UK Study: FOAK Cost Of SMRs Higher Than Large Nuclear, But Lower Than Offshore Wind

8 Dec (NucNet): The estimated first-of-a-kind (FOAK) cost of electricity from a generic small modular reactor (SMR) deployed in the UK after 2030 is 30% higher than the government’s estimate for large nuclear commissioning, but 7% lower than offshore wind and between 16% lower and 3% higher than combined cycle gas turbines, according to a government study. For integral pressurised water reactor SMRs, overnight capital costs are higher than for large nuclear due to a premium on FOAK costs and reduced economies of scale. For other SMR designs, cost estimates are not sufficiently developed to make valid comparisons. The study, by the consultancy Atkins for the Department for Business, Energy and Industrial Strategy, said there was “a great deal of uncertainty with regards to the economics” of SMRs. However, the authors said such reactors should be able to cut costs more quickly than large ones because they could be built and put into service in less time. The degree of cost reduction for SMRs is sensitive to a number of assumptions, said the study, including the rate of UK deployment, a change in regulatory approach to consistently commission a single design over time, and the development of a global market for SMRs, of which the UK design achieves a 10% share. SMRs have the potential to create broader economic advantages to the UK, the study said. Between 2017 and 2040, the estimated net impact – accounting for direct, supply chain and consumer spending – could be around £1.7bn (€1.9bn, $2.2bn) including £0.6bn in taxes and average employment of 800 jobs a year. The study is online: http://bit.ly/2BWpmXR