1、Unlocking the potential of small modular reactorsPhoto by Petr Materna Kearney,PragueThese two pressing issues highlight the complexity of the mission at hand,necessitating a delicate balance between promoting low-emission energy sources and maintaining a reliable supply of energy to meet the growin

2、g demand.At this crucial juncture,many nations are revisiting their nuclear power strategies and policies,particularly the newly emerged technology of small modular reactors(SMRs)as a potential solution to address both sides of the conundrum(see figure 1).Despite the obstacles that countries are fac

3、ing on the quest to reach net zero,nuclear energy has stagnated in Western markets.Enter SMRsan advanced technology garnering major attention.Confronted with the daunting task of fulfilling the global ambition of net zero emissions by 2050,nations across the world are seeking ways to decarbonize the

4、ir energy sectors.Concurrently,the energy crisis in Europe has served as a stark wake-up call about the importance of energy security.Sources:International Atomic Energy Agency,governments reports;Kearney analysisFigure 1Countries around the world are reassessing their positions on nuclear energyNuc

5、lear capacity(GW)Countries with nuclear energy capacityLess than 3 GW310 GW1050 GWMore than 50 GWNew entrants;currently constructing,commissioning,or planning first reactorsOperationalAfricaAsia PacificEurope LatinAmericaCanadaand theUnited States2132119510944810121913714PlannedIn constructionor com

6、mission1Unlocking the potential of small modular reactorsLatin America.Argentina and Brazil both have well-established nuclear programs,with the first constructing SMR and the other focusing on fuel production.Mexico,with one operating power plant of 1.6 GW capacity,recently engaged in feasibility s

7、tudies for the construction of new nuclear reactors,but there are no immediate plans.Similarly,debates about the rollout of nuclear power have taken place in several countries,including Chile,Peru,and Colombia,but also without any result.Europe.Despite obtaining a“green label”endorsement from the Eu

8、ropean Commission,the potential for nuclear energy in Europe is characterized by a diversity of viewpoints.Nations with well-established nuclear programs,including France,the United Kingdom,Finland,and the Czech Republic,have long expressed their eagerness for a nuclear renaissance.This sentiment wa

9、s also recently evident when they voiced their aim to triple global nuclear capacities by 2050 at the 2023 UN Climate Change Conference.Particularly France,as the largest nuclear energy participant with a fleet of 61 GW mostly constructed during the 1970s,aims to develop 10 GW of third-generation re

10、actors in the years ahead.Poland,a new nuclear energy advocate,has unveiled ambitious intentions to construct six reactors in collaboration with Westinghouse and Korea Hydro&Nuclear Power,alongside six SMRs,with a target of reaching 10 GW by the late 2030s.Conversely,certain European countries empha

11、size the advantages of renewable energy sources over nuclear power.Notably,Germany has decommissioned more than 20 GW of capacity since 2011,completing its phase-out in April 2023.North America.Canada,a steadfast advocate of nuclear energy,is planning to amplify its nuclear capabilities by introduci

12、ng four SMRs.Conversely,the United States,with its distinction of harboring the worlds most extensive and well-established nuclear power fleet,is undergoing a notable resurgence in interest.This revival is fueled by a combination of developments,including the Inflation Reduction Acts nuclear power p

13、roduction credits,several states repealing legislature prohibiting the construction of new nuclear facilities,and policies promoting next-gen SMRs.The relevance of nuclear power as a reliable substitute for fossil fuels is gaining attention worldwide.Particularly noteworthy is Asias robust expansion

14、 of nuclear power.In Europe and the North America,there is a renewed enthusiasm for nuclear power that could help rejuvenate their nuclear infrastructure.Africa and Latin America have certain potential in this regard too.Africa.The old continents nuclear energy landscape is becoming clearer,exemplif

15、ied by Egypts 25 billion partnership with Rosatom,aimed at constructing a 4.8 GW nuclear power plant scheduled for completion in 2028.Meanwhile,South Africa retains its status as the only nuclear reactor operator on the continent despite the fact that its proposed 2.5 GW expansion faces challenges f

