The World Nuclear Industry Status Report 2026 portrays a nuclear industry caught between record electricity generation, growing political support and persistent challenges in new-build projects. While China and Russia, in particular, continue to expand their industrial capabilities, Europe risks losing further ground despite its existing expertise. For KernD, the key question is therefore what industrial policy conclusions should be drawn from these developments. The future of Europe’s nuclear industry depends not only on political expansion targets, but on whether it can mobilize investment, strengthen supply chains and safeguard nuclear expertise over the long term.
Commentary by Kerntechnik Deutschland e.V. (KernD) on the World Nuclear Industry Status Report 2026
In 2025, nuclear power plants generated 2,703 terawatt-hours of electricity worldwide – more than ever before. At the same time, nuclear energy’s share of global electricity generation declined to 8.8 percent. Both figures appear in the latest World Nuclear Industry Status Report 2026 (WNISR) and describe an industry whose development may seem more contradictory than it actually is.
The report provides a comprehensive assessment of the international nuclear industry. Its authors take a skeptical view of the sector’s growth prospects. The figures deserve attention, even if one does not necessarily agree with all the conclusions drawn from them.
Indeed, despite growing political support for nuclear energy worldwide, relatively few new reactors have entered operation so far. In 2025, four reactors were connected to the grid for the first time, while seven were permanently shut down. At the same time, global solar power generation exceeded nuclear electricity generation for the first time. The expansion of battery storage is also accelerating significantly.
Downplaying these developments would serve little purpose. Instead, they raise questions that the nuclear industry must address: Why are projects progressing so slowly? Why are costs and construction times increasing? And what conditions are still missing to turn political expansion targets into actual power plants?
International Developments Highlight What Europe Stands to Lose
According to the WNISR, 73 reactors were under construction worldwide in mid-2026, including 37 in China alone. Another figure is particularly striking: Of the 52 reactor construction projects launched worldwide between 2020 and 2025, 51 were undertaken by Chinese or Russian state-controlled companies.
Behind these figures lie industrial structures built up over decades, established supply chains, skilled workforces and state-supported investment conditions. Countries that build reactors regularly maintain their manufacturing capabilities, accumulate experience and improve their processes.
Europe still possesses substantial nuclear expertise. Numerous European companies operate internationally in engineering, component manufacturing, fuel supply, plant operation, modernization, decommissioning and waste management. However, these capabilities cannot be maintained indefinitely without corresponding industrial prospects.
Once manufacturing expertise, qualified personnel and specialized suppliers are lost, rebuilding these capabilities requires considerable effort. The WNISR should therefore also be understood as a warning signal for European industrial policy.
Economic Competitiveness Cannot Be Assessed at the Power Plant Boundary Alone
The report documents substantial cost increases and delays in several new-build projects. These challenges are real and must be taken into account in future projects.
However, an economic comparison of different electricity generation technologies requires more than simply comparing individual levelized costs of electricity. Equally relevant are availability when electricity is needed, grid expansion, storage, flexibility options and the long-term requirements of a reliable power system.
For nuclear power plants, such an assessment must naturally also include financing costs, construction schedules, safety requirements, waste management and decommissioning. The value of any technology must be evaluated within the specific conditions of the energy system in which it operates.
Small Modular Reactors Will Test Europe’s Ability to Turn Ambitions into Industrial Reality
The WNISR’s critical assessment of Small Modular Reactors (SMRs) deserves particular attention. In Canada, the BWRX-300 represents a Western SMR project currently under construction. Within the European Union, however, construction of a comparable new reactor has yet to begin.
The economic advantages of modular series production have not yet been demonstrated on a commercial scale. They depend on standardized designs, repeatable manufacturing processes and sufficiently large order volumes.
This does not, however, mean that these advantages are unattainable. Rather, the findings identify the challenges that must be overcome before successful market deployment can take place.
Interestingly, the WNISR itself identifies financing, investor acquisition and long-term power purchase agreements as essential prerequisites for European SMR projects.
Europe therefore needs credible reference projects, predictable licensing procedures and suitable financing models. The European Industrial Alliance on SMRs provides an important framework for achieving these objectives. Its success will ultimately be measured by whether development projects translate into concrete investment decisions and industrial orders.
For Germany, More Is at Stake Than the Question of Domestic Nuclear Power Plants
For decades, Germany’s nuclear industry has been part of international value chains. Its companies and research institutions possess expertise that is needed for existing nuclear power plants as well as new-build projects, innovative reactor concepts, decommissioning and waste management.
These capabilities have economic value regardless of Germany’s current use of nuclear energy for electricity generation.
KernD therefore advocates reliable industrial policy frameworks, the preservation of nuclear qualifications, international cooperation and fair competitive conditions for export financing. This also includes maintaining technical codes and standards and actively contributing to the development of European standards.
International demand alone does not guarantee market shares for German companies. Without continuous investment, workforce development and access to international projects, the country’s industrial base risks gradually eroding.
The Findings Must Lead to Action
The World Nuclear Industry Status Report 2026 highlights the substantial gap that continues to exist between energy policy commitments and industrial implementation. Neither optimistic announcements nor fundamental doubts about the technology will close this gap.
What is needed are realistic project plans, viable business models and political frameworks that enable long-term investment.
The impressive expansion of renewable energy does not change the fact that many countries intend to include nuclear energy in their future energy supply. The question for Europe is therefore what role its industry will play in implementing these plans.
The global development of nuclear energy is by no means free of challenges. However, the decisive industrial policy question is whether Europe is prepared to create the conditions necessary to participate successfully in this market.
Because those who abandon their nuclear capabilities today will have little opportunity tomorrow to help shape how this technology is developed and deployed internationally.