Driving the value of advanced reactors to fulfill critical market needs can be enabled by several conditions related to policy, regulatory, and public acceptance surrounding the commercialization of advanced reactors. The following enablers, with associated key opportunities, provide a valuable framework for focusing the solutions and actions that will enable large-scale deployment success.
First-Mover Success
As with any new technology, the deployment of the first advanced reactors will include many new and unfamiliar complexities, and firstcustomer adoption can be slow for new technologies.
Recognizing these conditions, the U.S. Congress has provided incentives for the deployment of new clean energy technologies, including advanced reactors. These include the U.S. Department of Energy (DOE) providing direct support to first deployments of several advanced reactor designs, the Inflation Reduction Act providing tax incentives to spur market adoption, and loan guarantees. State support for the adoption of nuclear energy is also important to first-mover success, and many states are beginning to pass incentives to spur market adoption. In Canada, the recent Federal Budget announced several tax incentives and other measures that build on previous government support for the adoption of advanced reactors that will help to ensure that these technologies are available in the market and capable of making significant contributions to achieving the decarbonization and energy security goals. The industry is focused on deploying advanced reactors in a manner that minimizes risk and enables rapid learning because future deployments rely on their success.
The key opportunities to enable first-mover success are:
Government Policies
Governments are establishing policies to meet energy and climate goals, and these policies can either enable or discourage advanced reactor adoption in the market. Established policies with stable and reliable funding of programs enable the industry to make and even accelerate business decisions that lead to the timely deployment of the first projects.
Deployment Best Practices
The actions include the development of construction and project best practices, and the implementation of these best practices for advanced reactor projects. These are especially important for the first projects that will encounter new and unfamiliar complexities. Experience has shown that government policies that establish arbitrary deadlines or other unnecessary burdens on industry can also incentivize practices that do not implement all of these best practices. Therefore, government policies that support the industry’s implementation of best practices will enable market adoption by enabling the industry to minimize cost, schedule, and risk.
Investments
It has been several decades since a large number of nuclear reactors have been built in the U.S. and Canada, so the investment community is relatively unfamiliar with the financial structuring of new nuclear build projects. The pricing of risk for first-of-a-kind new nuclear build projects, and the uncertainty of whether nuclear energy qualifies in environmental, social and governance financing could be a disincentive to some investors. Building education and comfort in the investment community is needed to enable a healthy supply of investment in new nuclear projects.
Fast Followers
Customers who are hesitant to be the first to adopt new technologies prefer to wait until the products are adopted by the first movers.
These “followers” are seeking to better understand the costs and schedule of advanced reactors so that they can more accurately factor the risks into their business decisions. However, if these followers wait until the first projects are completed, market adoption will be too slow to enable large-scale deployment of advanced reactors in the timeframe that the market needs to achieve national decarbonization goals. Enabling “fast followers”—those who proceed with projects soon after the first projects start and with reduced risks similar to having waited until the first project is completed—will allow the industry to meet the needs for clean energy between now and the mid-2030s, while also establishing the foundation for large-scale deployment through 2050.
The key opportunities to enable fast followers are:
De-Risking
The industry is developing a framework for reducing the risks for fast followers so that they are similar to the risks of having waited until the first projects are completed. This framework aligns the lead project deliverables and milestones that significantly reduce risk, in the areas of design, licensing, procurement, and construction, with the milestones of the fast follower projects. The outcome is that the fast followers benefit from the lower risks so that business decisions for moving forward can be made, in some cases reducing the timespan between the first and second project from five years to less than two years. Stakeholder support for the first projects to achieve these derisking milestones and for the fast followers to benefit from the first project’s successes in their decision making will enable these fast followers to accelerate the deployment of advanced reactors. Examples of support include government policies, investment decisions, and public support.
Streamlining
The industry is pursuing design standardization and partnerships around individual designs of developers, customers, and suppliers that will streamline the deployment of the first wave of advanced reactors. This enables a process of learning that is well established to rapidly reduce the cost, schedule, and risks. Stakeholder support for streamlining advanced reactor deployments, by resisting the temptation to pursue major design or partnership changes for each project, and for encouraging risk sharing among the partners, will enable the industry to accelerate the deployment of advanced reactors.
