The Know-How Unknown to the US and Europe, Known Only to Korea... The Nuclear Power Cycle Returns After 40 Years
US and UK Governments Guarantee Returns, Financial Institutions Resume Investment
Simultaneous Orders for Multiple Reactors Shorten Construction Time and Stabilize Costs
Korean Companies at the Core of the Nuclear Renaissance Value Chain
Over the past 40 years, very few new large-scale nuclear power plants have been built in Western countries. However, this situation may change in the future. Governments around the world are once again emphasizing the role of nuclear power to address climate change and ensure energy security. Most notably, there has been a rapid movement to establish financial structures that enable financial institutions to provide funding for nuclear power projects again.
On November 24, KB Securities released a report titled "2026: What Is Creating the First Nuclear Power Cycle in 40 Years?" The report identified government financial support and changes in the order placement model as the main reasons behind the so-called "nuclear renaissance," which has been triggered by the construction boom of artificial intelligence (AI) data centers. In particular, the report projected that Korean companies are expected to become the primary beneficiaries of nuclear power plant construction starting next year.
Governments Take the Lead in Financing Nuclear Power Investments
In the past, the high construction costs of nuclear power plants made it difficult to directly reflect those expenses in electricity rates. As a result, private financial institutions were reluctant to invest in nuclear power, causing the industry to effectively come to a halt. However, new financial models have recently emerged, particularly in the United Kingdom and the United States.
The UK's Regulated Asset Base (RAB) model guarantees a certain return for investors, allowing private capital to invest with confidence. The US government is also strengthening large-scale loan support through its Loan Program Office (LPO), and there are efforts to help private companies raise funds for nuclear projects through public markets. In short, nuclear power is being restructured as an "investable industry."
Large-Scale Fleet Orders Enhance Productivity in the Nuclear Industry
Changes in the order placement model are also a key factor. In the past, countries built nuclear power plants sporadically, one at a time, which reduced efficiency and increased construction costs. Recently, however, the "fleet order" model has been promoted, whereby multiple reactors are ordered at once and the same design is repeatedly constructed. This approach standardizes component production and construction processes, stabilizes costs through learning effects, and shortens construction periods. The experiences of China, France, and Korea demonstrate these benefits.
The United States is also seeking to avoid past failures by adopting a single reactor type and constructing multiple nuclear power plants in succession using the same design. This is an attempt to transform nuclear power plant construction into a "manufacturing process," similar to the automotive or aviation industries. As a result, the risks of individual projects are reduced, while the productivity and predictability of the entire industry are improved.
Hot Picks Today
Korean Companies Are the Only Ones in the West With Experience Across the Entire Process
Korea is likely to be at the center of this global nuclear power resurgence. While the United States and Europe are eager to expand nuclear power, they have lost much of their expertise in actual construction, project management, and equipment manufacturing. In contrast, Korea has already successfully completed numerous large-scale nuclear power plants both domestically and overseas. In particular, Korea has accumulated capabilities across the entire value chain, including design, construction, equipment manufacturing, and management. As a result, Korean companies are poised to become indispensable partners for Western countries.
KB Securities analyst Jung Hyejeong stated, "If 2025 was a year in which expectations drove up nuclear industry stock prices, 2026 will be the 'first year of realization,' when tangible progress such as order placements and groundbreaking for nuclear projects becomes visible. The core of a nuclear investment strategy should focus less on small modular reactors (SMRs) and more on the large-scale nuclear power value chain, less on the United States and more on Korean nuclear companies, and less on design and infrastructure and more on companies with project management (PM) and execution capabilities." KB Securities named Korea Electric Power Corporation, Hyundai Engineering & Construction, and Doosan Enerbility as its top picks in the nuclear power sector for next year.
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