Nuclear Projects Don’t Have to Be Late and Over Budget

Summary

• While the latest reactors built in the U.S. saw severe delays and cost overruns, the United Arab Emirates saw strong success with its first nuclear plant.
• The strong execution of the Barakah plant in the UAE was attributed to rigorous planning, global collaboration, and thorough budgeting.
• Nuclear power plants are costly and time-intensive to build, but they also generate zero-emission, reliable baseload power for 80 or more years.

One of the pushbacks to nuclear power is its high, upfront capital costs, which can be potentially exacerbated by cost overruns and delays. This was certainly the case for the last large reactors built in the U.S. in Georgia (Vogtle 3 and 4) and the reactors currently under construction in the UK have also seen challenges.

While the nuclear projects likely to end up in the newsfeeds of U.S. investors have faced setbacks, other countries have seen better execution on large reactor projects. Admittedly, countries like China benefit from standardization and repetition with multiple projects under construction. However, the United Arab Emirates  (UAE) provides an example of a new entrant to nuclear power that saw very strong execution on building reactors in recent years.

The UAE Example

Historically reliant on fossil fuels, the UAE turned to nuclear energy to secure emission-free power to fuel economic growth. Its four-reactor Barakah plant proves that nuclear power projects can be delivered on schedule and on budget. The first unit took eight years from the initial concrete pour to the start of operations, and efficiencies were realized with the subsequent units. For context, Vogtle 3 in the U.S. took 14 years to complete and was roughly seven years behind schedule.

Rigorous planning, global collaboration, and thorough budgeting are some of the key elements of the UAE’s approach that contributed to its overall success. Potential project partners were evaluated for a year by a team of 75 nuclear experts from around the world.

Ultimately, Korea Electric Power Corporation (KEPCO) was chosen to design, build, and support the operations of the Barakah Plant. Nuclear reactors that came online in 2016 and 2019 in South Korea using the same technology (APR 1400) served as reference plants for Barakah. KEPCO is a constituent of the Range Nuclear Renaissance Index (NUKZX).

Why do some projects struggle?

Nuclear projects can be challenging, as they’re often first-of-a-kind facilities, deploying a design that has not been used before. This can understandably create difficulties. In practically, the third or fourth version is easier than the first, and later iterations benefit from prior learnings. Regulations can also contribute to delays and cost overruns, with nuclear projects subject to significant oversight.

Nuclear development becomes better and more efficient with repetition. Certainly, there are efficiency gains from the first to the second or fourth unit on the same site. More broadly, multiple projects under construction in a country would drive more robust supply chains and a stronger workforce. As the U.S. seeks to triple nuclear power capacity by 2050, these are key areas that need support and have been an emphasis in executive orders from the Trump administration (read more).

Nuclear isn’t simple, but has clear advantages. 

Admittedly, nuclear power plants are costly and time-intensive to build, but they also generate zero-emission, reliable baseload power for decades. As of April 2025, the U.S. Nuclear Regulatory Commission had approved 12 reactors to operate for 80 years, and was reviewing applications from an additional five reactors to extend their licenses to 80 years. Upfront costs are more manageable when viewed through the lens of 80 or more years of operation. For context, the life span for less-reliable solar panels or wind turbines may be 20-30 years.

Nuclear is also not unique in taking years to develop. Consider oil and gas, where production depletes over time compared to nuclear’s steady output. According to the International Energy Agency, it typically takes 20 years between when exploration licenses are granted and hydrocarbons are actually produced.  

Bottom Line:

Nuclear power projects are expensive and take time. However, their longevity of operation, reliability, and emission-free power generation represent distinct advantages. The UAE provides a prime example of solid execution on large reactors, proving nuclear projects do not have to be plagued with delays and cost overruns.

NUKZX is the underlying index for the Range Nuclear Renaissance Index ETF (NUKZ).