This report summarises the state of technical development and Australian context for small modular nuclear reactors in 2024.

Small modular reactors (SMRs) are a proposed nuclear power plant design with a smaller footprint than a conventional reactor.

SMRs could potentially form part of Australia’s future low-carbon energy mix, utilising existing transmission infrastructure and contributing to baseload power, or providing dispatchable power in a high-renewables grid. As an emerging technology, in 2024 the cost and operational performance of this technology has not yet been demonstrated.

Currently, there are no licensed designs, or constructed or operating SMRs in Australia, or in any Organisation for Economic Co-operation and Development (OECD) countries (which are most comparable to Australia for reasons outlined in the report; in addition the reliability of publicly available information on non-OECD designs is questionable). A range of SMR designs are being actively pursued internationally; projected costs and performance attributes could only be accurately demonstrated once full-scale prototype SMRs are built.

Based on developer announcements and regulatory processes, it is possible that several prototype SMRs may be licenced, commissioned and built in OECD countries by the mid-2030s.

Commercial releases could commence by the late 2030s to mid-2040s, with a mature market likely emerging during the mid to late 2040s, depending on regulatory approvals and investment and resource allocation.

A mature, well-functioning SMR market would:

• Have transitioned from full-scale prototypes to ongoing commercial SMRs delivered using well-established manufacturing facilities and robust supply chains.
• Offer a choice of SMR systems from various established and successful vendors.
• Provide transparent and proven capital and operating costs from multiple operating vendors and sites.
• Demonstrate the operational safety and environmental performance of SMRs in line with Australian society’s expectations.
• Require a suitably scaled nuclear-power qualified skills base.

Currently, none of these conditions exists in Australia.