The World Bank is set to support nuclear energy production projects “for the first time in decades,” according to an emailed letter from the institution’s president, Ajay Banga, seen on Wednesday by French news agency AFP .
This initiative will involve supporting efforts to extend the life of existing reactors in countries that already have them and improving networks and infrastructure.
Additionally, the bank aims to accelerate the potential of small modular reactors (SMRs) to provide a viable long-term option for more countries, Banga explained in his email.
To achieve this, the World Bank will partner with the International Atomic Energy Agency (IAEA) to strengthen its expertise in advising on non-proliferation safeguards, safety, and regulatory frameworks.
Banga did not specify the financial amounts allocated to these projects.
In late April, IAEA Director General Rafael Grossi stated on X (formerly Twitter) that he was pleased with the “constructive dialogue with the World Bank” on this issue. He emphasised that funding was essential and that the IAEA was ready to support the bank should its approach evolve.
The Washington-based bank aims to connect over 300 million people to electricity grids in the next decade, viewing this as essential to combating poverty, its primary mission.
However, Banga noted that “electricity demand will more than double in developing countries by 2035,” necessitating an increase in annual financing for electricity networks from $280 billion to $630 billion within a decade.
Nuclear energy has seen a resurgence in interest globally, after being sidelined following the Fukushima disaster in Japan in 2011. This renewed interest has been driven by the massive energy requirements linked to digital advancements, such as the growth of artificial intelligence.
In the United States, several tech giants are considering creating SMRs to power their data centres, which face rising consumption due to AI applications.
Several other countries, including France, the United Kingdom, and Indonesia, have announced plans in recent months to construct new nuclear reactors, viewing them as a carbon-free solution to their growing electricity needs.
