Competition Law in the Nuclear Energy Sector: A Balancing Act for a Low-Carbon Future

Abstract

The nuclear energy sector, a critical component in the pursuit of global decarbonization and energy security, operates within a unique economic and regulatory environment that often strains traditional applications of competition law. This paper explores the complex interplay between competition law principles—such as the prevention of anti-competitive agreements, abuse of dominance, merger control, and state aid regulation—and the distinct characteristics of the nuclear industry. These characteristics include high upfront capital costs, long project lifecycles, significant state involvement, and overriding policy imperatives related to safety, security, and climate change. Drawing on analyses from international energy bodies and academic research, this paper examines how these factors necessitate a nuanced approach to competition policy, where the goals of fostering market rivalry are frequently balanced against, and sometimes subordinated to, broader strategic objectives. The discussion highlights the challenges in financing new nuclear projects, designing electricity markets conducive to nuclear investment, and managing supply chain concentrations, particularly in the context of achieving ambitious net-zero emission targets.