Latin America Embraces Nuclear Energy: IAEA Leads Dialogue on SMRs and Financing

Latin America is rapidly becoming a key region in the global resurgence of nuclear power. The International Atomic Energy Agency (IAEA) underscored this trend by participating in Brazil’s premier nuclear industry event this week—the Nuclear Trade and Technology Exchange (NT2E). Hosted by the Brazilian Association for the Development of Nuclear Activities (ABDAN), the NT2E gathered global industry experts, policymakers, and investors to explore the region’s nuclear energy future.

IAEA Director General Rafael Mariano Grossi, in his opening remarks, emphasized the role of electricity in fostering economic and social development. “As the populations and economies of Latin America and the Caribbean grow, so will electricity demand,” Grossi said. “Meeting projected annual growth of more than 2 per cent will require significant investment in infrastructure, especially considering that more than 16 million people in the region still lack access to electricity.”

A Renewed Global Commitment to Nuclear Energy

The NT2E conference came on the heels of a pivotal moment for nuclear energy at the international level. At the 2023 United Nations Climate Change Conference (COP28) in Dubai, countries reached a broad consensus to ramp up nuclear energy deployment. This renewed commitment is now driving increased projections for global nuclear capacity—expected to more than double by 2050 under the IAEA’s high case scenario.

Latin America’s role in this resurgence is anchored by longstanding nuclear operators—Argentina, Brazil, and Mexico—all of which are expanding their nuclear programs. Additionally, several newcomers, including Ecuador, Bolivia, and Colombia, are showing growing interest in adopting nuclear technologies. Director General Grossi’s recent visit to Ecuador highlighted this trend, where he signed agreements to enhance nuclear cooperation.

The Game-Changer: Small Modular Reactors (SMRs)

A major focus at NT2E was the emergence of Small Modular Reactors (SMRs), seen as a transformative solution for countries with smaller power grids and limited financial resources. The IAEA hosted a dedicated workshop on SMRs covering their technological maturity, regulatory pathways, and market viability.

Julian Gadano, Director of the Nuclear Policy Programme at the Argentine Global Foundation and former Undersecretary of Nuclear Energy of Argentina, noted, “SMRs are changing the game worldwide. They are particularly advantageous for Latin America, as they attract venture capital and lower financing costs—key barriers in developing economies.”

Public-private partnerships, feasibility studies, and strategies for SMR deployment were also central to the discussions. The upcoming third edition of the IAEA’s SMR School, to be held in Buenos Aires from 25 to 29 August, aims to further educate and train participants from across the region.

Financing the Future of Nuclear

In addition to technical discussions, NT2E placed a strong emphasis on the financial mechanisms required to scale nuclear deployment. The IAEA organized a panel specifically on financing strategies, exploring how policies, international cooperation, and innovative financial instruments can support nuclear growth. The conversation highlighted the intersection of nuclear energy with broader goals such as climate change mitigation, energy security, and sustainable development.

“The NT2E is characterized as a meeting space for the entire nuclear sector,” said ABDAN President Celso Cunha. “The IAEA’s support is helping us consolidate a nuclear hub for Latin America, involving various associations and global stakeholders.”

Brazil’s nuclear future is already taking shape. The first unit of the Angra Nuclear Power Plant recently received a 20-year life extension, while construction of the third unit is underway. With electricity demand in Brazil projected to grow by 3.5 percent annually, expanding clean energy sources is becoming increasingly critical.

Strengthening Global Cooperation Through G20

The IAEA’s participation at NT2E also reflected its expanding engagement in global governance platforms. Following its inaugural involvement with the G20 during Brazil’s presidency, the IAEA contributed to the Energy Transitions Working Group, including producing a landmark report on scaling clean energy investment.

This year, under South Africa’s presidency, the IAEA continues its G20 involvement by contributing to reports on nuclear prospects in Africa and the coal-to-nuclear transition. The Agency is also set to attend the upcoming G20 Ministerial Meeting on Energy.

The Path Forward

The NT2E event and the IAEA’s robust presence signal a decisive shift in Latin America’s energy outlook. With the convergence of technological innovation, financial strategies, and international cooperation, nuclear power is poised to play a central role in the region’s clean energy transition.

Mikhail Chudakov, IAEA Deputy Director General and Head of the Department of Nuclear Energy, captured this new reality: “From Asia to Latin America, from Europe to North America, this new energy realism—this need for clean firm power to enhance energy security and drive economic development—is clearer by the day. Nuclear energy offers tremendous promise—but it will only deliver if we match that promise with political will and social commitment.”

As Latin America positions itself on the frontier of the nuclear renaissance, the continued leadership of organizations like the IAEA will be essential in ensuring that this promise becomes a sustainable reality.