TAILWIND FOR REVIVAL | ADVANCED REACTORS
Indeed, Kotak tells NEI that alongside sustained policy support, a better regulatory framework is needed for advanced reactors to deliver on their potential: “The technology can be mature, the customers can be ready and we are seeing a lot of market demand there, but having those government policy and regulatory markers to incentivise investment is still needed. The central mechanisms aren’t yet in the place that they need to be to enable the advent and progression of advanced reactors.” Nonetheless, she does pick up on some positive signs of change: “There is an element of sharing on the fundamentals across borders. There have been some examples with the US and Canada in terms of exchanging learnings on the regulatory processes that they’re undertaking.” However, Kotak notes that much of the regulatory
structure was developed around large conventional reactors that has a knock-on impact on, for example, how insurance products for small reactors are set up and delivered. This in turn has an impact on how the private sector perceives advanced reactors as an attractive investment prospect. “The regulatory system needs to evolve as the products evolve; investors seem interested in the promise of advanced and small reactors relative to conventional, but it’s very much hinged on policy sentiment.” Kotak highlights the Inflation Reduction Act rolled out earlier this year in the US as an example of positive sentiment that could serve as a model for wider advanced reactor deployment: “The tax credits that we saw in the US with the IRA, has been very promising given the wave of new developments and progress that occurred as a result. Given the nascency of these new technologies, the role of government and the introduction of supportive policy has shown to be important in navigating the uncertainty that comes with innovation. Kotak also identifies a number of other challenges that must be addressed if advanced reactors are to be deployed at scale. “Whilst there are nuances across the different technologies, considerations do need to be made with regards to the supply chain, and labour and skills
capacity. Public sentiment towards nuclear is also part of the challenge and needs to be overcome, given the benefits, and passive safety features, that small and advanced reactors bring relative to conventional designs.” Indeed, the report argues that under certain
circumstances, the economic viability of advanced nuclear technologies is notable, offering some advantages relative to other energy sources, including renewable and storage portfolios. This distinction is particularly noticeable at high levels of renewable penetration when contributions to capacity from renewables starts to decline. Kotak adds: “It’s exciting that there are so many different options on the table and each have distinct points that they’re working through, but equally opportunities to offset. Whilst there might be a supply chain obstacle for one design, it might also enable it to advance because of other factors that are impeding a different design get solved first.” Advanced nuclear can also offer a more appealing
proposition for off-takers or utility buyers, as demonstrated by the evaluation of the value-adjusted levelised cost of electricity (VALCOE), which considers the relative contribution of the technology to the electricity system in terms of energy, capacity and flexibility services. The report notes that the case for additional advanced
nuclear capacity is reinforced by the fact that long-term operation of nuclear power plants has the lowest levelised cost of electricity (LCOE) among all other technologies, including newly built solar and offshore wind. However, larger reactors often have extended construction timelines and conventional nuclear reactors (Generation I, II and III) typically feature high levels of fuel expenditure, with most of the construction activities occurring at the reactor site. As Kotak says: “Advanced reactors such as the molten salts, the micro reactors, they’re all being predicated on the fact that they’re trying to offset the challenges that the large reactors bring for example trying to offset those cost overruns that appear to be inherent with traditional designs. Each has a USP and each of them is trying to target or offset a problem that has been in the industry and that’s a positive.
Above: Terrapower, backed by Bill Gates, is developing an advanced reactor Source: Terrapower
www.neimagazine.com | December 2023 | 35
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