Small Modular Reactors: A Promising Technology with Persistent Delays

Small Modular Reactors (SMRs) have long been seen as the future of nuclear energy, offering a way to deliver reliable, clean energy with smaller, more flexible reactors. Despite their promise, many SMR projects have faced significant delays, requiring a more realistic view of their potential deployment in the short term. These setbacks show the complexity of bringing SMRs to market, underscoring the need for a pragmatic approach to their development.

The Promise of SMRs

SMRs offer advantages over traditional nuclear reactors in size, cost, and safety. Designed to be smaller and modular, they can be factory-produced and transported to deployment sites, allowing for shorter construction times. Their passive safety systems also make them a safer option, reducing the risks of catastrophic failure. These features make SMRs an attractive solution for remote locations or integration with renewable energy systems, providing flexibility and scalability. However, despite these theoretical advantages, deploying SMRs has proven far more complex than anticipated.

Delays Across Major SMR Projects

Several SMR projects have encountered significant delays:

• Company A originally aimed to deploy its reactor by 2028. However, it has now pushed back the timeline to 2030 due to issues with securing a specialized fuel that is not yet commercially available. Regulatory hurdles and the complexity of developing domestic fuel production have further slowed progress.
• Company B planned to bring its SMR to market by 2028 but now expects deployment by 2035. Recent layoffs and financial restructuring have contributed to the delay, compounded by the challenges of developing and approving a relatively untested sodium-cooled fast reactor technology.
• Once a frontrunner in the SMR space, Company C initially projected an operational reactor by the mid-2020s. However, regulatory approvals, financing difficulties, and customer delays have shifted the expected launch to 2029. Although Company C achieved design approval in 2020, securing financing and finalizing agreements has taken longer than anticipated.

Challenges of Startups and Unproven Technologies

A significant challenge in SMR development is that many projects are led by startups that are introducing untested technologies. Traditional nuclear reactors have decades of operational experience, but most SMR designs remain theoretical or experimental. New reactor designs, such as sodium-cooled and molten salt reactors, have yet to prove themselves at scale, leading to extended regulatory reviews and additional safety evaluations.

For example, a newer player, Company D, is working on a lead-cooled reactor. Despite raising substantial funds, the technology remains in early-stage development, and its deployment timeline may need to be more ambitious, given the current pace of progress.

Regulatory and Financial Bottlenecks

Regulatory challenges are a significant source of delay. In the U.S., the Nuclear Regulatory Commission (NRC) requires extensive review and testing for new reactor designs, even for smaller and safer SMR technologies. This process can take years, and the need for harmonized global safety regulations adds complexity to international deployment.

Financing is another significant obstacle. SMRs promise lower upfront costs than traditional reactors, but the lengthy timelines and uncertain market viability make it challenging to secure the necessary funding. Many SMR developers are still in the design and early development stages, making them risky investments. Government support has provided some relief, but much of the funding is directed toward research and development rather than large-scale deployment.

Fuel Supply Issues

Many advanced SMRs, such as those developed by Company A and Company C, require High-Assay Low-Enriched Uranium (HALEU), a specialized fuel yet to be produced at a commercial scale. Although efforts are underway to develop a domestic HALEU supply chain, this process will take time, further delaying SMR projects that rely on this fuel.

A Pragmatic Path Forward

Given these challenges, SMR deployment will likely take longer than initially expected. While SMRs have the potential to significantly reduce carbon emissions, widespread deployment is unlikely before the 2030s. Even in countries like Russia and China, where SMRs are operational, deployment has been slow and dependent on significant government backing.

Governments, regulators, and investors must address the key hurdles to unlock the full potential of SMRs. Harmonizing safety regulations, developing reliable fuel supplies, and securing adequate financing will be essential. By taking a more pragmatic approach to SMR development, these innovative reactors can become vital to the future clean energy landscape.

While SMRs represent a promising solution to global energy challenges, significant delays have slowed their deployment. Regulatory hurdles, untested technologies, financing issues, and fuel supply constraints have pushed back timelines for several significant projects. By addressing these challenges, SMRs could still fulfill their potential, but a more realistic view of their development timeline is necessary.