16、rom financial constraints and public opposition.Ghana and Morocco,which now have research reactors,along with Uganda have made notable progress by initiating first agreements with potential vendors to develop nuclear capacity,which could be ready by the mid-2030s.In a similar vein,early-stage intere

17、st is emerging in Algeria,Tunisia,and Kenya,albeit with no well-defined strategies yet.Asia Pacific.Notably,China is positioned as a front-runner,constructing 45 GW over the past decade with another 25 GW underway.India has also made strides,building 6 GW of nuclear capacity.Amid varying political a

18、nd civil sentiments toward nuclear,Japan is embarking on advanced nuclear technology,while Taiwan remains committed to phasing out its nuclear fleet.South Korea and Russia continue to be significant users and exporters of nuclear technology,now exploring advanced reactor designs.In the Middle East,t

19、he UAE has launched its first nuclear power plant,while Saudi Arabia has announced plans to develop nuclear energy,which is likely to materialize in the coming years.The shifting cost dynamics and comparative affordability of nuclear,especially amid rising coal and gas prices,are attracting more att

20、ention from possible new entrants,such as Singapore,Bangladesh,Vietnam,and Australia.Global nuclear energy trajectories2Unlocking the potential of small modular reactorsThis is also reflected in the aging of nuclear power fleets(see figure 2).Whereas the average Chinese reactor has not reached 10 ye

21、ars of operation,most reactors in Europe,the United States,and Canada are at 35 years or more.For example,a third of the French fleet,consisting of CP0 and CP1 design reactors,has surpassed its originally designed 40-year life span,and with the 10-year life extension,they are set to be decommissione

22、d in the coming years.Similarly,in the United States,50 percent of the fleet has exceeded 40 years of active service,surpassing the regulatory standard.An aging nuclear fleet in Europe and the United States Despite the potential role of nuclear power to contribute to the global energy mix in terms o

23、f both capacity and geographic coverage,the rollout of conventional large-scale reactors has faced a variety of challenges over the past several decades.Issues related to public perception,waste management,apprehensions regarding potential proliferation,safety concerns mainly caused by previous acci

24、dents,and the growing emphasis on decentralized energy systems have played a role.Nonetheless,rising overnight costs stemming from higher safety standards and customization driving complexity and delays in project completion have been the primary factors contributing to the nuclear industrys stagnat

25、ion in recent decades.Consequently,nuclear energy in Europe and North America has found itself somewhat overshadowed by the growing dominance of renewable energy sources.Sources:International Atomic Energy Agency,governments reports;Kearney analysisFigure 2The nuclear fleets of Europe,Canada,and the

26、 United States are agingAge of the nuclear power fleet(years)Installed capacity(GW)Number of reactorsEurope211 1 114321 1 13 31081591051205101520253035404550550.41997160.5 0.4 0.4Canada andthe United States113147119924868532110510152025303540455055272125223Unlocking the potential of small modular re

27、actorsProduction,installation.Their smaller size and modular design are anticipated to foster parallelism,creating advantages during the manufacturing and assembly phases and allowing for functional and systems testing.This innovative approach allows for faster factory production of reactor componen

28、ts,which can be manufactured in a controlled environment,and it enables easier transportation of these components to the intended site.Once on-site,assembling SMRs is more efficient and effective thanks to their modular design.Individual modules can be integrated seamlessly,reducing the complexity o

29、f the construction process.This streamlined approach not only accelerates the overall construction timeline but also enhances the predictability of the project schedule.Flexibility,versatility.SMRs provide more flexibility in terms of capacity,making it easier to adjust power and heat generation to

30、meet varying energy demands.This scalability allows for the deployment of multiple SMRs in combination,creating a more adaptable and flexible power plant setup.This advantage is particularly useful for regions with fluctuating energy needs,growing energy demands,or remote locations with no grid,such

