A new era for nuclear energy in the Middle East and around the world
A new era for nuclear energy is beckoning globally. After years of investor caution and false starts for new projects, countries are increasingly turning to nuclear power once more as a secure source of clean electricity.
Support for the industry is growing as governments around the world implement policies to attract investors to a technology with longstanding concerns over cost, safety, and financing. This momentum is also carrying into the Middle East and North Africa region, where countries are looking to nuclear power to meet surging energy demand, improve energy security and tackle environmental challenges.
Global electricity demand is growing strongly, driven by the increasing use of air conditioners, appliances, electric vehicles and data centres, as well as the wider trend of electrification across different sectors of the economy. While renewable technologies such as solar and wind are expanding at record rates, their variable nature will require complementary sources of round-the-clock, low-emissions power that can serve as baseload electricity supply.
Nuclear energy, which contributes nearly 10% of global electricity generation today, is increasingly seen as a vital part of this equation. It is one of the largest sources of low-emissions electricity, behind only hydropower globally in 2023. In addition to 24/7 stable power, nuclear energy can also provide a source of heat to industries and consumers – a more challenging part of the energy sector for emissions reductions. These attributes make it well suited to meet the significant demand, for both power and heat, in regions with energy-intensive heavy industries, including MENA.
"The new era for nuclear is more than a fleeting trend. It reflects a pragmatic recognition of the technology’s unique capabilities in addressing 21st-century energy challenges."
The MENA region has long been associated with the oil and gas industry but shifting global trends have prompted countries across the region to diversify their energy investments. The United Arab Emirates (UAE) is among the countries leading this charge and, potentially, an example for other countries in the Middle East following the successful construction of several nuclear reactors. The Barakah Nuclear Power Plant is a cornerstone of the UAE’s energy mix as the country’s largest source of electricity, meeting nearly 25% of demand and is seen as an important power source for new industries such as artificial intelligence.
And other countries across MENA are following suit, particularly as the expansion of nuclear power and renewables can also free up oil and natural gas, currently burned to generate electricity, for export. Jordan and Saudi Arabia are exploring nuclear plants to diversify their energy mixes, while Egypt is also constructing a large-scale nuclear facility to meet domestic energy demand. The El Dabaa plant on Egypt’s Mediterranean coastline will also include desalination capacity allowing it to use seawater to meet to its cooling and operational needs and reduce reliance on freshwater reserves.
Beyond traditional largescale plants, design innovations for nuclear plants are also reshaping the industry globally by directly tackling barriers-to-entry for investors and developers alike. Small modular reactors (SMRs) are emerging as a game-changing solution that could offer cost-effective and scalable alternatives to traditional large reactors. SMRs are expected to be simpler and quicker to construct. Their modular designs enable phased deployment, which makes any risks related to their timeline and financing easier to predict.
SMRs also align with the needs of the MENA region. Their smaller footprint makes them suitable for regions with limited high-quality sites for nuclear power or smaller grids. The ability to integrate SMRs with desalination systems or industrial applications further enhances their value proposition in the region.
Despite the growing optimism, nuclear energy’s revival is not without challenges. Financing remains a significant hurdle, particularly for large-scale projects with long lead times. High capital costs, combined with regulatory complexity and public scepticism, have historically delayed projects and driven up costs. The large amount of available capital in the Middle East provides an advantage in financing, if there is clear long-term government commitment. Some of the risks that nuclear projects in the region would need to navigate include geopolitical tensions, reliance on imported technologies, nuclear fuel security, and the availability of cooling water. But governments and industry are working to address these challenges.
"Nuclear energy, which contributes nearly 10% of global electricity generation today, is increasingly seen as a vital part of this equation. It is one of the largest sources of low-emissions electricity, behind only hydropower globally in 2023.”
Fostering public-private partnerships is one avenue that can support the development of domestic supply chains and skilled workforces. To fully realise the potential of nuclear energy, regional stakeholders in the Middle East must address lingering challenges head on. This includes diversifying partnerships to reduce reliance on a single technology supplier and develop domestic expertise. Embracing innovative technologies like SMRs and integrating nuclear power into broader energy strategies will help the Middle East deliver nuclear power quickly and at competitive costs with other available sources.
The new era for nuclear is more than a fleeting trend. It reflects a pragmatic recognition of the technology’s unique capabilities in addressing 21st-century energy challenges. With the right policies, greater investment and international cooperation, nuclear energy can help forge a resilient and secure energy future for the Middle East and beyond.
Energy Connects includes information by a variety of sources, such as contributing experts, external journalists and comments from attendees of our events, which may contain personal opinion of others. All opinions expressed are solely the views of the author(s) and do not necessarily reflect the opinions of Energy Connects, dmg events, its parent company DMGT or any affiliates of the same.
YOUR GUIDE TO STAY INFORMED AND CONNECTED
Discover exclusive insights from industry leaders in the latest Energy Connects Quarterly Review, offering perspectives on the future and navigating the complexities of the energy transition.