Taking a closer look at Small Modular Reactors
Totschnig: “Small nuclear power plants are no answer to today’s climate and energy challenges – we must continue to expand renewable energy”
In its SMR strategy, presented in March 2026, the European Commission is placing greater emphasis on small modular reactors (SMRs) and regards them as a key component of European energy and climate policy. Accordingly, the development of SMRs is to be accelerated, a European nuclear industry is to be established, and this industry is to be supported with EU funding.
Austria firmly rejects these plans – in particular the use of EU funds for the development and promotion of SMRs. Austria also insists that SMRs must be subject to at least the same safety requirements as large nuclear power stations.
The Federal Ministry of Agriculture and Forestry, Climate and Environmental Protection, Regions and Water Management has therefore commissioned the Federal Environment Agency to carry out a study on the “Framework conditions for small modular reactors in the Euratom Member States” (Website in German) . The aim was to establish a fact-based foundation for assessing cost developments, market potential and the feasibility of SMRs in Europe.
Environment Minister Norbert Totschnig: “The study clearly shows: Small Modular Reactors are neither a readily available nor an economically viable solution to the current climate and energy policy challenges Europe is facing. It is incomprehensible that the European Commission is relying upon a technology that has yet to be developed, whereas safe, more cost-effective and readily available renewable alternatives are already at our disposal today. Austria therefore firmly opposes the use of EU funds to finance SMRs. Instead, we are focusing on expanding renewable energies. “We have been pioneers in this field for many years, and we will continue steadfastly along this path to success.”
The study confirms the Austrian position on key points:
- Widespread commercial deployment of SMRs in Europe is not realistic until the 2040s at the earliest. There are currently no SMRs in operation or under construction in Europe; many plans are still in the early stages of development.
- SMRs can therefore not make any significant contribution to decarbonisation in the short term or to achieving climate targets.
- Experience from existing projects outside Europe points at significant cost increases and delays. Compared to renewable energy sources, SMRs are significantly more expensive and are not economically competitive.
- There is currently no European manufacturing industry for SMRs, and one would first have to be established. At the same time, there are significant dependencies on supply chains, key components and nuclear fuels.
- Regulations and technical standards vary considerably across Member States. This requires adjustments that make serial production more difficult.
Overall, the study concludes that, given the current framework conditions, the widespread and commercial deployment of SMRs in Europe is highly unlikely in the foreseeable future.
Small Modular Reactors – General Information
There are countless different SMR concepts and developments around the world. Most of these concepts are at an early stage of development and their market prospects cannot be predicted at this stage. There are still numerous unresolved issues and aspects. This had already been demonstrated by an analysis of various SMR concepts commissioned in 2022.
Many countries – including also some of Austria’s neighbours – want to tackle the climate and energy crisis through nuclear power and believe that small-scale, serially-produced SMRs will provide the breakthrough. The industrial and financial sectors are generating a hype, which is why there is currently a lot of promotion for the funding of a variety of concepts and business ideas – many of which are still at the development stage. According to very ambitious plans, SMRs should go into operation as early as in the 2030s. There are various reasons to doubt whether this can actually be achieved within the specified timeframe, and to view the safety and benefits of SMR in general with scepticism.
10 reasons why SMRs should be viewed with scepticism:
Given that SMRs are a relatively new concept, there is as yet virtually no experience with it. This poses potential security risks. According to the plans announced by developers, SMRs could be built and operated by companies from entirely different sectors, which raises questions regarding the necessary expertise in the fields of nuclear energy and radiation protection.
The industry is calling for the approval process to be alleviated through standardised and simplified type approval. However, the supervisory authorities point at the need for audits. Pressure from industry and the political sphere for faster approval procedures is rising. It is also unclear how the verification and certification of manufacturing sites could be carried out.
In any case, the same safety requirements must apply to SMRs as to large nuclear power stations.
The SMR plans currently available exhibit, for application-oriented concepts, fundamental disadvantages compared to large-scale plants in terms of protection against malicious acts originating from within or outside the plant, as well as within the upstream manufacturing industry.
SMRs are intended for serial production and are therefore not designed for specific sites. For this reason, there are significant concerns regarding a type approval that is entirely location-independent, without any further substantial testing by the approval authorities or for specific sites. In any case, appropriate suitability for a specific location would have to be demonstrated.
Current SMR designs indicate fundamental disadvantages compared to large-scale plants in terms of the proliferation of nuclear weapons-grade materials and technology, for example due to higher levels of fissile material enrichment.
It can therefore be assumed that the volume of radioactive waste and spent fuel – relative to the power output – will not decrease, but will in fact increase.
It remains to be seen to what extent cost savings can be achieved through the modular, standardised and serial production of SMRs at central industrial sites. It is unlikely that the structural cost disadvantage of low-power reactors can be offset by learning effects and high production volumes.
Global and complex supply and delivery chains for the serial production and operation of SMRs create a high potential for interdependencies and also require a stable political, legal and financial environment. Significant investment would also be required before the start of serial production of SMRs.
Furthermore, the establishment of an SMR manufacturing industry leads to lock-in effects due to the commitment to one or a few SMR types.
In addition, there is a high demand for qualified workers at the sites where the modules are to be prefabricated. The supply chains for components, services, etc., would first have to be established. When calculated on the basis of installed generation capacity, SMRs require a greater deployment of qualified personnel and safety-critical systems.
Renewable energy sources and nuclear energy are only partially compatible due to their differing energy generation profiles. If a large amount of electricity were being generated from renewable energy sources, the power output of an SMR fleet would have to be throttled to avoid an overloading of the electricity grid. As SMRs can only pay off their substantial investment costs when operating at high capacity, combining the two technologies is not economically viable.
Technical analysis
To gain an overview, the Federal Ministry commissioned a technical analysis of various SMR concepts in 2022.
The study examined the six most advanced and relevant SMR concepts. In doing so, the various concepts were compared from a technical perspective and their safety and process engineering characteristics were analysed. Issues relating to approval and economic aspects were discussed as well.
The analysis shows that, of the concepts currently being heavily promoted, only a few are realistic, and that even the most developed and advanced ones face a wide range of challenges. There are numerous unresolved safety and regulatory issues (including new design solutions, reduced safety systems, materials and manufacturing methods) and aspects relating to site assessment concerning the impact of external hazards, as well as issues concerning new operators from other sectors of the economy. Other outstanding issues relate to the manufacture of SMRs and their actual deployment.
The SMR analysis thus confirms: Although one might expect otherwise given the industry’s almost euphoric announcements, it is highly unlikely that SMRs will be widely introduced within the next 10 years.
The arguments against nuclear power apply equally to SMRs as they do to large-scale plants. The development of SMRs should also be rejected because it would come far too late in the fight against climate change. In any case, the same safety requirements must apply to SMRs as to large nuclear power stations.