The World Bank is re-engaging in nuclear energy for the first time in decades, according to President Ajay Banga, as part of efforts to help developing countries meet surging electricity demand.
In a staff email on Wednesday, Banga announced that the bank will collaborate closely with the International Atomic Energy Agency (IAEA), focusing on strengthening non-proliferation safeguards and regulatory frameworks.
The move comes as electricity demand in developing countries is projected to more than double by 2035. To meet this rising need, annual investment in power generation, grid infrastructure, and storage must grow from the current $280 billion to approximately $630 billion, Banga said in the memo obtained by AFP.
“We will support efforts to extend the life of existing reactors in countries that already have them, and help support grid upgrades and related infrastructure,” he stated.
The Washington-based institution also plans to accelerate the development of Small Modular Reactors (SMRs), aiming to make them a practical option for more countries in the future.
Banga, who assumed leadership of the World Bank in 2023, has advocated for a shift in the bank’s energy policy. His message to staff followed a board meeting held on Tuesday.
“The goal is to help countries deliver the energy their people need, while giving them the flexibility to choose the path that best fits their development ambitions,” he said.
