Small modular reactors can be the catalyst for change
Cost-competitive SMRs, boosted by government support and new business models, can help clear the path to a new era for nuclear energy.
Demand for firm, dispatchable and clean power from the private sector is a major driver of interest in these emerging technologies, and there are plans of varying maturity for up to 25 GW of SMR capacity, in large part to meet growing electricity demand for data centres. Under today’s policy settings, total SMR capacity reaches 40 GW by 2050, but the potential is far greater. In a scenario in which tailored policy support for nuclear and streamlined regulations for SMRs align with robust industry delivery on new projects and designs, SMR capacity is three times higher by mid-century, reaching 120 GW, with more than one thousand SMRs in operation by then. This rapid growth scenario would raise required investment in SMRs from less than USD 5 billion today to USD 25 billion by the end of this decade, with cumulative investment of USD 670 billion by 2050.