Energy sector is transforming rapidly to achieve its current sustainability goals. Small Modular Reactor (“SMR”) technology, which offers a smaller, safer and more flexible alternative to traditional nuclear reactors, may play an important role in this transformation. In this article, we review the developments regarding SMRs around the globe and in Türkiye.
Small Modular Reactor (“SMR”)
SMR is a reactor with a power capacity of up to 300 Megawatts (“MW”), approximately one third of the capacity of a conventional nuclear reactor, and it consists of multiple modular reactors.1 Some of the reasons why SMRs are becoming popular are as follows:
Due to their practical and economic advantages, SMRs may provide an accessible substitute to fossil fuels and help to the diversify energy production and achieve carbon emission reduction goals.
Global Developments Regarding SMRs
As a result of energy demand, carbon emission and energy safety concerns, global efforts in SMR technology have accelerated and governments started to promote SMR projects. According to the data published by the International Energy Agency, in 2022, approximately 70 different SMR designs have been developed globally with different levels of technology and suitability for a license.
In its policy note published in 2023, Sustainable Economy and Finance Research Association reported that there are currently two operational SMRs worldwide. The first one is Akademik Lomonosov, a floating nuclear power plant in Russia. Akademik Lomonosov was connected to the grid in December 2019 and reached full capacity in May 2020. It consists of two small nuclear reactors, each having a capacity of 35 MWe and is built on a 140 meter-long and 30 meter-wide vessel. The plant is designed to supply energy to inaccessible areas in the arctic region. The second operational reactor is the HTR-PM reactor at the Chinese Shidao Bay Nuclear Power Plant. The HTR-PM, which started commercial operation in December 2023, is also the world’s first modular high-temperature gas-cooled reactor.
In Europe, the European Commission organized its first workshop on SMRs in June 2021 to gather key players in the European industry for developing alternative SMR designs in Europe. On 4 April 2023, the Commission declared that it will continue to lead research, innovation, education and training for the safety of SMRs. Furthermore, the Commission seeks to establish a European industry alliance with the aim of conducting studies on SMR technologies and ensuring the installation of SMRs in the early future.
In the United Kingdom, six companies, including Rolls Royce and GE-Hitachi, were shortlisted in the first phase of the government’s competition to choose an SMR manufacturer, and the government announced that it will launch the next phase of the competition in the spring of 2024.
SMRs in Türkiye
Türkiye has ambitious goals for renewable and nuclear energy to reduce its dependency on foreign energy and fossil fuel consumption. Turkish National Energy Plan aims to raise the nuclear sources in the total energy production to 11.1% in 2035 and to 29.3% in 2053. In order to achieve these targets, Türkiye has to install more than 20 Gigawatts of capacity within a 30-year period.
Under national energy targets and to reduce carbon emissions, SMR technology has attracted attention in Türkiye in addition to conventional nuclear projects.
In 2020, a memorandum of understanding was signed between EUAS International ICC, a subsidiary of Elektrik Üretim Anonim Şirketi (the State-owned electricity generation company), and Rolls-Royce to evaluate the technical, economic and legal feasibility of SMRs and their production capabilities. Türkiye is also seeking for cooperation with American, British and French companies regarding SMRs and there are ongoing studies on business models, field research and legal framework for the SMR investments in Türkiye through the private sector with domestic contribution. Additionally, Justin Friedman, Senior Advisor for Nuclear Energy at the US Department of State, stated that there have been productive discussions between US and Türkiye regarding SMR technology and that Turkish market is appealing for the US companies.
SMRs from Legislative Perspective
Turkish legislation does not include any specific regulation on SMRs yet. In general terms, nuclear activities in Türkiye fall under the Nuclear Regulatory Law13 and are carried out under the supervision of the Nuclear Regulatory Authority. In addition, electricity generation activities using nuclear resources are subject to license obligations under the Electricity Market Law.
In the absence of a specific regulation, SMR projects in Türkiye will be subject to the general provisions applicable to conventional nuclear power plants. However, setting aside practical and economic advantages, SMR technologies come with their own risks. Since the current regulations are drafted based on conventional nuclear power plants, it may be necessary to introduce new rules to prevent a legislative roadblock against the practical advantages of SMR technology, especially in terms of permitting and licensing procedures, and at the same time to take appropriate safety measures against the specific risks of this new technology.
Conclusion
SMRs offer several practical and economic advantages, thus becoming an attractive option for economical and sustainable energy production. SMRs can represent an important opportunity for the Turkish market, which is open to alternative resources to diversify its energy production and reduce the share of fossil fuels.
COUSEL
Müşavvir Enerji / Elektrik Petrol ve Doğal Gaz Madencilik Taşımacılık ve Lojistik Kamu Özel İşbirlikleri ve İmtiyazlar İnşaat ve Altyapı Finansal Hizmetler Projeler ve Proje Finansmanı Bankacılık ve Finans Şirketler ve Ticaret Hukuku Sermaye Piyasası Hukuku Kamu İhale Hukuku Gayrimenkul Hukuku
ASSOCIATE
Avukat Tüketim Ürünleri Enerji / Elektrik Madencilik Savunma Şirketler ve Ticaret Hukuku Birleşme ve Devralmalar Dava ve Uyuşmazlık Çözümleri
INTERN LAWYER
Stajyer Avukat
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