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Economic Competitiveness of Small Modular Reactors in a Net Zero Policy

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  • Gustavo Alonso

    (Instituto Nacional de Investigaciones Nucleares, Carretera México-Toluca s/n, La Marquesa, Ocoyoacac 52750, Estado de México, Mexico
    Instituto Politécnico Nacional, Unidad Profesional Adolfo Lopez Mateos, Ed. 9, Lindavista, Mexico City 07300, CDMX, Mexico)

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.

Suggested Citation

  • Gustavo Alonso, 2025. "Economic Competitiveness of Small Modular Reactors in a Net Zero Policy," Energies, MDPI, vol. 18(4), pages 1-15, February.
    • Handle: RePEc:gam:jeners:v:18:y:2025:i:4:p:922-:d:1591390
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    References listed on IDEAS

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    1. Leurent, Martin & Da Costa, Pascal & Jasserand, Frédéric & Rämä, Miika & Persson, Urban, 2018. "Cost and climate savings through nuclear district heating in a French urban area," Energy Policy, Elsevier, vol. 115(C), pages 616-630.
    2. Asuega, Anthony & Limb, Braden J. & Quinn, Jason C., 2023. "Techno-economic analysis of advanced small modular nuclear reactors," Applied Energy, Elsevier, vol. 334(C).
    3. Alonso, Gustavo & Bilbao, Sama & Valle, Edmundo del, 2016. "Economic competitiveness of small modular reactors versus coal and combined cycle plants," Energy, Elsevier, vol. 116(P1), pages 867-879.
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    2. Tianpeng Wang & Ziqi Wu & Wei Xiong & Xunzhang Pan & Xuan Ye & Xiaoguang Liu, 2025. "The Impact of Uranium Resource Constraints on China’s Nuclear Power Development," Energies, MDPI, vol. 18(6), pages 1-16, March.

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