Economic Competitiveness of Small Modular Reactors in a Net Zero Policy

Gustavo Alonso ()
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Gustavo Alonso: Instituto Nacional de Investigaciones Nucleares, Carretera México-Toluca s/n, La Marquesa, Ocoyoacac 52750, Estado de México, Mexico

Energies, 2025, vol. 18, issue 4, 1-15

Abstract: 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.

Keywords: nuclear reactors; small modular reactors; net zero policy; levelized cost of electricity; project economic indicators (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2025
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