INTERVIEW: ASEAN nuclear push gains momentum as energy security takes priority

Southeast Asian countries are giving nuclear power renewed consideration as rising electricity demand, fuel-price volatility, and concerns over energy security prompt governments to reassess their long-term energy strategies, Dr. Sama Bilbao y León, director general of the World Nuclear Association, told Platts, part of S&P Global Energy, in an interview on the sidelines of SIEW week.

The growing interest reflects a broader shift toward energy pragmatism rather than a reaction solely to geopolitical tensions surrounding the Strait of Hormuz, according to León, who said governments were increasingly looking to nuclear energy as a source of reliable, low-carbon electricity.

The Philippines, Vietnam and Indonesia have revised their energy policies to accommodate nuclear power, while Thailand, Malaysia and Singapore are assessing the potential role of nuclear power in their future energy mix, she said.

Singapore weighs nuclear option

Singapore, which has been studying nuclear technologies for several years, is also considering the option despite its limited land area. León said that geographical constraints should not necessarily prevent the city-state from adopting the technology.

"There is nothing that would stop Singapore from choosing nuclear," León said, citing Hong Kong's long-standing use of nuclear-generated electricity as an example of how densely populated urban centers could integrate nuclear power into their energy systems.

For Singapore, however, the challenges would include establishing the necessary legal and regulatory frameworks, meeting international obligations, and developing a skilled workforce, León said.

Regional cooperation could accelerate development

Regional cooperation could help countries overcome some of these hurdles. Leon highlighted the proposed ASEAN Power Grid, which aims to connect electricity networks across member states, as a potential catalyst for nuclear development.

An interconnected network would enable countries to share electricity resources and improve grid flexibility, potentially making nuclear investments more commercially viable. Rather than serving individual markets, nuclear power could eventually become a regional energy resource, Leon said.

ASEAN already has some experience to build on, including Vietnam and Indonesia's prior nuclear programs and regulatory development, as well as the Philippines' experience with nuclear infrastructure. However, the region would need to strengthen its regulatory capabilities and expand its technical workforce, she said.

SMRs offer additional options

Small modular reactors are also emerging as a potential option, particularly for data centers and energy-intensive industries. Their standardized designs and factory-based manufacturing are intended to reduce construction costs and allow more flexible deployment, Leon said.

However, Leon cautioned against viewing SMRs as a replacement for conventional nuclear plants, noting that both technologies would play a role in meeting future electricity demand.

Leon cited about 80 reactors under construction worldwide, most of which are large-scale facilities, as evidence of continued demand for conventional nuclear power.

In Southeast Asia, Vietnam is preparing to develop two large reactors, while the Philippines is considering both conventional plants and SMRs. Indonesia is also exploring smaller reactor technologies, including floating designs, she said.

Governments should also consider nuclear power's potential beyond electricity generation, including supplying industrial heat and steam for petrochemical and metallurgical operations, as well as supporting desalination, she said.

Long-term economics shape investment case

Financing remains a significant consideration, given the substantial upfront investment required to build nuclear plants. But Leon argued that investors should assess projects over their full operating lives, which can extend from 60 to 80 years or longer.

According to the León, uranium accounts for about 5% of nuclear electricity generation costs, limiting the technology's exposure to fuel-price volatility compared with natural gas.

Platts assessed the current-month U3O8 spot price at $92/lb on Oct. 30, $2.50/lb higher than a week earlier, driven by strong demand from utility reactor operators and as many as 15 spot deals.

León said the investment case should also account for economic opportunities that could be missed without reliable, low-carbon electricity, such as manufacturing investments, industrial development, and high-skilled employment.