New CRP: Economic Appraisal of Small Modular Reactor (SMR) Projects: Methodologies and Applications (I12007)
The IAEA is launching a 3-year, Coordinated Research Project (CRP) focusing on the economics of SMRs, including micro-reactors, by providing Member States with an economic appraisal framework for their development and deployment.
Significant advances have been made on Small Modular
Reactors, some of which will use pre-fabricated systems and components
to reduce construction costs and shorten delivery schedules.
Small Modular Reactors (SMRs), with electrical power up to 300MW
per module, have specific design, safety and siting features, as well as
a wide range of applications. In response to increased interest, the
IAEA is launching a 3-year, Coordinated Research Project (CRP) focusing
on the economics of SMRs, including micro-reactors, by providing Member
States with an economic appraisal framework for their development and
deployment.
The new generation of nuclear power reactors is relatively small in size compared to large, gigawatt-scale, nuclear power plants. Micro-reactors are MW-scale, factory-built SMR that can be easily transported — by trucks, ships, airplanes or railcars — to provide reliable heat and power in remote areas and small power grids.
SMRs can be used to generate electricity, process heat and ancillary services in evolving power grids, relying increasingly on variable generation from renewables and a variety of energy storage systems. Their reduced size, upfront costs, and construction times would make them easier to deploy compared to large nuclear power plants.
Multiple SMR projects are currently under development (about 50 designs and concepts) and have varying technology readiness levels. Their costs and delivery times need to be adequately estimated, analyzed and optimized. Specific business models have to be developed to address markets’ needs and expectations. The market itself should be large enough to sustain demand for components and industrial support services. The economic impact of SMR development and deployment has to be quantified and communicated to gain societal support.
The new generation of nuclear power reactors is relatively small in size compared to large, gigawatt-scale, nuclear power plants. Micro-reactors are MW-scale, factory-built SMR that can be easily transported — by trucks, ships, airplanes or railcars — to provide reliable heat and power in remote areas and small power grids.
SMRs can be used to generate electricity, process heat and ancillary services in evolving power grids, relying increasingly on variable generation from renewables and a variety of energy storage systems. Their reduced size, upfront costs, and construction times would make them easier to deploy compared to large nuclear power plants.
Multiple SMR projects are currently under development (about 50 designs and concepts) and have varying technology readiness levels. Their costs and delivery times need to be adequately estimated, analyzed and optimized. Specific business models have to be developed to address markets’ needs and expectations. The market itself should be large enough to sustain demand for components and industrial support services. The economic impact of SMR development and deployment has to be quantified and communicated to gain societal support.
CRP Overall Objective
The CRP aims at
providing Member States with a canvas and a framework for the economic
appraisal of SMR development and deployment. The approach would account
for: (1) differences in technology readiness levels; (2) specifics of
the technologies being considered; and (3) potential end-users, revenue
streams, and risk profiles, attached to each concept.
Specific Research Objectives
Participants in
the CRP will be co-developing a systematic approach to the economic
appraisal of SMR Projects encompassing the following areas of
investigation:
- Market research;
- Analysis of the competitive landscape (SMR vs non-nuclear alternatives);
- Value proposition and strategic positioning;
- Project planning cost forecasting and analysis;
- Project structuring, risk allocation and financial valuation;
- Business planning and business case demonstration;
- Economic cost-benefit analysis.
The framework would be applied, in particular, to assess the economics of multiples (serial production of reactors in a factory setting), factory fabrication (conditions to be met for a factory to exist), and supply chain localization (opportunities and impacts).
- Market research;
- Analysis of the competitive landscape (SMR vs non-nuclear alternatives);
- Value proposition and strategic positioning;
- Project planning cost forecasting and analysis;
- Project structuring, risk allocation and financial valuation;
- Business planning and business case demonstration;
- Economic cost-benefit analysis.
The framework would be applied, in particular, to assess the economics of multiples (serial production of reactors in a factory setting), factory fabrication (conditions to be met for a factory to exist), and supply chain localization (opportunities and impacts).
How to join the CRP
Proposals must be received no later than 30 April 2020. Please submit your Proposal for Research Contract or Agreement by email to the IAEA’s Research Contracts Administration Section, using the appropriate template on the CRA website.
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