From Morningstar: 2024-09-25 06:11:00

Global nuclear power generation is forecast to reach an all-time high in 2025, exceeding the record set in 2021. The revival of nuclear energy is driven by the fight against climate change and Europe’s need to become independent of Russian oil and gas imports. Europe included nuclear energy in its list of sustainable investments in July 2022.

In 2023, six new nuclear reactor units were connected to the grid globally, with two Japanese units restarted. Canada and the UK are investing in small modular reactors for energy security. France committed over €100 million to boost its nuclear industry. However, US utilities prefer gas, wind, and solar over nuclear growth.

Asia, led by India and China, plays a significant role in the nuclear energy revival. India allows private companies in the nuclear industry, setting ambitious growth targets. China approved 11 new nuclear reactors in one month, aiming to cut emissions. Projects in China have long lead times with no immediate earnings impact.

Nuclear energy offers advantages such as clean and constant base load supply, lower carbon emissions, and reliable energy regardless of weather conditions. Although controversial due to accidents and high costs, nuclear power remains competitive in clean energy generation. Estimates show nuclear is second only to solar in safety.

Investing in nuclear energy can be done through companies like Électricité de France SA, Constellation Energy, and Entergy in the US, which have exposure to nuclear plants. European companies like Centrica and Endesa also offer investment opportunities. Funds in the US with exposure to nuclear energy are available for investors interested in this sector.



Read more at Morningstar: Best Stocks and Funds to Invest in Nuclear Energy