Conclusions and recommendations
The potential role of small nuclear power
1.Small modular reactors are an attractive proposition and we welcome the Government’s work looking into the feasibility of these reactors in the UK. However, we recognise that the nuclear industry’s immediate priority is rightly the successful delivery of the UK’s current conventional new build programme. (Paragraph 10)
Choice of technologies and fuels
2.There are a number of advantages to switching to a thorium fuel cycle; however, the evidence we have heard suggests that this will not be a viable option unless the price of uranium changes drastically. The UK must for now remain an active participant in thorium research and development. We recommend that the Government commission a study to confirm the potential benefits of thorium in the longer-term and how any potential barriers to its use might be overcome. (Paragraph 17)
Cost and investment risk
3.The commercial viability of small modular reactors (SMRs) remains unclear. It is important to understand the cost comparison with large-scale nuclear reactors as well as the comparison with other small-scale energy generation. Government should work with industry to better understand the economics of SMRs and set out a clear explanation of the conditions under which they are likely to be cost competitive in the UK. The National Nuclear Laboratory’s SMR feasibility study provides a useful preliminary financial analysis but itself acknowledges that a more detailed analysis is required. (Paragraph 29)
4.It is clear to us that Government support will be needed if small modular reactors are to be successfully deployed in the UK. The options for Government are discussed in more detail in Chapter four. (Paragraph 34)
Regulatory assessment
5.We were surprised to hear it might take six years to give regulatory approval (including a site-specific licence) for a small modular reactor. However, we recognise the importance of ensuring that a rigorous safety assessment is made of the design. The Minister explained that the Government will take an active role in trying to improve that Generic Design Assessment process–Government should provide an update on these improvements in its response to us. We also call on DECC to ensure that the Office for Nuclear Regulation is adequately resourced to support SMR developers in the early stages of preparing their designs for approval. (Paragraph 41)
6.There is scope for further international collaboration on regulatory approval of new reactor designs. We welcome the Office for Nuclear Regulation’s involvement in the Multi-national Design Evaluation Programme, and encourage ONR to think innovatively about new ways to streamline its regulatory processes to ensure they remains robust and swift. (Paragraph 45)
Siting considerations
7.The Government should support the use of existing nuclear sites for the deployment of small modular reactors. These sites could potentially host a demonstrator module with minimal additional infrastructure requirements and with the support of a skilled local workforce. (Paragraph 50)
Safety and security
8.We recognise that small nuclear reactors will generally raise similar questions of safety and security to those raised by large nuclear reactors. The UK already has robust processes in place to ensure the safe and secure operation and maintenance of the plant as well as transportation and management of fuel and spent fuel. (Paragraph 55)
Public engagement
9.The Government must work with industry on a programme of proactive public engagement on small nuclear reactors–especially if such reactors might in the future be deployed in areas that are not currently considered suitable for nuclear power e.g. away from the coast, closer to centres of population etc. (Paragraph 57)
Conclusions
10.Small modular reactors (SMRs), particularly those based on known nuclear technologies, are a viable proposition for future deployment in the UK in the next decade. They could potentially have a key role to play in delivering low carbon energy at lower upfront capital cost compared to large conventional nuclear reactors. (Paragraph 64)
11.We recommend the Government takes a proactive role in driving forward the development and deployment of these reactors in the UK. In the first instance, Government should help to establish the right conditions for investment in SMRs, for example through supporting the regulator to bring forward approvals in the UK, and by setting out a clear view of siting options. We would also like to see the Government steering industry towards deploying a demonstrator SMR in the UK. It is likely that this will only be achieved through sharing the costs between the public and private sector. In the longer term, Government should identify and help to establish future sources of commercial finance for the further development and industrialisation of SMRs. (Paragraph 65)
12.While current SMR designs have been predominantly developed outside the UK, there is scope for British industry to develop intellectual property and play a role in the deployment of the first SMRs. The challenges faced in making SMRs commercially viable represent an opportunity for our world-class manufacturing industry. Collaboration with international partners is important and the Government must ensure that UK companies are in a position to compete for these opportunities. (Paragraph 66)
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| © Parliamentary copyright 2014 | Prepared 17 December 2014 |