Analysis Shows Competitive LCOE Target For Small Modular Reactors

For small modular reactors (SMRs) to become a mainstream energy solution they must hit competitive levelised cost of electricity (LCOE) targets that range from around €52/MWh to €119/MWh, analysis has shown.

Lars Thurmann-Moe, a partner in the Oslo office of US-headquartered management consulting firm Arthur D. Little, said these figures would make SMRs competitive with other sources of baseload energy “under current market conditions”.

LCOE estimates vary, but the International Energy Agency as has said the LCOE for advanced nuclear is $63.10/MWh. The lowest LCOE is $30.43/MWh for standalone solar and the highest is $120.51/MWh for offshore wind. Onshore wind is $36.92/MWh.

UK-based Rolls-Royce SMR, which is developing a 470-MW SMR, has said it is aiming for a “highly competitive” LCOE below £70/MWh ($80.9/MWh).

LCOE captures both capital and operating costs that need to be covered. It is essentially the long-term price at which the electricity produced by a power plant will have to be sold at for the investor to cover all their costs.

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