**Small Modular Reactors: De-Risking Nuclear Energy Through Factory Production**
Small modular reactors (SMRs) promise to reduce cost overruns and delays traditionally associated with nuclear power projects by utilizing factory production methods. This innovation is attracting significant attention from major technology companies and governments alike.
Tech giants are actively investing in the development and deployment of SMRs. Google has partnered with Kairos Power, Amazon has invested in X-energy, and Microsoft has secured output from a recently restarted nuclear reactor. Such collaborations highlight the growing confidence in SMRs as a key component of future energy systems.
Governments view SMRs as essential for enhancing energy security while meeting climate commitments. According to an analysis by Arthur D. Little, SMRs must achieve levelised costs of electricity (LCOE) between €52 and €119 per megawatt-hour to compete with other baseload energy sources under current market conditions.
As the world strives to reach net-zero carbon targets, a constant and reliable electricity supply is critical. While renewable energy sources provide part of the solution, their intermittency remains a challenge. Nuclear reactors produce electricity consistently, irrespective of weather conditions, and emit significantly lower carbon emissions compared to hydrocarbon-based power generation.
Traditional nuclear plants, however, have faced challenges such as high upfront costs and construction delays. SMRs offer a promising alternative by potentially overcoming these obstacles through modular, scalable production techniques.
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