What is an SMR? Canada’s Future in Small Modular Reactors

Image from: Nuclear Energy Agency. ‘Examining the Safety of Small Modular Reactors’. Nuclear Energy Agency, 2022. https://www.oecd-nea.org/jcms/pl_71126/examining-the-safety-of-small-modular-reactors.

What is an SMR?

Small Modular Reactors (SMR) are part of Canada’s future. Unlike large conventional reactors that generate up to 700 plus megawatts such as Bruce Nuclear Generating Station in Canada, or the Fukushima Daiichi Nuclear Power Plant in Japan, the smallest variants of SMRs known as micro-reactors can be used to generate below 10Mw of clean, financially viable sources of localised power.[1] Given that SMRs are smaller in size they can be seen as a reliable source for deployment in remote areas such as the Arctic or off-the-grid areas. By taking decisive action to uphold sovereignty and globally lead the transition to clean energy SMRs offer a clear solution to diversifying Canadian energy portfolios amid rising security and geopolitical challenges.[2]

SMR’s Are Worth the Business, Here’s Why!

While these modular designs are crucial for facilitating the transition from expensive and environmentally damaging diesel to renewable energy in remote locations, they also present significant business advantages. Deployment of SMRs can attract and drive financial incentives, reducing the price associated with energy projects.[3] For instance, SMRs can reduce capital costs by moving away from the bespoke designs of massive power plants,[4] towards factory-made units harnessing economies of scale. A prominent example is Saskatchewan’s decision to construct its first SMR facility, using Westinghouse’s AP300 reactor designed to condense construction time frames, reduce operating and maintenance costs, standardized management practices, and fast-tracked regulatory approvals[5] to enable industrial development. For this reason, policy makers, governments, and private organisations should be interested in SMR investments due to several financial benefits including:

Faster Construction Timelines

Being smaller in size and modular, SMR construction times are condensed allowing better adaptability for market conditions in terms of sizing and investment deadlines.[6]

 An Edge on Energy and Fuel Security

Nuclear resilience is advancing and becoming a more affordable option, now more than ever businesses have the chance to invest into technology that is reliable, predictable in terms of capital and operating costs, and demonstrably safe. SMRs can store fuel on-site for over 20 years without needing to be refuelled,[7] and provide uninterrupted power to the electrical grid with reliability.[8]

 Why are SMRs the Future?

The world is evolving and needs innovative ways to maintain a future without reliance on carbon-intensive fossil fuels to generate electricity. With the prediction that fossil fuel will run out by the end of the century,[9] with this in mind, Canada is one of the many countries that faces challenges in providing access to electricity, a 2019 report found that over 200,000 Canadians and 280 communities are behind.[10] SMRs become vital for survivability. In this context SMRs become a critical player in providing reliable energy and safe technology to help Canadian communities of all sizes prepare for future energy challenges.

Some key energy obstacles that the world is likely to face within the next decade are:

1. Geopolitical challenges

 Trade tensions and political instability have threatened reliance on the highly integrated North American electricity grid, which for all intents and purposes recognizes no Canada-US border.[11] Thus, SMRs offer an alternative solution for supply of electricity and reduce dependence on energy imports, whilst enhancing national security specifically, sovereignty in the Arctic against foreign aggressors.[12]

2. Aging Energy Infrastructure

Canada’s electricity grids are aging and struggling to keep up with the demands of economic development. Where prosperity and national security rely on energy, SMRs will become a prominent feature of Canadian infrastructure, but are too slow in adoption which needs to change. Det Norske Veritas released an Energy Transition report for the outlook of North America up to the year 2050, sharing that a collective $12 trillion needs to be spent on clean energy, electrification of key sectors, grid expansion, and policy-driven decarbonization efforts.[13] With this in mind, SMRs offer fast deployment and strong economic value concerns of deteriorating infrastructure.[14]

Conclusion

As demands for energy steadily rises in Canada,[15] and critical infrastructure ages at a rapid pace partially due to under investment, SMRs present a viable option cost-effectiveness solution. SMRs ability to be factory produced at a mass rate, deployed efficiently, and integrated into current power grids makes these reactors an obvious alternative for the future of clean energy. Policymakers, industries, and governments need to invest in SMRs to keep an edge on energy security by enhancing critical infrastructure for a resilient future. The question we need to be asking is how can these same policymakers, industries, and governments collaborate to accelerate the adoption of SMRs and integrate them into Canada’s energy future?

