Episode Details

Our analysts Tim Chan and Mayank Maheshwari discuss how nuclear power and natural gas are reshaping Asia’s evolving energy mix, and what these trends mean for sustainability and the future of energy. 

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Tim Chan: Welcome to Thoughts on the Market. I'm Tim Chan, Morgan Stanley's Head of Asia Sustainability Research.

Mayank Maheshwari: And I am Mayank Maheshwari, the Energy Analyst for India and Southeast Asia.

Tim Chan: Today – a major shift in global energy. We are talking about nuclear power, gas adoption, and what the future holds.

It's Monday, August 18th at 8am in Hong Kong.

Mayank Maheshwari: And it's 8am in Singapore.

Tim Chan: Nuclear power is no longer niche; it’s a megatrend. It was once seen as controversial and capital intensive. But now nuclear power is stepping into the spotlight—not just for decarbonization, but for energy security. 

Global investment projections in this sector are now topping more than $2 trillion by 2050. This is fueled by a growing appetite from major tech companies for clean, reliable 24/7 energy. More specifically, Asia is emerging as the epicenter of capacity growth, and that’s where your coverage comes in, Mayank.

With the rising consumption of electricity, how does nuclear energy adoption stack up in your universe?

Mayank Maheshwari: Tim, it's a fascinating world on power right now that we are seeing. Now the tight global power markets perspective is key on why there is so much investor and policymaker attention to nuclear power.

Nuclear fuels accounted for about a tenth of the power units produced globally. However, they are almost a fifth of the global clean power generation. Now, power consumption is at another tripping point, and this is after tripling since 1980s. To give you a perspective, Tim, 25 trillion units of power were consumed worldwide last year, and we see this growing rapidly at a 25 percent pace in the next five years or so. And if you look at consumption growth outside of China, it's even faster at 2.5x for the rest of the decade when compared to the last decade.

Now policy makers need energy security and hence, nuclear is getting a lot more attention. In Asia, while China, Korea, and Japan have been using nuclear energy to power the economy, the rest of Asia, it has been more an ambition – with India being the only country making progress last decade. Southeast Asia still has a lot more coal, and nuclear remains an ambition as technology acceptance by public and regulatory framework remains a key handicap. We do, however, see policy makers in Singapore, Vietnam, and Malaysia looking at nuclear fuels more seriously now, with SMRs also being discussed.

Tim Chan: That is a really interesting perspective, Mayank. So, you have been bullish on the Asia gas adoption story. So, how do you think gas and nuclear will intersect in this region?

Mayank Maheshwari: I think nuclear and natural gas, like all of the fuel stem, will complement each other. However, the long gestation to put nuclear capacity makes gas a viable alternative for energy security. As I was telling you earlier, policy makers are definitely focusing on it. As you know, the last big increase in focus in nuclear fuels also happened in the 1970s oil shock, again when energy security came into play.

Global natural gas consumption has more than doubled in the last three decades, and it's set to surprise again with AsiaPac’s consumption pretty much set to rise at twice the pace versus what right now expectations are by the street. In this age of electrificati