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The large sunk costs associated with nuclear power necessitate sophisticated financing mechanisms.
IAEA director-general Rafael Mariano Grossi said one of the main aims of the forthcoming Nuclear Energy Summit is to discuss “international cooperation mechanisms” to accelerate the buildout of nuclear energy capacity across the world.
At COP28, the importance of nuclear power in the energy transition was recognised, with Grossi highlighting that countries taking part agreed on the need to accelerate the provision of nuclear energy. Speaking at a media conference on Monday following his report to the board of governors of the IAEA, Grossi referred to the upcoming nuclear summit, saying: “The summit is very important, it indicates how big the change is when it comes to the global discussion on nuclear energy.”
The Nuclear Energy Summit will be held in Brussels on 21 March and co-chaired by Grossi and Belgian Prime Minister Alexander De Croo.
Responding to questions from Chinese media, Grossi said: “Having, for the first time in history, a summit of heads of state and government on nuclear… is to get together and to see what can be done to accelerate it, to carry out this acceleration. It is not an easy thing – you need the financing mechanisms for example, which are not easy.
“China is a powerful country. It can finance, but many other countries have problems [with financing] and they still need more nuclear and want more nuclear. So, what are the international cooperation mechanisms that we can agree at that level of heads of state and government so that this is accelerated? We have very high expectations of this summit,” he added.
Nuclear power construction involves large upfront costs and uncertain rates of return on capital. In Europe, contracts for difference have been offered to investors, giving them a fixed price for their output over a certain time period, in an attempt to reduce uncertainty. Grossi will explore similar mechanisms at the upcoming summit.
Grossi mentioned that he intends to discuss the Zaporizhzhia nuclear power plant with Russian President Vladimir Putin when he meets with him this week. |
