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SMALL MODULAR REACTORS

NEA-IFNEC Nuclear Financing Webinar Series

May 18, 2021

Diane Cameron

Head of Nuclear Technology Development and Economics Division

OECD Nuclear Energy Agency

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Outline1. Context

2. Opportunities & Challenges

3. Economics & Financing

4. Conclusions & Recommendations

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OpportunitiesCoal power plants replacement in the US

Load-following according to Nuscale

Remote sites in Canada

Significant market potential. Due to their distinctive features, SMRs should open new markets.

Opportunity to revisit traditional business models, regulatory interactions and public

acceptance approaches

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System Integration

System cost benefits: grid services, (enhanced) load following to support variable renewables integration

and overall security of electricity supply

Integration into future hybrid energy systems: desalination, clean H2, heat

Source: Terrestrial Energy 2019 NEA System costs study

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Economics

To balance diseconomies of scale, SMRs aim to foster economies of series through a number of

specific drivers. These economic drivers have already been proven in other industries (e.g. shipbuilding,

aircraft) but will require a global market

Modularisation &Factory build

• Improved transportability and constructability

•Reduced lead-times

•Quality assurance

•Advanced manufacturing

Design simplification

•Reduction of active components

• Streamlined overall plant architecture

• Shared infrastructure for multi-module SMRs

•Higher reliance on off-the-shelf components

Standardisation

•Enhanced learning-by-doing

•Mobilisation of the supply chain

•Reduced site-specific rework

Harmonisation

•Access to a global market

• Increased competition while keeping safety standards

•Access to a global supply chain

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Source: “Small Modular Reactors – Key to Future Nuclear Power Generation in the U.S.”, University of Chicago, Nov 2011

More Affordable Less Risky (?)

Financing

Affordability, scalability, shorter payback periods are attractive attributes for financing.

Overall impacts on risks (and therefore the costs of capital) remains more theoretical and will require

for all the potential benefits to be demonstrated

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Opportunities and Challenges

• SMRs are gaining policy recognition and making

significant technical and licensing progress towards

commercialisation. However, important questions

remain to be answered regarding the key conditions

to ensure their commercial viability.

• The present report provides a comprehensive

overview of the technical, economic, regulatory,

policy and supply chain aspects necessary to

achieve large-scale deployment of SMRs. It also

assesses the role that international collaboration

and government support in achieving this goal.

https://www.oecd-nea.org/small-modular-

reactors-challenges-and-opportunities

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Conclusions

A large number of SMR concepts at different maturity levels

•From the 70 proposed SMR concepts : 50% are based on light-water technology and the other 50% in advanced reactor technologies

A new deliver model and value proposition at the centre of SMR competitiveness

•Need to compensate the scale penalty enhancing the economies of series with higher levels of modularization, factory fabrication, standardization and harmonization.

•Benefits include higher affordability, enhanced operational, deployment and product flexibility as well as new market opportunities.

Need to review the regulatory and legal framework

•Regulatory frameworks based on performance-based risk-informed approaches are more adapted to SMRs, especially for advanced concepts.

•The international nuclear liability conventions cover in principle SMRs but floating/transportable applications need to be further addressed

NEA countries gaining experience in SMR development but challenges ahead for large scale deployment

•Countries such as Canada, US and UK are making good progress selecting first design, achieving licensing milestones and choosing first sites.

•The economic viability of SMRs lies in a market that is relatively large for a single design suggesting the need to focus of a subset of mature designs and higher harmonization levels.

Government support and international collaboration: key enablers of SMR deployment

•Main areas include: i) public engagement, ii) construction of FOAK SMR demonstrators, iii) harmonisation of licensing regimes and iv) development of manufacturing capabilities.

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Thank you