Economic Advantages of Small Modular Reactors: Learning Curves, Construction Efficiency, and Scalability

This thesis explores the economic viability of Small Modular Reactors (SMRs) by analyzing key cost-reduction mechanisms. It quantifies the learning curve effect, estimating that 14-20 units produced in a single factory could reduce Overnight Capital Cost (OCC) by 20% through manufacturing efficiencies. The study also examines how shortening construction from 10 years (traditional reactors) to 3 years lowers Interest During Construction (IDC) by approximately $1 billion per plant while slashing investor risk by 40-50%. Additionally, it weighs modularization's substantial savings—up to 45% on OCC—against transportation logistics costs, finding net benefits. Finally, it argues that "economies of multiples" (mass-producing identical small units) can surpass traditional "economies of scale" (single large reactors) after 10-12 deployments, positioning SMRs as a scalable path to affordable nuclear energy.