In the quest for climate-resilient energy solutions, new-wave reactor technology known as Small Modular Reactors (SMRs) is emerging as a potential game-changer. Nations worldwide are now engaged in a spirited competition to lead the way, with the United States, Russia, and China at the forefront of this transformative movement.
SMRs, designed to be smaller and more cost-effective than traditional nuclear reactors, offer the promise of revolutionizing the energy landscape. These compact reactors require less physical space and can be strategically deployed in diverse locations, making them an appealing choice for countries seeking rapid decarbonization.
The International Energy Agency (IEA) has set an ambitious agenda, calling for a doubling of global nuclear energy capacity by 2050. This visionary plan underscores the pivotal role that nuclear power, in both large and small forms, can play in securing a sustainable energy future.
Presently, China stands as the global leader in nuclear technology and construction, while Russia holds a significant edge in the production of SMR fuel. The United States, however, is in hot pursuit, investing heavily in the development of SMR technology.
The impetus for the U.S. push into the SMR arena lies in its aspiration to secure a substantial share of the global market. Having previously lagged behind in the wind and solar energy race, the United States is determined to export entire fleets of SMRs to countries around the world. This approach seeks to bypass the challenges that have historically plagued large-scale nuclear power plants, such as budget overruns and project delays.
While SMRs may generate less power than their larger counterparts, their flexibility is a distinct advantage. Comprising smaller, easily assembled components, SMRs can be likened to a nuclear power plant “flatpack.” This adaptability renders them an attractive option for nations seeking to diversify their energy mix.
In December, at the COP28 climate summit in Dubai, the United States assumed a leading role by pledging to triple the world’s nuclear energy capacity. To support this commitment, the U.S. government allocated $72 million to its international SMR program, known as FIRST, providing countries with comprehensive support ranging from workshops to engineering and feasibility studies.
Financial institutions such as the U.S. Export-Import Bank and the International Development Finance Corporation have extended loans totaling $3 billion and $1 billion, respectively, for SMR projects. These funds are directed towards SMRs designed by companies like GE Hitachi Nuclear Energy, with projects in Poland aimed at reducing dependence on Russian gas.
Beyond Southeast Asia, central, and eastern Europe, where countries are striving to reduce their reliance on Russia, the United States is also engaging nations with no prior nuclear experience. Safety considerations are paramount in these emerging markets.
While concerns about nuclear safety have lingered for decades, global sentiment is shifting. As the frequency of extreme weather events linked to climate change increases, there is a growing sense of urgency to transition to cleaner energy sources.
The path ahead for SMRs is not without its challenges, including high costs, supply chain disruptions, inflation, and interest rate fluctuations. In 2023, Oregon-based NuScale faced cost overruns that resulted in the cancellation of a demonstration project in Idaho.
Despite these setbacks, the United States is leveraging its diplomatic influence to promote the global adoption of SMRs. The Nuclear Regulatory Commission’s rigorous safety standards provide a level of trust that resonates with European allies.
The future of SMRs remains uncertain, with experts suggesting it may take until the second part of the next decade to determine their viability on a large scale. Nonetheless, the global race for SMR technology is poised to play a pivotal role in addressing climate change and reshaping the energy landscape.
