Southeast Asia is set to invest $208 billion in nuclear power by 2050.
The focus will be on small modular reactors (SMRs) despite their high costs, according to Wood Mackenzie.
The region, currently reliant on coal and gas, sees SMRs as a quick-to-deploy, emissions-free solution.
Challenges like political opposition and cost overruns remain significant hurdles.
Southeast Asia will need investments of about $208 billion to develop 25 gigawatts (GW) of nuclear power capacity by 2050, with small modular reactors (SMR) emerging as the preferred choice despite steep costs, according to a new analysis by energy consultancy Wood Mackenzie.
The report, titled What if Southeast Asia goes nuclear?, marks a striking shift from Wood Mackenzie’s current base-case outlook, which projects no nuclear capacity additions in the region through 2050. At present, no Southeast Asian country operates nuclear power plants, and most rely heavily on coal and natural gas for baseload electricity
“Nuclear power offers Southeast Asian governments an interesting proposition: emissions-free baseload power that can be deployed without major grid upgrades,” said Robert Liew, director for Asia Pacific (excluding China) renewables research at Wood Mackenzie. “Yet the region’s limited operational experience raises significant risks around political opposition, cost overruns and long-term uranium fuel security.”
The study underscored that SMRs are expected to dominate the region’s nuclear landscape, despite their projected generation cost of $220 per megawatt-hour (MWh) by 2050, more than double the $101 / MWh estimated for large-scale conventional nuclear reactors.
“Regardless of upfront capital requirements, SMRs offer significant advantages in deployment speed and regulatory complexity,” Liew said.
“Historically, permitting for large nuclear plants has taken five to 15 years, with construction adding another five to 15 years on top of that,” he added. “In contrast, SMRs can move from approval to operation in just two to three years if supportive policies are already in place. That rapid timeline could be transformative for markets like Southeast Asia, where the demand for faster energy transitions is only intensifying.”
Wood Mackenzie noted that only Vietnam and the Philippines have formally announced plans for large nuclear facilities. Even then, the report forecasts only Vietnam is likely to build a pressurised water reactor (PWR), highlighting the financial and technical hurdles facing large-scale nuclear projects in emerging markets.
Vietnam will be at the forefront of nuclear deployment in the region, with plans to begin rollout as early as 2030 and ramp up to between 10.5 GW and 14 GW by 2050, according to the analysis.
The report said new PWRs are already cost-competitive with planned LNG-to-power fleets, making nuclear a viable baseload option for the country.
Other national plans outlined in the report include:
Malaysia targeting 1.2 GW of SMRs by 2050, delayed from the earlier 2031 goal to 2035 due to regulatory challenges.
Philippines exploring 2.4 GW of SMRs by 2050, though Wood Mackenzie expects only half that capacity will be realised.
Thailand considering a nuclear comeback with 600 MW by 2037, expanding to 3 GW by 2050 (about 5 per cent of its power mix).
Indonesia's 2025–2034 RUPTL includes two 250 MW SMRs, aiming for 5 per cent nuclear generation by 2040.
Singapore could add 0.8 GW by 2050, reducing reliance on imported LNG and clean electricity imports.
Despite their high upfront costs, SMRs could unlock new opportunities in the corporate power purchase agreement (CPPA) market, offering dependable, low-carbon baseload power.
“SMRs can broaden CPPA options for reliable, low-emission baseload power in wholesale markets,” Liew said. “This directly addresses a critical gap in the region's clean energy offerings for large corporate buyers seeking reliable renewable alternatives.”
Wood Mackenzie expects national utilities to emerge as key off-takers, often co-investing in nuclear projects through public-private partnerships to bridge capital requirements and share risks.
Nuclear power could also help lower wholesale electricity prices in high-cost liberalised markets such as Singapore and the Philippines, where price sensitivity shapes energy decisions.
“While nuclear offers a clear pathway to emissions reduction and energy security, the substantial investment requirements and technological risks require careful consideration by regional policymakers and investors,” Liew said. “The success of the region's nuclear dream will depend on developing appropriate regulatory frameworks and securing experienced international partners.”