Faced with new energy shock, Europe asks if reviving nuclear is the answer
Faced with new energy shock, Europe asks if reviving nuclear is the answer
Across Europe, households and businesses are anxiously monitoring surging gas costs and rising fuel expenses. While the UK government reassures citizens to remain calm, the European Commission has urged people to adopt remote work and reduce travel. Policymakers express concern that energy costs could escalate further, influenced by developments in the Middle East. Yet, this crisis feels familiar—echoing the cost-of-living challenges that followed Russia’s invasion of Ukraine. As a result, discussions in Europe are once again focusing on energy independence. Nuclear power, once sidelined, is gaining traction as a component of a locally sourced energy strategy, now considered in both the UK and the EU.
The Shift Toward Nuclear Power
At a recent Paris summit, European Commission President Ursula von der Leyen highlighted the retreat from nuclear energy as a “strategic mistake.” She noted that in 1990, nuclear generated roughly a third of Europe’s electricity, but this has dwindled to just 15% today. The continent now relies heavily on costly and unpredictable fossil fuel imports, placing it at a disadvantage globally. Europe imports over half of its energy, primarily oil and gas, making it susceptible to supply shocks or market volatility. The recent spike in gas prices, attributed to Iran’s disruption of exports through the Strait of Hormuz, has intensified these concerns.
Gas price increases are mirrored across the region, yet their effect on electricity costs differs. Spain, with its heavy investment in wind and solar, anticipates lower electricity prices compared to Italy, where gas dominates pricing. France stands out as the largest nuclear producer, generating 65% of its power from this source. Meanwhile, Germany’s electricity costs for next month are projected to be five times higher than France’s—a stark contrast. This disparity stems from Germany’s 2011 decision to phase out nuclear after the Fukushima disaster, leaving its industries, such as automotive and chemical sectors, reliant on gas.
Germany’s Energy Dilemma
Germany’s economic research institutes have revised their 2026 growth projections, cutting forecasts to 0.6% of GDP due to gas price surges. This shift has reignited support for nuclear energy, with a new YouGov survey showing growing backing in Scotland. The push for nuclear is not without challenges, however. Critics caution that it is a long-term investment, not an immediate solution. Despite this, France remains a vocal advocate, with President Emmanuel Macron emphasizing nuclear’s role in achieving energy sovereignty and decarbonization. He argued that the technology could “give Europe a competitive edge” by enabling data centers and AI infrastructure, aligning with the EU’s net zero goals.
“To build national resilience, drive energy security and deliver economic growth, we need nuclear,” said Reeves.
Until recently, Germany resisted classifying nuclear alongside renewables in EU policy, creating tension with France. However, this stance has softened, with Berlin now endorsing the removal of anti-nuclear bias. Some speculate this change reflects heightened security concerns amid strained ties with the Trump administration. Germany has also requested France to expand its nuclear deterrent to other European nations, a proposal France accepted this month. While nuclear offers promise, its status as a universal energy solution remains debated.
