Can small and medium sized reactors be competitive?

Cost is an important attribute for the future development of small and medium sized reactors (SMRs). This paper addresses the target costs necessary for SMRs to be competitive in the markets of the 21st century and ways and means that designers are considering to meet these targets. It briefly reviews the impacts on nuclear energy competitiveness of economic globalisation, market deregulation, privatisation of the power sector and policy measures aiming at sustainable development and highlights new challenges and opportunities that are created for nuclear power plants as a result of the changing policy making framework in the electricity sector. Recognising the importance of capital cost (60% or more of nuclear electricity generation cost) the paper elaborates on technical (e.g. simplified design and factory building) and managerial (e.g. series order) measures aiming at capital cost reduction. The impacts of deregulation of the electricity market and privatisation of the sector on the competitiveness of SMRs are addressed. The paper stresses the importance of internalisation of social and environmental costs and sustainable development objectives for the competitiveness of nuclear energy and in particular of SMRs that are adapted to decentralised electricity supply and co-generation. Finally, it presents some findings and conclusions, drawn from the NEA analyses, on the prospects for enhancing the economics of small and medium reactors and their potential contribution to sustainable energy mixes. (author)