17 Dec (NucNet): The UK government should work with industry to better understand the economics of small modular reactors (SMRs) and set out “a clear explanation” of the conditions under which they might become cost competitive and commercially viable in the UK, according to a new report.
The report, by Parliament’s energy and climate change committee, says it will be important to understand the future cost comparison with large-scale nuclear reactors as well as the comparison with other small-scale energy generation.
The report says: “Small modular reactors could potentially have a key role to play in delivering low carbon energy at lower upfront capital cost compared to large conventional nuclear reactors. That said, the commercial viability of SMRs remains unclear.”
The report points to potential barriers to deployment of SMRs in the UK and says those barriers are similar to those of deploying larger conventional reactors, including capital cost, lead times, uncertainty over both of these factors, regulatory approvals, and potential volatility in political and social support.
Deployment of SMRs is likely to be achieved through sharing the costs between the public and private sector, the report says. The committee said it would like to see the government “steering industry towards deploying a demonstrator SMR in the UK”. The committee called for the government to help establish the right conditions for investment in SMRs, for example through supporting the regulator to bring forward approvals in the UK, and by setting out a clear view of siting options.
“It might take six years to give regulatory approval (including a site-specific licence) for a small modular reactor.”
In the longer term, the government should identify and help to establish future sources of commercial finance for the further development and industrialisation of SMRs, the report says. “While current SMR designs have been predominantly developed outside the UK, there is scope for British industry to develop intellectual property and play a role in the deployment of the first SMRs.”
The report says SMRs are designed in a way that allows them to be manufactured at a plant and brought to site fully constructed. They have a range of applications, including industrial process heat, desalination or water purification, and other cogeneration applications.
The report is online: http://bit.ly/1391jCe
