Economic potential and barriers of small modular reactors in Europe

To achieve net-zero emissions by 2050, as outlined in the European Green Deal, nuclear power is expected to double between 2020 and 2050, mainly due to its low-carbon baseload capacity. Small modular reactors, new nuclear reactors designed to generate up to 300 MW of electricity, could help achieve this goal. Small modular reactors have unique advantages over existing large reactors, such as modularization, learning and co-location economics. However, these small modular reactors should also be economically viable. This review therefore focuses on the costs of small modular reactors. This review found an average capital cost of €7.031/kW and an average levelized cost of electricity of 85 €/MWh for small modular reactors, while capital costs were found to be on average 41 % higher than for the large reactors. Carbon and gas prices are not included in this cost estimate, yet these volatile prices also affect small modular reactor costs. However, as the absolute cost is lower, the financial risk is lower for small modular reactors. The importance of regulations, discount rates, country and project specifications and public acceptance are also considered. [Display omitted] •Systematic literature review on economic assessments for small modular reactors.•Average capital cost per kW for SMRs is 7031 €/kW.•Average capital cost per kW is 41 % higher for SMRs compared with large reactors.•Average levelized cost of electricity of SMRs estimated to be 85 €/MWh.•High capital costs, uncertainty and low EU carbon prices limit SMR deployment.