Advanced Nuclear Generation
SMRs, Generation IV reactors, and the economics of firm low-carbon power.
The Cost of Capital Problem
Nuclear power provides firm, dispatchable, zero-carbon electricity with high capacity factors (>90%). However, conventional Generation III+ gigawatt-scale projects in Western markets (e.g., Vogtle in the US, Flamanville in France) have suffered massive cost overruns and schedule delays. Because capital costs account for 70-80% of nuclear LCOE, the cost of capital (WACC) and construction duration (which drives Interest During Construction, or IDC) are the most critical economic levers.
Small Modular Reactors (SMRs)
SMRs attempt to solve the financing and construction problem by shifting from bespoke on-site construction to factory fabrication. By standardizing designs and reducing total project size to 300 MW or less, developers hope to achieve serial learning rates, though first-of-a-kind (FOAK) costs remain prohibitively high.
Interactive: Nuclear Financing Sensitivity
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