What you need to know about SMRs – small modular reactors

Small modular reactors (SMRs) are among the most modern solutions in nuclear energy, attracting increasing global interest. Amid the global energy transition and efforts to reduce carbon dioxide emissions, SMRs offer unique possibilities for flexible, safe, and efficient energy generation. In this article, we will examine what SMRs are, their advantages and disadvantages, where they can be used, the costs associated with their construction, and the permits required for their implementation.

source of the image: Last Energy 

What are SMRs?

Small modular reactors are compact nuclear units with a capacity ranging from several to several hundred megawatts, designed to meet energy needs more flexibly than traditional large nuclear power plants. Their modular design enables serial production in factories, followed by transportation to the installation site, significantly reducing construction costs and shortening project implementation times. 
SMRs stand out due to the use of modern technologies, such as passive safety systems, which minimize the risk of failure. This allows them to be installed in locations where traditional reactors would be impractical or uneconomical.

Where can SMRs be used?

SMRs are being considered for various applications. They can power smaller power grids, known as microgrids, or supplement large power systems, providing a stable electricity supply. They are also suitable for industrial processes requiring heat, such as hydrogen production or water desalination. Additionally, SMRs can be deployed in remote locations, such as islands, Arctic regions, or isolated settlements that lack access to large power grids. Furthermore, SMRs can replace coal or gas power plants in regions seeking to reduce carbon dioxide emissions while ensuring energy supply stability.

Advantages of SMRs

SMRs offer several benefits that make them an attractive solution for many countries and industrial sectors:

  • Flexibility - their modular design allows for adjusting power output to local energy needs;
  • Safety - modern technologies, such as passive cooling systems, reduce the risk of failures caused by human error or power outages;
  • Lower initial costs - building SMRs is cheaper than constructing traditional large nuclear power plants;
  • Shorter construction time - factory production and modular installation enable faster deployment;
  • Scalability - additional modules can be added as energy demand increases;
  • Suitability for remote locations - lower infrastructure requirements allow for installation in hard-to-reach areas.

Disadvantages and challenges of SMRs

Despite their advantages, SMRs also present several challenges and limitations:

  • Unit costs - although construction costs are lower, the cost of energy production per unit of power may be higher than that of large reactors;
  • Limited operational experience - SMR technology is still emerging, and the number of operational units remains low;
  • Regulatory hurdles - many countries need to develop new standards and certification procedures for SMRs;
  • Financing - despite lower initial costs, securing funding for nuclear projects remains a challenge;
  • Public reluctance - europeans have concerns about the safety of nuclear reactors due to the disasters in Chernobyl and Fukushima.

SMR construction and operating costs

The costs associated with building an SMR include both capital expenditures and ongoing operating costs. Estimates suggest that the cost of constructing an SMR ranges from $3,000 to $8,000 per kilowatt of installed capacity. The final cost depends on the selected technology, project location, and specific design parameters. Operating costs include nuclear fuel, maintenance, and waste management. Due to their smaller size, SMRs may have lower operating costs than traditional nuclear power plants. Additionally, insurance costs can be significant, depending on regulatory requirements and project specifics.

Permits required for SMR construction

The implementation of an SMR project requires obtaining a series of permits and going through a complex regulatory process that varies by country. This typically involves securing a location permit, which approves the construction site based on safety, spatial planning, and environmental protection criteria. Next, a construction permit is required, covering technical designs and compliance with applicable regulations. Before the reactor can be commissioned, an operating permit must be obtained to confirm that safety standards are met. A key element of the process is an environmental impact assessment (EIA), which evaluates the potential effects of the investment on the natural environment.

SMR technology in Europe

There are currently no fully operational commercial SMR reactors in Europe, but many countries are actively working on implementing this technology. Several research and development projects and construction plans are underway.

When will SMRs appear in Poland?

Poland is considering SMRs as part of its energy transition strategy and as a replacement for coal-fired power plants. Companies such as Orlen Synthos Green Energy and KGHM are collaborating with international partners, including GE Hitachi, to introduce SMR technology. The first units may be installed in Poland around 2030. According to Orlen’s plans, 100 small nuclear reactors are expected to be operational by 2040.

DB Energy is also involved in this sector. Under a framework agreement signed in 2023 with the American company Last Energy and the Legnica Special Economic Zone, DB Energy will participate in constructing 10 small nuclear reactors in the Legnica Special Economic Zone.

Last Energy bases its solutions on proven pressurized water reactor (PWR) technology, commonly used in many power plants around the world. Their modern approach is based on full modularity and prefabrication of all power plant elements, including the reactor housing. The components are manufactured in factories and then transported to the target site, where they are quickly assembled. Thanks to this, the process of building a power plant is significantly shortened - from signing the contract to commissioning can take only 24 months. Additionally, the modular design allows for scaling the power by adding additional 20 MWe units, which allows for flexible adaptation to growing energy needs.

United Kingdom

The United Kingdom is a leader in SMR development in Europe. Rolls-Royce is developing an SMR project with a capacity of approximately 470 MW, and the British government has provided financial support for this program. The first Rolls-Royce reactors are expected to be operational by 2035.

France

France, with its extensive nuclear infrastructure, plans to develop SMRs as part of its low-emission energy strategy. EDF is working on the NUWARD™ project, a European-designed modular reactor with a capacity of 170 MW.

Czech Republic

The Czech Republic is considering SMRs as a potential addition to its energy system. The energy company ČEZ is exploring the possibility of installing such reactors, including in industrial facilities.

Romania

Romania has signed an agreement with the United States to build SMRs based on NuScale technology. The pilot project will be implemented at the site of a former coal-fired power plant.

The future of SMRs

Small modular reactors (SMRs) represent a breakthrough technology that will play a key role in the future of energy. Their flexibility and scalability allow adaptation to the specific needs of companies, while prefabricated assembly and the compact size of nuclear units simplify project implementation. Moreover, SMRs, being independent of weather conditions, offer a stable energy supply with a low carbon footprint, making them an attractive alternative to renewable energy sources. In the long run, SMRs could become a cornerstone of sustainable energy development.

DB Energy is partnering with the American company Last Energy, which offers modular reactors with a capacity of 20 MWe. In July 2022, the Legnica Special Economic Zone, Last Energy, and DB Energy signed a letter of intent to construct ten small nuclear power plants in the Legnica Special Economic Zone. This marks a significant step forward in the development of modular nuclear energy. The first small reactors in Poland are expected to be operational as early as 2030.” says Piotr Danielski, PhD, Member of the Management Board at DB Energy.

SMRs are a promising solution in the era of global energy transformation. Their potential to replace coal-fired power plants, flexible applications, and adaptability to various conditions make them an attractive option for countries and companies seeking stable and sustainable energy sources. However, their success will depend on overcoming regulatory and social challenges. The Chernobyl disaster in 1986, the Fukushima incident in 2011, and Germany’s nuclear phase-out have left a lasting impression on public perception, influencing attitudes toward nuclear energy. Many people still express concerns about the safety of nuclear reactors, leading to resistance to their deployment. Despite the high level of safety provided by modern technologies, it remains difficult to completely eliminate public fears rooted in historical events.