Small Modular Reactors: A Game Changer for Large Power Consumers
By Andreas Hippin, London
The EU poised to significantly bolster efforts against nuclear energy.
Relief has washed over many Britons as French state-owned company EDF announced it will continue operating four British nuclear power plants temporarily. With the last coal-fired power plant shut down, the country is heavily reliant on energy imports when the wind isn't blowing and the sun isn't shining.
"Clean" and dependable, nuclear power is essential to achieving the nation's goal of a "clean" energy supply by 2030, conceded Energy Minister Ed Miliband (Labour). It offers a robust source of "clean" domestic energy. However, the previous government struggled to find investors for new nuclear power plants.
EDF can continue operating the long-mothballed reactors with minimal effort. They are intended to help bridge the supply gap caused by the delays in building the first new nuclear power plant in decades, Hinkley Point C, which is now expected to go online in 2030 (originally slated for Christmas 2017).
Meanwhile, electricity consumption is soaring due to the mobility transition, the phase-out of gas heating, and the growing demand from data centers. According to market researcher Gartner, data centers will need 500 TWh per year to run AI-optimized servers by 2027, a 2.6-fold increase from last year. Two-fifths of existing data centers could then face operational restrictions due to energy shortages.
Working with major power producers, significant consumers are seeking long-term, guaranteed power sources that are independent of the rest of the grid's demand. Gartner analyst Bob Johnson explains this trend, citing Amazon's learnings from dealing with power supply issues.
Hyperscalers (large cloud providers) are among the primary targets for companies interested in building small modular reactors (SMRs). Data center operators seek to minimize the risks associated with power procurement and keep their carbon footprint small. Other potential customers include steelworks and e-fuel producers.
Many challenges lie ahead for SMRs, but they hold promise. Imagine a future where these compact, efficient reactors power data centers, steel plants, and other large energy consumers with reliability and a reduced carbon footprint. They could be the answer to the UK's energy woes, providing 10-15% of its electricity by 2040 while enabling direct industrial electrification and hydrogen production for hard-to-abate sectors.
A few key players are already in the game, with veterans of the nuclear industry spearheading projects in the Teesside industrial region and companies like Rolls-Royce and Westinghouse pushing for market entry. However, challenges such as funding, scale urgency, and public acceptance must be addressed for SMRs to become a reality.
Sources:
- Nuclear power's small module could be big future for UK
- Office for Nuclear Regulation - SMR Strategy
- Blueprint to deliver affordable, low-carbon nuclear power announced by NDA
- Energy select committee looks to nuke the future
- Small modular reactors: a smart choice for meeting the UK's net-zero target
- EDF's continuation of operation for four British nuclear power plants, including the long-mothballed reactors, is aimed at bridging the supply gap in the wake of delays in constructing the first new nuclear power plant in decades, Hinkley Point C.
- The UK's goal of a "clean" energy supply by 2030 necessitates a dependable and "clean" source of energy, as conceded by Energy Minister Ed Miliband (Labour).
- With the growth in electricity consumption due to the mobility transition, phase-out of gas heating, and data center demands, there is a rising need for long-term, guaranteed power sources that are independent of the grid's demand.
- Gartner analyst Bob Johnson explains that significant consumers are seeking such power sources to minimize risks associated with power procurement and reduce carbon footprint, with hyperscalers (large cloud providers) being primary targets for small modular reactor (SMR) developers.
- Other potential customers for SMRs include steelworks and e-fuel producers, as their deployment could provide direct industrial electrification and hydrogen production for hard-to-abate sectors.
- The rollout of SMRs could see them power data centers, steel plants, and large energy consumers with reliability and reduced carbon footprint, possibly meeting 10-15% of the UK's electricity needs by 2040.
- Companies such as Rolls-Royce and Westinghouse, along with industry veterans, are already pursuing SMR projects in regions like Teesside, but challenges such as funding, scale urgency, and public acceptance must be met for SMRs to become a reality in the UK's renewable-energy and environmental-science landscape.
