WEF identifies steps needed for deployment of advanced nuclear

Thursday, 7 November 2024

"Small modular reactors (SMRs) and other advanced nuclear technologies represent clean energy solutions that, when built at scale, could deliver cost-effective carbon-free energy. These technologies are well suited to meet many clean power, heat and clean fuel production use cases for heavy industry, data centres and transport," the report says. "However, the commercial viability of these technologies needs to be improved.

"The ecosystem for new nuclear comprises a range of stakeholders including technology developers, financial institutions, utilities, large energy consumers and governments. Reaching commercial viability of advanced nuclear and SMRs is dependent on de-risking and improving the economics of projects through purposeful, coordinated action between these stakeholders – beyond anything seen before."

The World Economic Forum (WEF), in collaboration with Accenture, has partnered with stakeholders across the nuclear ecosystem - including experts from large energy-consuming industries, financiers, reactor vendors, supply chain businesses, utilities, government organisations, non-profits/NGOs and academia - to develop a Collaborative Framework for Accelerating Advanced Nuclear and Small Modular Reactor Deployment. It is intended to be a coordination tool for stakeholders to align on actions and strategies to accelerate advanced nuclear and SMR deployment.

The report highlights nine priority areas and actions for accelerating the deployment of these technologies.

Regarding the emergence of the advanced nuclear and SMR market, WEF says ecosystem collaboration must facilitate stronger demand signals to stimulate confidence among public and private investors by sharing risks and costs. Deployment depends on energy policies that address specific challenges, such as improving supply chain stability and creating vehicles for strategic partnerships across ecosystem stakeholders. In addition, regulation needs to be modernised by aligning regulatory bodies to streamline licensing of standard design across countries.

In order to deliver advanced nuclear and SMRs at scale, project deployment must be transformed to enhance rapid delivery of cost-competitive projects through innovative deployment models, modular construction and design for manufacture and assembly, the report says. Where possible, existing infrastructure should be repurposed and new reactors co-located with current energy systems. The maturity and scalability of advanced nuclear and SMR technologies should be increased by collaborating with regulators and energy off-takers, as well as by standardising design. The nuclear supply chain should also be prepared for large-scale deployment by boosting investment, developing nuclear fuel sources and standardising components. Meanwhile, the workforce should be developed by identifying skills gaps, retraining workers from other energy industries, facilitating skills pools and partnerships between industry and educational institutions.

WEF says the financing of advanced nuclear and SMRs needs to be addressed by developing innovative financing mechanisms, leveraging public-private partnerships, reaching target cost levels to attract mainstream investments, and including nuclear in clean investment taxonomies.

"The Framework provides a basis for locally led implementation, as priorities will vary across geographies at various stages of nuclear development," the report says. "It could also apply to other advanced clean energy technologies that require a systemic approach to unlock progress, such as geothermal and long-duration energy storage."