Global Power Construction Spending Led by Nuclear, Wind

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Written by Eric Funderburk for IIR News Intelligence (Sugar Land, Texas)

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Summary

Current global power construction spending is led by nuclear power, which commands the highest dollar amount despite there being many more wind and solar power projects underway.

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Low Number, High-Dollar

Delving into the Industrial Info Resources Global Market Intelligence (GMI) Power Industry Database, the high cost of nuclear power becomes apparent. Although small modular reactors (SMRs) that would rein in the costs of larger, conventional reactors are just beginning to gain some traction, these are really only just leaving the development stage and have yet to be deployed in any significant numbers. This means most nuclear power currently under construction throughout the world is at conventional plants, and the relatively small number of 157 nuclear projects actively under construction throughout the world requires a whopping US$488.2 billion in investment. This compares to a combined US$465 billion for wind and solar power projects, although these two renewable sources boast more than 2,200 projects in active construction throughout the world.

Nuclear Snapshot

According to Industrial Info Resources, most of the active nuclear spending is underway in China, which boasts more than 20 separate nuclear power projects under construction, valued at more than US$122 billion. This is followed in a distant second place by the U.K. at US$72.5 billion.

The U.K.'s second-place position stems largely from the Hinkley Point C plant, a 3,260-megawatt (MW) plant that began construction in 2017, which is expected to continue for years to come. The facility will use two Framatome European pressurized water reactors. Over the years, the facility has been subject to massive cost overruns and delayed timelines. For more on that, see March 3, 2026, article - Delays Hit U.K.'s Hinkley Point C Nuclear Project Again. Readers can access details of the project, including construction timelines, key contact details, and equipment and service needs, by clicking here.

Such cost overruns and delays have been a plague on recent nuclear construction, also affecting the most recently constructed U.S. reactors: Georgia Power's Vogtle units 3 and 4 in Waynesboro, Georgia, which faced years of delayed timelines and went billions of dollars over the originally proposed budget.

Wind, Solar & Hydro

Wind and solar power easily eclipse other forms of generation in regard to the number of construction projects underway throughout the world, although the investments required for each fuel type is much lower than for nuclear. Wind as a power source, however, does in fact earn the second-highest for active global power spending, at a distant US$273 billion compared to nuclear power's US$488 billion. Third place for spending is held by another renewable power source, hydropower, at US$246 billion, while solar occupies fourth position at US$192.2 billion, and natural gas-fired power rounds out fifth position for active construction spending.

Despite solar's fourth position for spending, this fuel source garners the largest number of underway construction projects--more than 1,200. Most of these projects are occurring in China, the U.S. and India, with the Middle East featuring the largest projects, including a 5,200-MW solar plant with more than 2,730 MW of battery energy storage in Abu Dhabi. Construction on the massive project kicked off in earnest last year and despite its scale, construction is expected to wrap up by the close of next year.

China dominates wind power spending, accounting for nearly half of the more than 1,000 projects underway and around 40% of total spending. The largest projects, however, come from offshore developments, primarily in Europe, but also in the U.S., most notably Dominion Energy's 2,600-MW Coastal Virginia Offshore Wind (CVOW) project. Industrial Info Resources data show active wind construction in 27 European countries (both in and out of the European Union), including substantial offshore developments in Denmark, France, Germany, the Netherlands, Poland and the U.K.

As with other power sources, China dominates active hydropower construction, followed in a distant second and third place by India and Pakistan, respectively. China's top three hydropower projects--on the Huang He (Yellow), Dadu and Jinsha rivers--represent more than 6,000 MW of combined power generation and are pulling in nearly US$20 billion in total investment.

Natural Gas

While current spending is dominated by cleaner forms of energy, fossil fuels still feature largely, with natural gas and coal occupying fifth and sixth position in current global spending, respectively, netting more than US$300 billion in current spending. Saudi Arabia leads natural gas spending, thanks to 14 projects underway bringing around 24,800 MW of gas-fired power to the kingdom.

The U.S. brings around US$23 billion in active natural gas-fired construction to the table, led primarily by Entergy Corporation, which is building four grassroot gas-fired plants in Texas and Mississippi.

The Industrial Info Resources GMI Power Project Database includes details on US$1.7 trillion worth of current power industry construction underway throughout the world and another US$12.1 trillion worth of projects in various stages of planning and engineering.

Key Takeaways

• Despite less than 160 active projects underway, nuclear power dominates global power spending generation at around US$488 billion.
• Wind and solar power bring the highest number of projects, each boasting more than 1,000 projects in an active construction phase.
• China dominates spending for several types of power generation, including nuclear, solar, wind and hydropower.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).