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Small Modular Reactors: A Realist
Approach to the Future of Nuclear Power
ROBIN GASTER | APRIL 2025
Standard large nuclear reactors won’t achieve scale or cost competitiveness with alternative
energy sources. DOE should focus its resources on small modular reactors, which are a more
promising technology with the potential to achieve price and performance parity.
KEY TAKEAWAYS
Small modular reactors (SMRs) are the future of nuclear power, and they could become
an important strategic export industry in the next two decades.
SMRs must get to sufficient scale so they can become cost competitive with other energy
sources including large reactors, renewables, and fossil fuels.
DOE needs to develop independent assessment capabilities for SMRs (and other
technologies) that focus on the pathway to price and performance parity (P3). All major
investments must be reviewed through the P3 lens (see box).
DOE should maintain and expand its strong support for basic and applied nuclear
research through the Advanced Reactor Development Program (ARDP) and DOE’s GenIII+
program, including new test and demonstration sites at INL.
DOE’s Office of Clean Energy Demonstrations (OCED) must provide critical funding to
help provide commercial viability, and the Loan Program Office (LPO) will need reform
and restructuring to focus specifically on scale-up.
Nuclear Regulatory Commission (NRC) reform is under way, but more is needed.
Innovation requires iteration, and that requires new thinking. NEPA reform is also
needed, and so is improved interconnection of new energy sources to the grid.
SMR markets will be global, so NRC and DOE must not ignore international regulation.
United States, Europe, Japan, and other allies can align their regimes to help counter
competition from Chinese and Russian state-backed enterprises.
