The New Nuclear? Small Modular Reactors and the Future of Nuclear Power

Abstract

Nuclear power has struggled against severe economic headwinds, but some believe that small
modular reactors (SMRs) may save the industry from its current woes. This article begins by explaining the regulatory and economic structure of the electricity sector in the United States. It then describes the current plight of the nuclear power industry before examining SMRs in particular—how they differ from conventional nuclear reactors, what regulatory issues they will confront, and what factors will most directly shape their long-term potential.

Keywords: Nuclear power, energy, electricity, small modular reactors, U.S. Nuclear Regulatory Commission, utilities, modularity, standardization

JEL Classification: Q40 Q42 Q48