The World Bank Group has recently made the first concrete step to reengage with nuclear power in decades, sealing an agreement with the International Atomic Energy Agency (IAEA) to support the safe, secure and responsible use of nuclear energy in developing countries.
The agreement reflects a new, broader approach by the World Bank Group to electrification—one that prioritizes accessibility, affordability and reliability, while managing emissions responsibly. With electricity demand in developing countries expected to more than double by 2035, this approach aims to help countries deliver the energy people need by enabling pathways that best fit their national context, including development objectives and Nationally Determined Contributions.
“In 1965, around the same time the World Bank Group last financed a nuclear power project, the average person in high-income countries used about 38 megawatt-hours of electricity per year. Today, that figure has risen to more than 50—but in Africa, it remains just 4. It’s a disparity that is expected to intensify,” said World Bank Group President Ajay Banga.
Three key goals to support nuclear energy in developing countries
Nuclear energy provides continuous baseload power, enhancing grid stability and resilience. Reliable baseload electricity is essential for job-generating sectors such as infrastructure, agribusiness, healthcare, tourism and manufacturing. Nuclear power is also a source of high-skilled employment and stimulates investment across the broader economy. In addition, it can adjust to changes in electricity demand and support frequency regulation, enabling greater integration of variable renewable energy sources.
“Jobs need electricity. So do factories, hospitals, schools, and water systems. And as demand surges—with AI and development alike—we must help countries deliver reliable, affordable power. That’s why we’re embracing nuclear energy as part of the solution—and reembracing it as part of the mix the World Bank Group can offer developing countries to achieve their ambitions,” added Banga.
Under the memorandum of understanding, the IAEA will work with the World Bank Group in three key areas:
- Building knowledge related to the nuclear field: Expanding the World Bank Group’s understanding of nuclear safety, security, safeguards, energy planning, new technologies, fuel cycles, reactor lifecycles and waste management.
- Extending the lifespan of existing nuclear power plants: Supporting developing countries in safely extending the life of existing nuclear reactors, as many global reactors near the end of their original 40-year design life.
- Advancing SMRs: Accelerating the development of small modular reactors (SMRs), which offer flexible deployment, lower upfront costs and potential for wide adoption in developing economies.
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More than 30 countries seek to introduce nuclear power
Thirty-one countries currently operate nuclear power plants, which combined produce about 9 percent of the world’s electricity, amounting to almost a quarter of all low-carbon power globally. More than 30 other countries, most of them in the developing world, are considering or already embarking on the introduction of nuclear power and are working with the IAEA to develop the necessary infrastructure to do so safely, securely and sustainably.
“This landmark partnership, yet another sign of the world’s return to realism on nuclear power, opens the door for other multilateral development banks and private investors to consider nuclear as a viable tool for energy security and sustainable prosperity. Together, we can help more people build a better future. SMRs have great potential to cleanly and reliably power progress and fight poverty, but financing remains a roadblock. Today’s agreement is a crucial first step to clearing that path,” said IAEA Director General Rafael Mariano Grossi.
