EU proposes new strategy for small modular reactors, $232M guarantee to spur investment

BRUSSELS

European Commission President Ursula von der Leyen on Tuesday announced a new strategy to accelerate the development of small modular nuclear reactors (SMRs), aiming to have the technology operational across Europe by the early 2030s.

Speaking at the World Summit on Nuclear Energy in Paris, von der Leyen said the European Commission will introduce a €200 million ($231 million) guarantee to support private investment in innovative nuclear technologies.

The funding will be financed through revenues generated by the EU Emissions Trading System and is intended to reduce financial risks for investors while encouraging additional capital to flow into the sector.

"Our goal is very simple. We want this new technology to be operational in Europe by the early 2030's so that it can play a key role alongside traditional nuclear reactors in a flexible, safe and efficient energy system," von der Leyen said.

The new SMR strategy is also designed to strengthen Europe's position in next-generation nuclear technology, which von der Leyen said could become a high-value export sector for the region.

She called for closer cooperation among EU member states to align regulatory frameworks, speed up permitting procedures, and develop the necessary workforce to support the nuclear sector.

While renewable energy produces some of Europe's lowest-cost electricity, von der Leyen noted that its output depends on weather conditions and often requires expanded grids, storage capacity, and demand flexibility.

"Nuclear energy is reliable, providing electricity all year around the clock," she said, adding that the most efficient energy system combines nuclear and renewables and is supported by storage and modernized grids.

Von der Leyen also said Europe once generated roughly one-third of its electricity from nuclear power in 1990, but the share has since fallen to about 15%.

"It was a strategic mistake for Europe to turn its back on a reliable, affordable source of low-emission power," she said.

She warned that Europe is neither an oil nor a gas producer and remains fully dependent on expensive and volatile fossil fuel imports.

"They are putting us at a structural disadvantage to other regions, and the current Middle East crisis gives a stark reminder of the vulnerability it creates," von der Leyen said.