Regulatory Efficiency
The market need for advanced reactors to enable the United States and Canada to meet their decarbonization goals will result in innovative designs that regulators have not previously approved and at a volume of licensing applications that far exceeds the NRC’s or Canadian Nuclear Safety Commission’s (CNSC’s) current capacity.
Current regulations and key policy and technical positions in the United States and Canada have been established based on existing technologies—light-water reactors (LWRs) in the United States and heavywater reactors in Canada. While some progress has been made to update the regulatory framework, the current regulatory framework is not efficient for advanced reactor technologies. If not updated, the regulatory framework may discourage the innovation necessary for providing valuable benefits to the market. It is understood the first time a new design undergoes a review it will take longer than later applications.
In fact, the current regulatory framework cannot process applications at a sufficient pace, even for those technologies on which it is based. The historical schedule for NRC approvals is four to eight years. The NRC review fees, which have historical cost of $28–$42 million and continue to grow exceeding $70 million in some estimates for future applications, is both cost and schedule prohibitive to achieving the scale of advanced reactor deployment that is necessary to meet the market need.
Although both the U.S. and Canada have already embarked on initiatives to revise or update regulations or regulatory documents and standards and to implement policy and technical positions that consider advanced reactor technologies, these efforts have been slow to reach completion and have not included all aspects of the regulatory processes and framework that must be updated or re-aligned to address the urgency of the climate change crisis.
A recent letter from NEI to the NRC states that the NRC could have as many as 60 applications in the licensing process at one time by 2030. In Canada the largest concern about the regulatory process relates to the federal Impact Assessment Act (IAA), which has long timelines and has not been tested for nuclear projects. The regulatory framework in both countries will also need to be updated to align with the innovations in advanced reactors. Although the NRC and CNSC have made progress, there is much work to be done, and the first advanced reactor applications are already in progress.
The key opportunities to enable regulatory efficiency are:
Regulatory Review and Reform
Regulatory reform by the NRC and in Canada by the CNSC and by the Federal government on the IAA would establish regulatory frameworks to facilitate the efficient and timely approval and licensing of innovative and safe advanced reactors. This regulatory reform would support deployment of the first advanced reactors and fast followers, and set the foundation for large-scale deployment in the early 2030s. Regulatory reform includes the following:
- Efficient and timely licensing of advanced reactor licenses in less than 12 months from docketing of the application to issuance of the license in the U.S. (Note that additional time will be necessary for the first regulatory review of a design.)
- Resolving key policy and technical issues (for example, emergency preparedness, environmental reviews, security) prior to the submittal of applications to minimize the need for subsequent design changes that prevent the streamlining of fast followers
- Updating the regulatory framework to align requirements with the advanced reactor technologies
- Collaboration between the NRC and CNSC to minimize the duplication of regulatory reviews of designs that are commercialized in both countries and also to enable standard designs between the two countries
Policy
The U.S. Congress and the Canadian Parliament can enable and encourage both nations’ regulators to pursue the needed regulatory reforms that enable deployment of advanced reactors at the scale necessary. Regulatory reform is in the national and public interest because there is a market need for advanced reactors to achieve national energy, climate, environmental, economic and national security goals.
Siting Availability and Permitting
Site selection for nuclear energy facilities has historically been limited to locations based on population density, natural weather and geological conditions, and access to resources like a local water supply or rail spur.
However, advanced nuclear reactors are being designed with innovative features that eliminate or at least reduce these siting constraints. Enhancements to safety enable siting in areas with more extreme weather and geological conditions and closer to population centers where the power is needed. Enhancements to safety also enable advanced reactors to be used in island mode (separated from the grid) and for black start (the generation relied on to restart the grid after an outage). More efficient operations and smaller size can make dry cooling more economically feasible, eliminating the need for drawing water from a local body of water. Innovations that make advanced reactors smaller and easier to operate enable them to be located in remote areas, and even to be periodically relocated for humanitarian and disaster relief.
