Investment in the nuclear energy industry is making a comeback, rising by 50% over the past five years with spending on new nuclear plants and refurbishments set to exceed $70bn (€61bn) and the promise of further growth given the “burgeoning interest” in new technologies such as small modular reactors.

According to the latest edition of the International Energy Agency’s World Energy Investment report, over 8 GW of new nuclear reached a final investment decision in 2024 as nuclear investment continued its comeback, despite elevated geopolitical tensions and economic uncertainty.

The report says capital flows to the energy sector are set to rise in 2025 to $3.3tn, a 2% rise in real terms on 2024 with around $2.2tn going collectively to renewables, nuclear, grids, storage, low-emissions fuels, efficiency and electrification – twice as much as the $1.1tn going to oil, natural gas and coal.

Nuclear could account for over 25% of electricity supply in 2035 – up from International Atomic Energy Agency estimates of around 9% today – and will play a key role in diversifying energy sources while ensuring a stable and secure electricity supply.