31、 as mines.Also,a significant benefit of SMRs is their smaller land footprint,making them suitable for a wider range of sites.They can be deployed in areas with limited space or in remote locations where larger power plants might not be feasible.This versatility in site selection increases the potent

32、ial locations for nuclear power or heat deployment,expanding access to clean and reliable energy sources in various regions.Moreover,the modular design and smaller size of SMRs offer export opportunities to countries with smaller grids or those seeking to introduce nuclear power for the first time.T

33、his potential for international expansion could open new markets for nuclear technology and foster new international collaborations in the energy sector.In addition to factors such as the shift away from fossil fuels,the growing trend toward electrification,the commitment to zero-emission policies,a

34、nd progress in nuclear technology,the aging of the global nuclear fleet is also driving the demand for fresh energy infrastructure.Assuming no license extension,an estimated 64 GW of global capacity is set to be decommissioned by 2030.Even with timely replacements,there will be a need for an added 1

35、37 GW to fulfill the nuclear energy supply spurred by the increasing demand for electricity worldwide,related to the aforementioned trends.By 2040,the need for capacity will magnify considerably:216 GW will be required for the replacement of old reactors,and an additional 232 GW will be needed to ca

36、ter to growing energy demands.Looking ahead to 2050,the market potentialcomprising 257 GW for replacement and 338 GW for new buildsis forecasted to lie between 3.5 trillion and 5.5 trillion,depending on reactor cost fluctuations.Smaller,modular.Interest has been growing in SMRs as a promising soluti

37、on to capitalize on the market potential.By opting for SMRs,the goal is to capitalize on the innate advantages of nuclear energya sustainable,energy-rich source with consistent output in the form power or heatwhile sidestepping the challenges associated with rolling out large-scale nuclear reactor p

38、rojects.4Unlocking the potential of small modular reactorsEconomics.The adoption of factory production and modular assembly for SMRs is expected to bring significant cost savings along with construction timelines that are about three or four years shorter than the time-consuming,resource-intensive p

39、rocess for constructing larger reactors.These advantages,combined with other facilitating factors such as standardization,economies of multiples and financing,can counterbalance the lost economy of scale when transitioning from conventional large-scale reactors to SMRs.Therefore,while it is expected

40、 that certain first-of-a-kind projects may encounter economic challenges,similar to the circumstances leading to the recent cancellation of the Carbon Free Power Project,the enduring advantages of SMRs are poised to establish this energy source as a compelling and economically competitive option wit

41、hin the nuclear energy landscape in the long run(see figure 3).Notes:SMRs are small modular reactors;WACC is the weighted average cost of capital.Sources:Adapted from IAEA,2014(H.H.Rogner)and NEA,2022;Kearney Energy Transition Institute analysisFigure 3Several factors can compensate for the economic

42、 competitiveness that SMRs might initially lose due to limited economies of multiplesMeasures leading to SMR economic competitiveness to large conventional reactorsOvernight costsEconomies of multiplesPlant capacity(MW)SMRLarge conventionalreactor1 1Assumes single unit and same large reactor design

43、concept(large plant directly scaled down)2 2Multiple units:modularization and in-shop manufacturing3 3Learning curve:series production,delivery logistics,including program learning for additional units in series and serving non-electric markets4 4Financing:reduced interest during construction from s

44、horter fabrication schedules(time to market)and potentially lower WACC5 5Unit timing:gradual capacity additions to match demand profiles;system integration6 6Harmonization:design simplifications and standardization(licensing,codes,regulation)2 2Multiple units3 3Learning curve4 4Financing5 5Unit timi

45、ng6 6HarmonizationLost economy of scale when moving from LRs to SMRsThe advantages of SMRs are poised to establish this energy source as a compelling and economically competitive option.5Unlocking the potential of small modular reactorsSafety.One of the primary benefits of SMRs is their enhanced saf

