Analysts Say Nuclear Power Could Help Europe Amid Energy Supply Disruptions from Iran War
The ongoing war with Iran has highlighted Europe's vulnerability to disrupted energy imports through key routes like the Strait of Hormuz. Analysts suggest nuclear energy could provide a reliable alternative, though challenges include high costs and long construction times. Countries with strong nuclear programs, such as France, are better positioned to handle the crisis.
armstrongeconomics.comThe war with Iran has disrupted energy imports to Europe, particularly through the Strait of Hormuz, exposing vulnerabilities in the continent's energy supply. Analysts indicate that nuclear power could offer a solution by providing reliable, low-emission energy independent of imported fossil fuels.
Nuclear energy produces fewer emissions than fossil fuels, requires minimal land, and operates reliably in various weather conditions. Chris Seiple, vice chairman of Wood Mackenzie's power and renewables division, told CNBC that nuclear has to play a big role in solving Europe's energy problems.
Michael Browne, global investment strategist at Franklin Templeton, stated to CNBC that without domestic energy supplies, countries must import at higher costs or build nuclear facilities, noting their efficiency as demonstrated by France. France meets over 60% of its energy needs with nuclear power, making it less affected by the supply shock.
China and France, along with another major producer, are the top three globally in nuclear energy production.
Korea's climate minister Kim Sung-hwan told CNBC that the war is a turning point, with nuclear and renewables as central pillars of future energy supply. Adnan Shihab-Eldin, senior visiting research fellow at the Oxford Institute for Energy Studies, told CNBC that diversifying sources is key to energy security, though building plants can take decades.
A nuclear project in Europe, started in 2016, is expected to finish toward the end of the decade and provide power for 6 million people, supplying 7% of a country's electricity. Another project in France, Flamanville 3, opened in 2024 after 17 years of construction.
Aylett, research fellow in the Environment and Society Centre at Chatham House, told CNBC that by the time a new plant comes online, the energy landscape may differ significantly. Seiple suggested finding cheaper building methods, possibly using technology from China, though Aylett noted political concerns make cooperation unlikely due to security and strategic issues.
Historical nuclear accidents in 1986 and 2011 have led to public reluctance and decommissioning in Europe. However, Aylett said recent energy crises may be shifting attitudes, viewing nuclear as a domestic source less exposed to geopolitical risks. As of 2025, nuclear makes up 11.8% of Europe's energy mix, while oil and gas account for over a third, according to Eurostat data.
IEA chief Fatih Birol previously told CNBC that the supply crisis would boost nuclear power and urged governments to enhance resilience with alternatives.
