Story by: Mabel Adorkor Annang
Countries that want to add nuclear power to their energy generation mix are searching for financing to undertake such projects. Financing of nuclear energy projects to reach net-zero targets will vary depending on individual countries’ strategies and capacities.
These were submissions made by stakeholders at a sideline meeting at COP28 in Dubai, which looked at green financing for nuclear power projects.
Nuclear power, often considered a low-carbon energy source, requires significant initial investment in infrastructure, technology, and safety measures.
Nuclear power plants have significant contributions to the UN Sustainable Development Goals and solving global climate challenges. But there are still some controversies relating to green financing for nuclear projects.
At a panel discussion organised by Rosatom at COP28 in Dubai, the Director of Renewable and Nuclear Energy, Ministry of Energy, Dr. Robert Sogbadji, highlighted financing challenges despite Ghana’s aim for a resilient energy transition to Net-Zero by 2070.
“It all requires funding and technology. So when you look at the investment plan then we are talking about solar and other stuff, but the main document which we really talk about the nuclear is the Energy Transition Framework, where we envisage about 40% of our energy mix to be nuclear.”
Rosatom’s First Deputy Director General, Mr. Kirill Komarov, noted that discussion with banks to explore green criteria for financing preferences is essential.
“We all know that for Nuclear energy, public support and public understanding is one of the most important issues and criteria. We see a lot of purchase in the future. Preferred only due to the lack of public acceptance and public support.
Senior banker VEB.RF, Mr. Sergey Storchak, stressed the importance of considering country risk and exchange rates in nuclear power project investments.
“You need to take into account at least two very serious factors: country rates and exchange rates. Why exchange rates? Because the future money coming from the sale or the energy will be obviously local currency. So in order to compensate the investments, you will have to exchange from local country into either result currency if it is possible, or the national currency.”
Rosatom stands out as the sole vendor progressing from Small Modular Reactor, SMR designs to constructing 70 SMR projects globally. SMRs offer efficiency for isolated and off-grid locations, providing an alternative to larger nuclear plants.
