The high cost of nuclear power has led to the suspension of the project. The revival of Italy's nuclear industry faces its first obstacle: the cost of electricity production. For the government-backed modular reactors, initial costs could be up to €217 per megawatt. This is an expensive figure that raises questions about the competitiveness of the technology and the sustainability of investments. While the country can count on a leading industrial sector, returning to producing energy from atomic power will also require overcoming regulatory uncertainties, timeframes for realization, and resistance from regions. This framework is outlined by the Nuclear Energy Innovation Outlook 2026, produced by Energy & Strategy of the Politecnico di Milano School of Management.

The study arrives after the final approval on September 23 of the nuclear delegation law, which opens the way for the country's atomic energy mix revival. It remains to be approved the implementing decrees, define the authorizations procedures and identify sites, overcoming local resistance. On top of that, there is also the possibility of a new referendum. The government strategy focuses mainly on Small Modular Reactors (SmRs), smaller and power reactors designed to promote series production of components. The main obstacle is economic. According to Politecnico, the average cost of electricity produced by the first Italian SmR, calculated over the entire life of the plant, could range from €110 to €217 per megawatt-hour.

The realistic interval for the first project is between 135 and 196 euros, while the subsequent diffusion of technology could reduce costs to 110-147 euros by around 2050, under the scenario of greater development. 'Nuclear can play an important role in the national energy mix', observes Vittorio Chiesa, director of Energy & Strategy. ‘It is not the most convenient source of electricity, but it ensures continuous and programmable production, contributes to stabilizing the price of energy, and compared to renewables, entails smaller investments in networks and accumulation’. This topic is very relevant in a power system destined for profound changes.

The demand for Italy could double by 2050 due to electric mobility, heat pumps, industry, and data centers. The comeback of nuclear energy has brought with it new strategies for producing and distributing energy. Nuclear power plants have been replaced by solar and geothermal production centers that have improved service quality and reduced carbon emissions. This has led to significant reductions in CO2 emissions within the Italian energy sector. Additionally, solar and geothermal energies are expensive but not affected by climate changes or availability issues. However, returning to nuclear energy also had negative environmental impacts.

Small Modular Reactors (SMRs) require a different approach compared to traditional centralized power plants, where security is ensured through rigorous verification processes. However, for SMRs, security depends on the development of new cybersecurity standards that have yet to be defined. Approval of the nuclear legislation has paved the way for the return of nuclear energy.