Nuclear Power: Southeast Asia’s Tool for an Energy Revolution

Southeast Asia is on the brink of an energy transformation, with nuclear power emerging as a key component of its future energy mix. Despite historical skepticism and regulatory challenges, several countries in the region are revisiting nuclear energy as a means to enhance energy security and reduce dependence on fossil fuels. With rapid economic growth and rising electricity demand, nations such as the Philippines, Indonesia, Vietnam, Thailand, and Malaysia are now exploring nuclear power as a long-term solution to their energy needs.

A Shift Toward Nuclear Power

The only existing nuclear power plant in Southeast Asia—the Bataan Nuclear Power Plant in the Philippines—remains non-operational despite being built in the 1970s. Security concerns and corruption allegations prevented its activation, leaving it as a relic of unfulfilled potential. However, decades later, the conversation around nuclear power is shifting, fueled by the urgent need for clean energy alternatives. Countries across the region are now taking active steps to incorporate nuclear energy into their energy strategies.

Faith Bierle, Executive Director of the International Energy Agency (IEA), has noted a significant global resurgence in nuclear energy. According to the IEA, by 2025, electricity generation from nuclear sources could reach record levels. Currently, nuclear power supplies about 10% of the world’s electricity, surpassing Africa’s total electricity capacity. However, to achieve net-zero greenhouse gas emissions, the pace of nuclear development needs to accelerate within the next decade.

Southeast Asia is projected to account for 25% of the global increase in energy demand by 2035, and much of this demand is still met by coal and gas. Governments in the region are looking to nuclear power as a viable alternative. Indonesia has announced plans for 20 nuclear projects, while Vietnam and Malaysia are evaluating their own nuclear energy pathways. The Philippines has engaged a South Korean firm to assess the feasibility of reviving the Bataan plant. Additionally, Thailand, Laos, Cambodia, and Myanmar have expressed interest in nuclear power as part of their long-term energy planning.

Challenges in Adopting Nuclear Energy

Despite the growing momentum, nuclear energy development in Southeast Asia faces multiple challenges. The construction of nuclear power plants requires substantial investment, lengthy construction periods, and rigorous regulatory approvals. Public apprehension remains a significant hurdle, especially given the lingering fears stemming from past nuclear disasters. The 1986 Chernobyl explosion and the 2011 Fukushima disaster continue to influence public perception, prompting some governments to proceed cautiously.

Thailand, for instance, halted its nuclear energy program in 2011 following the Fukushima incident, and Malaysia’s former Prime Minister Mahathir Mohamad has explicitly voiced concerns about the risks associated with nuclear power. Overcoming these fears will require not only strong government commitment but also public awareness campaigns to highlight the safety advancements in modern nuclear technology.

Another major obstacle is financing. Constructing a large nuclear reactor demands billions of dollars, a significant challenge for developing economies. Vietnam, for example, shelved an $18 billion nuclear project with Russia in 2016 due to financial constraints. Furthermore, international financial institutions like the World Bank traditionally refrain from directly funding nuclear energy projects. A spokesperson recently stated that while discussions are ongoing, the decision to finance nuclear initiatives ultimately rests with member states.

However, there are signs of a shifting financial landscape. During last year’s New York Climate Week, 14 financial institutions supported the objective of tripling global nuclear capacity by 2050. According to Henry Preston of the World Nuclear Association, investors are more likely to engage if regulatory frameworks are stable and transparent.

Technological Developments and Workforce Challenges

Recent advancements in nuclear technology are also generating optimism. Small Modular Reactors (SMRs), a new generation of nuclear reactors, promise reduced construction costs and shorter deployment times. SMRs are being marketed as an attractive alternative to traditional large-scale reactors, particularly for countries with limited financial and infrastructural capacity. However, skepticism remains regarding their economic viability.

Jakarta-based energy expert Adiguna has pointed out that SMRs have yet to achieve commercial success. A case in point is the first SMR project in the United States, where costs surged from an estimated $55 per megawatt-hour to $89 per megawatt-hour, ultimately leading to its cancellation. Until SMRs prove their cost-effectiveness at scale, their role in Southeast Asia’s nuclear future remains uncertain.

A further challenge is the shortage of skilled personnel needed to operate and maintain nuclear facilities. Vietnam, for instance, estimates that it would require at least 2,400 trained engineers and scientists to restart its nuclear energy program. Industry Minister Nguyen Hong Dien has emphasized that the issue goes beyond constructing nuclear plants—it involves building a sustainable ecosystem of expertise and infrastructure to support the nuclear industry in the long run.

The Road Ahead

Southeast Asia’s nuclear aspirations are driven by the dual need for energy security and carbon reduction. With growing electricity demand, governments are looking for alternatives to coal and gas while integrating renewable energy sources. However, the region’s success in adopting nuclear power will depend on overcoming public skepticism, securing financial investments, ensuring regulatory compliance, and developing the necessary human capital.

The transition to nuclear energy will not be straightforward, but as technological advancements continue and financial support structures evolve, Southeast Asia may soon witness a nuclear energy revolution—one that could reshape its energy landscape for decades to come.

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