Denmark rethinking nuclear power after 40 year ban amid shifting European energy landscape

Denmark, a nation renowned for its renewable energy achievements, is revisiting its 40-year ban on nuclear power as it explores the potential of new reactor technologies. The Danish government recently announced plans to evaluate the benefits of small modular reactors (SMRs), which represent a significant departure from traditional, large-scale nuclear reactors. This development signals a major shift for a country that generates over 80% of its electricity from renewables like wind, solar and biofuels, according to the International Energy Agency.

Energy and Climate Minister Lars Aagaard highlighted the government’s intention to study these innovative nuclear technologies. Speaking to Politiken, a prominent Danish newspaper, Aagaard stated that while these reactors show promise, it is critical to understand their societal impacts before incorporating them into Denmark’s energy strategy. This marks a pragmatic approach as the country navigates growing energy demands tied to decarbonising various sectors, including transport and industrial activities.

Across Europe, nuclear power is experiencing a revival. France recently brought its first new reactor in 25 years online, while the UK is moving forward with projects such as Hinkley Point C and exploring SMR deployment. Even traditionally anti-nuclear nations like Spain are considering policy shifts, prompted by challenges such as last month’s large-scale Iberian power outage. Germany, which phased out its reactors in 2022, faces renewed debate over nuclear energy following the loss of Russian gas imports. These trends reflect a growing consensus around nuclear power’s role in providing reliable, low-carbon energy to meet future needs.

Denmark’s reconsideration of nuclear power occurs amid economic challenges for Ørsted, its leading renewable energy company. Ørsted has faced project delays and cancellations due to inflation and high interest rates. The recent termination of the Hornsea 4 offshore windfarm in the UK underscores the pressures facing renewable developers in an increasingly turbulent market. Diversifying energy sources, including a potential return to nuclear power, could provide Denmark with greater energy security and cost stability.

Prominent voices, including former Danish Prime Minister Anders Fogh Rasmussen, have expressed support for lifting the nuclear ban. Rasmussen called it “ridiculous” to dismiss nuclear power outright, citing its potential to complement wind and solar energy by providing consistent, non-fossil baseload electricity. This perspective aligns with broader European efforts to balance the strengths of renewables with the reliability offered by nuclear technologies.

Developers of SMRs emphasise their modularity and cost-efficiency compared to traditional reactors. These smaller units can be produced in factories and assembled on-site, potentially reducing construction time and financial risks. Tech companies such as Google are also eyeing SMRs to meet the energy-intensive needs of their datacentres, further highlighting the appeal of this emerging solution in advancing low-carbon energy systems.

Denmark’s exploration of nuclear power technologies remains in its early stages. However, with the growing demand for dependable and low-carbon electricity to achieve climate goals, this pivot towards SMRs could represent a landmark policy shift for one of the world’s most renewables-focused nations.