The blockage of oil and gas transportation through the Strait of Hormuz has triggered a new wave of energy crisis across Europe. European nations, still recovering from the energy crisis sparked by the Russia-Ukraine conflict, are being forced to reassess the value of nuclear power. On one hand, the President of the European Commission has explicitly stated that abandoning nuclear energy was a "strategic mistake." On the other hand, multiple countries are signaling a "return to nuclear power." Clearly, Europe's nuclear policy is once again at a crossroads, facing unprecedented practical challenges due to the intensified energy crisis from geopolitical conflicts and pressures for energy transition.
The European Commission President, Ursula von der Leyen, recently stated at the Paris Nuclear Energy Summit that turning away from nuclear power, a reliable, affordable, low-emission source of electricity, was a strategic error. Subsequently, the European Commission adopted the Euratom Research and Training Programme for 2026-2027, allocating over €330 million to support nuclear innovation.
Von der Leyen emphasized that complete dependence on expensive and unstable imports of fossil fuels puts Europe at a structural disadvantage compared to other regions, and the current Middle East crisis highlights the vulnerabilities this dependency creates. The European Commission has proposed several new nuclear initiatives, signaling a potential major shift in policy. The European Executive Vice-President for the EU Industrial Strategy welcomed the move, stating the Commission is fully integrating nuclear energy into its industrial strategy and financing tools.
A recent report noted the European Commission's commitment to reducing administrative barriers by simplifying licensing procedures and providing financial guarantees to accelerate the deployment of small modular reactors. Eleven EU member states have signed a joint declaration supporting this technology.
Small modular reactors have about one-third the generating capacity of traditional reactors but are simpler to build, more cost-effective, and designed for higher safety and operational efficiency. They are suitable for smaller-scale power needs like data centers and industrial parks. They are seen as a key component of the EU's nuclear blueprint, with a goal to deploy them by the early 2030s and expand capacity to 17-53 gigawatts by 2050.
Since the outbreak of conflict involving the US, Israel, and Iran, European natural gas prices have surged over 60%, marking the second major energy crisis in less than five years after the 2022 crisis. According to Eurostat, renewables accounted for 47% of EU electricity generation in 2024, with nuclear power at 23%. High energy costs have severely impacted the competitiveness of European industry.
A European nuclear industry trade association recently released a Nuclear Power Action Plan, providing a policy roadmap to promote large-scale investment in nuclear energy over the coming decades, aiding the EU in achieving energy security and climate goals. The plan highlights nuclear power's multiple benefits: providing stable, dispatchable clean electricity to balance the grid; reducing dependence on energy imports to enhance energy sovereignty; supporting industrial decarbonization; and maintaining a domestic supply chain encompassing approximately 900,000 high-skilled jobs.
The association's president stated that in the context of accelerating global electrification, a surge in data centers, and a race to decarbonize industries, the value of nuclear power is clearer than ever. It offers tangible, measurable benefits by providing stable, clean power, reducing reliance on imported fossil fuels, and thereby strengthening Europe's energy autonomy. Consequently, the EU urgently needs to establish a stable, technology-neutral long-term policy framework and take concrete measures to remove investment barriers. The association outlined key actions, including setting a clear long-term vision for nuclear development, ensuring fair financing classification and access, simplifying regulatory approvals, investing in fuel cycle security, and supporting a robust European supply chain.
The EU has consistently prioritized renewables for its energy transition, with internal divisions over nuclear power. However, the large-scale energy crisis caused by geopolitical conflicts is softening this stance. France remains a strong supporter of nuclear power and a key pillar of the EU's nuclear system, generating about 65% of its electricity from nuclear sources, accounting for 55-60% of the EU's total nuclear output. Italy and Denmark are exploring overturning decades-old bans on nuclear production. Spain has pledged to reconsider its nuclear phase-out plan. Sweden and Poland are investing in new nuclear plants and seeking to extend reactor lifespans. Even Germany, a former leader in phasing out nuclear power, has shown a shift, agreeing to drop its "anti-nuclear" stance in EU legislation and expressing willingness to cooperate with France on nuclear energy.
In late March, Germany's Economics Minister urged the country to find a way to participate in Europe's nuclear revival, stating that to reduce carbon emissions, Germany must be open to all technologies. The choice is between continued reliance on natural gas, worsening energy dependency, or re-embracing nuclear technology. Germany's decision to phase out nuclear power in recent years has made natural gas its primary source for meeting electricity demand. The minister acknowledged that gas is currently Germany's only baseload energy source, crucial for supply security, with few alternatives. European commentators view this as a fundamental shift in German nuclear policy, driven by unsustainable high energy costs. Reports indicate Germany's electricity price for May delivery was four times higher than in France, the EU's largest nuclear producer. France's electricity prices have remained relatively stable, largely unaffected by the gas price surge. Eurostat data shows Germany has the highest average electricity prices in the EU.
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