An Economics-by-Design Approach Applied to a Heat Pipe Microreactor Concept
Microreactors present a potential paradigm shift in the nuclear industry. Emphasis thus far has been on large-scale multi-billion-dollar projects that cater solely to grid electricity market. These projects can be challenging to finance and execute. On the other hand, microreactors are intended to target a wide variety of smaller niche markets and are expected to be factory-fabricated and more readily deployable. While diseconomies of scale for microreactors may tend to raise their costs per energy output (MWh) relative to large nuclear plants, offsetting gains can be expected from standardization, simplification, passive safety, lower radionuclide inventories, factory fabrication, fast installation, and low financing costs. To adequately assess these contributions, designers should have a different perspective on cost drivers than for large nuclear plants and can utilize novel approaches for systematic cost reduction. To account for these important aspects of microreactors, this report proposes an economics-by-design approach that places economic considerations at the center of the design process. The methodology builds on existing frameworks such as design-to-cost and value engineering, expanding them to new markets (beyond the grid), new attributes (beyond costs alone), and introducing the approach at earlier points in the design cycle. Design parameters and technical specifications are systematically evaluated until costs meet market entry points, while also providing the high-priority performance attributes of the particular use case. Determining first-order estimates for different components early in the process enables designers to focus R&D efforts on the biggest overall cost contributors and components with the most cost uncertainty. The analysis is always guided by market needs and threshold prices. In addition to microreactors, the approach is expected to be useful for other classes of nuclear reactors as well. The analysis was applied to a concept found in the open literature (the Design A heat-pipe reactor). A comprehensive bottom-up estimate was generated by leveraging a new microreactor-specific code of accounts and a range of cost equations. The initial estimate for levelized cost of electricity (LCOE) unsurprisingly exceeded market ranges since the use case had prioritized technological readiness over economic considerations in design choices. An alternate concept was then proposed, with various assumptions/targets made to reduce the largest cost contributors. Changes in the neutron spectrum, the power output, and building structures were found to make even the first-of-a-kind of this modified concept competitive with diesel generation in some remote communities. Learning rate (LR) assumptions indicated cost reductions achieved from sequential unit deployments could expand the range of competitiveness to include additional markets as deployments proceed.