Sensitivity study of the factors affecting first-of-a-kind and Nth-of-a-kind Small Modular Reactor investment costs

Lauren Boldon, Piyush Sabharwall, E. Schneider

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Conventional nuclear reactors require significant investment and pose financial, regulatory, and political risks. Small modular reactors (SMRs), on the other hand, provide an attractive alternative due to substantially reduced up-front investment costs and financial risks; more flexible deployment schedules and operations; modular fabrication and faster onsite assembly; and incorporation into hybrid energy systems or even cogeneration applications such as desalination, district heating, and industrial process heat. This paper aims to develop a general methodology of assessing the economics of first-of-a-kind (FOAK) and nth-of-a-kind (NOAK) SMRs as part of an effort to determine the conditions that would make them competitive with other generation technologies. Ultimately, this paper will provide background information on the various factors impacting nuclear reactor capital and operational costs; detail technology independent cost estimates for water-cooled SMRs; and provide a parametric study on learning and construction and deployment effects. This study demonstrates precisely why the financial risks are drastically reduced for an SMR site, making SMR nuclear projects feasible for many companies, rather than just a handful which are able to finance multi-billion dollar projects and handle the potential construction or licensing delays or cost overruns.
Original languageEnglish
Title of host publicationICAPP 2015
StatePublished - May 6 2015

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