Jamaica’s nuclear power ambitions may reset the standard for what an island energy transition looks like.

Jamaica recently signed a memorandum of understanding (MoU) with Canada to explore advanced nuclear energy technologies, marking a significant step forward for the island’s nuclear power ambitions. This follows Jamaica’s commitment last year at COP28 to commit to tripling global nuclear energy capacity by 2050.

Earlier last year, Jamaica’s Prime Minister, Andrew Holness, described the island’s commitment to explore nuclear power production as a means of gaining energy resilience and affordability. The island’s pursuit of nuclear power is quite significant as it is one of the few, if not the only, small island states to consider nuclear energy.

Island clean energy transitions are currently focused on 100%-renewable power grids—such as in Puerto Rico, Barbados, and St Kitts and Nevis—with little room for flexible and firm energy sources, like nuclear. If Jamaica succeeds in building a nuclear power plant, it will establish a blueprint for other island states wishing to do the same. Island electricity grids face a mountain of energy infrastructure challenges. A strong dependence on imported fossil fuels predominantly drives high electricity rates, leaving island nations greatly exposed to market volatility, on top of premium shipping charges for transporting fuel to isolated markets. Jamaica’s average residential electricity rate is almost twice as high as the average U.S. rate—$0.17/kWh in the U.S. vs. $0.31/kWh in Jamaica. Jamaica’s residential electricity rates match those of high-cost U.S. states, such as California—with an average rate of $0.31/kWh—despite significantly lower wages and GDP per capita. Electricity costs account for roughly 11% of Jamaicans’ individual consumption expenditure.

At the national level, sporadic income streams like tourism dominate many small island economies—including in Jamaica—while high degrees of national debt hamper growth. This low fiscal ability reduces financing capacity for reliably maintaining aging power grids. Natural disasters such as hurricanes regularly devastate many islands, compounding infrastructure costs as impacts accumulate over time. The climate community often focuses on renewable energy as the ultimate fix for these problems, but this narrow focus misses promising opportunities from including nuclear energy in the conversation.

Nuclear power has the potential to address decades-long issues for the Jamaican energy system. It is a dense energy source that could provide a significant share of the island’s electricity for decades. The reduced dependence on imported fossil fuels will result in more affordable energy in the long-term, improving the island’s economic status and standard of living. Nuclear’s high structural integrity provides increased resilience against extreme weather and diversifies the clean energy landscape. Of course, successful nuclear energy integration in Jamaica will be far from easy, but so are solving the long-standing energy challenges the island faces. Nuclear power is a proven effective technology that the Jamaican government is correctly considering for its future energy mix. Provided Jamaica succeeds with its nuclear target, it can alleviate similar obstacles for other Caribbean small island states and provide a roadmap for others to follow.

Jamaica’s Nuclear Opportunities

Jamaica has been successfully operating a nuclear reactor for decades. Donated by the EU in 1984, SLOWPOKE-2 is a Canadian-designed 20-kW research reactor. The University of the West Indies (UWI) owns and operates the reactor to perform neutron activation analysis of trace elements for various research fields, such as health and agriculture. The Jamaican government previously explored utilizing nuclear energy for electricity to no avail, but the recent global shift towards nuclear power combined with advances in reactor technologies makes a nuclear energy transition more feasible now than ever before.

Jamaica’s energy mix has not changed significantly throughout its modern history. The country imports petroleum and liquified natural gas (LNG) to generate approximately 89% of its electricity. The rest comes from renewables (see Figure 1). Pursuit of nuclear energy could greatly decrease Jamaica’s high dependence on fossil fuels while constructing a much more resilient energy infrastructure.

Prime Minister Holness emphasized that nuclear power could play a crucial role in improving energy affordability, “reducing [the] cost of living, a major part of it being the cost of energy.” Nuclear would also alleviate increasing pressure on Jamaica’s grid from growing energy demand. Last summer the island reached an all-time record peak electricity demand of 692 MW.

Jamaica is already taking appropriate steps to build out the regulatory and environmental frameworks necessary for successful nuclear deployment. Jamaica passed the Nuclear Safety and Radiation Protection Act in 2015, establishing the regulatory foundation that guides the security and safeguards of civil nuclear energy use. It also established its nuclear regulatory body, the Hazardous Substances Regulatory Authority (HSRA), to enforce the Nuclear Act and build upon what is the beginning of the island’s framework for licensing, constructing, and commissioning its first nuclear power plant. The country has made significant progress with assistance from the International Atomic Energy Agency (IAEA), which helped develop the Nuclear Act through its legislative program. The Jamaican government plans to continue working closely with the IAEA to successfully deploy nuclear power and showcase the island’s global nuclear safeguards.

The large unit size of conventional reactors may not fit well with Jamaica’s relatively small power grid, but small modular reactors (SMRs) and microreactors open new avenues for the island to access nuclear power. One suitable SMR design may be a molten salt reactor, which can store excess energy in molten salt during the day while renewables are providing electricity and then use stored thermal energy to produce added power during the night. A high temperature gas reactor (HTGR) may provide additional advantages such as high temperatures required for industrial processes. Jamaica has long sought to expand its bauxite industry to the end of the supply chain by producing aluminum, but the energy-intensive, high-temperature processes involved have remained out of reach. A suitable nuclear reactor could change that.

Jamaica’s Key Challenges

The most daunting barrier Jamaica faces in deploying nuclear power is securing the necessary financing. Funding the high upfront costs of a nuclear power plant is a large undertaking.

The construction costs for a U.S. advanced nuclear power plant could range from USD$150 – $220 billion by 2035, although early investment and learning could significantly decrease this in the long run. Despite recent economic growth, Jamaica is still straddled with high national debt and limited funds for massive infrastructure projects like a nuclear power plant.

