IAEA Projects Nuclear Capacity to More Than Triple by 2060, Driven by SMRs and Lifetime Extensions

Revised Projections for Nuclear Energy Growth

The International Atomic Energy Agency (IAEA) has released its latest projections in "Energy, Electricity and Nuclear Power Estimates for the Period up to 2060," marking the sixth consecutive year of upward revisions. The agency now forecasts global nuclear energy capacity to more than triple by 2060. At the close of 2025, 413 operable nuclear power reactors worldwide generated 377.1 GWe.

Under the IAEA's high-case scenario, nuclear generating capacity is projected to reach 1,045 GWe by 2050, an increase from last year's forecast of 992 GWe. Extending projections to 2060 for the first time, the high-case anticipates 1,284 GWe, which would represent 3.4 times the capacity recorded at the end of 2025. The low-case projection for 2060 is 696 GWe, with 641 GWe by 2050, up from 561 GWe previously forecast for 2050.

Key Drivers: SMRs and Reactor Lifetime Extensions

Small modular reactors (SMRs) are expected to play a significant role in future capacity additions. The IAEA projects SMRs to account for 28% of the 1,017 GWe of new capacity in the high-case scenario, or 23% of the 521 GWe in the low-case. Assuming an average capacity of 300 MWe per unit, the low-case scenario suggests approximately 400 new SMR units by 2060, potentially reaching 480 units if the average capacity is 250 MWe. Regionally, SMRs could contribute about 60% of new nuclear capacity in North America, and 40% in South-Eastern Asia and Latin America and the Caribbean under both high and low projections.

Extending the operational life of existing reactors is also crucial for achieving projected growth. The IAEA indicates that under the high-case scenario, 70% of currently operating capacity would remain in service by 2060. Conversely, the low-case scenario suggests nearly two-thirds of current units would be retired. The agency emphasizes that viable lifetime extensions for existing reactors represent a cost-effective source of baseload, low-emission electricity, particularly for regions with aging nuclear fleets.

Enabling Factors and Financial Landscape

Achieving the high-case projections will require supportive national policies, increased investment, workforce development, and enhanced regulatory collaboration and global harmonization. IAEA Director General Rafael Mariano Grossi highlighted the necessity of investment in new nuclear capacity and reactor lifetime extensions to meet growing electricity demands.

The upward revision of projections reflects a growing recognition of nuclear power's role in energy security and economic growth. Renewed engagement from international financial institutions, including the World Bank Group and the Asian Development Bank, signals a broader shift in financial support for nuclear energy. This increased interest is partly driven by intensified energy security and affordability concerns following energy crises since 2022, prompting a greater focus on diversified electricity generation sources.

India Approves Advance Power Imports for Nepal Amidst Generation Deficit

India has approved Nepal's request for advance authorization to procure approximately 654 MW of peak electricity. This power will be sourced from Indian power exchanges during non-solar hours. The approval is intended to assist Nepal in mitigating a generation deficit that resulted from recent flash floods. These floods caused damage to power facilities, leading to a reduction of about 550 MW in Nepal's domestic generation capacity.

Historically, Nepal imports electricity from India during the lean winter months, typically starting in October. However, this year, Nepal sought to initiate these imports earlier, in September. The additional power can be acquired through both the day-ahead and real-time market segments of Indian power exchanges.

Premier Energies and RCT India to Establish 12 GWh Battery Storage Manufacturing Facility in Telangana

Joint Venture for Battery Energy Storage Systems

Premier Energies Limited and RCT India, a subsidiary of Germany's RCT Group, have entered into a binding term sheet to establish a joint venture. This collaboration aims to develop a 12 GWh battery energy storage system (BESS) manufacturing facility located in Telangana.

The new facility will operate under Premier Energies’ subsidiary, Premier Battery Technologies Private Limited. The project is planned for a phased development, with the initial phase targeting a production capacity of 6 GWh.

Market Focus and Export Strategy

The manufacturing plant is designed to address the demand for BESS solutions across various sectors, including commercial, industrial, and utility-scale applications. Its market reach will extend to both the domestic market in India and international markets.

A key strategic objective for the facility is its role as an export-oriented manufacturing platform. This will enable the joint venture to supply international markets directly from India, leveraging the manufacturing capabilities established in Telangana.

Contributions from Joint Venture Partners

Premier Energies Limited will contribute its manufacturing expertise and capabilities to the joint venture. RCT India, as part of the RCT Group, will provide its experience in the energy sector, engineering knowledge, and access to its international supply-chain network. This combination of resources is intended to support the development and operation of the new BESS manufacturing facility.