Over the years, the nuclear sector has encountered several difficulties, such as exorbitant expenses and public mistrust following catastrophes like Chernobyl and Fukushima. But, as of April 2025, SMRs—small modular reactors—are showing promise as a remedy. These small nuclear devices intend to resolve numerous problems with conventional reactors. With 440 operational reactors and a global nuclear capacity of roughly 390 GWe, the drive for decarbonization is reigniting interest in nuclear energy. Furthermore, the IAEA reports that 19 countries are developing over 80 SMR designs. This article examines SMRs’ potential, benefits, drawbacks, and prospective applications in the energy sector.

What are Small Modular Reactors?

Small Modular Reactors are nuclear fission reactors designed to be significantly smaller than traditional reactors, with power capacities typically ranging from 5 to 300 megawatts electric (MWe) per unit—about one-third or less of the capacity of conventional nuclear power plants, which often exceed 1,000 MWe. Unlike their larger counterparts, SMRs are built with modularity in mind, meaning their components can be manufactured in factories and shipped to sites for assembly. This approach contrasts with the bespoke, on-site construction of traditional reactors, which often leads to delays and cost overruns.

The designs of Small Modular Reactors vary widely, from pressurized water reactors (PWRs)—the most common type in use today—to advanced Generation IV concepts like molten salt reactors and gas-cooled reactors. Some SMRs are even designed for purposes beyond electricity generation, such as desalination or industrial heating, measured in megawatts thermal (MWt). Their smaller size and flexibility make them a promising option for a range of applications, sparking renewed interest in nuclear power as a low-carbon energy source.

The Promise of Small Modular Reactors

The financial obstacles that typical nuclear plants, which frequently cost over $10 billion and take more than ten years to finish, encounter could be lessened with the use of small modular reactors. For example, the Vogtle plant expansion in Georgia skyrocketed from an initial $14 billion to over $35 billion by 2024. With mass production and economies of scale, SMRs can potentially lower costs to $3,000 to $5,000 per kilowatt, as opposed to $10,000 for bigger reactors. These systems’ modular architecture makes it possible to raise power production gradually, which benefits utilities that are unable to maintain huge power plants or those that are managing increases in their demand for electricity.

Safety is one of the main advantages that compact modular reactors offer. The distinctive feature is that they rely on gravity to function in an emergency rather than automated systems or human intervention. Various designs make advantage of passive safety measures. In 2022, for instance, the NRC approved NuScale Power’s self-cooling design, which may safely function without external power for up to 30 days during a shutdown. SMRs have reduced core dimensions, which decreases radioactive substance amounts, thereby minimizing disaster extent while restoring public confidence in nuclear power.

Small modular reactors enable power generation in rural settlements and industrial sites as well as places with smaller electricity networks because they work better than large reactors do in those locations. Ontario Power Generation in Canada intends to replace outdated fossil fuel plants with SMRs by 2029 in order to supply clean energy to the country’s northern areas. Google and Microsoft are investigating the use of small modular reactors (SMRs) to power energy-intensive data centers.

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Current Progress and Real-World Examples

Russia and China have by far the two most active SMRs. In the remote village of Pevek, Russia’s Akademik Lomonosov, a floating nuclear power plant with two 35 MWe SMRs, has been supplying energy and heat since 2020. To demonstrate the viability of cutting-edge designs, China linked its HTR-PM, a 210 MW high-temperature gas-cooled SMR, to the grid in 2021. These innovative projects show that SMRs can be successful, but there are still issues with scaling them up internationally.

Strong federal support was demonstrated in March 2025 when the U.S. Department of Energy reissued a $900 million solicitation to support the development of up to two advanced light-water SMRs. Holtec International intends to establish two SMRs of 300 MWe each at the Palisades plant in Michigan by 2030, while NuScale Power is trying to build the first commercial-sized SMR in Idaho, with 77 MWe for each module. As a result of all these developments, small modular reactors are likely to become an increasingly larger part of the energy mix in the United States much sooner than later.

The Challenges Faced

Although potentially viable, it is still unclear whether small modular reactors are feasible. Because of poor supply chain infrastructure or the costliness of certain commodities, optimism that once surrounded the initial forecasts could no longer be used to rationalize the high expenses. SMRs may only supply 2% of global electricity by 2043, according to a 2023 IDTechEx report, suggesting a slower adoption rate than supporters had anticipated. For SMRs to compete with renewable energy sources like solar and wind, whose prices have decreased to $30 to $50 per megawatt-hour, significant investment and standardization are required.

Regulation continues to complicate things for small modular reactors because it would take several years for any new design to go through exhaustive safety and licensing inspections. While NuScale’s design has received NRC approval, other developers will still have to navigate similar challenges. In 2022, the IAEA started the Nuclear Harmonization and Standardization Initiative to advance global standardization initiatives that should facilitate and accelerate the deployment of nuclear projects.

The general population has yet to fully accept this solution. The safer features of SMRs cannot eliminate the ongoing effects caused by historic nuclear accident events. Furthermore, handling radioactive waste is still an issue, even though SMRs generate less waste per unit of electricity than big reactors. It is complicated to tell the tale of SMRs as clean energy heroes because deep geological repositories and other solutions are still being debated in many nations.

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Conclusion

In the nuclear industry, small modular reactors are a significant accomplishment due to their safety, flexibility, and possible cost savings over traditional reactors. Operational examples in China and Russia, together with plans in the U.S. and other countries, show how popular SMRs are becoming. Economic, legal, and social issues must be resolved, though, if they are to be successful. SMRs could play a major role in the global decarbonization initiative.

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