Small Modular Reactors – Key to Future Nuclear Power Generation in the U.S

............................................................................................................................. 1 1.0 INTRODUCTION ............................................................................................................. 1 2.0 SAFETY CASE FOR SMRs ............................................................................................. 5 3.0 SMR OPPORTUNTIES AND CHALLENGES ............................................................... 7 4.0 ECONOMIC ANALYSIS ................................................................................................. 9 4.1 Overnight Cost Estimates for GW-Scale Reactors ................................................... 9 4.2 Weighted Average Cost of Capital and Risk Premium Analysis ............................. 10 5.0 MODELING THE SMR ECONOMY .............................................................................. 15 5.1 Learning Process ...................................................................................................... 17 5.1.1 LEAD SMR Plants ....................................................................................... 17 5.1.2 FOAK Plants and the Learning Fleet ........................................................... 18 5.2 SMR Manufacturing Throughput ............................................................................. 22 6.0 GOVERNMENT INCENTIVE PROGRAMS AND OTHER MARKET INCENTIVES .................................................................................................. 23 6.1 Capital Cost and Production Cost Incentives ........................................................... 25 6.2 Government Sponsorship of Market Transformation Incentives ............................. 28 6.2.1 Purchase Power Agreements with Federal Agency Facilities ...................... 28 6.2.2 Export Sales of FOAK SMR Plants ............................................................. 30 6.2.3 Opportunities to Mitigate Early Retirements of Coal Fired Generation ...... 31 7.0 SMR STRATEGIC BUSINESS PLAN ............................................................................ 33 8.0 CONCLUSIONS CONCERNING LICENSING, ECONOMICS, AND BUSINESS CASE ............................................................................................................. 37 8.1 Licensing, Design, and Engineering ......................................................................... 37 8.2 Economics ................................................................................................................ 38 8.3 Market Transformation Issues .................................................................................. 41 9.0 FINAL THOUGHTS AND FUTURE WORK ................................................................. 43