Southeast Asia is set to invest $208 billion to develop 25 gigawatts (GW) of nuclear capacity by 2050, with Small Modular Reactors (SMRs) emerging as the preferred technology, according to a new analysis by Wood Mackenzie. This shift comes as the region seeks to decarbonise and enhance energy security amidst its current reliance on coal and gas.
Wood Mackenzie’s report, ‘What if Southeast Asia goes nuclear?’, highlights a significant departure from its base case scenario, which predicted no nuclear additions through 2050. The report suggests that SMRs, despite their higher generation cost of $220 per megawatt-hour (MWh) compared to $101/MWh for conventional nuclear plants, offer advantages in deployment speed and regulatory simplicity. Robert Liew, Director for Renewables Research at Wood Mackenzie, noted, “SMRs can move from approval to operation in just two to three years if supportive policies are in place.”
Vietnam is leading the charge, planning to expand its nuclear capacity to between 10.5 and 14.0 GW by 2050. Other countries, including Malaysia, the Philippines, Thailand, Indonesia, and Singapore, are also exploring nuclear options, albeit at varying scales and timelines.
The adoption of nuclear power could also open new opportunities in the corporate power purchase agreement market, providing reliable, low-emission baseload power. Liew emphasised the need for careful consideration of investment requirements and technological risks, stating, “The success of the region’s nuclear dream will depend on developing appropriate regulatory frameworks and securing experienced international partners.”
