As of February 2022 we told you of its possible advent: Carbon Free Power Project, the "mini" modular nuclear power project in the USA, an opportunity (and as always, a divisive topic) which brought with it a great deal of expectations. Now the announcement of its cancellation shows that things are more complicated than expected.
The decision by NuScale Power (the only one to have a modular mini reactor project approved for use) highlights the difficulties encountered in the nuclear sector, in a context where renewable energies are becoming increasingly competitive both in terms of costs and environmental impact .
The global energy context
In a world moving rapidly towards decarbonisation, nuclear energy has always had an ambivalent role. On the one hand, it offers low-carbon energy production. On the other hand, it raises concerns (sometimes justified, many times not) related to the safety and management of nuclear waste. The mini modular nuclear reactor (SMR) promised to solve some of these problems, offering a more flexible and safe solution than traditional nuclear plants.
SMRs, thanks to their smaller size, promised faster and less expensive construction, greater safety thanks to passive cooling systems and the ability to better adapt to local needs. The Carbon Free Power Project, the standard-bearer of this technology, aimed to demonstrate its potential, with the aim of providing clean and reliable energy. For its first project, the company was working with a Utah utility group to demonstrate a six-reactor plant at the Idaho National Laboratory, generating enough electricity to power more than 300.000 homes.
However, the energy landscape is changing rapidly.
The turning point of renewable energy
Renewable energies, in particular solar and wind, have seen a drastic reduction in costs, which has made them increasingly competitive. This trend has put pressure on projects like the Carbon Free Power Project, making it difficult to justify their costs in a market increasingly oriented towards low-cost renewable energy sources.
As a result, the project encountered significant challenges, both in terms of financing and interest from utilities. Despite initial support, economic reality led many partners to withdraw, casting doubt on the project's financial viability. Technical challenges related to the construction and regulatory approval of SMRs have added further obstacles.
The future of the mini modular nuclear power plant
The cancellation of the Carbon Free Power Project raises important questions about the future of nuclear energy. It's a reminder that innovation in the energy sector is not just a matter of technology, but also of economics, politics and social change. In my opinion, SMRs still hold promise for safer, modular and flexible nuclear energy. On the other hand, their development clashes with a rapidly changing market reality. Let's see what trajectory the other project at stake will have, presented in May 2023 from Westinghouse
In this context, the role of nuclear energy (modular or otherwise) in the future energy mix remains uncertain, with renewable energy looking set to play an increasingly dominant role.
As the world moves towards a low-carbon future, the challenge for nuclear energy will be to adapt and find its place in this rapidly evolving landscape. It will not be easy.
