Economic evaluation of small modular nuclear reactors and the complications of regulatory fee structures

Carbon emission concerns and volatility in fossil fuel resources have renewed world-wide interest in nuclear energy as a solution to growing energy demands. Several large nuclear reactors are currently under construction in the United States, representing the first new construction in over 30 years. Small Modular Reactors (SMRs) have been in design for many years and offer potential technical and economic advantages compared with traditionally larger reactors. Current SMR capital and operational expenses have a wide range of uncertainty. This work evaluates the potential for SMRs in the US, develops a robust techno-economic assessment of SMRs, and leverages the model to evaluate US regulatory fees structures. Modeling includes capital expenses of a factory facility and capital and operational expenses with multiple scenarios explored through a component-level capital cost model. Policy regarding the licensing and regulation of SMRs is under development with proposed annual US regulatory fees evaluated through the developed techno-economic model. Results show regulatory fees are a potential barrier to the economic viability of SMRs with an alternate fee structure proposed and evaluated. The proposed fee structure is based on the re-distribution of fees for all nuclear reactors under a single structure based on reactor thermal power rating.