46、ety,a quality that arises from a combination of factors.While SMRs retain the same safety features as their larger counterparts,their smaller size inherently reduces the impact of potential accidents,making them safer options for nuclear energy production.Furthermore,their compact design amplifies t

47、he effectiveness of passive safety systems,fortifying the stability and security of the reactors.In this context,its noteworthy that SMR designs take into account current safeguards and security requirements,incorporating facility protection systems capable of withstanding design-based aircraft cras

48、h scenarios and other threats.These aspects are integral to the engineering process for new SMR designs,aligning with the principles of“security by design.”Moreover,SMRs offer the advantage of being constructed below ground level,enhancing safety and security measures to address vulnerabilities rela

49、ted to both sabotage and natural phenomena hazards.Some SMRs are engineered to operate for extended periods without refueling,and they can be fabricated,fueled,sealed,and transported to sites for power generation,reducing the transportation and handling of nuclear material.Importantly,light water SM

50、Rs are expected to be fueled with low-enriched uranium,similar to large nuclear power plants.This approach not only enhances security but also reduces the risk of nuclear proliferation.Additionally,similar to large-scale reactors,some SMRs are designed to burn plutonium as a mixed oxide(MOX)fuel,con

51、tributing to the disposition of plutonium while minimizing the waste requiring disposal.Taken together,the safety and security aspects integrated into SMR designs create a significant advantage,particularly during the licensing process,and underscore their potential to provide both safety and nonpro

52、liferation benefits.SMR coupling with other technologies.SMRs will prove to be versatile and adaptable energy solutions with applications in sectors beyond traditional electricity generation,including both on-grid and off-grid scenarios.For instance,SMRs can play a pivotal role in clean hydrogen pro

53、duction through electrolysis,a crucial component of the transition to clean energy by providing a sustainable and reliable source of energy.In this context,collaboration with electricity generators also presents an opportunity for cost reduction through load following.That is,off-peak electricity ca

54、n be used for electrolysis production,benefiting both parties by stabilizing production and eliminating transients.SMRs have also shown promise in freshwater production through desalination,similar to what large-scale reactors have already shown.Desalination,while effective,is known for its high ene

55、rgy demands,typically ranging from three to nine kWh per cubic meter of freshwater production,leading to substantial operational costs.SMRs could emerge as a viable energy source to power desalination plants as part of a cogeneration system.Beyond these applications,SMRs hold potential for radioisot

56、ope production,which is essential for medical treatments,diagnostics,and scientific research.Their precise and controlled radiation output makes them ideal for the efficient and safe generation of radioisotopes,thus advancing healthcare and scientific advancements.Moreover,SMRs can serve as a reliab

57、le source for industrial heat generation,crucial for numerous high-temperature industrial processes.This transition to clean and sustainable heat sources aligns with global efforts to combat climate change and reduce greenhouse gas emissions(see figure 4 on page 7).6Unlocking the potential of small

58、modular reactorsFigure 4SMRs are extremely versatile and can be used for a wide range of applications beyond generating electricitySMR non-electrical potential applications by operation temperature100District heatingSteam methane reformingSeawater desalinationPulp and paper manufactureShale and tar

59、sand productionSOEC electrolysisCold electrolysisBioethanol productionLow-to high-temperature steam electrolysisThermochemical water splittingPetroleum refiningMethanol productionCoal gasificationHeavy oil desulfurizationBlast furnace steelmaking2003004005006007008009001,0001,1001,200CNotes:SMRs are

60、 small modular reactors;SOEC is solid oxide electrolyzer cell.Sources:International Atomic Energy Agency;Kearney Energy Transition Institute analysis7Unlocking the potential of small modular reactorsEmerging horizons in the SMR landscapeThe potential of SMRs has caught the attention of researchers f

61、rom all around the world,advancing the technology in several directions.Currently,the market is aware of several reactor types classified into two broad categories:water-cooled reactors and non-water-cooled reactors.Light water SMRs are expected to lead the deployment race among reactor designs,espe

