A key hurdle for the implementation of SMRs, as with other traditional nuclear power projects, is the sourcing for financing of such projects. This is due to the high upfront capital costs and long construction period, followed by a lengthy payback period that makes such investments a costly endeavor. However, the nature of SMRs as smaller less capital-intensive projects as compared to traditional nuclear power plants has raised the potential of new financing options.
This report therefore seeks to evaluate the efficacy of financing options that have been employed in other nuclear power projects. Specifically, the report will focus on the applicability of various financing mechanisms in the African region, considering its unique political and economic factors. Given the novelty of SMR technology, there is no available template for which financing can be modelled after, especially in the African market. This report thus seeks to consolidate the various proposed financing options and comment on their validity in the African region.
By publishing this report, NBP hopes to bridge the gap between vendors and government stakeholders by offering a clearer idea of the financing options available for the new SMR technologies introduced.