Now that the government in Britain has formally backed nuclear power as a desirable option for the country's electricity demands, industry analysts are sizing up investment opportunities in the segment with renewed vigor. A slew of stock recommendations among utility companies, engineering businesses and uranium miners suggest that nuclear could be the winning investment theme in the power sector this year.

In a move to secure energy supplies and tackle climate change, the government sanctioned the construction of six nuclear reactors in an energy white paper published in January. The plants, set to be operational by 2020, would replace an aging fleet of 19 power stations that supply around 18 percent of Britain's electricity needs. The cost of the construction program is estimated to be £75 billion, or $149 billion, over 20 years.

Britain is part of a broader trend of growing support for nuclear energy in other countries. The French company Areva, the world's largest builder of nuclear reactors, forecasts that 150 to 300 nuclear reactors will be built in the world from now to 2030. At least 50 of them will be built in China and India, according to news reports.

This is encouraging for global power plant builders like Mitsubishi Heavy Industries,Toshiba through its unit Westinghouse and Areva, which have all benefited from China's investment in new nuclear in recent years. Analysts figure that decommissioning projects in more mature markets like Britain, Russia, Japan and France could prove to be an even bigger money maker for the nuclear industry. A review of the global decommissioning market, carried out by the Nuclear Industry Association in Britain, estimates such projects to be worth £300 billion over the next 30 years.

But for now all eyes are focused on the companies bidding for a share of Britain's nuclear work. British Energy, the country's main electric power generator, is in talks with a number of potential partners including General Electric, Westinghouse and Areva. A decision is expected by the end of the second quarter, though British Energy's involvement will probably be limited to that of a minority partner because possible sites are the only assets the company have to offer.

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