62、cially in regions such as North America and parts of Europe where there is a long-standing history and a clear operational understanding of this technology.These reactors are particularly well-suited for markets that prioritize immediate deployment using existing uranium supply chains,making them a

63、top choice for areas with a robust nuclear tradition.In contrast,heavy water reactors could find more traction in places such as Canada or parts of East Asia,where there is an appreciation for their ability to harness natural uranium and a drive to circumvent uranium enrichment.As for other SMR desi

64、gns,such as high-temperature gas reactors or molten salt reactors,their deployment might be more distant,potentially appealing to technologically ambitious regions such as parts of East Asia or certain European countries willing to pioneer in the next wave of nuclear energy.New players in the gameBe

65、yond the prominent leaders of the nuclear sector,the SMR arena has seen the entrance of several unconventional new entrants,particularly in North America and Western Europe.Emerging companies are exploring a spectrum of reactor designsfrom light and heavy water reactors to high-temperature gas and m

66、olten salt reactorseach with its own set of safety and efficiency pros and cons(see figure 5 on page 9).Their ambitions are not restricted to reactor designs alone;many aim to pursue innovations across the whole nuclear value chain,covering aspects from fuel acquisition and production to deployment

67、methodologies and waste management strategies.Complementing the established nuclear leaders such as Westinghouse,GE Hitachi,CNNC,EDF,and Rosatom,the market now boasts several reactor designs in the early and late stages of development.Consequently,following the launch of HTR-PM in China in 2021 and

68、the KLT-40 semi-SMR on the Akademik Lomonosov vessel in Russia in 2019,more SMRs deployments are expected to follow in the years ahead.8Unlocking the potential of small modular reactors1 Site has been selected.2 Number of engagements with associated communitiesSources:Nuclear Energy Agency;Kearney a

69、nalysisLate-stage small modular reactor designs and their deployment readiness Figure 5Several reactor designs are in the advanced stages of development,with deployment anticipated in the upcoming yearsNon-exhaustiveOperationalUnder construction PlannedLicensingEngagement2Siting1FuelFinancingSupply

70、chainKLT-40SLight waterRussiaRosatomACP100Light waterChinaCNNCVOYGRLight waterUSANuscaleRITM-200sLight waterRussiaRosatomRolls-Royce SMRLight waterUKRolls-RoyceNatriumLiquid metalUSATerraPowerARC-100Liquid metalCanadaARC Clean TechnologyHTR-PMHigh-temperature gasChinaInotACPR50SLight waterChinaCGNBW

71、RX-300Light waterUSAHitachiProject PeleHigh-temperature gasUSABWXTXe-100High-temperature gasUSAX energyNUWARDLight waterFranceEDFIMSRMolten saltCanadaTerrestrial EnergyCAREMLight waterArgentinaCNEABREST-OD-300Liquid metalRussiaRosatomRITM-200NLight waterRussiaRosatomHermesMolten saltUSAKairos PowerS

72、MARTLight waterSouth KoreaKaeriSSR-WesteburnerMolten saltCanadaMoltex Clean energyMMRHigh-temperature gasUSAUSNC9Unlocking the potential of small modular reactorsSMRs vendors screeningWith the anticipated demand for nuclear energy on one side and soon-available SMR technologies on the other,organiza

73、tions and governments worldwide are expected to start the process of vendor screening to ensure they are partnering with the best in the industry.Traditionally,vendor selection criteria have been firmly anchored in evaluating the technical prowess,safety measures,and regulatory compliance of the pro

74、spective vendors.Although these are undeniably crucial,the growing prominence of SMRs has highlighted an expanded set of selection criteria specific to this domain,including multipurpose functionality,modularity,load following,and scalability(see figure 6).Note:SMRs are small modular reactors.Source

75、s:International Atomic Energy Agency;Kearney analysisMain assessment criteria for SMR suppliersFigure 6Selecting SMR suppliers requires a thorough analysis of technical,regulatory,economic,and operational factorsExperience and track record Number of reactors deployed Duration of operation Deviations