These features as well as standardization of designs will maximize the areas in which advanced reactors can be located. This is essential because the scale of advanced reactor deployment to meet the market need is not limited to a small scope of siting conditions, but will be wide and varied, just as the market and customer needs are diverse.
The key opportunities to enable siting efficiency are:
Permitting
Numerous stakeholders have roles in the siting availability of advanced reactors. Federal, state/provincial/territorial, municipal, and Indigenous governments will be involved in decisions for site permitting and, in some cases, making available public lands for siting advanced reactors. Local communities and the public will be involved in the process for deciding on the sites for advanced reactors. Industrial end-users of power, steam and heat will also be significant stakeholders in site selection. Regulators, market operators, investors, and insurance companies will also influence these decisions. Supportive engagement by these stakeholders with rapid decision making will enable the acceleration of the deployment of advanced reactors to meet the diverse set of market and customer needs.
Design Flexibility
The variability of site conditions across North America creates an incentive for advanced reactor designs to be tailored to each site to minimize costs and maximize performance. However, such an approach would not enable the efficiencies that come from design standardization. On the other hand, design standardization creates a natural tension between minimizing costs and maximizing the range of acceptable sites. To address this, the industry will need to develop flexible designs that are both standardized and adaptable to a range of site conditions. The industry needs regulators, customers, and other external stakeholders to make decisions that enable it to pursue this type of design flexibility.
Indigenous and Public Engagement
Indigenous peoples and the public have a vested interest in the policies to meet energy, climate, environmental, economic, and national security goals. They also have a vested interest in the technologies that are commercialized to meet these goals and the plans for deployment to meet the market needs.
There are numerous opportunities for Indigenous peoples and the public to engage in the government processes for establishing policies and making regulatory decisions, including decision making related to specific project decisions, such as siting, safety, and environmental impact. In some instances, engagement of these parties happens late in the process, posing potential delays in the deployment of advanced reactors.
It is recognized that, in many cases, the public is not well informed about the opportunities to engage with the industry or government on decisions about energy and climate policies, technologies pursued to meet market needs, or projects to deliver value to the market. Establishment of programs by third parties or the government that enable communities and the public to more effectively engage with the industry and government can lead to deployment of advanced reactors.
In Canada, Indigenous peoples and community consultation (an accountability of the Crown, as represented by both Federal government and Provincial government agencies); early, ongoing and meaningful engagement by nuclear project proponents and licensees; incorporation of Indigenous knowledge into projects; benefits agreements or agreedupon value (potentially equity); and potentially some form of Free Prior Informed Consent (FPIC) in recognition of the UN Declaration of the Rights of Indigenous Peoples (UNDRIP), are necessary (but not necessarily sufficient) requirements for successful nuclear deployment in Canada.
The key opportunities to enable public engagement are:
Public Engagement
Government processes that enable early engagement of the public in the process for establishing policies and making regulatory decisions can significantly reduce risks for advanced reactor projects, enabling deployments. Such processes would need to reach final decisions early in the timeline of the industry’s business decision making to avoid delays that come when policies and regulatory positions change late in an advanced reactor project.
Community Engagement
The industry desires a strong, positive relationship with local communities and the public, one built on the fair treatment of all communities regarding industry operations and activities. This commitment includes fostering and sustaining inclusive, trust-based, and mutually beneficial relationships with local and disadvantaged communities. The industry is pursuing a path forward on advanced reactors that would lead to early and frequent engagement with potential host communities and others in the public that have equity in a potential advanced reactor project.
Indigenous Engagement
It is recognized that in Canada the CNSC has community and public engagement processes in place, as well as a significant Indigenous consultation program. As well, the Canadian federal government has established an Indigenous Advisory Council for the SMR (advanced reactor) Action Plan. Project proponents will engage Indigenous peoples to achieve the outcomes above for the public and community engagement outlined above as well as potential partnerships.
