LEVELIZED COST OF ELECTRICITY ($ USD / MWH ) $ 100
$ 80
$ 60
$ 40
$ 20
$ 0
Nuclear ( Extended Life )
URANIUM ETF ASSETS & ETF FLOWS ($ USD MILLIONS )
2500
2000
1500
1000
500
0
-500
12 / 31 / 2018 2 / 28 / 2019
Onshore Wind
4 / 30 / 2019 6 / 28 / 2019
8 / 30 / 2019
Solar PV ( Utility )
Cumulative Uranium ETF Flows
10 / 31 / 2019
Nuclear ( New Plant )
12 / 31 / 2019 2 / 28 / 2020
Positive momentum for uranium ’ s long-term investment case
We believe that sustained political buy-in and financial support from governments means nuclear is here to stay , particularly as demand for clean and reliable energy grows . In 2021 , a wider pool of investors brought significant attention to nuclear energy and the role it
4 / 30 / 2020 6 / 30 / 2020
8 / 31 / 2020
Hydro ( Reservoir )
10 / 30 / 2020 12 / 31 / 2020
Total Uranium ETF Assets
2 / 26 / 2021 4 / 30 / 2021
Offshore Wind
Solar PV ( Commercial )
Source : IEA . “ Projected Costs of Generating Electricity 2020 .” Assumes 7 % discount rate . A key determinant of competitiveness is the discount rate , which corresponds in the LCOE methodology for the cost of capital . The IEA assumes a discount rate of 7 % for all technologies and countries . Reflecting opportunity costs of investment as well as different kinds of risk and uncertainty . Levelized Cost of Electricity ( LCOE ) allocates the costs of an energy plant across its useful life , to give an effective price per each unit of energy .
Gas
Coal
6 / 30 / 2021 8 / 31 / 2021
10 / 29 / 2021 1 / 31 / 2022 can play in helping the world achieve its climate change goals .
They also shed light on uranium ’ s unique production timelines and price dynamics . Uranium prices jumping from $ 25 to $ 42 led to a 60 % rise in uranium equities last year . If the current price rally persists , it could open the door for wider uranium inclusion in broader indices like those that are
Chapter 3 : Themes in focus
market cap weighted indexes , potentially driving equity price expansion relative to current earnings .
This document is not intended to be , or does not constitute , investment research as defined by the Financial Conduct Authority .
1
U . S . Energy Information Administration . ( 2021 , October 7 ). EIA projects nearly 50 % increase in world energy use by 2050 , led by growth in renewables .
2
Department of Economic and Social Affairs , Population Division . ( 2019 , November ). World population prospects 2019 highlights . ST / ESA / SER . A / 423 . United Nations .
3
Liou , J . ( 2021 , November 4 ). What are small modular reactors ( SMRs )? International Atomic Energy Agency .
4
Fawaz-Huber , M . ( 2018 , January 16 ). Going long term : US nuclear power plants could extend operating life to 80 years . International Atomic Energy Agency .
5
Statista Research Department . ( 2021 , September 6 ). Planned global nuclear power plant additions , 2021 , by country . Statista .
6
World Nuclear Association . ( 2021 , September ). World uranium mining production .
7
Sprott . ( 2022 ). Sprott physical uranium trust . Accessed on December 20 , 2021 .
7
Statista Research Department . ( 2021 , September 6 ). Planned global nuclear power plant additions , 2021 , by country . Statista .
8
Solactive , ( 2021 , July 19 ). Guideline : Solactive global uranium and nuclear components total return index , Version 1.2 . Solactive
Rohan Reddy is director of research at Global X ETFs
15