This article is a contribution to the NNWI Conference 2026: Powering Industrial Decarbonisation.
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Nuclear energy is re-emerging as a core pillar of energy security, system reliability and decarbonisation. This strong comeback was reflected in record-high nuclear electricity generation globally in 2025 and one of the largest waves of reactor constructions in three decades, driven by surging electricity demand. As observed after previous energy crisis during the 1970s, current disruptions in energy markets are set to result in a strategic response and a reinforcement of the ongoing nuclear comeback.
Technology developments are set to accelerate. SMRs could benefit from this resulting in a faster entry to the market. The appeal of SMRs lies in more standardisation, more off-site manufacturing and serial production. This should trim construction times, and provide greater flexibility by slotting into regional grids or industrial hubs, reducing transmission losses and improving system efficiency.
Momentum is building, with more than 90 SMR designs under development across over 30 countries, spanning established and novel approaches, with around 12 at advanced stages. Engagement from the private sector is accelerating given that SMRs benefit from easier financing and lower upfront risk than large reactors. As of January 2026, around 45 GW of SMR capacity were announced to supply electricity for data centres. Industrial demand is also shaping design, with higher-temperature designs (up to 1 200 ºC) potentially capable of delivering heat required in hard-to-abate industries such as chemicals, steel or cement.
SMRs are expected to represent a growing share of nuclear investment. In the IEA Announced Pledges Scenario, more than 1 000 SMRs could be deployed by 2050, reaching a total installed capacity of 120 GW and accounting for around 20% of nuclear capacity additions. Under the IEA Stated Policies Scenario with the current policy ambitions, capacity would reach 40 GW.
Initial projects currently exhibit construction costs approximately double those of largescale reactors. Early SMR plants have taken 7–9 years to build, comparable to conventional reactors. Costs and lead times are expected to decline with scale, driven by increased standardisation and off-site manufacturing. SMR costs could reach parity with large reactors in the 2040s, falling below USD 5 000/kW in advanced economies and around USD 2 500/kW in China and India, positioning SMRs as a promising option to expand the role of nuclear energy provided that stable policy, regulatory and financing frameworks are put in place.
