Modular SMR reactors are now commonly recognized as a technology that can replace conventional nuclear power. Many countries around the world are already investing in it, with a sizable interest also seen in Poland. According to the Polish Economic Institute, up to 100 SMRs could be built in the country, with the first starting to operate likely in the beginning of the next decade. “Where large nuclear power plants cannot be located due to objective environmental requirements, SMR’s will be able to function and not only electricity but also heat will be produced,” says Szczepan Ruman, President of the Świętokrzyska Industrial Group Industria, which cooperated with Rolls-Royce SMR last year.
“Energy needs will grow for two reasons. Firstly, about 70% of energy in Poland is still produced from coal and this is what is to be decarbonized. Secondly, transport and industry are also to be decarbonized. When we have electric or hydrogen-powered cars, green hydrogen produced from electricity will be used in industry. This means that there will be a large need for electricity. Therefore, in my opinion, the big atom will experience a renaissance,” says Szczepan Ruman to the Newseria Biznes Agency.
According to estimates by the IEA (“Electricity Market Report 2023”), global demand for electricity in 2023-2025 will grow at a much faster rate than before, increasing by 3% annually. Renewable energy sources and nuclear energy, which production will grow by 4% annually in the coming years, are expected to cover the vast majority, 90%, of this additional demand. The IEA states that this will result from the expected revival of nuclear power production in France as planned maintenance works end and new power plants commence operations, mainly in Asia.
Russia’s aggression on Ukraine and the energy markets crisis have catalyzed a revival of nuclear power also in Europe. Many European countries have accelerated investments in new power plants. These include Poland, which intends to implement a project in Lubiatowo-Kopalino in Pomerania, carried out jointly with the American corporation Westinghouse.
“In France, where there are 56 reactors, they will reach the end of their life cycle and will be replaced by new, large reactors, so the big atom will definitely fare well. The Polish project on the coast will also be realized,” says the President of the Świętokrzyska Industrial Group Industria. “Historically, most electricity production and consumption falls in southern Poland – where there are agglomerations, industrial centers and a significant demand for electricity and heat. I believe this is a potential for SMRs, which can be located where – due to objective reasons and environmental requirements – there is no room for large nuclear power plants. However, SMR’s will be able to operate there and deliver not only energy but also heat.”
SMR’s (Small Modular Reactors) are already commonly recognized as the technology of the future that can replace conventional power engineering. Several countries from around the world are investing in this technology – besides the USA and Canada, also the UK, France, Sweden, Denmark, Czech Republic, Estonia, Belgium, Lithuania, Bulgaria, Romania, and Russia. According to data provided by the Polish Economic Institute, over 70 different SMR reactor projects are currently being developed worldwide (most of them are still in the design stage – conceptual or advanced).
“I have the impression that almost every day in the newspapers we read about a new SMR project,” says Szczepan Ruman.
The main advantage of small, modular reactors (according to the definition of the World Nuclear Association – about 300 MW or smaller, but this limit is fluid and can reach 630 MW) is that they provide a safe and stable source of clean energy, and both the cost and construction time are significantly lower when compared to a traditional nuclear power plant. Simultaneously, SMRs can be built in more potential locations than large-scale nuclear energy, and their flexibility offers high possibilities for adapting the project to the investor’s needs.
“In the Polish energy system, SMRs can produce energy in the south of the country, where energy and heat production have historically been, where there was industry, and where there is a high population density. They will work in what is known as the base, i.e. they will generate electricity that can be relied upon, available 365 days a year, 24 hours a day. On the other hand, they can also offer system heat for the industry, which has significant needs in this respect,” emphasizes the President of the Świętokrzyska Industrial Group Industria.
Based on this year’s report on “Prospects for the Use of SMR Reactors in the Polish Energy Transformation” by the Polish Economic Institute, these units can be used as power plants stabilizing renewable energy sources, used for hydrogen production and energy for industry and system heat. According to experts surveyed by PIE, the most crucial role of SMR in the Polish energy transformation may be this last aspect, i.e. the use of SMRs in the production of system heat.
