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Economic Feasibility of Energy Supply by Small Modular Nuclear Reactors on Small Islands: Case Studies of Jeju, Tasmania and Tenerife

Author

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  • Sanghyun Hong

    (College of Science & Engineering, University of Tasmania, Private Bag 55, Hobart 7001, Australia)

  • Barry W. Brook

    (College of Science & Engineering, University of Tasmania, Private Bag 55, Hobart 7001, Australia)

Abstract

Small modular nuclear reactors (SMRs) offer the promise of providing carbon-free electricity and heat to small islands or isolated electricity grids. However, the economic feasibility of SMRs is highly system-dependent and has not been studied in this context. We selected three case-study islands for such an evaluation: Jeju, Tasmania and Tenerife based on their system complexity. We generated 100,000 electricity-mix cases stochastically for each island and examined the system-level generation-cost changes by incrementing the average generation cost of SMRs from USD$60 to 200 MWh −1 . SMRs were found to be economically viable when average generation cost was <$100 MWh −1 for Jeju and <$140 MWh −1 for Tenerife. For Tasmania the situation was complex; hydroelectric power is an established competitor, but SMRs might be complementary in a future “battery of the nation” scenario where most of the island’s hydro capacity was exported to meet peak power demand on the mainland grid. The higher average generation cost of SMRs makes it difficult for them to compete economically with a fossil fuel/renewable mix in many contexts. However, we have demonstrated that SMRs can be an economically viable carbon-free option for a small island with a limited land area and high energy demand.

Suggested Citation

  • Sanghyun Hong & Barry W. Brook, 2018. "Economic Feasibility of Energy Supply by Small Modular Nuclear Reactors on Small Islands: Case Studies of Jeju, Tasmania and Tenerife," Energies, MDPI, vol. 11(10), pages 1-11, September.
    • Handle: RePEc:gam:jeners:v:11:y:2018:i:10:p:2587-:d:172546
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    References listed on IDEAS

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    1. Sanghyun Hong and Barry W. Brook, 2018. "At the crossroads: An uncertain future facing the electricity†generation sector in South Korea," Asia and the Pacific Policy Studies 201838, Crawford School of Public Policy, The Australian National University.
    2. Alfredo Ramírez Díaz & Francisco J. Ramos-Real & Gustavo A. Marrero & Yannick Perez, 2015. "Impact of Electric Vehicles as Distributed Energy Storage in Isolated Systems: The Case of Tenerife," Sustainability, MDPI, vol. 7(11), pages 1-27, November.
    3. Voorspools, Kris R. & D'haeseleer, William D., 2006. "An analytical formula for the capacity credit of wind power," Renewable Energy, Elsevier, vol. 31(1), pages 45-54.
    4. Ueckerdt, Falko & Brecha, Robert & Luderer, Gunnar, 2015. "Analyzing major challenges of wind and solar variability in power systems," Renewable Energy, Elsevier, vol. 81(C), pages 1-10.
    5. Sanghyun Hong & Barry W. Brook, 2018. "At the crossroads: An uncertain future facing the electricity‐generation sector in South Korea," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 5(3), pages 522-532, September.
    6. Black, Geoffrey & Taylor Black, Meredith A. & Solan, David & Shropshire, David, 2015. "Carbon free energy development and the role of small modular reactors: A review and decision framework for deployment in developing countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 43(C), pages 83-94.
    7. Sándor Szabó & Ioannis Kougias & Magda Moner-Girona & Katalin Bódis, 2015. "Sustainable Energy Portfolios for Small Island States," Sustainability, MDPI, vol. 7(9), pages 1-19, September.
    8. Alfredo Ramírez Díaz & Francisco J. Ramos-Real & Gustavo A. Marrero & Yannick Perez, 2015. "Impact of Electric Vehicles as Distributed Energy Storage in Isolated Systems: The Case of Tenerife," Sustainability, MDPI, Open Access Journal, vol. 7(11), pages 1-27, November.
    9. Hong, Sanghyun & Bradshaw, Corey J.A. & Brook, Barry W., 2013. "Evaluating options for sustainable energy mixes in South Korea using scenario analysis," Energy, Elsevier, vol. 52(C), pages 237-244.
    10. Hansen, J.P. & Narbel, P.A. & Aksnes, D.L., 2017. "Limits to growth in the renewable energy sector," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 769-774.
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    Cited by:

    1. Pablo Fernández-Arias & Diego Vergara & Álvaro Antón-Sancho, 2023. "Bibliometric Review and Technical Summary of PWR Small Modular Reactors," Energies, MDPI, vol. 16(13), pages 1-15, July.
    2. Mignacca, B. & Locatelli, G., 2020. "Economics and finance of Small Modular Reactors: A systematic review and research agenda," Renewable and Sustainable Energy Reviews, Elsevier, vol. 118(C).
    3. Young Jin Kim & Byung Jin Lee & Kunwoo Yi & Yoon Jae Choe & Min Chul Lee, 2020. "Numerical Study on the Effects of Relative Diameters on the Performance of Small Modular Reactors Driven by Natural Circulation," Energies, MDPI, vol. 13(22), pages 1-17, November.

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