Small modular reactors (SMRs), which are generally based on Gen III+ light water reactor (LWR) technology already in operation globally, are smaller in size and have a simpler, more modular design, which could help to reduce construction times and up-front costs. Other advanced reactor technology (Gen-IV) can be even smaller and could be deployed for microgrids, which power remote areas or a single facility. Additional advantages include lower operating costs, simplified systems that increase reliability, and better safety margins. Gen-III+ SMRs are currently in the early phases of deployment, whereas Gen-IV reactors are primarily at a conceptual stage (outside of a few demonstration projects). In both cases, the required manufacturing and component supply chains would need to be scaled for broader deployment. However, greater investment in these technologies could, in the long run, significantly reduce the cost, timeline, and complexities of plant construction— and potentially speed up timelines for nuclear deployment. (For more on reactor technologies, see sidebar, “Innovations in reactor technology.”)
compounded by an aging labor force of experienced nuclear professionals.
— Limits on the ability to execute construction effectively, without rework, to ensure on-time and on-budget delivery that meets stringent quality standards. — Partnerships and construction contracts that do not reflect the extent of project risks inherent to the complexity of the technology. — Complex and changing regulatory requirements for plant construction that are not consistent among governments. This web of issues has created a vicious cycle for the industry. New-build projects experience construction delays and cost overruns—which can reach billions of dollars—and then future projects struggle to attract financing. Projects in Canada, 16 Finland, 17 France, 18 and the United States, 19 for example, have experienced significant delays, cost overruns, or prohibitively high bid costs for investors. These impediments have the compounding effect of constraining the parts of the industrial base that are key to supporting future construction and operations.
To meet the need for scale-up, industry stakeholders should consider eight key actions
Momentum for new-build nuclear is growing in many markets. For example, the US Department of Energy plans to award about $3 billion in the licensing, construction, and demonstration of two new Gen-IV plants through the Advanced Reactor Demonstration Program, in addition to the $1.4 billion cost-share for a new SMR plant. 20 Additionally, the Inflation Reduction Act in the United States provides either an investment tax
The next generation of reactors have been designed with these challenges in mind
Nuclear reactors have historically been large, complex, costly projects that take many years— even decades—to complete. But emerging reactor technologies promise lower costs, faster build times, and other potential advantages.
16 Darlington Nuclear Generating Station; see Management of delayed nuclear power plant projects , International Atomic Energy Agency, September 1999. 17 OL3 EPR plant; see “The regular electricity production of OL3 EPR will be postponed due to extension of turbine overhaul,” TVO news release, August 20, 2021. 18 Flamanville 3 project; see “Update on the Flamanville EPR,” EDF, December 16, 2022. 19 Vogtle 3 and 4 project; see 2022 second quarter report , MEAG Power. 20 Nuclear energy projects: DOE should institutionalize oversight plans for demonstrations of new reactor types , US Government Accountability Office, September 13, 2022; “Next-gen nuclear plant and jobs are coming to Wyoming,” Office of Nuclear Energy, US Department of Energy, November 16, 2021; “DOE approves award for carbon free power project,” Office of Nuclear Energy, US Department of Energy, October 16, 2020.
Accelerating the journey to net zero
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