Load following with Small Modular Reactors: a real option analysis

<p>Load following is the potential for a power plant to adjust its power output as demand and price for electricityfluctuates throughout the day. In nuclear power plants, this is done by inserting control rods into the reactorpressure vessel. This operation is very inefficient as nuclear power generation is composed almost entirely offixed and sunk costs; therefore, lowering the power output doesn’t significantly reduce generating costs and theplant is thermo-mechanical stressed. A more efficient solution is to maintain the primary circuit at full powerand to use the excess power for cogeneration. This paper assesses the technical-economic feasibility of thisapproach when applied to Small Modular Reactors (SMR) with two cogeneration technologies: algae-biofuel anddesalinisation. Multiple SMR are of particular interest due to the fractional nature of their power output. Theresult shows that the power required by an algae-biofuel plant is not sufficient to justify the load followingapproach, whereas it is in the case of desalination. The successive economic analysis, based on the real optionsapproach, demonstrates the economic viability of the desalination in several scenarios. In conclusion, thecoupling of SMR with a desalination plant is a realistic solution to perform efficient load following.</p>