Small Modular Reactors for a Low-Carbon Future: An In-Depth Analysis of Technology, Impact and Market Potential

In this work a comprehensive analysis of Small Modular Reactors (SMRs) as a pivotal technology for addressing global energy challenges while minimizing carbon emissions is presented. The study examines SMRs’ technical characteristics, economic considerations, and technological maturity, with particular emphasis on their potential as polygeneration systems. SMRs, representing evolutionary advancements of nuclear fission technology, offer near-term deployability, enhanced safety features, and modular economic benefits through factory fabrication and standardized production. The analysis specifically focuses on the competitiveness of SMRs in electricity, hydrogen and large-scale water desalination production. Through parametric optimization using complementary algorithms, the study rigorously quantifies SMR competitiveness by calculating the Levelized Cost of Electricity (LCOE), Levelized Cost of Hydrogen (LCOH), and Levelized Cost of Water (LCOW) across varying capacity ranges (50–600 MWe) and capital costs (3000–8000 US$/kW). The results demonstrate that capital cost minimization is the primary factor for achieving cost-competitiveness, with economies of scale providing secondary benefits. The findings indicate that SMRs can achieve competitive LCOE values within the 40–100 US$/MWh range for electricity markets, while hydrogen production costs range from 3.33 to 11.68 US$/kg and desalination costs from 0.40 to 0.98 US$/m3, positioning SMRs as economically viable solutions for integrated energy–water–hydrogen systems.