Small modular nuclear reactors could play an important role in decarbonizing power grids and meeting climate goals set by the Paris Agreement, according to a new report.
Wood Mackenzie estimates that the world needs $2 trillion in capex to build new power capacity to decarbonize power grids. SMRs are an option for flexible, dispatchable power sources to accompany the rapid growth in power demand and renewable energy.
The levelized cost of electricity (LCOE) for a new SMR is currently upwards of $120 per megawatt-hour (MWh) for a typical market in Europe, the US or Japan. SMR costs can fall under $80/MWh in the 2030s with government support, technology innovation, and investments, according to Wood Mackenzie.
