Big Change Goes Small: Are Small Modular Reactors (SMRs) the Future of Nuclear Energy?

Small modular reactors (SMRs) currently represent a promising evolution in nuclear energy technology, offering a range of potential advantages compared to traditional larger-scale reactors. These compact nuclear reactors are characterized by their smaller size, which allows for easier scalability and greater flexibility in deployment due to SMRs modularity when compared to traditional reactors. SMRs, like traditional reactors decades ago, appears to hold promise across many sectors and could serve as a lynchpin in a number of areas tied to the push for green energy and combatting climate change. The adaptability of the SMRs is cited a key factor in the ability of SMRS to serve various purposes beyond just electricity generation (e.g., industrial processes, desalination plants, serve as baseload power for renewable energy sources), and the smaller scale makes SMRs potentially more manageable in terms of safety and security. There are challenges to adoption and implementation of SMR technology similar to what has been experienced over the years with the installation and maintenance of traditional reactors. Generally, for the installation of SMRs to occur many regulatory frameworks will need to be adapted to accommodate the technology unique to these newer technologies used while ensuring safety standards. SMRs require smaller upfront investment costs than conventional reactors, and adoption of SMRs into countries’ energy grids has the potential to expand the use of nuclear power and can potentially provide solutions for locations where domestic energy generation is known to be difficult or impossible. Moreover, establishing a sustained supply chain for manufacturing these reactors while simultaneously addressing public perception of nuclear power is critical for the possibility for widespread adoption. This paper begins with an introduction to SMRs, followed by an overview of some industrial markets (e.g., hydrogen generation, desalination) and locations (e.g., remote regions and islands) where SMRs could address existing gaps. There are brief country specific profiles on SMRs for United States, United Kingdom, Russia, and China, each of which have invested in research and development of SMRs. The paper ends with an exploration of the current challenges for SMR adoption, highlighting the regulatory gaps and policy uncertainty which can hinder adoption of this technology.