Netherlands' Nuclear Energy Future Under Pressure Amid Political Divisions and Funding Challenges

Government Steps In Amid Private Investment Shortfall

The future of nuclear energy in the Netherlands is currently under considerable strain, marked by political disagreements and budgetary constraints. As of October 23, 2025, the outgoing Dutch cabinet has announced its intention to fully finance the construction of two new nuclear power plants. This decision comes in response to a notable lack of interest from private investors in these large-scale projects. To facilitate this, the government plans to establish a new state-owned entity, the Nuclear Energy Organization (NEO), which will be responsible for the construction and operation of the plants.

Minister of Climate and Green Growth, Sophie Hermans, had previously informed the House of Representatives in February 2025 that efforts to attract private investors had been unsuccessful. The government's rationale for direct financing is that it is ultimately more cost-effective than relying on private sector participation. Initial investment in the NEO is projected to be €45 million, increasing to €222 million by 2027.

Budgetary Concerns and Political Scrutiny

The financial commitment to nuclear energy is facing intense scrutiny and potential budget cuts. Several political parties, including Volt, D66, CDA, and ChristenUnie, are reportedly considering a substantial €9.5 billion reduction from the allocated €13.9 billion budget for new nuclear power plants. Experts have voiced concerns that such cuts could severely jeopardize the realization of these projects.

Further complicating the financial landscape, discussions have emerged about diverting funds from the climate budget. The climate fund, which currently stands at €14.6 billion with €14.1 billion earmarked for nuclear preparations and construction, could see a proposed €5 billion redirected to support farmers. Minister Hermans has, however, rejected these demands, emphasizing her commitment to the nuclear power ambitions outlined in the coalition agreement.

Economic Feasibility and Project Timelines

The economic viability of new nuclear plants remains a significant challenge. A study by TNO indicates that nuclear energy would only be profitable if construction costs per plant remain below €11.4 billion, a figure considered unrealistic by many. If costs exceed this, the energy system could incur an additional €1.5 to €2 billion annually.

While the government initially aimed for the first new plant to be operational by 2035, Minister Hermans stated in February 2025 that this target is now considered 'very unlikely' and 'not realistic.' She described the process as 'complex,' citing challenges such as securing permits, tendering, and construction. Finding suitable locations is also proving difficult, with resistance to nuclear power plants in certain areas, particularly Eemshaven, due to concerns over seismic activity from gas extraction.

Broader Nuclear Strategy

Beyond the two new plants, the Netherlands is also pursuing other nuclear initiatives:

• Borssele Plant Extension: Plans are underway to extend the operational lifespan of the existing Borssele nuclear power plant beyond its scheduled closure in 2033, potentially until 2054. This requires an amendment to the Nuclear Energy Act and approval from the Authority for Nuclear Safety and Radiation Protection (ANVS).
• Small Modular Reactors (SMRs): The government has allocated €20 million to stimulate the development of SMRs in the Netherlands, viewing them as a potential future component of the energy mix.

The government's overarching strategy is to integrate nuclear power as a reliable, CO2-free energy source alongside wind and solar, aiming to reduce dependence on fossil fuels and ensure energy security.