The Economics of Very Small Modular Reactors in the North

Abstract

Many communities in Canada's far north rely on diesel generators for their electricity. With an average production cost nearly $50/kWh and many generators nearing their end of life, an opportunity exists for alternative technologies to enter the market. Nuclear power plants (NPPs) have provided Ontario with reliable, low cost, low CO₂ electricity for several decades. However, the electrical capacity of existing NPPs far exceeds the demand requirements in the far north. This paper presents a life cycle cost analysis of a very small modular light water reactor (vSMR), demonstrating that a vSMR could reduce electricity costs in the north. The magnitude of the savings is depends on the degree of modularization and the price of carbon.