Session: 06-02 Nuclear Codes, Standards, Licensing, & Regulatory Issues Session 2

Paper Number: 134457

134457 - How Can Governments Help the Private Sector Unlock the Potential of Small Modular Reactors? 

Abstract: 

An impasse is developing in financing Small Modular Reactors (SMRs). On the one hand, SMR vendors are at a stage where they need significant financial support to progress through the detailed design, regulatory process, and the development and demonstration of their representative designs. On the other hand, the investors are waiting for the conceptual SMR designs to prove their operational readiness, wary of the first-of-a-kind (FOAK) and regulatory risks. Government support is crucial to break the deadlock in the SMR deployment and enable the flow of capital from the private sector.

This study aims to identify the prevalent role of governments and the private sector in deploying SMRs and discuss the implications and benefits of doing so. The research methodology involves an inductive and exploratory study which draws on qualitative data collected through 12 semi-structured interviews with nuclear industry experts. The transcribed interview data are analysed through inductive coding.

The empirical findings and subsequent discussions on the role of governments and the private sector are structured into three deployment phases: research and development, FOAK deployment in a domestic market and commercial deployment in an international market.

The first phase involves research and development of the SMRs to progress their technology readiness level (TRL) to 6, in which the prototype SMR system can be demonstrated in a simulated environment. Here, governments would benefit by prioritising the promising SMR technologies relevant to their domestic market for further development. This involves providing financial assistance for SMR designs, ad hoc regulation and licensing support, and industry incentives to create a ‘technology push’ for the chosen SMR technologies. Governments should facilitate international cooperation and commitments between regulatory bodies and the industry in reviewing the chosen designs. At this phase, there is little incentive for the private sector to invest in the SMRs, as they are still in the conceptual stage and have yet to undergo the licensing process.

In the second phase, the SMRs progress to TRL 7 and 8 as they are developed to full commercial scale and their systems are proven in an operational environment. The FOAK unit, followed by a few subsequent units, are deployed in a domestic market during that phase. Governments should be involved in the licensing and financing of FOAK units and their subsequent ones in their domestic market. At this stage, the licensing process must have undergone reforms, which are vital to enabling the deployment of SMRs through factory production and modularisation. It is also vital to attract significant private financing through strong subsidies and long-term market offtake structures and create a ‘market pull’ of the SMRs towards deployment. As the FOAK and the subsequent units are deployed, the risks become more manageable and acceptable to the private sector.

Finally, the third phase comprises the commercial deployment of SMRs with a TRL 9 in an international market. The SMRs should be driven by global market demand, with multiple mature designs employing a mass-manufactured, modular approach and standard modules. There should be a reduced dependence on government support and financing, and more significant private investment sources should be accessible. The regulatory process should be more predictable.

In summary, governments will have a more significant role in the first and second phases of the deployment of SMRs. With governments minimising the risks, the private sector will become more involved in the second phase and more prominent in the third phase. Although governments will have a less significant role when the SMRs are deployed in an international market, they will still benefit greatly from this phase by establishing market leadership on SMRs, increasing export potential, accessing affordable, clean, and sovereign energy, and promoting economic development worldwide. The geopolitics and trade considerations have implications that extend beyond the commercial benefits of deploying SMRs.

Presenting Author: Rohunsingh Sam University of Leeds

Presenting Author Biography: Rohunsingh Sam is currently a third-year PhD candidate focusing on the deployment of Nuclear Small Modular Reactors (SMR), exploring their licensing, financing, and potential solutions to deployment challenges. His skills in project management are certified by his PMP credential, complemented by over six years of working experience. Academically, Rohunsingh holds an MSc in International Construction Management and Engineering from the University of Leeds, a University Diploma in International Nuclear Law, and a Bachelor's Degree in Civil Engineering from the University of Mauritius.

Authors:

Rohunsingh Sam University of Leeds
Tristano Sainati BI Norwegian Business School
Bruce Hanson University of Leeds
Robert Kay University of Leeds