The Power Allocation

SMR Costs and the $182 Question

Listen Later
In this episode of The Power Allocation, we examine the economics of small modular reactors: current estimates put SMR electricity at around $182 per megawatt hour—roughly three times solar, four times natural gas. The economics don't work yet. But data centers may change that equation.

When your alternative is no power at all—or waiting five years for interconnection—$182/MWh starts looking reasonable.

Key topics covered:

  • Why first-of-a-kind reactor costs don't reflect mature technology economics
  • The troubled history of nuclear cost projections and the industry's credibility problem
  • How hyperscalers can tolerate premiums that other customers won't pay
  • Long-term contracts that average costs: $200/MWh year one, $80 by year fifteen
  • The coordination problem: everyone waiting for someone else to go first

    • About The Power Allocation: Brought to you by Spring Street Management Group, translating data center and energy hype into real infrastructure and assets on the daily.

    Keywords: SMR cost, $182 per MWh, nuclear economics, first-of-a-kind reactor, data center power premium, nuclear cost projections, SMR scale economies, hyperscaler nuclear investment

    ]]>
    ...more
    View all episodesView all episodes
    Download on the App Store
    The Power AllocationBy Spring Street Management Group