PUBLIC-PRIVATE PARTNERSHIPS: A LONG-TERM APPROACH TO NUCLEAR
As governments around the world recognise that they need to take an active role in civil nuclear projects to accelerate the transition to a low-carbon economy, public-private partnerships (PPPs) are gaining traction.
As early as 2009, the Nuclear Energy Agency (NEA) was studying PPPs for its report ‘The Financing of Nuclear Power Plants’. In it, the NEA suggests full commercial financing of new NPPs might be feasible in countries with large, financially strong utilities or well-resourced foreign utilities willing to make such investments. “In other cases it may prove impossible for a nuclear project to go ahead without direct or indirect public sector financial support, in order to reduce the investment risks to acceptable levels.”
Support could take the form of loan guarantees, tax credits or other measures offered to either state-owned or private sector utilities. The report says “risk-reward ratios should be appropriate for all investors.”
The world as a whole is belatedly waking up to the importance of nuclear power in the overall energy mix. After more than two decades of stagnation, the capacity of the global nuclear fleet is expected to increase by one-third by 2035.
That’s the projection of the latest World Energy Outlook from the International Energy Agency (IEA) based on existing energy policies and the expectation of “a record high in nuclear power output” in 2025.
"Technology advances… are improving the outlook for nuclear power,” says the report. “As demand surges and the need for reliable, low-emission baseload electricity increases, nuclear is increasingly seen as a critical part of a secure, affordable and diverse electricity mix."
It’s a welcome reversal in fortune for the nuclear industry, which had “suffered some decline and stagnation” from the late 1970s to early 2000s, although its share of world electricity generation remained at 16-17 per cent.
Now, with the very public support for nuclear by the current US administration, the French government’s new multiyear energy programme (PPE) putting renewed focus on nuclear, and other countries looking into it, the nuclear industry appears to be gaining momentum. This point was not lost on the international visitors, delegates and exhibitors who attended the 2025 edition of the World Nuclear Exhibition (WNE) in record numbers and contributed to the buzz in the exhibition hall and conference rooms.
WNE 2023_© Collectif Favart
Though historically rare in the nuclear sector, the traditional PPP approaches – the so-called BOOT and BOT (build-own/operate-transfer) models – are entering the picture as circumstances change. Two key drivers are a growing acceptance of state investment to avoid looming shortages of power, and a push by Big Tech in support of SMRs to power the data centres that underpin the digital economy.
It is no surprise that PPP has been announced as a theme of WNE 2027, where show-goers can expect insights into the opportunities opened out when policy aligns with investment in pursuit of a public priority – the avoidance of national energy crises in the foreseeable future.
Successive WNE editions have aired the economic challenges faced by the global nuclear industry: the regulatory complexity, long construction timelines, and uncertain wholesale prices for electricity that normally dissuade private investors and have made governments wary of committing public money. This is changing.
Sweden and Big Tech
Among leaders in this trend is Sweden, where expansion of nuclear power generation is becoming an industrial and climate policy priority to meet the country’s rising cross-sector demand for electricity. The country’s parliament last year passed legislation to finance a new generation of reactors, the first built in Sweden for more than 40 years. The government says it needs nuclear for energy security and to achieve net zero by 2045.
hese steps by the Swedish government reflect growing European recognition that nuclear expansion requires blended public/private finance models. Anna Borg, chief executive of the state utility Vattenfall, said as much earlier this year when she suggested direct state ownership would likely be necessary to unlock private financing.
Sweden's government in June agreed the details of a breakthrough financing deal with developer Videberg Kraft (VK) to build new reactors, making the government effectively the majority shareholder in the project with a 60% stake. No details of the agreement, which needed European Commission approval, were immediately available.
Similar pressures are pushing Big Tech companies to take matters into their own hands. Meta, Apple, Google, Amazon, Microsoft and Oracle see the writing on the wall as their collective demand – now and especially in the future – for the energy to keep their data centres running threatens to overwhelm their hosts, wherever they build.
They have seized on SMRs supported by PPPs as one of their preferred strategies to secure power on such a “massive” scale. Reuters reported that purchase price agreements (PPAs) normally also figure in the equation. However, federal investment tax credits and loan guarantees are arguably more important as no reactor has ever been built in the US without some form of federal financial support, and the current administration is supportive of the industry.
Prime examples in India and UK
Elsewhere, other current examples of PPP in practice include the approaches taken in India and the UK.
India’s so-called Shanti Bill 2025 is described as landmark legislation that overhauls the country’s nuclear sector by enabling private sector participation. India has ambitious plans to develop nuclear power in pursuit of net zero; provisions of the Shanti Bill were expected to help attract the foreign capital and expertise the country needs.
Following passage of the bill, the government – through the Nuclear Power Corporation of India (NPCIL) – invited proposals from industry to fund and build SMRs under a BOT model. In return for paying project capital costs, private investors were offered exclusive rights to the electrical output for their manufacturing or data operations. However, the actual plant assets and long-term operations were to be transferred directly to NPCIL, thus maintaining public regulatory control over nuclear material.
In the UK, a headline example of a localised scheme is the initiative between US-based microreactor developer Last Energy and DP World, a global logistics company, to build a microreactor to serve the logistics hub at London Gateway. The £80-million reactor, whose target entry into service date is 2030, will be built, owned and operated (BOO) by Last Energy without subsidies, its only security coming from a long-term energy purchase commitment from DP World.
PPP in African markets
PPP Emerging markets such as Africa are evaluating PPP models to integrate stable nuclear baseload power into existing renewable energy grids. Kenya, already a leader in clean energy, was accelerating plans to bring nuclear power online as demand for electricity continued to rise.
The director-general of Kenya’s PPP directorate, Kefa Seda, said nuclear projects in the East African country required significant capital which, together with complex technical and regulatory frameworks, made them viable candidates for PPP financing.
He said Kenya was exploring the option by “leveraging blended funding models” that combined public resources, private investment, climate finance, and support from development finance institutions and export credit agencies.
Taking a long-term view, the European Commission has adopted the PPP model for its push to move nuclear fusion from the lab to the power grid. Under the 2026-27 Euratom work programme, a new European PPP for fusion energy is to be established to help develop commercially viable fusion technologies and build a strong European supply chain. “The PPP makes the industry a key partner in fusion energy research,” says Euratom.
Backed by a €222 million investment, the PPP’s objective is to develop viable fusion technologies, build a robust European industrial supply chain, and align public entities such as Fusion for Energy and EUROfusion with private startups.
Join the discussion on PPPs at WNE 2027. The show runs from 7-9 December 2027 at Paris Villepinte exhibition park. Exhibitor registration is now open.
At the WNE 2023 conference, Emilie Sauchay, HR Manager of Ineo Nucléaire, discussed their strategic workforce planning for 2022 and 2023. She noted the recruitment of skilled workers as a significant factor but emphasised the necessity of making training programs available for professionals outside of the industry.
“For me, the most important one is to be able to train people in our professions, to be able to attract employees who are not currently in the sector but who would like to join this dynamic sector,” Emilie Sauchay stated. She also added that to support the growth of their workforce, Ineo Nucléaire developed training academies and a network of training centres.