Economic Competitiveness of Small Modular Reactors in a Net Zero Policy

The deployment of large nuclear reactors is an intensive capital project. Only national governments and a few independent worldwide companies that can afford the financial risk can pursue them. To cope with this financial disadvantage, Small Modular Reactors (SMRs) have become an alternative; they can provide electricity for different needs far below the electricity capacity supplied by a large reactor and can fit in new markets. Several of them could fill the capacity of a large reactor. However, SMRs have a higher cost per kW deployed than a large reactor because of the economy of scale. At this point, SMR designs backed by a national government will have higher opportunities for success. The present paper analyzes several economic factors under different electricity-selling prices to determine the possible role of SMRs as a complement or competitor to large reactors. Results show that for low electricity-selling prices, an SMR is a complementary infrastructure but can be a market competitor for higher prices. The study also provides information about the required economic scenario where nuclear reactors, small and large, could be part of the net zero policy from a financial point of view.