Canada's nuclear expansion raises questions about pension fund investment

Canada is considering a major expansion of nuclear power, with the federal government aiming to build as many as 10 new reactors over the next 15 years. The plan has prompted debate over whether pension funds and other private investors could help finance the projects. The government has pointed to the Sizewell C project in the United Kingdom as a possible model. That project uses a funding structure that allows investors to recover money during construction, while also limiting some of their exposure to cost overruns. Quebec public pension fund La Caisse is among the investors, but the arrangement has drawn criticism because some of the financial risk may fall on ratepayers and taxpayers. Analysts say large nuclear projects often face delays and major budget increases, which makes them difficult for riskaverse investors. Supporters argue nuclear power could strengthen energy supply and create jobs, while critics say Canada should weigh the financial risks against alternatives such as wind, solar and battery storage.