Economic Assessment of SMART Deployment in Korea using DEEP 5.1

SMART is designed to produce 330MW thermal energy and 40,000m³/day desalinated water with enhanced safety system. The design acquired the standard design certification from Nuclear Safety and Security Commission (NSSC) for the first time in the world. Nonetheless, SMART is estimated to have a higher cost of energy compared to other power sources, so investors were restrained from ploughing their asset into construction of the first unit as a demonstration plant. Such a dismal economic outlook discouraged Korean nuclear power industry and potential purchasers from deploying SMART. In this study, economic assessments were conducted to figure out economic competitiveness of SMART. Desalination Economics Evaluation Program (DEEP) software which was developed and distributed by International Atomic Energy Agency (IAEA) was used to analyze the cost of electricity and water of SMART and other power plants. This study set out to evaluate the economic competitiveness of deploying SMART in Korea. This implies that controlling overnight construction cost is a key factor of the economic competitiveness of SMART. SMART is appropriate for small-medium sized remote electricity demand, so a related case study was conducted. A comparison of economic value between SMART and other alternative power sources were conducted using DEEP software. The alternative power sources were coal power plant and combined cycle gas turbine plant. Assuming those power plants generates certain amount of water to be fairly compared with SMART, DEEP software calculated SMART should be built with maximum 9,000-10,000 $/kWe construction cost. Compared to the plants with CCS facility, allowance of SMART construction cost increases to be 11,000-12,000 $/kWe. Another assumption was considered to highlight the merit of SMART which emits almost zero carbon compounds. Applying carbon tax to the previous study, LCOE of SMART and other power sources was calculated. The result shows that overnight construction cost of SMART can be increased to be 11,000 - 12,000 $/kWe