Small Modular Reactors Liz Ramsay Office of Nuclear Energy U.S. Department of Energy

Transcription

1 Small Modular Reactors Liz Ramsay Office of Nuclear Energy U.S. Department of Energy National Conference of State Legislatures Nuclear Legislative Working Group October 28, 2013

2 All of the Above Clean Energy Strategy With rising oil prices and a warming climate, nuclear energy will only become more important. That s why, in the United States, we ve restarted our nuclear industry as part of a comprehensive strategy to develop every energy source. Seoul, Korea - March 26, 2012 I'm announcing a new national climate action plan.we're building the first nuclear power plants in more than three decades A low-carbon, clean energy economy can be an engine of growth for decades to come. And I want America to build that engine. Georgetown University - June 25,

3 TWh Growth In Nuclear Will Be Needed To Meet U.S. Clean Energy Goals 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, Source: EIA 2012 Annual Energy Review and the Electric Power Monthly from January 2013 Other Wind Hydro Nuclear Natural Gas Petroleum Coal 3

4 Why is the U.S. Government Supporting SMR Technologies? NE working definition of SMRs: reactor units with a nominal output of 300 MWe or less and are able to have large components or modules fabricated remotely and transported to the site for assembly of components and operation. Potential Benefits Enhanced safety and security Shorter construction schedules due to modular construction Improved quality due to replication in factory-setting Meets electric demand growth incrementally Regain technical leadership and advance innovative reactor technologies and concepts Domestic job creation potential very high Potential Markets Domestic and international utility markets Non-electrical (process heat/desalination) customers 4

5 U.S. Utility Considerations Load demand Better match to power needs - multiple modules Potential replacement of old coal plants Use of existing infrastructure U.S. Coal Plants 99% of plants > 50 years old have less than 300 MWe capacity Financial Characteristics Reduced capital cost makes nuclear power feasible for more utilities Operating units can provide financing for future additional units. Site selection More siting flexibility than traditional nuclear plants Lower land and water usage 5

6 Stages of Commercialization Certification and Licensing Risk Sharing First Movers and Early Adopters Encourage investment Use existing infrastructure to build-up SMR factory capacity Factory scale production of SMRs Sustain clean energy policy Sufficient annual production to justify investments Challenge to SMR fleet deployment: Prove economy of mass production is competitive with economy of scale 6

7 Certification and Licensing Support Provide financial assistance for design, certification and licensing of promising SMR technologies with high likelihood of being deployed at domestic sites through SMR Licensing Technical Support program Accelerate commercial SMR development through public/private arrangements In 2012, DOE initiated a 5 year/$452 M program (extend to 6-year) Funding Opportunity Announcements (FOAs) were issued Funding being provided to industry partners through cooperative agreements The U.S. Government wants to support the safest, most robust SMR designs that minimize the probability of any release 7

8 Generation mpower Making Progress on Certification & Licensing Scope Cooperative Agreement with mpower signed on April 12, 2013 mpower Team B&W Design of primary components and systems Bechtel International Design of secondary side and plant layout TVA Site characterization and licensing for deployment at Clinch River Site Design Certification Application (DCA) development well underway We have confidence that mpower can meet the DOE goals established in the agreement Success of this project will be an enabling factor for the follow-on programs and policies supporting broader SMR deployment 8

9 Second SMR FOA: Cost-Shared Development of Innovative Small Modular Reactor Designs Increases competitive pool of domestic SMR designs Issue date: March 11, 2013 Applications Received: July 1, 2013 Selection - TBD Narrows support to design development and design certification only Provides vendors more flexibility in designing systems that can improve performance characteristics Extends licensing horizon to technologies that can be deployed in 2025 timeframe DOE is looking for performance characteristics that exceed capabilities of designs currently certified by NRC 9

10 Next Steps? - Continue supporting R&D activities to reduce technological and regulatory risks to SMR licensing and deployment - Continue economic analysis to understand market conditions and evaluate appropriate financial vehicles and economic incentives to promote SMR deployment - Continue cultivating Government agency interest and support for SMRs - Support U.S. manufacturing and supply chain development to enable near- and long-term SMR deployment visions - Examine regulatory issues pertinent to fleet operations and maintenance - Develop SMR export strategy to promote U.S. designs and manufacturing capabilities in global markets 10

11 Conclusion NE has the full support of the Administration to aggressively promote SMRs SMRs are needed in our clean energy portfolio to meet U.S. energy and environmental needs, and to remain competitive in the global marketplace DOE funding should have a significant impact on accelerating the first movers and building the momentum for the subsequent builds Achieving mass production environment should assure SMR competitiveness I think [SMRs are] a very promising direction we need to pursue. It s where a lot of innovation is going on with nuclear energy. There s a great potential payout there along with very strong safety considerations associated with these reactors. Dr. E. Moniz Confirmation Hearing April 9,

12 Backup 12

13 Economic Challenges Facing SMRs Significant investment needed to reach commercialization On the order of $500 + M per design Can the operations and maintenance costs be kept down? How will simplified inherently safe designs translate into smaller workforce and operation costs and comply with regulatory requirements? Can the plants be built cheaply enough? Economies of replication > economies of scale? NEA: SMRs, including multi-module plants, generally have higher power costs than plants with large reactors. Uncertainties about future costs and U.S.-specific issues may make SMRs more attractive than the report depicted DOE is supporting some relevant economic analyses to validate the Government investment in SMRs 13

14 First Movers and Early Adopters This phase involves encouraging investment in the first few SMR builds Manufacturing capacity still in prototype mode, using existing fabrication capability Government sites could be the logical users Meets both clean energy & energy security requirements International market Niche markets that could anchor initial deployments Policy tools may involve Power purchase agreements Loan guarantees Production tax credits Clean energy credits 14

15 Factory Scale Production of SMRs Broad deployment of SMRs may depend on clean energy policies Output on the order of dozens of SMRs per year by 2040 or sooner based on clean energy policy Obama Administration Blueprint for a Secure Energy Future Factories established in the U.S. with the potential for future export markets Sustained factory manufacturing needed to achieve competitive costs 15