Power reset: is nuclear the missing piece to building Canada’s clean energy future?

In 1962, Canada pioneered its first fission-based nuclear reactor — a prototype CANDU reactor touted as a safe and reliable source of energy, one that would decrease our dependence on imported fossil fuels, help reduce emissions, improve air quality and create jobs. 

But within decades, the public began second-guessing nuclear as a go-to solution — whether in response to impending energy crises or the looming threat of global warming.

In the 60 years since, nuclear has beat a steady rhythm, quietly contributing more than 12.9% of Canada’s energy needs.^[1] The country’s initial reactor has since made way for 19 that are still in use across Ontario and in New Brunswick.^[2] While the demand for energy transition had the sector, governments and public opinion leaning towards renewable sources like hydro, solar and wind to contribute to the country’s net-zero goals, these sources alone are insufficient. Climate change is challenging supply reliability, and the intermittency of renewables continues to pose a significant challenge.

With those needs expected to explode in coming years and new challenges entering the picture — geopolitical concerns, trade uncertainty, the rising cost of electrification and its slower adoption and evolution — the pendulum is swinging back around to nuclear. Nuclear is no longer viewed as a standby energy source, but as a valued partner and key contributor to the diverse mix of energy solutions that together will help meet the country’s decarbonization goals for 2050 and beyond.

The position of power

Thanks in large part to the robustness of our natural resources, Canada has historically been able to meet its energy needs. But the energy world — and the many factors that influence and feed into it — are changing.

Canada’s demand for electricity is expected to double in the next 25 years to accommodate population growth, transportation and industrial electrification efforts and the power needed to run the proliferation of ever-expanding data centres and AI technologies^[3],[4]. Add to that the demands and impacts of extreme weather and lacking infrastructure, it will take significant investment — more than an estimated $40 billion annually — to deliver on the energy transition.^[5]

But delivering with promise is not simply about keeping the lights on. It’s about responding to the energy trilemma, not for the distant future but one we’re facing here, today. Electricity generation that is not only sustainable and considerate of the environment, but reliable across a range of extreme conditions and, perhaps most controversially, delivered with equity and affordability. It’s a checklist that nuclear energy must help deliver on, lessening the need to compromise or sacrifice:

Security. Considered the most reliable source of electricity generation, nuclear plants operate around the clock and are equipped to store up to two years of fuel securely, making them resistant to disruption. Built to withstand severe weather and other threats, accidents are rare, with Fukushima and Chernobyl being the only two recorded in 18,000 cumulative reactor-years of commercial operation across 36 countries.^[6]

Sustainability. Nuclear power reduces our reliance on fossil fuels, reducing carbon dioxide emissions worldwide by 2.5 billion tonnes annually.^[7] Not dependent on the elements, it can fill gaps when renewable sources can’t operate, providing the baseload power needed to respond to fluctuating demand and providing a resilient grid that produces fewer greenhouse gas emissions, occupies a smaller physical footprint and creates minimal waste in comparison. 

Equity. Despite high capital costs associated with building or updating plants, nuclear remains a power grid mainstay in part due to lower operating costs than renewables. Stable, flexible and reliable, with long operating lifetimes, nuclear power translates into fewer dollars and makes greater sense. And since Canada is rich in the natural resources needed to drive nuclear energy – uranium and water – production isn’t at the mercy of global markets, offering security and greater value for the dollar.

As the world’s second largest uranium producer, Canada possesses 10% of the world’s known recoverable reserves and accounts for more than 20% of global output.^[8] We have existing facilities to process the mineral, including the world’s largest commercial uranium refinery in Blind River, Ontario.^[9] Plus, Canada is a pioneer in nuclear development, with a skilled knowledge-worker and labour workforce to support growth, positioning the country to jump on big opportunities. 

But for the industry to reawaken and truly enter its renaissance — benefiting society and the planet —awareness will be key if the sector is to build the necessary trust to move forward.

Stepping into the light

Despite nuclear’s many benefits, as with all forms of energy generation, drawbacks are inevitable. That said, as the industry evolves nuclear production continues to be in an ideal position to effectively balance the tradeoffs. 

While safety rates as a top concern, newer technologies are enhancing safety and sustainability, redefining associated risk as “low and declining.”^[10] Government policy support and incentives, like the 30% clean technology investment tax credit, have paved the way for investors and developers. Aligned with Canada’s COP28 commitment to triple nuclear energy capacity, work is underway, with the Government of Ontario recently approving the construction of North America’s first grid-scale small modular reactor (SMR) in Darlington. 

Compact and scalable, SMRs are factory assembled, shipped to sites for installation and often referred to as the “future of nuclear power.”^[11] Among the latest innovations, they’re faster to assemble, allow for greater quality controls and can be scaled based on demand — all delivered faster and at a lower price tag. Installed underground, units are remotely operated using real-time diagnostics and AI, and shut down automatically in emergencies without human intervention, overcoming three top concerns people identify with nuclear energy: capital costs, construction timelines and, above all, safety.

Tried in the court of public opinion

Such innovations are swaying public perspective. A recent study showed that while 6 in 10 Canadians support the expansion of nuclear energy, more are putting their faith in hydro, solar and wind.^[12] While trust is up in the past 30 years, there is work to be done to inform Canadians on the benefits of nuclear, or risk negatively influencing leadership and impeding investment. 

In Germany, public pressure led to the phasing out of the country’s reactors in favour of renewable sources, an action that more than half the country later deemed “premature,” with no “easy way back.” ^[13] 

By continuing our visionary efforts in nuclear science and technology, Canada can position itself well as a global leader in developing and deploying SMRs. As a world-class regulator with a solid domestic supply chain, we stand to capture a significant share of the emerging global market, estimated to be $150 billion per year by 2040,^[14] contributing not only to our energy needs and reducing the greenhouse effect, but also boosting our economic growth.