Business · Energy & Commodities · 8 hrs ago
High costs and long timelines hold back small nuclear reactors
Businesses interested in making their own power are looking at small modular nuclear reactors as a possible way to secure their energy supply.
The OECD has counted 156 projects worldwide, including two in Italy, but only three have reached the prototype stage: two in China and one in Russia.
The main obstacle is financial, with costs and construction times still uncertain.
In the International Energy Agency’s best-case estimate, power from these reactors would cost $80 to $130 per megawatt-hour, compared with $60 for solar paired with battery storage and $50 for a conventional nuclear plant.
Investment remains limited, and the European Commission has set aside 200 million euros over two years while the European Investment Bank has approved 40 million euros for a Finnish startup.
In Canada, construction is under way on the first of four planned reactors at Darlington, with an estimated cost of $15 billion that local media say is uncertain.
Many designs also need a more concentrated uranium fuel called HALEU, which is scarcely available outside China and Russia, so costs, timelines and fuel supply remain unresolved.
High costs, uncertain construction timelines and limited investment are holding back small modular nuclear reactor projects.
The OECD Nuclear Energy Agency has tracked 156 micro-reactor projects worldwide, but only three have reached the prototype stage.
In its best-case scenario, the International Energy Agency puts their electricity cost at $80 to $130 per megawatt-hour.
That compares with $60 for solar power paired with battery storage and $50 for a conventional nuclear plant.
Fuel supplies are another concern: most projects rely on high-assay low-enriched uranium, which is scarcely available outside China and Russia.
- Who
- Companies interested in small modular reactors, alongside developers and investors. David Schlissel of the Institute for Energy Economics and Financial Analysis raised concerns about costs and timelines.
- What
- Small modular reactor projects face high projected electricity costs, uncertain construction expenses and timelines, and limited investment.
- When
- The article was published on November 4, 2026. It cites investment figures for 2025 and a Financial Times report dated October 30.
- Where
- Projects are being developed in several countries. A first reactor in a planned group of four is under construction at Darlington, Ontario, Canada.
- Why
- The projects face financial uncertainty, limited investment and scarce supplies of the fuel used by most designs.
This story does not have two clearly opposing sides.
Private equity and venture capital investment in the sector reached nearly $3 billion, according to the article.
The Financial Times reported on the level of private equity and venture capital investment in 2025.
Corriere della Sera reported that only three of 156 tracked micro-reactor projects had reached the prototype stage.
- Tracked projects
- 156 worldwide, according to the OECD Nuclear Energy Agency
- Prototype projects
- 3: two in China and one in Russia
- Estimated electricity cost
- $80–$130 per megawatt-hour in the IEA’s best-case scenario
- Darlington project
- First of four planned mini reactors under construction in Ontario, Canada
- Darlington estimated cost
- $15 billion
- Sector investment
- Nearly $3 billion in private equity and venture capital in 2025
What people are saying
No one knows how much it will really cost to build a mini reactor, how long it will take to build it, or whether it will really be able to repay the investments made to bring it to market.