Supply Chain Ramp Up
The United States and Canada have deployed only a few new nuclear energy facilities in the last several decades.
Projects like the AP1000 at Vogtle 3 and 4 and the refurbishments of the CANDU reactors in Canada continue to maintain a domestic supply chain. However, much of the new nuclear supply chain is located outside of North America. Policies for domestic content drive the need for an increase in the U.S. and Canadian supply chains. Advanced reactor technologies also incorporate new materials and innovative components for which there is little experience in manufacturing. The shift from in-field construction to factory manufacturing of advanced reactors enables larger-scale deployment, but it also makes the need for a strong domestic supply chain even more essential to meeting the market need.
The key opportunities to enable supply chain ramp-up are:
Fuel Enrichment
Fuel enrichment from Russia, once a significant contribution to the worldwide supply, is no longer a desired option for advanced reactors. Increasing development of nuclear facilities around the world mean that there will be growing demand for the existing enriched fuel supplies. Potential scarcity of supply and desire for fuel security have both Canada and the U.S. considering their options for domestic supply. The time and investment needed for the industry to expand or develop new enrichment facilities requires clear government policies. Some advanced reactors will also use enrichments at higher levels than are commercially available. Although the industry could establish supply of this new enrichment level, the same factors—uncertain government policies and unclear timing and scale of market demand—discourage investment. Rapid implementation of the currently authorized and funded HALEU Availability program is essential to the success of many Advanced Reactor developers. Significant government investment would catalyze industry build-out of needed HALEU production capacity. In cases where the timelines for adding new fuel enrichment capacity do not support near-term need, government policies that provide the needed enrichment will ensure that first projects and fast followers are not delayed.
Canada and the U.S. government are collaborating to explore options to secure supply, both through import and fuel enrichment in the U.S. Developing enrichment capacity in the near term will be an important step to ensuring energy security in both countries.
Component Manufacturing
The industry is pursuing the expansion of the supply chain for advanced reactors; however, uncertainty in the timeliness and scale of advanced reactor deployment is likely to suppress the investment needed in the supply chain. Government support for the expansion of domestic supply chains will enable the industry to use the benefits of government policies, depending on use of the domestic supply chain. Furthermore, innovative advanced reactor designs with novel components will have longer lead times and are more prone to early design changes, putting at risk the ability to standardize the design, which is important to fast followers, regulatory efficiency, and cost reduction in progressing to “nth of a kind.” Government support would enable the prototyping of novel components early in the design, so that any design changes that improve the value of advanced reactors can be made before applications for the first movers are submitted to the regulators. These novel elements might include advanced manufacturing methods and commercial standards to meet nuclear-grade quality requirements.
Workforce Development
Workforce challenges are being experienced today, not just in the nuclear and broader energy industries, but across the economic sectors worldwide. This challenge is fueled by an aging workforce, which leads to staffing reductions through retirements and a change in work culture amongst the younger generations.
Cultural differences between the existing workforce and younger generations entering the workforce could also be factors. For instance, younger workers are less inclined to pursue jobs with significant travel, untraditional hours, or in remote situations. There has also been a longterm decline in the number of skilled craft workers that will be essential in the manufacturing, construction, and operation of advanced reactors. The industry action plan describes the path forward to ensure a stable and sufficient workforce for the deployment of advanced reactors as well as to support the long-term operation of the current fleet.
The key opportunity to enable workforce development is:
Training and Recruitment
The industry’s plans for workforce development include programs to create a pipeline of sufficient qualified workers in all areas, including engineering and design, technical knowledge (such as O&M, radiation protection, and chemistry), skilled trades for manufacturing and construction, legal and regulatory affairs, communications, and human resources. These programs are designed to attract, train, and retain the workforce for advanced reactors. These workforce issues will also impact the regulators and other government agencies that have actions necessary to support the commercialization of advanced reactors. Government programs that attract individuals into the trade schools and colleges to study in areas that develop the skills and knowledge needed by the nuclear industry will enable the deployment of advanced reactors.