Renowned nuclear scientist Dr Anil Kakodkar has raised important questions about the commercial viability of Small Modular Reactors (SMRs), stating that their success will remain limited until large-scale orders are placed and near-total local value addition is achieved.

Why SMRs Are in Focus

SMRs are being promoted globally as a flexible, safer alternative to large nuclear power plants. Their smaller size, modular construction, and potential for quicker deployment have attracted interest from many countries looking to transition to low-carbon energy.

However, Dr Kakodkar cautions that technological promise alone is not enough.

The Core Viability Challenge

According to Dr Kakodkar, SMRs face two major hurdles:

1. Small Order Books

SMRs are expected to become cost-effective only when:

• Large numbers of identical units are ordered

• Mass manufacturing reduces per-unit costs

• Supply chains stabilize over time

Without bulk orders, SMRs remain expensive compared to conventional power sources, weakening their economic case.

2. Low Local Value Addition

Dr Kakodkar stressed that unless close to 100% of components, systems, and services are sourced domestically, countries will struggle to:

• Control costs

• Build long-term industrial capability

• Reduce dependence on foreign suppliers

Imported technology with limited local manufacturing, he noted, does not create sustainable value.

Lessons From India’s Nuclear Programme

Drawing from India’s experience, Dr Kakodkar pointed out that the country’s nuclear power programme became viable only after:

• Indigenous reactor designs were developed

• Domestic manufacturing ecosystems matured

• Repeated construction created economies of scale

He suggested that SMRs must follow a similar path to succeed.

Policy and Industry Implications

Dr Kakodkar’s remarks signal that governments and industry must:

• Commit to long-term deployment plans

• Encourage domestic manufacturing and R&D

• Avoid viewing SMRs as a quick, off-the-shelf solution

Without these steps, SMRs may remain technologically impressive but commercially limited.

The Bigger Picture

While SMRs could play an important role in future clean energy transitions, Dr Kakodkar’s assessment underscores a key reality: economic viability depends as much on industrial strategy as on reactor design.

Until order volumes rise and local value chains are fully developed, the promise of SMRs will continue to face serious questions.