Techno-Economic Assessment of the Factory Production of Small Modular Reactor
The demand for electricity continues to grow around the world while pressures remain high to reduce carbon emissions. Nuclear energy provides a strong and reliable baseload power component without a high output of greenhouse gases. Global nuclear energy capacity is increasing with 62 reactors under construction in 14 countries. Nuclear energy will be crucial as energy demands are met with a sustainable and diverse energy portfolio. Small modular reactors (SMRs) are small scale (less than 300 MWe) reactors that incorporate the same advanced technologies included in recent LR nuclear reactor designs. SMRs are designed to include the latest reactor technology including passive safety features. SMRs offer economic advantages over LRs such as lower up-front capital and easier integration into the existing power grid. The modular characteristic of SMRs would allow incremental additions to power plants years after its completion. The cost of constructing SMR power plants will determine their future in the energy industry. Three SMR reactors are in advanced stages of design in the United States; the Westinghouse 225 MWe, mPower 180 MWe and nuScale 45 MWe. SMRs are expected to have lower capital expenses of reactor components due to factory production. Current estimates predict these savings to reduce SMR capital 30-40%. Existing studies have estimated SMR capital using economies of scale and holistic discounts applied to an overall capital expense figure, but do not include the expense of an SMR factory facility. To better understand the actual costs associated with construction of an SMR power plant, capital components will be broken down according to its place in the construction phase. The expense of a factory facility will also be included with SMR capital expenses to determine its significance and benefits to overall capital expenses. Results from this study show that SMRs can compete with LRs in terms of startup costs. The capital cost of building a factory for SMRs was previously overlooked for SMR capital estimates. The annualized capital expenses expected for an SMR factory are very small, but offer significant discounts to the overall capital costs for SMRs. Case 3 shows that factory production can reduce SMR capital expenses to the range of 30%-40% when compared to Case 1 in this study. Factory savings of this magnitude would require factory production of several SMR reactor and generator components including the reactor pressure vessel, control rods, steam generation, and chemical and volume control system, containment, condenser and turbo-generator. SMRs will also benefit from lower indirect expenses due to a much smaller construction duration. It is expected that SMRs will have capital costs competitive with LRs. The differences between Case 2 and Case 3 in this study show that SMRs are heavily dependent on the cost reductions coming from factory production. The factory facility represents a small increase in capital expense, but accounts for a large reduction of cost for factory components. SMRs have the potential to meet growing energy demands in the United States and around the world, but their economic viability is dependent on a factory facility that will lower the capital expenses of reactor and generator components. (authors)