Italy Explores Nuclear Return After 40 Years as Energy Costs Hit

Why It Matters

Resuming nuclear power could lower Italy’s dependence on volatile gas imports and support economic growth, while reshaping the European energy mix.

Key Takeaways

• Italy plans nuclear comeback after 40-year ban.
• Energy Minister calls for safe, cost‑effective reactors.
• Government evaluating large plants and SMRs from Canada, France, Korea.
• Nuclitalia created by Enel, Ansaldo, Leonardo to study viability.
• Rising gas prices and geopolitical shocks boost nuclear appeal.

Pulse Analysis

Italy’s energy landscape has been reshaped by soaring natural‑gas costs and a series of geopolitical shocks, from the Ukraine war to recent tensions in the Middle East. Those price spikes have exposed the country’s reliance on imported fossil fuels and strained its already sluggish growth. Prime Minister Giorgia Meloni, whose platform ties economic revival to energy security, has therefore elevated nuclear power from a rhetorical promise to a concrete policy priority. The cabinet’s 2025 legal framework sets the stage for a national nuclear strategy to be delivered by 2027.

The government is weighing a mix of proven large‑scale reactors and the newer small modular reactor (SMR) concept, which promises shorter construction times and lower upfront capital. Delegations have already visited Canadian SMR projects, French nuclear firms, and Korean and U.S. suppliers such as Westinghouse, seeking technology that fits Italy’s limited site options and seismic constraints. At the same time, the EU is loosening funding rules for nuclear, channeling billions into private‑sector projects across the bloc, a shift that could help offset Italy’s financing gap.

Despite the strategic allure, Italy faces steep hurdles. Nuclear projects historically run over budget and schedule, and public opposition remains strong after two referenda banned the technology. Selecting sites will require geologically stable ground, a scarce commodity in a narrow, earthquake‑prone peninsula. Moreover, the cost of waste management and decommissioning adds long‑term liabilities that investors scrutinize. If the rollout stalls, Italy may miss the window to diversify its energy mix before the EU’s carbon‑pricing regime tightens further, leaving the economy vulnerable to future price spikes.