SMRs could significantly lower nuclear capital costs, but their novelty creates uncertainty. The anticipated cost declines are expected to occur as the industry improves in constructing them. One Electric Power Research Institute (EPRI) study found that even a first-of-a-kind (FOAK) SMR may offer 16% lower average capital costs compared to conventional light water reactors (LWRs), due to lower financing requirements (if the project can achieve a shorter construction duration). Another paper examining three island case studies for SMR deployment found that SMRs may already offer economically competitive clean energy for small islands with limited spare land and high energy demand.

Regardless of how high or low these realized costs amount to, early deployed SMRs will likely be expensive. This raises the question—should Jamaica pursue deploying an SMR as soon as possible, or wait until the technology matures with reduced costs? Whatever the answer, the Jamaican government is positioning itself early on exploring how nuclear energy may eventually serve its energy needs.

Deploying nuclear power in Jamaica will likely face specific technology, fuel handling, and grid infrastructure costs that will exceed existing price estimates. In-depth energy modeling, like the DOE’s PR100 study, demonstrates the necessity of firm and flexible generation for island grids. Such considerations underscore the necessity for Jamaica’s government to study and model nuclear energy integration to better inform their consideration of the technology, including expected financing and borrowing costs.

The Jamaican government’s high degree of debt works against the country as a suitable borrower, a problem exacerbated by the relative lack of development finance for nuclear energy projects. However, the island maintains ongoing clean energy partnerships with nuclear power states like the U.S.-Caribbean Partnership to Address the Climate Crisis 2030 (PACC 2030) and the U.S. Agency for International Development’s Jamaica Energy Resilience Alliance. Both initiatives provide financing assistance for renewable energy projects that can be extended to include Jamaica’s nuclear energy goals. Partnerships could lead to a 123 Agreement with the United States to establish a legal framework for the U.S. to work with Jamaica on nuclear energy deployment. Similarly, Jamaica’s existing relationship with Canada could serve as a pathway to secure financial support. The Jamaican government could leverage these clean energy partnerships to help finance its first nuclear power plant and gain the expertise necessary to translate plans into projects.

Building and maintaining human capital for a nuclear power sector presents another challenge that requires early action. Despite an on-campus research reactor, the University of the West Indies only uses the facility for a limited number of science and technology studies and does not currently offer nuclear engineering as an undergraduate or graduate program. Imported expertise would be necessary for starting up Jamaica’s nuclear industry, but the government will need to ensure a proper pipeline of domestic expertise to sustain it in the long term. Prime Minister Holness specifically referred to the island utilizing its MoU with Canada to begin building out the technical expertise and decrease the SMR deployment costs, but this must also extend to long-term necessities for a thriving nuclear power industry. Important steps include building out nuclear engineering programs at universities, which may include institutional partnerships with international universities that allow Jamaican students to access nuclear engineering courses. Other steps may include offering nuclear energy educational workshops for community engagement, and expanding the training and knowledge building available to the staff managing the research reactor to build upon their current expertise.

These steps will build the foundation of Jamaica’s nuclear workforce and strengthen public knowledge and trust in an unfamiliar technology. An example of these first steps is the recent Nuclear Energy Symposium, which sparked important discussions of how SMR technologies may benefit the Jamaican electricity grid. Jamaica’s Scientific Research Council (SRC) also recently partnered with the IAEA to host discussions on the role of nuclear energy for Jamaica’s development. Such ongoing public forums will be crucial to engaging the public on how this technology works and remedying the energy challenges impacting their lives.

Implications for Other Small Island Developing States

If Jamaica succeeds in its nuclear energy goals, it may soon be joined by other Caribbean islands pursuing energy security. Other Caribbean IAEA member states are likely observing Jamaica’s progress as a blueprint to their own potential success, deliberating if they should start pursuing nuclear power for their own energy needs.

For instance, Cuba, Jamaica’s closest neighbor, came close to constructing its first nuclear power plant in the 1980’s before terminating the project due to a lack of financing. Cuba still struggles with energy reliability, and recently suffered from a series of nation-wide blackouts affecting millions. Perhaps the country may soon reconsider nuclear power to help address its longstanding energy issues.

The Dominican Republic currently hosts a radioactive waste facility for the safe storage of radioactive sources from various fields, including medicine, agriculture, and mining, but has no nuclear energy reactor of its own. Similarly, other Caribbean nations are benefitting from nuclear energy applications throughout various economic sectors like agriculture and health, and are enforcing regulations on nuclear safety. If nuclear technology is already benefiting other aspects of the economy, why not apply it to the most fundamental sector—energy?

Support for Jamaica and other small island developing states to explore nuclear power deployment must address existing research and financing capacity gaps that limit their clean energy policymaking options. Measures include prioritizing more clean energy modeling that includes nuclear deployment as an option, particularly SMRs. Academia should more deeply examine nuclear energy applications for achieving energy security and affordability in island energy systems. Expanding current nuclear financing options is also essential, particularly when many island states struggle with unsustainable debt rates. New initiatives such as the International Bank for Nuclear Infrastructure (IBNI), unlike the current development finance community, may prove helpful for providing multilateral financing to nuclear energy projects. Such strategies can help strengthen island nuclear energy development efforts going forward, expanding access to a firm, flexible, emissions-free generation source valuable for future island clean energy grids.

Jamaica is astutely diversifying its clean energy options—considering both renewables and firm sources like nuclear—as the country assesses its most viable pathway towards a thriving clean energy future. Other islands should similarly investigate how nuclear deployment may complement their renewable energy targets and strengthen their energy grids. Each step towards deploying an SMR project will mark important progress towards Jamaica’s energy security, while charting a pathway for other small island states to follow.