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A feasibility study represents an important step in the development of a new build nuclear power plant project. It is a complex but necessary step to determine whether a business opportunity is possible, practical and viable. Technical, economical, financial, regulatory, social, environmental aspects of a nuclear power plant programme need to be considered to allow authorities to make informed decisions regarding the possible implementation of the project This publication assists Member States in developing a feasibility study for nuclear power projects and provides guidance to users who are planning to perform such a study, with consideration of both the technical and process areas. These guidelines condense the experience of individuals involved in previous feasibility study efforts and provide industry best practices in order to maximize the usefulness of any results.
The purpose of the study was to evaluate the technical and economic feasibility of a small, (365 MWt) nuclear reactor for supplying process steam and electricity as a replacement for energy sources using increasingly scarce natural gas or oil. The PPG Industries, Incorporated Plant Site at Lake Charles, Louisiana, was chosen as representative of industrial installations that require sizeable amounts of process steam and electricity. For comparison purposes conventional coal-fired boilers were also evaluated. It was determined that both nuclear- and coal-based process energy supply systems are technically feasible. For the specific steam/electricity demands at the reference site, the coal-fired plant proved to be economically more attractive than the nuclear units. For an application requiring a base-loaded supply of saturated steam, utilizing full reactor capacity, the nuclear option appears competitive for coal costing $40/ton in 1978 dollars.
Recent interest in small modular reactors (SMRs) is being driven by a desire to reduce the total capital costs associated with nuclear power plants and to provide power to small grid systems. According to estimates available today, if all the competitive advantages of SMRs were realised, including serial production, optimised supply chains and smaller financing costs, SMRs could be expected to have lower absolute and specific (per-kWe) construction costs than large reactors. Although the economic parameters of SMRs are not yet fully determined, a potential market exists for this technology, particularly in energy mixes with large shares of renewables. This report assesses the size of the market for SMRs that are currently being developed and that have the potential to broaden the ways of deploying nuclear power in different parts of the world. The study focuses on light water SMRs that are expected to be constructed in the coming decades and that strongly rely on serial, factory-based production of reactor modules. In a high-case scenario, up to 21 GWe of SMRs could be added globally by 2035, representing approximately 3% of total installed nuclear capacity.
Small Modular Reactors are designed in a way that allows them to be manufactured at a plant and brought to site fully constructed. They have a range of useful applications, including industrial process heat, desalination or water purification, and other cogeneration applications. They could potentially have a key role to play in delivering low carbon energy at lower upfront capital cost compared to large conventional nuclear reactors but the commercial viability of SMRs remains unclear. Deployment of SMRs is likely to be achieved through sharing the costs between the public and private sector. The Committee would like to see the Government steering industry towards deploying a demonstrator SMR in the UK. Government should help to establish the right conditions for investment in SMRs, for example through supporting the regulator to bring forward approvals in the UK, and by setting out a clear view of siting options. Many of the barriers to deployment of SMRs in the UK are similar to the challenges of deploying larger conventional reactors. Small nuclear reactors will also generally raise similar questions of safety and security to those raised by large nuclear reactors. The Office for Nuclear Regulation also needs to be adequately resourced. In the longer term, Government should identify and help to establish future sources of commercial finance for the further development and industrialisation of SMRs. While current SMR designs have been predominantly developed outside the UK, there is scope for British industry to develop intellectual property and play a role in the deployment of the first SMRs