European Commission.
Although nuclear power development is a long-term endeavour and cannot offer an immediate solution to current supply disruptions, recent events have spurred a critical re-evaluation of its future role. European leaders, convening at the Nuclear Energy Summit in Paris on March 10th, acknowledged that the bloc may have limited options if it aims to achieve genuine energy independence and secure affordable power for its citizens.
At the summit, European Commission President Ursula von der Leyen candidly stated that the decision to reduce nuclear’s share in the energy mix was a “strategic mistake” for Europe, which had turned its back on a reliable, affordable, and low-emission power source. This marks a significant shift from her previous stance. Germany, having decommissioned its final nuclear reactors in 2023, is now grappling with the consequences, with Chancellor Friedrich Merz labelling the phase-out a “serious strategic error.” With the restart of old plants being impossible, the focus is now shifting towards new construction and the promising development of small modular reactors (SMRs). In contrast, France, which generates approximately 65% of its electricity from nuclear power and even exports surpluses, exemplifies the benefits of nuclear energy for national independence.
The potential impact of nuclear power on energy security is substantial. It provides a stable, baseload power source that complements intermittent renewables, thereby reducing dependence on imported fossil fuels, which still account for over 60% of the EU’s total energy consumption. French President Emmanuel Macron emphasized at the summit that nuclear power is “key to reconciling both independence, and thus energy sovereignty, with decarbonization, and thus carbon neutrality.” He also highlighted the increasing energy demands driven by artificial intelligence, noting that France’s nuclear fleet has equipped the country with the capacity to support data centres and computing power, positioning it at the forefront of the AI revolution.
The Promise of Small Modular Reactors (SMRs)
Brussels is increasingly placing its faith in SMRs as a flexible and low-carbon energy solution that can be deployed more rapidly than conventional nuclear power plants. The European Commission’s SMR Strategy, released this month, anticipates the first units becoming operational by the early 2030s, with the potential to scale up capacity to between 17 GW and 53 GW by 2050. These compact, factory-built reactors are considered particularly well-suited for meeting the energy demands of AI data centres, industrial heat applications, hydrogen production, and district heating networks. The Commission is committed to streamlining permitting processes and providing financial guarantees to accelerate their deployment. A joint declaration supporting this technology has already been endorsed by eleven EU member states.
International momentum is building, underscored by a recent announcement from the US and Japan of a $40 billion (€34.75 billion) project to develop SMRs. This initiative, centred on GE Vernova Hitachi technology, aims to stabilise consumer electricity prices and bolster the leadership of both nations in next-generation energy solutions. Rafael Grossi, Director General of the IAEA, observed at the Paris summit that “all the conditions are now pointing in the direction of fully integrating nuclear energy into the global energy mix,” reflecting a growing global consensus. Proponents argue that SMRs can serve as a crucial transitional pillar, delivering reliable baseload power to complement renewables and significantly diminish Europe’s reliance on imported fossil fuels.
National Experiments and Shifting Attitudes
Across Europe, member states are adopting diverse strategies, signalling a pragmatic reassessment of nuclear power’s role in the energy transition.
- France: Building on its existing nuclear strength, France is moving ahead with six new European Pressurised Reactors (EPRs) and considering eight more, while simultaneously expanding its renewable capacity.
- Belgium: The country is actively working to extend the operational lifespan of its current nuclear fleet.
- Italy: Draft legislation is being prepared to repeal a long-standing ban on nuclear power.
- Greece: Historically cautious due to seismic concerns, Greece has initiated a public debate on advanced reactor designs and SMRs.
- Sweden and Finland: Nations that never abandoned nuclear power continue to benefit from it, underpinning some of the highest shares of renewables in their final energy consumption.
Nuclear energy currently accounts for approximately 23% of the EU’s electricity and around 50% of its low-carbon electricity. Data from Finland suggests that nuclear power can deliver more stable and competitive prices compared to countries that have phased it out, such as Germany. Furthermore, a strategic shift towards nuclear could help the bloc significantly reduce its carbon emissions, potentially equivalent to removing one-third of all cars from the world’s roads.
The European Commission’s 8th Nuclear Illustrative Programme projects a notable increase in EU nuclear capacity, from 98 GW in 2025 to between 109 GW and 150 GW by 2050, supported by an estimated €241 billion in new investments. These national approaches reflect a growing understanding that nuclear power can bolster energy sovereignty in the medium to long term.
Persistent Obstacles on the Path Forward
Despite the renewed optimism, significant hurdles remain. Unresolved issues include waste management, public acceptance, and the critical need for harmonised EU-wide regulations. Environmental organisations express concern that substantial investment in nuclear power could divert crucial funds and political attention away from the more rapid deployment of renewable energy sources.
Investors continue to be wary of high capital costs and lengthy construction timelines. Deep-seated opposition to nuclear power persists in countries like Germany and Austria. As previously noted, nuclear development is inherently a long-term process and cannot provide an immediate solution to current supply chain disruptions or price volatility. Europe also faces ongoing dependencies on Russian technology, uranium, and fuel supplies, introducing another layer of strategic risk.
While SMRs hold considerable promise, they are largely unproven at a commercial scale, with no construction licences granted anywhere in the EU as of early 2026. Nevertheless, the bloc is committing €330 million through 2027 to accelerate fusion research and support nuclear technologies with the goal of eventual grid integration.
Nuclear power is not a silver bullet for all energy challenges. However, the confluence of geopolitical pressures, escalating AI-driven energy demand, and persistently high energy bills is compelling the EU to undertake a serious and comprehensive re-evaluation of its energy future.
