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Households and businesses are watching the cost of gas and petrol climb sharply, while policymakers warn that the situation could deteriorate further depending on developments in the Middle East. Governments and European institutions are urging citizens to reduce energy use, including working from home more frequently and limiting travel.
The latest price shock comes only a few years after Europe faced a severe cost-of-living crisis triggered by soaring energy prices and inflation following Russia's full-scale invasion of Ukraine. With energy markets again under strain, discussions about reducing dependence on imported fuels have returned to the forefront.
Energy supply concerns have also intensified as tensions in the Middle East affect global markets, particularly disruptions linked to the Strait of Hormuz, a crucial route for oil shipments.
Renewed Focus on Energy Independence
European leaders are increasingly examining nuclear energy as part of a strategy to improve energy security.
At a recent nuclear summit in Paris, Ursula von der Leyen described Europe’s earlier retreat from nuclear energy as a “strategic mistake.” She noted that nuclear power accounted for roughly a third of Europe’s electricity generation in 1990 but has since fallen to around 15%.
As a result, the continent now imports more than half of its energy, primarily oil and gas. That reliance leaves countries vulnerable to supply disruptions and price spikes.
Electricity prices vary significantly depending on national energy mixes. Spain, which has invested heavily in renewable sources such as wind and solar power, is forecast to have electricity prices about half those of Italy in 2026. In Italy, gas often determines electricity prices.
Meanwhile, France, Europe’s largest nuclear energy producer, generates about 65% of its electricity from nuclear power. Futures contracts indicate German electricity prices for the coming month are roughly five times higher than those in France.
Germany closed its final nuclear reactors following the Fukushima nuclear disaster, increasing reliance on gas for its energy-intensive industries. Economic institutes in Berlin recently cut Germany’s 2026 growth forecast to 0.6% amid rising gas costs.
Policy Shifts Across Europe
Several European countries are now reconsidering nuclear power.
Italy is drafting legislation to lift its long-standing ban on nuclear energy. Belgium is reconsidering earlier plans to phase out reactors, while Greece has opened discussions about adopting advanced reactor technologies.
Sweden has reversed a decades-old policy of abandoning nuclear energy. In the United Kingdom, Chancellor Rachel Reeves recently announced plans to streamline regulations to accelerate nuclear projects.
Support for nuclear energy also appears to be rising among the public in parts of Europe, according to polling.
France has been among the strongest advocates. President Emmanuel Macron argues nuclear power can help deliver both energy independence and lower carbon emissions while meeting growing electricity demand from technologies such as artificial intelligence and large data centres.
Long Timelines and Lingering Challenges
Despite the renewed enthusiasm, experts caution that nuclear power cannot resolve Europe’s immediate energy problems.
Building new reactors is expensive and often delayed. Major projects such as the Flamanville-3 reactor in France and Hinkley Point C in the UK have experienced lengthy construction setbacks.
Concerns also remain about nuclear waste management, safety, and the potential diversion of funding from renewable energy projects.
Some Central European countries continue to rely on Russian nuclear technology and uranium supplies, which could create new strategic dependencies.
Analysts note that maintaining existing nuclear capacity alone will require substantial investment as many reactors age.
Interest in New Reactor Technologies
To address cost and construction challenges, the European Commission is promoting small modular reactors, or SMRs.
These smaller reactors are designed to be built in factories and assembled on site, potentially reducing costs and construction times. They could also supply electricity for emerging sectors such as hydrogen production, district heating, and energy-intensive data centres.
The European Union recently announced a €330 million investment package to support nuclear technologies, including SMRs, with the aim of deploying them by the early 2030s.
However, SMRs remain largely untested at commercial scale. As of early 2026, none had received construction licences within the EU.
For now, Europe continues to rely heavily on imported fossil fuels while exploring longer-term solutions to strengthen energy security.
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Adapted by ASEAN Now. Source 4 April 2026
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