The Role of SMRs as Distributed Energy Resources in Comparison to Renewables

Abstract

There is much discussion regarding the potential for renewables-based distributed energy resources (DER) to be the low-cost low-emission supply alternative to fossil fuels and the basis for a 100% renewables future. Others feel that nuclear must play a significant role in achieving global emission reductions. Two solutions are examined for meeting incremental daytime demand in a system with an established clean baseload supply: (1) integrated community-scale solar and storage DER; and (2) small modular reactor (SMR) supplied distributed energy storage (DES) where the storage is installed at the community scale. This study finds that, despite expected declines, the cost of solar-based DER will remain high due to intermittency, potentially 70% more than the cost of a SMR-supplied DES option. In geographies where sunshine is less frequent and wind blows less steadily, SMRs will be the lowest-cost low-emission option and offer greater distribution and transmission capacity benefits compared to renewables.