Can small modular reactors solve the energy crisis, or are they just too expensive?

Can small modular reactors solve the energy crisis, or are they just too expensive?
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In short: NuScale Power is betting on small, scalable nuclear reactors to reshape the energy landscape. By moving away from massive, traditional plants toward factory-built modules, the company aims to provide flexible, carbon-free power. Yet, as costs climb and projects face cancellation, the path to commercial viability remains a complex, high-stakes challenge.

NuScale Power, headquartered in Tigard, Oregon, emerged from research at Oregon State University to develop small modular reactors (SMRs). Unlike conventional nuclear plants, NuScale’s VOYGR design relies on pre-fabricated modules that can be transported by rail or truck. These units use light water for cooling and power generation, with a natural convection loop that eliminates the need for powered pumps. In an emergency, the modules are designed to shut down and cool indefinitely by submerging in a large, below-ground reservoir, which provides enough water to safely cool the core for at least 72 hours.

The technology has achieved significant regulatory milestones, becoming the first SMR design certified by the US Nuclear Regulatory Commission in 2022, with newer 77 MWe module configurations receiving approval in May 2025. Despite these technical successes, the company has struggled with the economics of deployment. A flagship project in Idaho, intended to be the first US SMR, was canceled in 2023 after projected costs ballooned from $3.6 billion to $9.3 billion. This fiscal volatility highlights the tension between the promise of modular efficiency and the reality of high construction costs, particularly regarding the reinforced concrete required for the submerged reactor pools.

NuScale is now pivoting its strategy, focusing on international partnerships in Romania and Ghana, while exploring new applications like hydrogen generation and water desalination. While the company claims a single module could provide 150 million gallons of clean water daily, critics point to academic research suggesting SMRs may produce more nuclear waste per unit of energy than traditional reactors. NuScale rejects these findings as based on outdated data. As the company transitions from research to commercialization, its ability to deliver affordable, reliable power remains the ultimate test of its business model.

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