At the same time as innovative technologies promise safer, more efficient nuclear capacity expansion, driving the nuclear sector towards a sustainable and resilient future, the global energy crisis is escalating, with the demand for clean, sustainable energy sources growing. While traditional nuclear reactors have the capacity to produce substantial amounts of energy, they face challenges that impede their widespread adoption.
Building large-scale reactors requires significant upfront and ongoing financial investment before any power leaves the plant, with the International Energy Agency (IEA) reporting that the average construction cost for a traditional nuclear reactor is estimated to be around $6,000 to $8,000 per kilowatt of capacity. These high costs are compounded by ongoing operational expenses, including maintenance and security. Such financial challenges can make nuclear energy less attractive compared to other forms of energy generation, especially when renewable energy technologies are increasingly cost-competitive.
Adding to these financial concerns are the lengthy development timelines associated with large-scale nuclear reactors, with the construction of traditional reactors often taking over a decade to complete. Indeed, reactors already connected to the UK grid in 2023 had an average construction time of 121 months, or just over 10 years per reactor which is not conducive to meeting the urgent energy demands driven by climate change, electrification of transport and growing global populations.
Public scepticism about nuclear energy compounds these challenges. Many communities are wary of having nuclear reactors in their vicinity, due to perceived risks and environmental concerns. Furthermore, regulatory agencies impose strict standards on the construction and operation of nuclear reactors. Although significant strides have been made to minimise delays, approval processes are still lengthy, adding more costs to nuclear projects and complicating efforts to expand nuclear energy capacity.
These financial, logistical, and societal barriers prevent nuclear energy from realising its full potential. However, innovative technologies that support rapid deployment of Small Modular Reactors (SMRs) offer a promising solution to overcome these challenges.
Revolutionising nuclear power
Traditional nuclear reactors require complex systems to manage and mitigate the risk of accidents which can be costly. The latest reactor designs include far greater levels of passive safety that function without the need for active intervention or external power sources.
SMRs are also designed to be more-cost effective than traditional reactors. The modular design allows for greater volumes of production in controlled factory environments, reducing construction costs and financial risks. The International Atomic Energy Agency reports that SMRs could reduce upfront capital costs by 30-50% compared to large-scale reactors. SMRs are also expected to offer a much shorter build time and offer the scalability and flexibility that traditional reactors cannot match.
To realise the full potential of SMRs and ensure they can be delivered quickly and affordably, it will be crucial to address the challenges of creating supply chains for the various modules. As the demand for clean energy grows, the ability to rapidly scale the production and deployment of SMRs will be pivotal. Beyond the immediate difference in the nuclear technology used, for example a Pressurised Water Reactor compared to a Boiling Water Reactor, it is likely that a large number of other fundamental parts of the plant can be standardised. Common components, such as valves, switches, pumps and so on, manufactured to a few approved designs, would significantly reduce variance and complexity within the supply chain, as well as open up the number of potential suppliers available to any SMR vendor. Enabling companies to use advanced production methods to manufacture and supply the hardware used in SMRs will also help establish robust and reliable supply networks.
Streamlining the end-to-end process – from making the parts required to building the modular reactors on site – will further transform supply chains. Leveraging insights from the Construction Innovation Hub, MTC is just one of the groups that is pioneering modular construction techniques for the design, build, testing and standardisation for small modular reactors, so that the cost and time savings promised by SMRs’ modular nature can be delivered. Such methods are routine and embedded in other industries, for example aerospace, and should be leveraged to modernise the nuclear industry.
Alongside supply chain optimisation, investment in nuclear skills is essential to ensure the success of any new build programme involving SMRs. The growing demand for nuclear, particularly through SMRs, will require skilled workers to design, build, operate and maintain these reactors. Organisations such as the Nuclear Skills Delivery Group already deliver projects to build and retain the workforce. Nevertheless, it is critical that governments and the private sector continue to invest in nuclear education and skills development to support the industry’s future growth.
Additionally, investing in technologies like SMRs opens doors to future funding as the sector grows, to support further research and development (R&D) and drive technological advancements. This not only fosters economic growth. Innovation also improves reactor design, waste management and overall efficiency, enhancing the viability of nuclear energy to meet global energy demands.
Achieving a sustainable future
Nuclear power already accounts for around 10% of global electricity and a significant share of low-carbon energy. As SMRs advance, they present a scalable and flexible solution for the energy transition, playing a crucial role in decarbonising the energy sector by reducing emissions, supporting industrial decarbonisation and achieving climate goals.
The progress of projects such as GE-Hitachi in Darlington, Canada, and Rolls-Royce SMR’s partnership with CEZ Group in the Czech Republic, demonstrate the accelerating pace of SMR development and their role in the provision of a reliable and adaptable energy source for the future.
