The U.S. Energy Information Administration (EIA) projects that global nuclear capacity will grow at an average annual rate of 1.6% from 2016 through 2040, led predominantly by countries outside of the Organization for Economic Cooperation and Development (OECD). EIA expects China to continue leading world nuclear growth, followed by India. This growth is expected to offset declines in nuclear capacity in the U.S., Japan and countries in Europe.
Electricity demand growth plays a central role in decisions to build new nuclear reactors and retire existing reactors. EIA expects electricity demand growth in China, India and the Middle East to exceed growth in the U.S., Europe and Japan.