The Great Atomic Pivot: EU Reclaims Nuclear Power as a Strategic Pillar for Energy Security

In a significant rhetorical shift for the European Union’s energy policy, Commission President Ursula von der Leyen characterized the continent’s historical move away from nuclear power as a “strategic mistake.” Speaking at the Nuclear Energy Summit in Paris, hosted by the International Atomic Energy Agency (IAEA), von der Leyen argued that turning away from the atom left Europe dangerously exposed to the volatility of global fossil fuel markets.

A Continent Re-evaluating its Baseload

The President noted a stark decline in nuclear’s contribution to the European grid, falling from one-third of total electricity generation in 1990 to approximately 15% today. This retreat, she argued, exacerbated Europe’s dependence on expensive, imported oil and gas—a vulnerability underscored by ongoing instability in the Middle East.

“I believe it was a strategic mistake for Europe to turn its back on a reliable, affordable source of low-emissions power,” von der Leyen stated.

She outlined a vision for a modernized energy system where nuclear works in tandem with renewables, supported by robust storage and smart grids.

The Rise of Small Modular Reactors (SMRs)

The EU’s strategy is increasingly focused on the next generation of nuclear technology. Key initiatives include:

Regulatory Reform: Recent changes to state aid rules now allow for expanded support for nuclear fission and fuel cycles.
Industrial Alliance: The launch of the world’s first industrial alliance dedicated to Small Modular Reactors (SMRs).
Financial Backing: Proposed investments of over €5 billion in fusion research and an additional €200 million in guarantees through 2028 to support the first commercial units of innovative nuclear technologies.

The goal is to have SMRs operational across Europe by the early 2030s to complement existing traditional plants.

Regional Expansion: Greece, Romania, and Serbia

The shift in sentiment at the Commission level is mirrored by renewed interest among member states and neighboring nations:

Greece: Prime Minister Kyriakos Mitsotakis echoed von der Leyen’s sentiments, noting that it is time for Greece to explore how SMRs could be integrated into the domestic grid. While Greece remains committed to renewables and gas as a bridge, a new committee will officially study nuclear integration.
Romania: Energy Minister Bogdan Ivan announced plans to triple the nation’s nuclear capacity over the next decade. This includes the modernization of the Cernavodă plant and the development of a pioneering SMR project in Doicești.
Serbia: Minister of Mining and Energy Dubravka Đedović Handanović signaled Serbia’s intent to join the “nuclear revival.” To support a growing economy and AI infrastructure, Serbia aims to select a technology by 2032, with the goal of bringing a plant online by approximately 2040.

As Europe seeks to reconcile its climate goals with energy security, the message from Paris was clear: the nuclear option is no longer on the sidelines—it is back at the center of the strategy.

June 16, 2016

by AEA in News

China set to do deals in Poland and Serbia

A series of agreements in areas ranging from trade to civil aviation will be on the table during President Xi Jinping’s upcoming visit to Serbia and Poland, diplomats said yesterday.

Central and east European countries are competing for Chinese investment in everything from banking to beer, looking to lure firms in need of new markets while securing a foothold for their own products in China.

Chinese authorities are expected to sign agreements in education, finance and technology, among other fields.

Chinese foreign direct investment to Europe hit a record high last year of around 20 billion euros (US$22.45 billion), a 44 percent annual rise.

Germany, Britain and France accounted for almost half the total, according to a report by Germany’s Mercator Institute for China Studies and the US-based Rhodium Group.

Only snippets of investment went to central and eastern Europe, but as Chinese firms look to diversify, volumes are growing, thanks to deals in infrastructure, energy, finance, real estate and travel.

Chinese firms are finding a warm welcome in central and east Europe.

There is a currency clearing center in Hungary, and Hungary and Serbia have signed a deal with China to build a high-speed railway from Belgrade to Budapest. Hungary has also issued bonds in the yuan.

In April, China’s Hebei Iron and Steel Group signed a deal worth 46 million euros to buy a Serbian steel plant. Also in April, China Everbright Group, a state-backed financial firm, bought into Albania’s international airport.

In Germany, however, there are concerns about losing key expertise to China as a growing number of companies seek to buy German industrial technology.

“This (visit) shows the great importance China’s leaders and government place on the development of China-Europe relations,” said Assistant Foreign Minister Liu Haixing. “We believe this visit will push forward the development of China-European relations to a great extent.”

China has created a “16+1” forum as a way of communicating with multiple central and east European states.