Small modular reactor: First-of-a-Kind (FOAK) and Nth-of-a-Kind (NOAK) Economic Analysis

Small modular reactors (SMRs) refer to any reactor design in which the electricity generated is less than 300 MWe. Often medium sized reactors with power less than 700 MWe are also grouped into this category. Internationally, the development of a variety of designs for SMRs is booming with many designs approaching maturity and even in or nearing the licensing stage. It is for this reason that a generalized yet comprehensive economic model for first of a kind (FOAK) through nth of a kind (NOAK) SMRs based upon rated power, plant configuration, and the fiscal environment was developed. In the model, a particular project’s feasibility is assessed with regards to market conditions and by commonly utilized capital budgeting techniques, such as the net present value (NPV), internal rate of return (IRR), Payback, and more importantly, the levelized cost of energy (LCOE) for comparison to other energy production technologies. Finally, a sensitivity analysis was performed to determine the effects of changing debt, equity, interest rate, and conditions on the LCOE.