76、 in previous projects Availability of performance dataTechnical and safety requirements Power output efficiency Fuel cycle,type,and utilization Cooling system Safety features R&D Waste managementSupply chain management Planning and organization of the end-to-end supply chain system Satisfaction of q

77、ualification standards On-time delivery Fuel supply riskRegulatory approval Likelihood of regulatory approval Potential timeline Regulatory process cost Market regulatory contextCost-effectiveness Levelized cost of electricity Capex Opex DecommissioningSMR-related factors Multipurpose functions Modu

78、larity(construction and operation)Grid integration Flexibility of location Load following ScalabilityThe growing prominence of SMRs has highlighted an expanded set of selection criteria specific to this domain.10Unlocking the potential of small modular reactorsThe introduction of SMRs will necessita

79、te the revision of nuclear power initiatives around the world.The competitiveness of SMRs will hinge on upholding adequate economies of multiples,a factor influenced by future demand.Considering the extended time frames characteristic of nuclear projects,early decision-making is paramount.Among othe

80、rs,targeted legislation,robust supply chains,and international partnerships will be indispensable to minimize the costs,accelerate deployment,strengthen public confidence,and tackle the fiscal hurdles(see figure 7).Preparation steps for SMR implementationRegulatorySimilar to large-scale reactors,the

81、 deployment of new SMR designs will likely come with challenges during the approval process.A distinguishing feature is modularization.Consequently,a substantial portion of the licensing will need to be conducted at the factories,highlighting the need for traceability of components across the entire

82、 supply chain.To ensure components origin and compliance status,manufacturers will need to adopt secure data management systems providing transparent and auditable records.Overall,standardized digital platforms for documentation with regulatory bodies will be essential to expediting the approval pha

83、se.Figure 7Several success factors contribute to nuclear reactor deploymentSMR implementation key success factorsNote:SMRs are small modular reactors.Source:Kearney analysisRegulatory approvalStrategic alliancingSupply chain optimizationEconomic competitivenessPublic perception and acceptanceGrid in

84、tegration and infrastructureStandardization and scalabilityFeasibility studyConstructionOperation10101 12 23 34 45 56 67 78 89 9Concept and strategy design Mapping of the SMR market(suppliers,technologies,etc.)Assessment of the SMR technology maturity Definition of partnership strategy Calculation o

85、f robust cost-benefit business case Design of SMR implementation road mapProcurement strategy and execution Definition of business requirements Preparation of tender book and scoring criteria Independent tender evaluation in line with pre-defined scoring criteriaImplementation of SMR Large-scale pro

86、ject management Management of risks,interdependencies,timeline,and qualityExamples of how Kearney can help11Unlocking the potential of small modular reactorsGenerally,a reactor design that has been validated,particularly one that has passed regulatory checks in other nations,helps alleviate the conc

87、erns and uncertainties tied to the project.Therefore,for every SMR design,the primary licensing will typically be pursued in the country where it was developed.A complete and detailed design bolsters assurance in the timely and budget-friendly realization of the project,even when adjustments might b

88、e essential to align with local regulatory criteria or distinct site characteristics.Financial considerations,such as licensing fees and nuclear insurance,are vital when considering SMR licensing.Given the significant international marketing potential of SMRs,regulators might experience pressure to

89、fast-track approvals,especially with the backing of government programs.Collaborative efforts between industry stakeholders,government bodies,and regulatory agencies,as well as long-term planning and risk mitigation strategies such as contingency funds,risk-sharing agreements,and insurance options,a

90、re therefore essential to establish transparent and efficient approval mechanisms.Currently,regulators have some degree of cooperation and mutual recognition,largely influenced by standards set by the International Atomic Energy Agency and,where relevant,the Western European Nuclear Regulators Assoc

