New Energy Frontiers
Small Modular Reactors
What small modular reactors are, why they promise lower costs and faster construction, and why they remain unproven at scale.
Small modular reactors (SMRs) are nuclear reactors much smaller than traditional ones.
Features
- Capacity of up to around 300 MW, compared with 1,000 MW or more for large reactors.
- Factory-built modules shipped to sites.
- Simpler designs with passive safety.
Promised benefits
- Lower upfront cost per project.
- Faster construction.
- Learning curves: building many identical units could cut costs, like solar panels.
- Flexible sites, such as replacing old coal plants.
Reality check
- Few SMRs operate commercially; examples include Russia’s floating plant and China’s demonstration units.
- In the US, NuScale cancelled its first project in 2023 after costs rose.
- Costs per unit of power may be higher until many units are built.
India’s plans
- India’s 2025 Budget announced a Nuclear Energy Mission with 20,000 crore rupees to develop at least five indigenous SMRs by 2033.
- Bharat Small Reactors are planned for industries to replace captive coal plants.
Tech companies
Big tech firms have signed deals for SMR power to run AI data centres.
The coal plant swap
An old coal plant closes. An SMR is built on the same site, reusing grid connections and cooling water, keeping local jobs.
Thinking SMRs are already cheap and proven
They remain largely unproven at commercial scale.
Key takeaways
- SMRs are small, factory-built reactors.
- They promise lower upfront costs and faster builds.
- Few operate commercially; costs are uncertain.
- India plans five indigenous SMRs by 2033.
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