The atom has played at the heart of all things electric for more than a half century. Now, nuclear fission – the very process in which nuclear energy gets converted into electric power – appears set to help ensure a clean and net zero energy future globally.
Whilst many many renewable energy sources, such as wind or solar power, are dependent on the weather, nuclear energy is independent of this factor and can be generated 24 hours a day. Furthermore, nuclear energy is mostly considered as a clean energy technology, since it almost does not produce carbon dioxide or any other greenhouse gas emissions. This energy also avoids air pollutants’ production that are often associated with burning fossil fuels for energy.
Nuclear energy became a significant part of global development in the low-carbon energy sphere. It requires the support of the government and various businesses. Hence, the public-private partnerships (PPPs), collaboration between a government and private enterprise, often on large infrastructure projects that the private partner may finance, plan, or execute, have been advantageous in fostering innovations, attracting investments, and flourishing improvements in the sector. These collaborations, which combine governmental support with private-sector expertise, are not only propelling advancements in nuclear technology, but are also influencing the evolution of sustainable energy infrastructure. Nevertheless, despite a number of achievements, the field still faces barriers, and dealing with these challenges is crucial for the continued progress of nuclear energy.
According to the report of the International Atomic Energy Agency (IAEA, 2022), approximately 80% of new nuclear projects over the past decade were implemented through PPPs. These collaborations leverage governmental support, including regulatory frameworks and resources, with the financial investment, technology, and operational expertise provided by private companies. Such partnerships are vital, especially in an industry as capital-intensive and technically complex as nuclear energy.
One of the PPPs implementations’ most successful cases in nuclear sectors may be viewed in the example of the development of the Hinkley Point C nuclear power station in the United Kingdom. This project, led and managed by the British government and EDF Energy (EDF Energy, 2018), showcases how public-private collaboration can accelerate the construction of large-scale infrastructure projects. In this case the British government provided financial guarantees and provided regulatory support while EDF Energy, a private company developed and managed the project. This collaboration has not only brought much needed investment into the sector but has also set a platform for future nuclear developments in the UK.
The public-private partnership in the United States between the Department of Energy and NuScale Power has demonstrated what is possible with small modular reactors. By way of grants and regulatory support, DOE has empowered NuScale to develop one of the world’s first SMR designs to gain safety approval (World Nuclear Association, 2020). This forward-looking approach incorporates technological innovation and regulatory oversight to decrease the cost and complexity associated with traditional nuclear projects.
However, there have been a fair number of PPP nuclear projects that have run into problems from which some salutary lessons can be learned. The Olkiluoto 3 nuclear reactor in Finland, initiated in partnership with Areva, is apparently the worst case (Department of Energy, 2021). This project, highly invested by the government, was bedeviled by delays and cost overruns because public and private expectations were ill-matched. Such situations highlight the importance of clear contracts, realistic timelines, and robust risk-sharing frameworks.
The key lesson learned from both successful and problematic PPPs in the nuclear sector is that ‘ingredients’ such as transparent communication, mutual risk management, and flexibility in view of unexpected obstacles are essential ones. These elements are the linchpin for addressing the complexity inherent in nuclear power projects, which often take several decades from the planning to the commissioning stage.
In conclusion, public-private partnerships in the nuclear sector have demonstrated their potential to be the actual drivers of technological and infrastructural advancement, especially when built on clear objectives and collective accountability. Successful projects, such as Hinkley Point C and NuScale Power, have demonstrated how such partnerships can revolutionize the energy landscape. There is, however, still a need to learn from success and failure in order to better inform future partnerships. By adopting lessons learned, the nuclear industry can take full advantage of PPPs in accelerating its role toward a sustainable and low-carbon energy future.