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SMR reactors – but what’s the point? 

There has been a very strong interest in SMR reactors in Poland for some time. Much of the published information and declarations are greatly exaggerated, it’s fair to say that there is something to it. So what and why? 


SMRs, or small modular nuclear reactors. These are reactors of up to 300 MWe, although no one strictly sticks to this limit. They have a modular design, which allows them to be manufactured in factories, and assembled on location more quickly than traditional technology. In addition, reactors of this type use passive safety systems, which are less expensive than their active counterparts.

But still…

Everything would be great if it weren’t for the fact that no reactor of this type has been built in the world (de facto there are two, but one in Russia and the other in China). What’s more, no nuclear regulator overseeing reactor operations has issued a construction permit (de facto construction is underway in Argentina, but that’s a whole other topic). There are also no factories to manufacture the modules.  

So why such interest in the subject?

SMR reactors hold a lot of promise. Their main advantage is that they can produce electricity without emitting greenhouse gases or air pollution. In addition, heat production for municipal and industrial purposes is also possible. With the need to move away from coal and gas and the unstable operation of renewables, nuclear power appears as a solution to decarbonization. However, it has so far been reserved for large entities because it was very expensive. SMR reactors will be cheaper because of their much smaller capacity, and therefore available to more customers. Our work indicates that reactors of a few to a few tens of MWe in particular are of great interest to smaller energy consumers.
Also of significance is the fact that new business models for using nuclear power are emerging. Instead of building the expensive organizational structure necessary to ensure nuclear safety and radiological protection, small entities can sign a PPA with a company that will build the plants, operate them, then decommission them. And the energy consumer will be guaranteed a supply of energy at defined prices, and regardless of potential power shortages in the electricity system.

Is it worth launching an SMR reactor project?

SMR reactors are a novel solution that is at the threshold of entering the market. True, there are no operating power plants of this type yet, and much work still needs to be done to launch their commercial operation. And it is true that SMR reactor projects today are very risky. But, as is the case with innovative solutions, it’s worth keeping your hand on the pulse.

If you don’t take your place in line today, the day these reactors are deployed, it will be too late to quickly acquire this carbon-free and stable energy source. The process of preparing for construction, production and installation is quite long. Our experience suggests that the waiting list of entities will get longer and longer, and that first deliveries will be made to those who lined up at the beginning of the list. All these factors lead to a great interest in the construction of SMR reactors, not only in our country. Nowadays, the preparation for the realization of SMRs is being talked about more and more loudly in England, Finland, Romania…

So, as always, whoever is first is wider…

Przemyslaw Zydak 

photo: USNC

Field visit in the Czech Republic

Anita and Przemek participate in a field vision and meetings with designers of a future rail connection between the center of Prague and Vaclav Havel Airport. Implementation of the project will facilitate access to the airport. At the same time, the modernization of the existing single-track railroad line from Prague to Kladno will improve its use by local residents, reduce noise and air pollution emissions, and have a positive impact on the climate. Finally, we were able to meet experts who have been working remotely on the evaluation of this project for the EBRD so far.

The construction permit has been issued for the implementation of a tramway to Mistrzejowice

Tramwaj

The construction permit has been issued for the implementation of a tramway to Mistrzejowice! Its construction will start soon, and if all goes well, residents of Krakow will be able to use this shortened route as early as the end of 2025. Thanks to this investment, travel time from the northern part of Krakow to the center (Mistrzejowice – intersection of Lema and Meissner streets) will be shorter by about 12 minutes. This is the first such a large transport investment in Poland implemented under the Public-Private Partnership (PPP) formula. At Sotis Advisors, we are proud of this development, as we were involved in the development of environmental and social Due Diligence, including performing GET (Green Economy Transition) analysis, an analysis of the project’s compliance with environmental requirements. And all this in accordance with the standards and policies of the European Investment Bank and the European Bank for Reconstruction and Development, which, on the basis of our documentation, were able to engage, among others, in the construction of the tramway to Mistrzejowice.