This morning Policy Exchange hosted an event about small modular reactors (SMRs) – the technology is derived from nuclear-powered submarine systems. A consortium led by Rolls Royce is pushing the idea of using new nuclear technology scaled down to a fraction of the size of older plant designs. The mini-plants would be made in factories to be re-assembled on site much more quickly and cheaply than large-scale projects like Hinkley. Rolls-Royce reckons the global export market could be worth as much as £400 billion for the made-in-Britain technology.
The report claims that the mini-plants would produce power at £60/MWh, which is far more competitive than the £92/MWh strike price guaranteed to Hinkley by George Osborne. It is clear that as old power stations are decommissioned Britain is going to need to replace them – wind is too intermittent to make up for the loss of capacity – nuclear is going to have to be part of the energy supply mix. Hinkley type technology is just too expensive.
Download the report Small Modular Reactors.