There are already SMRs deployed and operating in China and Russia, as well as one test reactor in Japan.
Other first-of-a-kind SMRs are expected to be built this decade, followed by accelerated deployment worldwide during the 2030s, particularly as a source of reliable, low-carbon power generation and heat for hard-to-abate sectors. This includes notably the use of SMRs for on-grid baseload power to replace coal-fired generation, though market demand for SMRs continues to grow for other applications as well. The most promising include off-grid heat and power to replace diesel generators in remote regions for mining operations, fossil-fuel replacement for district heating, and high-temperature heat to replace fossil-fuel cogeneration in heavy industries. Other applications include replacing fossil fuels in cogeneration for ammonia and potash production for the fertiliser industry; hydrogen production for synthetic fuels and clean steel production; as well as marine propulsion to replace heavy-fuel oil for merchant shipping.

SMRs are driving innovation in the nuclear sector
The sector is witnessing significant innovation internationally. This includes SMRs at various stages of
development, from fundamental research on new concepts to commercial deployment and operation.
The innovation pipeline includes a range of reactor concepts – from incremental innovation in existing light water reactor technologies to breakthroughs in advanced Generation IV reactor concepts. It also includes SMRs in a variety of configurations – with land-based, multi-module, marine-based and transportable designs. These innovations incorporate new materials, a range of coolants, and, in some cases, innovative fuels. This is in turn expected to lead to the deployment of a range of SMRs of different sizes, with a range of outlet temperatures, and new attributes.

Nuclear energy supplies approximately 10% of the world’s electricity from 412 nuclear power
reactors in operation, providing 370 gigawatts of capacity. It is the largest source of non-emitting
electricity generation in OECD countries and the second largest source worldwide after hydropower.

The role of nuclear energy in meeting these pathways was emphasized at the 28th Conference of the
Parties (COP28) in Dubai on 2 December 2013 when the leaders of over 20 countries committed to
tripling global installed nuclear capacity by 2050, recognizing the critical role of nuclear energy in
achieving global net zero greenhouse gas emissions and keeping within reach the goal of limiting
the temperature rise to 1.5°C.

This commitment builds on NEA analysis that concluded in 2022 that to meet climate goals consistent with a 1.5°C scenario, global installed nuclear capacity needs to triple to 1 160 gigawatts by 2050 (NEA, 2022).