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ABSTRACT
Increased reliance on fossil fuels contributes to rising greenhouse gas emissions and compromises the economic stability and supply of electricity markets, as fossil fuels are susceptible to significant price fluctuations. Nuclear energy provides carbon-free, base-load electricity with relatively stable long-term fuel costs. Large nuclear plants were constructed to help meet base-load energy demands; today, many distinct factors threaten the economic competitiveness of existing and new large commercial nuclear plants. Small Modular Reactors (SMRs) are an emerging class of nuclear reactors that may provide a more competitive alternative in many potential markets: replacing aging coal fired power plants, providing combined electricity and process heat for industrial applications, supporting intermittent renewable energies, and generating power in regions presently underserved by large commercial reactors. SMRs may also be more attractive in markets that lack a widely distributed transmission infrastructure, have limited water availability for cooling, or have a smaller energy demand making large reactors uneconomical. SMRs typically operate with a rated capacity of 300 MW or less and are designed as individual modules containing the safety-grade components. Methods to assess the investment costs for first-of-a-kind through nth-of-a-kind SMRs is crucial to understanding how SMR investments differ from those of traditional commercial reactors as a result of their modular design, colocation of modules, and other features; it is also significant in analyzing their market potential and economic viability and determining how sensitive the investment costs are to changes in the debt-equity structure of the investor, interest rates, and construction delays, which are common to the nuclear industry.
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1. INTRODUCTION
Presently, there are 70 reactors under construction internationally [1] and as many as 167 new plants being planned, while another 23 units are being proposed. Nuclear power is expanding internationally because long-term fuel costs associated with nuclear energy represent only a small fraction of its levelized cost of electricity (LCOE), and nuclear energy demonstrates a reduction in carbon emissions over fossil fuel technologies [2]. As the world attempts to meet growing energy demands in more sustainable manners, it must address the rising demand for electricity while ensuring energy security, mitigate concerns related to climate change and the continued use of fossil fuels, and allow use in limited-capacity electrical grids. To meet these measures,...