Can modular nuclear power bridge the energy gap in the Global South? What early pilots suggest

Why are modular nuclear reactors attracting interest across Africa, Asia, and Latin America in emerging energy markets?

Modular nuclear reactors—particularly microreactors and small modular reactors (SMRs)—are gaining traction across emerging economies as a scalable, low-carbon power solution tailored to regions lacking robust grid infrastructure. These compact reactors offer a practical alternative to diesel generators for off-grid sites and provide baseload power in locations where traditional nuclear plants are too large, costly, or politically sensitive to deploy.

In June 2025, the World Bank and International Atomic Energy Agency (IAEA) signed a landmark agreement to expand cooperation on nuclear energy development and safety, with modular systems at the center of the strategy. The move highlights growing global consensus that SMRs and microreactors can address energy poverty and industrial development needs in regions that cannot rely on conventional megawatt-scale nuclear plants.

The IAEA’s support includes regional SMR “schools” that have trained officials and regulators from Kenya, Ghana, Nigeria, and Mexico, indicating institutional readiness and strong regional demand signals.

What are the biggest barriers to deploying microreactors in the Global South today?

Despite this momentum, several barriers remain. The foremost challenge is financing: SMRs and microreactors, though smaller than traditional plants, still require significant upfront capital. Many countries in the Global South face limited access to low-cost debt, sovereign guarantees, or infrastructure credit ratings, making commercial closure difficult without multilateral support.

Regulatory readiness is also a constraint. National nuclear safety authorities in many emerging markets are either nascent or under-resourced, and harmonization with international safety and licensing frameworks is slow. Without clear timelines or experience with first-of-a-kind (FoAK) deployments, risk perception among lenders and insurers remains high.

Additionally, supply chains for advanced fuels—particularly high-assay low-enriched uranium (HALEU) and TRISO fuel—are not yet fully commercialized or globally accessible. Many analysts suggest that unless there is a concerted push to globalize HALEU and fabricate components regionally, deployment will remain clustered in the Global North.

How are developers like Ultra Safe Nuclear and X-Energy approaching emerging markets with microreactor solutions?

Ultra Safe Nuclear Corporation and Dual Fluid Energy have begun forming early-stage commercial and demonstration partnerships with African governments. One of the most advanced examples is Rwanda, which signed a deal in 2024 to deploy a demonstration microreactor by 2026 at the Kigali Research Center. The project—billed as the first of its kind in Africa—aims to validate carbon-free baseload generation in a landlocked, grid-constrained economy.

In parallel, Ghana has agreed to host a NuScale VOYGR-12 SMR, part of a broader initiative to position the country as a regional nuclear hub. The deal, announced with U.S. backing, targets industrial decarbonization and grid reliability while developing domestic nuclear expertise through the Ghana Atomic Energy Commission.

U.S.-based X-Energy, best known for its TRISO-X fuel and Xe-100 reactor, is actively engaging with Southeast Asian countries. In Indonesia, feasibility studies have been conducted on siting modular reactors near mining and desalination zones, where heat and power co-generation could deliver long-term decarbonization value.

Could the IAEA and World Bank play a catalytic role in microreactor infrastructure funding and regulatory readiness?

The June 2025 agreement between the World Bank and the IAEA could become a turning point for modular nuclear development in the Global South. Under the terms, the institutions will coordinate on project screening, safety assessments, and financial structuring, particularly for demonstration-phase and second-of-a-kind deployments.

Both institutions are already involved in energy infrastructure projects across Africa and Asia. Their combined technical authority and risk mitigation frameworks could help derisk modular nuclear in much the same way they previously accelerated renewables and hydropower.

Crucially, the IAEA has also committed to expanding its nuclear education initiatives. Through its SMR school programs, more than a dozen countries have already received foundational training in licensing, safety culture, and operational planning. These programs are often prerequisites for national and regional banks to consider nuclear-linked infrastructure financing.

What do early demonstration projects in countries like Rwanda, Ghana, and Indonesia signal about modular nuclear viability?

Rwanda’s pilot microreactor is expected to go online by late 2026. If successful, it would mark the first operational microreactor on the African continent, setting a precedent for similar deployments across sub-Saharan Africa. The reactor is being positioned not only as a source of clean energy but also as a testbed for nuclear workforce development, cybersecurity protocols, and safety drills.

Ghana’s NuScale project is more ambitious in scale and market reach. With U.S. support and clear offtake planning, the reactor is designed to integrate with Ghana’s power grid and also enable exports to West African neighbors via regional transmission corridors. The project’s success will be closely watched by institutional investors looking for the first replicable business model in modular nuclear.

Indonesia, meanwhile, has expressed interest in deploying modular reactors in coastal and island regions that currently rely on diesel barges or intermittent solar. Several reactor vendors have already submitted technical whitepapers to Indonesian regulators, and a shortlist for demonstration partnerships is expected by 2026.

How could emerging economies leapfrog to clean nuclear power without large-scale grid investments?

One of the biggest advantages of microreactors and SMRs is that they can operate independently of national grids. Their modularity, passive safety features, and compact designs allow for localized deployment in energy islands—industrial parks, military bases, or mining towns—without requiring extensive grid integration.

Analysts argue that this leapfrogging potential mirrors how mobile telecoms bypassed landlines across much of Africa and Asia. Instead of building costly centralized infrastructure, countries can deploy modular reactors where the energy is needed, often in co-located industrial or desalination zones.

Hybrid deployment models are also gaining interest. For example, pairing a microreactor with solar and battery systems can create 24/7 hybrid clean energy hubs. These hubs are particularly relevant for water-scarce regions where nuclear heat can support desalination while photovoltaic arrays cover daytime load.

What should investors and analysts watch for in the coming years?

Institutional sentiment is cautiously constructive. Impact investors, climate infrastructure funds, and sovereign-backed utilities are closely watching early deployments. Key performance indicators to monitor include reactor uptime, fuel cycle cost, cybersecurity readiness, and regulatory interoperability with IAEA standards.

Rwanda’s and Ghana’s progress will be critical benchmarks. If these projects achieve commercial operations with minimal delays, analysts expect wider project pipelines to be announced in Kenya, South Africa, Indonesia, and possibly Latin America by 2028.

Stock market exposure remains limited, but vendors supplying reactor containment systems, HALEU enrichment facilities, or TRISO fuel may offer indirect investment avenues. Some industry watchers expect a wave of public-private SMR infrastructure financing deals to emerge, particularly if the World Bank’s catalytic framework proves viable.

Is the Global South ready for modular nuclear adoption?

By 2030, modular nuclear deployment in the Global South could evolve from isolated pilots to the backbone of regional clean energy strategies. From Rwanda to Indonesia, the combination of national ambition, multilateral support, and developer momentum suggests a turning point is near.

Whether the modular model can scale at commercial pace and survive geopolitical sensitivities will depend on what happens in the next 24–36 months. If execution succeeds, the next frontier in clean nuclear power may not be in Boston or Ontario—but in Kigali, Accra, and Jakarta.