IAEA starts series of workshops on the economics of new and existing reactor technologies

The IAEA has launched a series of virtual workshops on economics related to different generations of nuclear power plants as the need for climate change and sustainable development drives global interest in small modular reactors (SMRs) and other emerging reactor technologies.

Many countries are considering either expanding their nuclear reactor fleet, replacing part of it, or building their first low-carbon, controllable power plants to meet the growing demand for electricity and heat. As technologies such as SMRs and microreactors (MRs) generate interest, the IAEA is helping countries identify and implement new approaches to building advanced reactors for a sustainable, zero-emission future.

The IAEA kicked off the virtual workshop series this month with an event that focused on the economics of two types of technologies: advanced or Generation III reactors that are currently being built and SMRs and MRs that are currently mostly in the R & D phase and geared towards power generation, process heat, hydrogen and other services to ensure the stability and resilience of evolving power grids.

SMRs with an electrical output of up to 300 MW per module have specific design, safety and location features with a wide range of applications. MRs, typically up to 20 MW, are factory-built SMRs that can be easily transported – by truck, ship, or train – to reliably provide heat and power in remote areas and small power grids. In addition, SMRs and MRs can be used to add stability and resilience to evolving power grids that are increasingly reliant on variable generation from renewable energy sources and a variety of energy storage systems.

Henri Paillere, head of the IAEA’s Planning and Economic Studies section, noted that the International Energy Agency’s recently published net-zero roadmap includes doubling nuclear power generation in 30 years as part of a possible net-zero path. Net zero is the point at which greenhouse gases (GHG) emitted into the atmosphere equals the amount removed from the atmosphere, achieved by drastically reducing fossil fuel use while promoting low-carbon generation and greenhouse gas removal technologies some of which do not yet exist. But decarbonising electricity will not be enough. “Emissions reductions are also necessary in the industrial, transport and building sectors. Almost half of the reduction in CO2 emissions required to reach net zero will come from technologies that are not yet in commercial use, including SMRs and other advanced reactors, ”Paillere said. “The technological maturity and economic competitiveness of these emerging technologies will be key factors in their use, and that is what the workshop series is all about.”

New reactor concepts such as SMRs and MRs are among the most promising new technologies in nuclear energy and have the potential to play a key role in the clean energy transition, particularly as a contribution to the decarbonization of hard-to-reduce sectors such as industry and heating. The role of MRs was also highlighted in a recent virtual dialogue between IAEA Director General Rafael Mariano Grossi and Ernest Moniz, former US Secretary of Energy. Recognizing the increasing global interest in SMRs, which are expected to become an option for flexible generation for a wide range of users and applications, including in developing countries, the IAEA recently established a platform to provide integrated support to Member States in all aspects of their development, deployment and monitoring.

Saied Dardour, an IAEA energy economist, said the workshop is aimed at two audiences. “The first are project developers who rely on standard financial valuations and focus on returns for shareholders,” he said. “The second is public sector decision-makers who have a broader perspective to include benefits and costs to society, consider all resources used by the project, and assess the value of the project to society as a whole.”

The participants discussed a wide range of topics, including cost drivers, profitability of series production, integration with renewable energies and financing. It was found that while SMRs, due to their size, may have a cost disadvantage per generated electricity compared to generating electricity from large reactors, this is offset by four economic factors by reducing costs: simplified design, modularization and factory assembly, standardization and regulation harmonization .

The workshop also included a session on the economics of advanced reactors in future energy systems, followed by a panel discussion on the role of new reactor concepts in power grid development. The speakers explained the relationship between advanced reactor designs and their economics, as well as the challenges associated with their integration with renewable energies, including through the generation of process heat or the production of hydrogen.

The participants in the meetings, both from nuclear newcomer countries and from established nuclear power countries, exchanged their perspectives and provided country-specific examples and case studies. Keynote speakers with direct experience in the conception, planning and implementation of nuclear power projects highlighted their own perspectives, challenges and lessons learned.

“We still have more work to do to advance these emerging technologies for successful and sustainable use, to address global climate change challenges that require the decarbonization of multiple industries, and to meet countries’ sustainable development goals,” said Michelle Scott , Senior Advisor to the US Department of Energy’s Department of Energy.

The workshop took place June 2-4 and was attended by over 150 representatives from nuclear energy organizations and economic and financial institutions from countries developing or considering new concepts of nuclear power plants, including SMRs and MRs. The next workshop in the series, which is planned for December 6th to 8th, 2021, will deal with the profitability of currently operating nuclear power plants.