Southeast Asia will need to invest approximately $208 billion to develop 25 gigawatts (GW) of nuclear power capacity by 2050, mainly using small modular reactors (SMRs), despite their higher costs, according to a new report from Wood Mackenzie.
The report says that the region currently has no operational nuclear plants and relies heavily on coal and gas for baseload power, News.Az reports, citing foreign media.
Interest in nuclear power is growing as countries look for cleaner energy and more secure supplies, the report underlined.
Commenting on the report Robert Liew, Asia Pacific director for renewables research at Wood Mackenzie, said that nuclear power offers Southeast Asian governments an interesting proposition such as emissions-free power that can be deployed without major grid upgrades.
"Yet the region's limited operational experience raises significant risks around political opposition, cost overruns and long-term uranium fuel security," he added.
In addition, SMRs are seen as more viable than conventional large reactors because they can be deployed more quickly and with fewer regulatory hurdles.
By 2050, their generation costs are projected to reach $220 per megawatt-hour, more than double the $101 per megawatt-hour for traditional reactors, Wood Mackenzie says.
"Permitting for large nuclear plants has historically taken five to 15 years, with construction adding another five to 15 years," Liew said and explained that in contrast, SMRs can move from approval to operation in just two to three years if supportive policies are in place.
Vietnam is expected to lead the region's nuclear development, with plans to install up to 14 GW of capacity by 2050. The country views nuclear as a competitive alternative to planned liquefied natural gas projects.
Other countries are also exploring nuclear options with Malaysia planning to deploy SMRs by 2035, aiming for 1.2 GW by mid-century.
The Philippines is targeting 2.4 GW of SMRs by 2050, though only half that capacity may materialize.
Thailand could reintroduce nuclear with 600 megawatts by 2037, growing to 3 GW by 2050.
In addition, Indonesia has included two 250-megawatt SMRs in its 2025-2034 electricity plan. Singapore may add 0.8 GW by 2050, reducing reliance on imported fuels.
