Adapted by:
Matías S. Zavia
Writer
Karen Alfaro
WriterCommunications professional with a decade of experience as a copywriter, proofreader, and editor. As a travel and science journalist, I've collaborated with several print and digital outlets around the world. I'm passionate about culture, music, food, history, and innovative technologies.
Nuclear fission power via small modular reactors (SMRs) was supposed to revolutionize the energy sector, offering a safer, more affordable complement to renewables. But the collapse of the first U.S. pilot project has underscored major economic hurdles that could hinder its future.
The advantages of SMRs. With nuclear fusion still in its infancy, many policymakers and industry leaders hoped SMRs would deliver a new era of efficient, scalable fission power. Unlike traditional reactors, SMRs are designed to be compact, mass-produced, and easily transported. They could, in theory, be deployed quickly and integrated with renewables like wind and solar.
NuScale’s costly failure. SMRs were meant to cut nuclear power’s high costs and long construction times. Reality proved different.
NuScale Power’s Utah project, planned in 2015, aimed to build 12 reactors generating 600 MW for $3 billion. By 2023, capacity had been reduced to 462 MW, while costs had tripled to $9.3 billion. The project was scrapped before completion.
Scaling struggles. Despite their modular nature, SMRs lack the economies of scale that have driven down renewable energy costs. A report found SMRs to be the most expensive option compared to wind and solar, which continue to become cheaper.
The challenge isn’t new. A 2014 study of 180 nuclear projects found 175 had exceeded their original budgets, with an average cost overrun of 117%. SMRs, as an emerging technology, face similar cost inflation.
Big tech’s bet on SMRs. Despite setbacks, SMRs still have major backers. Tech giants like Google, Microsoft, and Amazon have signed deals to purchase power from future SMR projects by companies such as Kairos Power and X-energy.
As AI development drives up energy consumption, these investments could provide the financial boost SMRs need to achieve economic viability. If enough projects are built, costs could eventually decline—just not as soon as many had hoped.
Image | NuScale
Log in to leave a comment