91、iation.When evaluating a design,regulators consider its original standards as long as they align with local regulations and an equivalence is confirmed;nonetheless,they will not automatically sanction a design approved by an overseas regulator.A recent example is the collaborative assessment of the

92、Nuward SMR by regulatory authorities from France,Finland,and the Czech Republic.While these regulators have relatively easily converged in their assessments,this evaluation will not replace the necessity for future authorization reviews by each participating party,as an additional layer of examinati

93、on will be needed to ensure alignment with all national regulations.Although there have been efforts to harmonize these,such as the ones done by World Nuclear Associations CORDEL task group,a fully integrated multi-country agreement might be a distant reality,possibly a decade away,as each regulator

94、 remains committed to its own framework,even though standardizing codes across borders could be immensely advantageous(see figure 8).Notes:FID is final investment decision;EPC is engineering,procurement,and construction.Sources:World Nuclear Association;Kearney analysisInternational regulatory stand

95、ardization Site selection and qualificationPotential to be fully standardizedCan be standardized in some aspectsManufacturingDesign and vendor selectionMain contract(EPC)License applicationFinancing scheme(FID)Figure 8There is significant room to standardize nuclear regulatory practicesNo degree of

96、standardization possiblePotential degree of standardizationCurrent degree of standardization12Unlocking the potential of small modular reactorsStrategic alliancesBuilding on the challenges highlighted by the SMR design deployment and the intricacies of regulatory recognition,there is a clear and pre

97、ssing mandate:in the absence of harmonized regulatory standards,it is imperative for energy producers to take the reins by establishing alliances and deepening collaboration as a strategic counter to the regulatory labyrinth.This means pooling resources for joint research and development to craft in

98、novative SMR designs,significantly cutting individual costs and harnessing combined expertise.Such alliances could develop unified licensing templates,optimizing the approval process across jurisdictions.Joint training programs can be instituted,ensuring the uniform dissemination of best practices,i

99、nsights,and shared expertise across the alliance.With the modularization of SMRs underscoring the importance of traceability,collaborative supply chain management becomes crucial,ensuring consistent quality control and benefiting from economies of scale.Sharing the lessons from individual licensing

100、experiences allows producers to preempt challenges and devise effective counterstrategies.Engaging stakeholders,from governments to local communities and NGOs,in a joint manner can cultivate a more supportive environment for SMR deployments.Furthermore,a collective voice in advocacy magnifies influe

101、nce on regulatory changes and reforms,and cross-border SMR demonstrations can be organized to boost awareness and ease regulatory approvals.Such concerted efforts not only mitigate challenges presented by diverse regulatory frameworks but also place energy producers at the forefront of the SMR evolu

102、tion,propelling efficiency,transparency,and innovation.Supply chainEstablishing a supply chain with the right technical expertise and quality control will be a demanding task,yet an efficient supply chain is fundamental for the competitiveness of SMRs.Although recent construction endeavors have revi

103、talized global supply chains,there is still more ground to cover.Forging strategic partnerships for essential components will be imperative.Once set up,any supply chain disruptions will be highly costly,potentially leading to the disposal of key equipment and the loss of essential personnel.As a res

104、ult,initially,reactor designers might lean more toward using standard commercial items or rely heavily on trusted nuclear suppliers building a well-orchestrated supply chain comprising certified nuclear suppliers and distributors.With time,as the production of modules picks up,the SMR supply chain c

105、ould streamline,focusing on fewer suppliers to capitalize on economies of scale.This trajectory will largely hinge on market dynamics and the push for standardization to foster competitiveness.In the long run,supply chain strategies will likely focus on greater integration for enhanced efficiency.By

106、 harmonizing regulations and standards,the door opens for more localized production and a broader supplier base,making the supply chain more competitive and cost-effective.13Unlocking the potential of small modular reactorsBeyond energy security,as capex-intensive projects,SMRs hold significant pote

