Small Modular Reactors - NCSL
Transcript of Small Modular Reactors - NCSL
Small Modular Reactors
Liz Ramsay Office of Nuclear Energy
U.S. Department of Energy
National Conference of State Legislatures Nuclear Legislative Working Group
October 28, 2013
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“All of the Above” Clean Energy
Strategy
“With rising oil prices and a warming climate, nuclear energy will only become
more important. That’s why, in the United States, we’ve restarted our nuclear industry
as part of a comprehensive strategy to develop every energy source.”
Seoul, Korea - March 26, 2012
I'm announcing a new national climate action plan…
….We're building the first nuclear power plants in more than three decades…
…A low-carbon, clean energy economy can be an engine of growth for decades to come. And
I want America to build that engine.
Georgetown University - June 25, 2013
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Growth In Nuclear Will Be Needed To
Meet U.S. Clean Energy Goals
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
1950 1960 1970 1980 1990 2000 2010
TW
h
Other
Wind
Hydro
Nuclear
Natural Gas
Petroleum
Coal
Source: EIA 2012 Annual Energy Review and the Electric Power
Monthly from January 2013
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Why is the U.S. Government Supporting
SMR Technologies?
Potential Benefits
• Enhanced safety and security
• Shorter construction schedules due to modular construction
• Improved quality due to replication in factory-setting
• Meets electric demand growth incrementally
• Regain technical leadership and advance innovative reactor technologies
and concepts
• Domestic job creation potential very high
Potential Markets
• Domestic and international utility markets
• Non-electrical (process heat/desalination) customers
NE working definition of SMRs: reactor units with a nominal output of 300 MWe or less and are able to have large components or modules fabricated remotely and transported to the site
for assembly of components and operation.
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U.S. Utility Considerations
Load demand
Better match to power needs - multiple
modules
Potential replacement of old coal plants
Use of existing infrastructure
Financial Characteristics
Reduced capital cost makes nuclear
power feasible for more utilities
Operating units can provide financing for
future additional units.
Site selection
More siting flexibility than traditional
nuclear plants
Lower land and water usage
99% of plants > 50 years old have less than 300 MWe capacity
U.S. Coal Plants
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Stages of Commercialization
Certification and Licensing
Risk Sharing
First Movers and Early Adopters
Encourage investment
Use existing infrastructure to build-up SMR factory capacity
Factory scale production of SMRs
Sustain clean energy policy
Sufficient annual production to justify
investments
Challenge to SMR fleet deployment:
Prove economy of mass production is competitive
with economy of scale
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Certification and Licensing Support
Provide financial assistance for design, certification and licensing
of promising SMR technologies with high likelihood of being
deployed at domestic sites through SMR Licensing Technical
Support program
Accelerate commercial SMR development through public/private
arrangements
In 2012, DOE initiated a 5 year/$452 M program (extend to 6-year)
Funding Opportunity Announcements (FOAs) were issued
Funding being provided to industry partners through cooperative
agreements
The U.S. Government wants to
support the safest, most robust SMR
designs that minimize the probability
of any release
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Generation mPower Making Progress
on Certification & Licensing Scope
Cooperative Agreement with mPower
signed on April 12, 2013
mPower Team B&W – Design of primary components and systems
Bechtel International – Design of secondary side and plant layout
TVA – Site characterization and licensing for deployment at Clinch River Site
Design Certification Application (DCA)
development well underway
We have confidence that mPower can
meet the DOE goals established in the
agreement
Success of this project will be an enabling factor for the follow-on
programs and policies supporting broader SMR deployment
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Second SMR FOA: Cost-Shared
Development of Innovative Small
Modular Reactor Designs
Increases competitive pool of domestic SMR designs
Issue date: March 11, 2013
Applications Received: July 1, 2013
Selection - TBD
Narrows support to design development and design certification only
Provides vendors more flexibility in designing systems that can improve performance characteristics
Extends licensing horizon to technologies that can be deployed
in 2025 timeframe
DOE is looking for performance characteristics that exceed capabilities
of designs currently certified by NRC
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Next Steps?
- Continue supporting R&D activities to reduce technological and
regulatory risks to SMR licensing and deployment
- Continue economic analysis to understand market conditions
and evaluate appropriate financial vehicles and economic
incentives to promote SMR deployment
- Continue cultivating Government agency interest and support
for SMRs
- Support U.S. manufacturing and supply chain development to
enable near- and long-term SMR deployment visions
- Examine regulatory issues pertinent to fleet operations and
maintenance
- Develop SMR export strategy to promote U.S. designs and
manufacturing capabilities in global markets
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Conclusion
NE has the full support of the Administration to aggressively
promote SMRs
SMRs are needed in our clean energy portfolio to meet U.S. energy
and environmental needs, and to remain competitive in the global
marketplace
DOE funding should have a significant impact on accelerating the
first movers and building the momentum for the subsequent builds
Achieving mass production environment should assure SMR
competitiveness
“I think [SMRs are] a very promising direction we
need to pursue. It’s where a lot of innovation is
going on with nuclear energy. There’s a great
potential payout there along with very strong safety
considerations associated with these reactors.” Dr.
E. Moniz Confirmation Hearing
April 9, 2013
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Backup
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Economic Challenges Facing SMRs
Significant investment needed to reach commercialization
– On the order of $500 + M per design
Can the operations and maintenance costs be kept down?
– How will simplified “inherently safe” designs translate into smaller
workforce and operation costs and comply with regulatory
requirements?
DOE is supporting some relevant economic analyses to validate the
Government investment in SMRs
Can the plants be built cheaply enough?
– Economies of replication > economies of scale?
– NEA: SMRs, including multi-module plants, generally have
higher power costs than plants with large reactors.
– Uncertainties about future costs and U.S.-specific issues
may make SMRs more attractive than the report depicted
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First Movers and Early Adopters
This phase involves encouraging investment in the first few SMR builds
Manufacturing capacity still in prototype mode, using existing
fabrication capability
Government sites could be the logical users Meets both clean energy & energy security requirements
International market Niche markets that could anchor initial
deployments
Policy tools may involve Power purchase agreements
Loan guarantees
Production tax credits
Clean energy credits
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Factory Scale Production of SMRs
Broad deployment of SMRs may depend on
clean energy policies
Output on the order of dozens of SMRs per
year by 2040 or sooner based on clean
energy policy
Factories established in the U.S. with the
potential for future export markets
Sustained factory manufacturing needed to
achieve competitive costs
Obama Administration Blueprint
for a Secure Energy Future