[1] International Atomic Energy Agency. ‘What Are Small Modular Reactors (SMRs)?’ International Atomic Energy Agency, 2023. https://www.iaea.org/newscenter/news/what-are-small-modular-reactors-smrs.

[2] Ann Marie Vaughan and Steven Murphy. ‘Canada’s Energy Future: Diversification Is Key to Independence’. The Globe and Mail, 2025. https://www.theglobeandmail.com/business/adv/article-canadas-energy-future-diversification-is-key-to-independence/#:~:text=By%20diversifying%20our%20nuclear%20energy,dominate%20the%20international%20nuclear%20market.

[3] Dominik Katarzynski and Patrycjusz Zarebski. ‘Small Modular Reactors (SMRs) as a Solution for Renewable Energy Gaps: Spatial Analysis for Polish Strategy’, 2023, 5. https://www.mdpi.com/1996-1073/16/18/6491.

[4] World Nuclear Association. ‘Small Nuclear Power Reactors’. World Nuclear Association, 2024. https://world-nuclear.org/information-library/nuclear-fuel-cycle/nuclear-power-reactors/small-nuclear-power-reactors#:~:text=Because%20of%20their%20small%20size,design%20will%20reduce%20costs%20further.

[5] Westinghouse Electric CompanyWestinghouse. ‘Next-Generation Nuclear Power Plants’. Westinghouse, 2025. https://westinghousenuclear.com/energy-systems/#:~:text=The%20AP300%E2%84%A2%20small%20modular,responsible%2C%20energy%2Dabundant%20future.&text=Click%20on%20the%20background%20to%20close%20the%20popup.

[6] Benito Mignacca, Tristano Sainati, and Giorgio Locatelli. ‘Deeds Not Words: Barriers and Remedies for Small Modular Nuclear Reactors’ 206 (2020): 2.

[7]  World Nuclear Association. ‘Small Nuclear Power Reactors’. World Nuclear Association, 2024. https://world-nuclear.org/information-library/nuclear-fuel-cycle/nuclear-power-reactors/small-nuclear-power-reactors#:~:text=Because%20of%20their%20small%20size,design%20will%20reduce%20costs%20further.

[8] Office of Nuclear Energy. ‘5 Key Resilient Features of Small Modular Reactors’. U.S. Department of Energy, 2025. https://www.energy.gov/ne/articles/5-key-resilient-features-small-modular-reactors.

[9] MET. ‘When Will Fossil Fuels Run Out?’ METGroup Countries, 2021. https://group.met.com/en/mind-the-fyouture/mindthefyouture/when-will-fossil-fuels-run-out.

[10] Canada Powered By Women. ‘Canadians in Remote and Rural Communities Need Access to Affordable, Reliable Energy’. Canada Powered by Women, 2024. https://www.canadapoweredbywomen.ca/canadians-in-remote-and-rural-communities-need-access-to-affordable-reliable-energy/#:~:text=For%20context%2C%20there%20are%20approximately,to%20the%20Canadian%20Energy%20Centre.

[11] See North American Electrical Reliability Corporation, https://www.nerc.com

[12] International Atomic Energy Agency. ‘What Are Small Modular Reactors (SMRs)?’ International Atomic Energy Agency, 2023. https://www.iaea.org/newscenter/news/what-are-small-modular-reactors-smrs.

[13] Peter Lovegrove. ‘$12 Trillion to Be Spent on Renewables and Grid Infrastructure in the U.S and Canada by 2050 – Report’. Det Norske Veritas, 2023. https://www.dnv.com/news/-12-trillion-to-be-spent-on-renewables-and-grid-infrastructure-in-the-u-s-and-canada-by-2050-report-247391.

[14] Kirsty Gogan and Kristen Panerali. ‘Accelerating New Nuclear and Small Modular Reactor Deployment’. World Economic forum, 2024. https://www.weforum.org/stories/2024/11/accelerating-new-nuclear-and-small-modular-reactor-deployment/.

[15] Canada Energy Regulator. ‘Market Snapshot: Energy Demand from Data Centers Is Steadily Increasing, and AI Development Is a Significant Factor’. Government of Canada, 2024. https://www.cer-rec.gc.ca/en/data-analysis/energy-markets/market-snapshots/2024/market-snapshot-energy-demand-from-data-centers-is-steadily-increasing-and-ai-development-is-a-significant-factor.html?.