Deploying Small Modular Reactor: Implications of Licensing and Financing

Small Modular Reactors (SMRs) are increasingly viewed as a critical technology to address the global energy trilemma, offering a pathway to secure, affordable, and sustainable low-carbon power. However, despite their theoretical advantages, such as modularisation, factory construction, and lower absolute capital costs, their transition from conceptual designs to commercial-scale deployment has been slow and fraught with constraints. Existing research has often examined deployment hurdles such as licensing and financing in isolation, failing to capture the deep, systemic interdependencies that govern their feasibility.

This thesis addresses this gap in knowledge by investigating how licensing and financing jointly influence the deployment of SMRs. Adopting a pragmatist philosophical stance and an abductive research approach, this work employs a qualitative design combining systematic document analysis, semi-structured interviews with senior nuclear experts to interrogate financing and deployment readiness conditions, and a consensus-building Delphi study to validate a deployable roadmap.

The core contribution of this research is the reframing of SMR deployment as a programme- level undertaking where licensing and financing operate as a coupled system. The findings demonstrate that a predictable, fit-for-purpose licensing framework is a primary financial enabler, reducing project risk, lowering the cost of capital and allowing “economies of multiple”. Similarly, financing availability, particularly in the early stages, is essential for advancing the technology and safety cases required for successful regulatory engagement. This thesis argues that managing this link is the central determinant of an investable SMR programme.

This research produces a practical, diagnostic toolkit for stakeholders, comprising four complementary elements, notably (1) a licensing typology framework distinguishing barriers from challenges; (2) an AI agent specialised in SMR financing; (3) a threshold-based progress framework for measuring systemic progress and identifying bottlenecks across key readiness areas, and (4) a Delphi-validated strategic roadmap that makes the interdependencies and sequencing of critical activities explicit.

This work provides a novel, integrated lens for understanding systemic enablers in complex energy technology transitions. Practically, it equips policymakers, regulators, investors, and developers with tools to diagnose readiness and reduce uncertainty.