SMALL MODULAR REACTOR MARKET Challenges and Opportunities

One of the major challenges facing the development and adoption of small modular reactors is their high initial costs and financing challenges. While SMRs promise economics of mass production over time, the first few reactor units are likely to be very expensive due to lack of economies of scale during construction. For instance, as per the data published by Springer in September 2024, initial costs for smaller SMRs could be over US$ 2-3 billion each. Financing these first-of-a-kind, cutting edge nuclear reactors will be difficult.

Market Opportunity - Deployment in remote and off-grid areas

Small modular reactors (SMRs) offer a transformative solution for remote and off-grid locations, such as coastal and island communities reliant on imported fossil fuels. Their compact, transportable designs make them ideal for providing clean, reliable, and affordable baseload power, replacing diesel generators. SMRs enhance energy security in regions prone to climate events, as seen during Hurricane Ida in 2021, which caused prolonged fuel shortages in Louisiana. By ensuring resilient power supply, SMRs address energy challenges in vulnerable, isolated grids.