As PIE reported in June, according to official announcements, about 100 SMRs are to be built in Poland. Projects in this area are undertaken, among others, by Orlen (whose projects were recently discussed due to negative opinion from the Internal Security Agency) and KGHM. Based on the Institute’s research, 67% of surveyed experts see a chance for SMRs to satisfy at least 20% of the demand for system heat for the 10 largest Polish agglomerations in the future.
On the other hand, many experts suggest that the construction of SMR reactors – although it may play an essential role in the decarbonization process – will not replace the need for investments in RES and large-scale nuclear power. On top of that, in Western countries, no such reactor has been launched yet in practice, and SMR technology is still in an early development stage.
“That’s why we think it’s worth choosing a project implemented by a company with a team of engineers who have been delivering working reactors in the last decades. That’s why we partnered with a partner like Rolls-Royce, which also has the entire reputation of the brand,” says Szczepan Ruman.
The Świętokrzyska Industrial Group Industria (part of the Industrial Development Agency) signed a memorandum of understanding with Rolls-Royce SMR last year regarding cooperation to implement small modular reactors in Poland.
“We started early because those who look at it realistically know that the first reactor in Poland – big or small – will be launched around 2033–2035, so there is still a lot of time in which legal procedures, permits, analyses, and everything needed to start construction will be ongoing. Launching this cooperation now makes sense mainly because the supply chain can already be constructed. This is what we want to do as part of the Industrial Development Agency Group and within the entities gathered in our Central Hydrogen Valley named after the Łaszczyński Brothers. We want to create a supply chain for future SMR economy, for those projects that will realistically be implemented in a few years,” emphasizes the President of the Świętokrzyska Industrial Group Industria.
The Central Hydrogen Valley named after the Łaszczyński Brothers – connecting the Świętokrzyskie and Łódź regions as well as southern Mazovia and northern Podkarpacie – was established in October last year, and one of its main goals is the development of nuclear power based on SMR technology.
Among the key players currently developing SMR projects are, among others, the American company NuScale, European Nuward (a joint initiative of the French EDF with French Alternative Energies, Atomic Energy Commission (CEA), Naval Group and TechnicAtome) – announced as the first reactor designed in the European Union – and Rolls-Royce SMR, which started working on its UK SMR reactor of 470 MWe capacity as early as 2015. According to the manufacturer’s announcement, the first such reactor is to be built in the early 30s. The project enjoys high public support from the British government – in 2021, it was granted 240 million euros of government subsidies.
“It is a project that is already going through the certification process with its regulator, and it’s not just on paper. Among the many different SMR projects, there are a few companies that are credible and trusted partners, and I think the Polish market will be a very attractive place for them to showcase their capabilities. As the Świętokrzyska Industrial Group Industria, we will strive to have one location where there will be two to three units,” says the company’s president. “However, we are actively working to attract other contractors who will also be interested in this technology in the Polish market, because there is a great potential for cooperation between companies in nuclear projects.”
According to the data quoted in the report by the Polish Economic Institute, the value of the small nuclear reactor market in 2020 was estimated at around 3.5 billion dollars. However, according to market forecasts by Allied Market Research, by 2030 this market is expected to be worth nearly 19 billion dollars. According to forecasts by the OECD and the Nuclear Energy Agency – in their positive scenario – by 2035, SMR projects will exceed 20 GW of installed capacity, and in the scenario of fast technology development by 2050, even 375 GW could be built.
“The most significant barrier at this moment is the workforce, second is the preparation of the industry, certification, standards that need to be implemented, and lastly – the money for investment. Because if there is a good project, from a reliable supplier, who is certain that it will be implemented because it has permits etc., it will be a good business proposal for investors. However, first, this legal work, building the workforce, and creating a supply chain must be done to implement this project,” explains Szczepan Ruman.
