Amidst all the enthusiastic promotion of Small Nuclear Reactors, there’s still the admission that SMRs are simply unaffordable

The future of energy: small modular reactors (SMRs) and nuclear power, small caps, By Colin Hay June 5, 2023

‘………………………………………………………………………………………… A recent report from international energy analysts Wood Mackenzie, suggested that lower costs technological developments such as small modular reactors (SMRs) may help speed up the introduction of new nuclear power plants……………………

However, the company added that for nuclear power to flourish, governments, developers and investors must work together to establish a new nuclear ecosystem, one that makes nuclear affordable………………

According to one Wood Mackenzie report, ‘The nuclear option: Making new nuclear power viable in the energy transition’, despite policy support and market growth, cost is the biggest economic hurdle to the uptake of more nuclear power and the much-vaunted small modular reactors systems…………………..

“The nuclear industry will have to address the cost challenge with urgency if it is to participate in the huge growth opportunity that low-carbon power presents. At current levels, the cost gap is just too great for nuclear to grow rapidly,” said David Brown, a Director, Energy Transition Service at Wood Mackenzie, and lead author of the report.

Mr Brown said scaling up the SMR market will depend on how fast costs fall to a level that is competitive against other forms of low-carbon power generation.

According to Wood Mackenzie estimates, conventional nuclear power currently has a levelised cost of electricity (LCOE) of at least four times that of wind and solar……………..

CSIRO plays down SMR’s Australian potential

Australia’s leading science agency, the CSIRO, has also recently raised the cost issue with regard to the local introduction of new nuclear technology.

In a recent report, “The question of nuclear in Australia’s energy sector”, the CSIRO noted that there has been increased debate around the use of nuclear power in Australia.

………. the report suggested that at present, the numbers don’t stack up.

“… a review of the available evidence makes it clear that nuclear power does not currently provide an economically competitive solution in Australia – or that we have the relevant frameworks in place for its consideration and operation within the timeframe required,” the CSIRO report said.

……. The report noted that only two SMRs are currently in operation, located in Russia and China, and both have experienced cost blowouts and delays.

Paul Graham, a CSIRO energy economist and lead author of the Australian Energy Market Operator’s (AEMO) GenCost report, says more data needs to be provided to support the push for nuclear power in Australia.

He said that with the use of standard formula for levelised costs, plus the additional calculations specific to storage and transmission, wind and solar come in at a maximum of $83 per megawatt hour in 2030.

“In contrast, SMRs come in at $130 to $311 per megawatt hour.”…………………………………………….. m https://smallcaps.com.au/future-energy-small-modular-reactors-smrs-nuclear-power/

June 5, 2023 - Posted by Christina Macpherson | business and costs, Small Modular Nuclear Reactors