107、ntial for revitalizing national economies and promoting sustained economic growth in countries that choose to adopt them.The combination of their capital intensiveness rooted in asset-rich profile,R&D intensity,and rigorous regulatory compliance along with a long supply chain,long-term operation,and

108、 vast indirect impact translates into an amplified ripple effect,in terms of both economic activity and job creation.Indeed,the cumulative economic output multiplier in the initial five years of investment typically exceeds renewable energy investments by a factor of about 3.5 and surpasses fossil f

109、uel investments by a factor of about 6.5.To illustrate,an investment of 100 million in nuclear,renewables,or fossil fuels would correspond to an increase of 370 million,110 million,or 50 million in the real GDP level after five years of the investment,respectively.For instance,a 1 GW SMR facility wi

110、th expected capex between 2 billion and 6 billion is projected to infuse more than 800 million in both direct and indirect economic value annually.This figure encompasses more than 450 million from the plants electricity sales,among which about 16 million is distributed locally.Furthermore,every yea

111、r,the local authorities and state governments can anticipate a gain of about 70 million in taxes.Advantages for the national economySMRs not only inject substantial purchasing power into economies but also present an opportunity to transition the workforce from declining fossil fuel industries with

112、a relatively low degree of retraining required.The same 1 GW SMR plant will employ about 1,300 people in manufacturing and construction over a period of four to five years.And this engagement is not temporary:once the SMR plant is operational,it will continuously provide employment for about 300 peo

113、ple over its projected 60-year life span.Data suggests that each permanent position in such a setup indirectly creates an additional 1.7 jobs in the immediate vicinity and 2.4 jobs on a national level.Adding to the economic appeal,professions in the nuclear sector are notably lucrative.In Western Eu

114、rope and the United States,the wages in nuclear-related jobs are,on average,30 percent higher than the median salaries of wind and solar sectors and twice the mean of power sector workers.14Unlocking the potential of small modular reactorsA bright prospectThe global pursuit of both decarbonizing ene

115、rgy and ensuring energy security has never been more crucial.This dual challenge has placed some markets in a complex position,particularly when it comes to nuclear energy.Over the past few decades,the Western nuclear industry has stagnated with a lack of new construction leading to the aging of nuc

116、lear fleets.Enter the solution:small modular reactors.These innovative nuclear technologies offer a promising path forward,embodying the inherent advantages of nuclear energy while effectively sidestepping its historical drawbacks.SMRs bring economic advantages to the table,thanks to streamlined pro

117、duction processes and shorter construction timelines.Moreover,their versatility presents a multitude of opportunities for coupling with various technologies,such as hydrogen production,desalination,and more.Looking ahead,we see not only the established players in the nuclear industry but also a wave

118、 of new SMR designers entering the arena.The future holds promise with more SMR deployments on the horizon.However,these first-of-a-kind deployments will face challenges,particularly in the realms of licensing.To unlock the full potential of SMRs,several enablers will need to be put in place,includi

119、ng regulatory changes that account for SMR-specific considerations,strategic alliances among energy producers,and robust supply chains.Should these challenges be successfully addressed,SMRs will not only become integral components of a countrys energy infrastructure but also yield substantial econom

120、ic advantages.Through the boost of economic output and the creation of job opportunities,SMRs have the potential to catalyze a wealth of economic growth.The future holds promise with more SMR deployments on the horizon.15Unlocking the potential of small modular reactorsMartin KucaPartner,Prague Tobi

121、as MrkvickaConsultant,Prague Petr MaternaPartner,Prague The authors wish to thank Romain Debarre,Antoine Pettenati,and Nathalie Ledanois for their valuable contributions to this article.Authors16Unlocking the potential of small modular reactorsFor more information,permission to reprint or translate

122、this work,and all other correspondence,please email .A.T.Kearney Korea LLC is a separate and independent legal entity operating under the Kearney name in Korea.A.T.Kearney operates in India as A.T.Kearney Limited(Branch Office),a branch office of A.T.Kearney Limited,a company organized under the law

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