Left:


The Nuward SMR reactor pressure vessel Photo credit: Nuward


delays. Indeed, these are the lessons that persist in the minds of the financial investors analysing whether to contribute capital to a new nuclear power project. Project management strategy should build on these lessons and incorporate development of detailed design, understanding site conditions and other construction challenges, accommodating shifts in the costs of material and labour, developing supply chain partners (whether alone or in partnership with other reactor vendors) and cultivating a skilled workforce. Many of these aspects of a nuclear project will be more challenging in the next several years before a foundation of expertise and industry bandwidth has been established. Early prioritisation of a project management strategy that accounts for these variables provides a more realistic picture of risk and can de-risk deployment overall. Nonetheless, risk is likely to remain higher for deployment of first-of-a-kind (FOAK) technologies than for deployment of large nuclear reactors built to a reference plant. A customer willing to deploy a FOAK nuclear power plant is likely to expect an increased return on that risk; and the vendor company putting in practice its design for the first time is likely to expect to retain the improvements and lessons learned. The specific allocation will depend on the commercial arrangements between the vendor company and a customer. However, the cost of the end product – electricity – still has to be palatable for consumers.


Making nuclear power attractive Governments can make this cost more attractive. For the home governments of vendor companies, risks related to developing a novel reactor design and deploying it in a domestic market can be mitigated through financial incentives. In the United States, for example, recently enacted tax credits, loan guarantees and grants enable


research and development, enhance project returns and reduce related risks. However, many vendors’ opportunities are likely to reside across national borders. Around the world there are whole regions struggling to keep up with energy demand while curbing their emissions. Incidentally, these regions also tend to bear the most burden from the changing climatic conditions, including extreme weather events. Considerations including grid size, limited human and financial resources and siting restrictions increase the appeal of advanced reactor technologies in such locations. In the context of international deployment, while the vendor companies are finalising designs and building up the project management capabilities to match their technological acumen, the governments and international community at large can absorb some of the total deployment risk. This could be done through financial support mechanisms similar to those targeted to incentivise deployment in the domestic markets – like loan guarantee programmes or grants; but it can also be done through policies aimed at international financial institutions. Public Private Partnerships between a vendor company and its national government can also be developed to facilitate international deployment of FOAK technology in the international markets. The recognition – at this scale and level – seen at


COP28 that there can be no Net Zero without nuclear, is unprecedented. However, this is not the first time there has been a so-called ‘nuclear renaissance’. While it is important to keep the momentum going through statements and commitments, it is essential to translate these positive developments into a concerted effort. Luckily, we already have plenty of lessons learned, multiple tools and a variety of technological solutions to ensure that this latest ‘nuclear renaissance’ is the only one that will be necessary. ■


Left: A customer willing to deploy a FOAK nuclear power plant is likely to expect an increased return Photo credit: Holtec


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