Existing Nuclear Power Provided Lowest Energy Costs
A new industry report identifies the potential for nuclear energy to sustain low-cost, carbon-free power at scale.
Updated on Sept. 21, 2026 in Energy
Live Poll
Should your country prioritize a diverse mix of energy sources to keep electricity costs stable?
A report from the OECD Nuclear Energy Agency and the Electric Power Research Institute found that existing nuclear facilities offer the lowest levelized cost of electricity among 23 analyzed energy technologies. While first-of-a-kind projects currently face elevated costs, the findings suggest that nth-of-a-kind deployments could stabilize prices under $100 per MWh.
Why it matters
The analysis highlights how standardizing designs and repeating construction processes are essential to bringing large-scale and modular nuclear projects into competitive price ranges. This trajectory is critical for the integration of reliable, round-the-clock carbon-free power into global energy grids.
Existing nuclear plants currently range from $39 to $64 per MWh, compared to nth-of-a-kind small modular reactors at $64 to $121 per MWh. These figures sit alongside onshore wind at $36 to $141 per MWh and solar photovoltaic at $33 to $149 per MWh.
The players
OECD Nuclear Energy Agency
An intergovernmental agency that provides policy analysis and research on nuclear power economics and safety.
Electric Power Research Institute
An independent nonprofit organization that conducts collaborative research and development in the energy sector.
The details
Levelized cost of electricity—a measure of the average net present cost of electricity generation over a plant's lifetime—is highly dependent on capacity factors, which are the ratios of actual output over a period to the maximum possible output. Costs for first-of-a-kind nuclear projects are currently inflated by workforce shortages, supply chain constraints, and a lack of construction experience. Conversely, nth-of-a-kind projects, which refer to subsequent units built using a standardized design after the initial version, benefit from process repetition and regulatory familiarity.
Timeline
The data and analysis are detailed in the Costs of Generating Electricity 2025 report.
The Tech Race
This study aligns with long-term efforts to establish reliable, carbon-free baseload power that can compete with the declining costs of solar and wind energy. The focus on nth-of-a-kind modeling reflects a shift in the nuclear sector toward modularity and design standardization to overcome historical construction cost barriers.
While these figures reflect wholesale cost metrics, they indicate that nuclear energy remains a key component for managing electricity prices in regions aiming for deep decarbonization. Consumers should monitor regional utility plans for large-scale or small modular reactor implementation as a signal for future grid stability and pricing.
The takeaway
The trajectory of nuclear power economics depends heavily on whether developers can replicate design efficiencies to drive down costs. Observers should track the first commercial deployments of small modular reactors to see if their actual costs approach the lower bound of nth-of-a-kind estimates.
Further reading
For more on the economic and technical shifts in global power systems, visit our Energy section.
Source note: This article includes information reported by Ans.
Live Poll
Should your country prioritize a diverse mix of energy sources to keep electricity costs stable?
