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Europe Revives Nuclear Power as Energy Crisis Spurs Policy Shift

by Krystal

Europe is renewing its focus on nuclear energy as countries seek greater energy independence. Even longtime opponents of nuclear power are easing restrictions amid the continent’s shift away from oil and gas imports following Russia’s invasion of Ukraine and the resulting energy crisis.

In March, Italy moved to overturn its 40-year ban on nuclear power. In April, Spain signaled openness to revisiting its nuclear phase-out plans. This month, Denmark announced it will reconsider its nuclear ban, while Germany—once Europe’s strongest opponent—agreed to drop its resistance to nuclear energy in European Union legislation, working alongside France. A German official called this “a sea-change policy shift” that will streamline energy policymaking across the EU.

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A CNBC report highlights that Europe’s renewed interest in nuclear power reflects countries’ desire to hedge bets and achieve energy independence. It also points to the “hidden cost” of balancing and transporting electricity from renewables as a factor.

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While solar and wind remain cheaper options, their rapid expansion has introduced challenges. Last month, Spain and Portugal experienced one of Europe’s worst blackouts, which some experts link to the fast growth of renewables. At the time of the blackout, around 70% of Spain’s electricity came from renewable sources, and the country’s solar capacity is growing twice as fast as the European average.

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The shift to renewables has also caused price volatility in energy markets, with prices occasionally dropping below zero. Though this benefits consumers facing high utility bills, it discourages investment in renewable energy projects, potentially slowing progress on climate goals.

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Despite these issues, solar and wind remain central to Europe’s clean energy future. However, leaders are looking for ways to stabilize the grid while renewable sources mature. Lars Aagaard, Denmark’s climate, energy, and utilities minister, told CNBC, “Solar and wind are still the cheapest and fastest way to drive the green transition. But we also need to explore whether new nuclear technologies can play a supporting role.”

Much of the nuclear interest centers on small modular reactors (SMRs). These newer, smaller reactors offer advantages for countries like Denmark and Italy, which have limited recent nuclear experience. Unlike large plants that require years of planning, SMRs are factory-built, assembled on-site with smaller crews, and need less oversight.

Aagaard explained Denmark’s cautious approach: “We have no recent experience with nuclear power and lack knowledge on safety and waste management. That’s why we must begin a serious analysis—not to replace solar and wind, but to see whether new nuclear can complement our energy system in the future.”

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