The Donald Trump administration set a goal to begin construction on 10 large nuclear power plants by 2030 through an executive order. MERITZ Securities forecasted on the 26th that the domestic nuclear power value chain would benefit.
President Trump signed executive orders to promote the nuclear power industry on the 23rd (local time). The orders include expanding nuclear power capacity to about 400 gigawatts (GW) from the current approximately 100 GW by 2050, shortening the licensing period for new reactors to 18 months, and restructuring the nuclear fuel supply chain within the United States.
Mungyungwon, a researcher at MERITZ Securities, noted that the tax incentive reform proposal for the Inflation Reduction Act (IRA) passed by the U.S. House of Representatives maintains production tax credit (PTC) provisions for small modular reactors (SMRs), supporting policy continuity.
Especially, the goal of starting construction on 10 large nuclear power plants in the United States by 2030 may provide new opportunities for the Korean nuclear power value chain, according to Mung. He said, "We need to watch whether Korea Hydro & Nuclear Power enters the U.S. mainland," but added, "Even if everything goes ahead with the American Westinghouse, cooperation with the Korean nuclear power equipment value chain, including Doosan Enerbility, is essential."
However, the feasibility will depend on subsequent policies. In the past 20 years, the only large nuclear power plants that have actually been built in the United States are Vogtle Units 3 and 4 in Georgia. Even that took 14 years from groundbreaking to completion. Typically, it takes at least 4 to 6 years to begin construction of a large nuclear power plant, from site selection to licensing and the Nuclear Regulatory Commission (NRC) combined construction and operating license (COL).
Mung noted that "because executive orders are not laws, they have limited legal binding force and budget execution power," adding, "For the content of this executive order to be realized, legal revisions and site selection and other subsequent work are essential."
Mung added, "The aspect of confirming the Trump administration's sincerity towards nuclear power is more important than the reality of specific numbers," and stated, "There is a high possibility that the focus will shift to SMRs." He continued, "Regardless of the direction of developments, the benefits for the Korean nuclear power value chain could be greater than expected."