The prodigal atom: an analysis on the potential comeback of nuclear power in Italy

Luciano Lavecchia and Alessandra Pasquini

No 947, Questioni di Economia e Finanza (Occasional Papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: The debate over a possible reintroduction of nuclear power into the national energy mix has recently reopened. This paper revisits the study by Faiella and Lavecchia (2012) to assess its potential consequences in reducing electricity prices, energy dependence, and greenhouse gas emissions, while also offering additional elements for evaluation and reflection in light of developments over recent years. The analysis shows that, given the structure of the electricity market and electricity bills in Italy, with the current energy mix, reintroducing nuclear power would not significantly affect price levels. Rather, it could reduce price volatility, thereby helping stabilize electricity expenditure for subscribers to long-term contracts. As regards energy dependence, the reduction in hydrocarbon imports would be offset by increased imports of technology and fuel for nuclear generation, which are currently concentrated in countries that are geopolitically not closely aligned with Italy. By contrast, the contribution of a nuclear revival to reducing greenhouse gas emissions could potentially be substantial. Another important element emerging from the analysis concerns the uncertainties associated with the technologies selected, most of which are not yet commercially available. These uncertainties suggest the need for a cautious approach that also prepares and promotes alternative strategies.

Keywords: nuclear; Italy; SMR; decarbonization (search for similar items in EconPapers)
JEL-codes: Q42 Q53 Q54 (search for similar items in EconPapers)
Date: 2025-06
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