The US Department of Energy's recent financial awards to GE-Hitachi and Holtec for building 300 MW SMR units have sparked debate about the economic viability of nuclear power. The DOE's decision to focus on legacy technology, rather than Gen 4 reactor designs, raises questions about the industry's ability to compete with cheaper alternatives like solar and battery storage. The high cost of the new facility, estimated at $5.3 billion, is six times the cost of new gas-fired power plants, which could drive up electricity rates and push wealthier consumers toward off-grid alternatives. This could lead to a burden on less affluent consumers, as non-grid resources become cheaper. The authors argue that the nostalgia for old technologies like coal-fired and nuclear power stations has consequences, raising the price of electricity above what it would have been if the generators had made economical choices. This could lead to a surcharge on all sales or rate increases in regulated markets. The real long-term issue is the potential for better-off consumers to invest in on-site alternative resources, putting more of the burden of supporting the grid on less affluent consumers. The authors conclude by emphasizing the need for a more sustainable and economical approach to energy generation.
