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jillesvangurp 3 days ago

These are very long term bets. MS isn't betting much here, just staying involved just in case. Which is prudent but not much of a commitment. A big commitment for a trillion dollar company would have a big dollar value. Like billions of dollars. That's not what's happening here.

I like the idea of small reactors from a technical point of view. But I'm also a realist. To match current renewables growth (or even put a minor dent in it), many tens of thousands of these things are needed. They don't put out a lot of energy. In wind number of turbines it's something like 2-5 turbines per reactor. There already are tens of thousands of wind turbines. Plonking down a few hundred wind turbines is routine business. Getting the first small reactor online is still in progress.

In other words, small reactors are not happening anytime soon. Certainly not in the next decade. If there are a few hundred active small reactors in 15 years that would be really amazing. And if that happens at a reasonable cost (big if) relative to wind, solar, and batteries, that would be even better. But we'll be well into the second half of this century before these things are putting a dent into other sources of energy. And that's only if it all works out in terms of cost and technology. 25 years is not that long in nuclear. Long planning cycles are common. These things have a lot to prove.

I'm skeptical on especially the cost aspect. Nuclear proponents tend to gloss over the fact that nuclear has always been expensive. Things like waste handling and security add extra cost and small reactors just complicate that further. Small reactors have a lot to prove and the rosy projections tend to dodge the harder issues here. There's a lot of magical thinking around this topic.

In any case, a few hundred of these things would be a meaninglessly small drop in the ocean in terms of energy output. It's not coming even close to the yearly growth with solar, wind, and batteries. And MS needs data centers sooner than even those would be coming online. And the energy to power them. Wherever that's going to come from, it's (mostly) not going to be nuclear any time soon. Unless they drastically scale down their AI expansion plans. And long term this is a cost game. MS is going to need lots of cheap energy. Expensive energy just raises its cost. Unless small reactors fix the cost issue, MS won't be using a lot of small reactors.

energy123 3 days ago | parent | next [-]

This for me is the real crux. Safety, nuclear waste, land-use, etc, are all issues of relatively trivial concern. They're fixations on the wrong question. The dominant issue is delivering competitive unit economics.

For SMRs, all their work is still ahead of them. To get the learning rate going, you need to start mass production. Then you need to double that production again, and again, and again. Then, after 2-3 decades of doublings, you may be able to deliver $/Wh in the ballpark of where solar & storage is today.

Never mind that solar & storage will undergo multiple more doublings between now and then, and never mind that private industry will struggle to fund the required doublings for SMRs because it's not the maximally profitable choice on the margin.

It's just a very difficult pragmatic picture for nuclear.

jacquesm 3 days ago | parent | next [-]

> Then, after 2-3 decades of doublings, you may be able to deliver $/Wh in the ballpark of where solar & storage is today.

I highly doubt that will be the case. Even if solar and wind do not get better costwise (which is likely not true) the cost of maintaining and decommissioning SMRs is likely only to go up. This based on every other nuclear power plant to date, I have seen zero good arguments on why SMRs would be an exception to that rule.

energy123 3 days ago | parent [-]

It's worth noting that the nuclear power plants of the 1960s follow different scale economics to SMRs. Casey Handmer makes this point in his online interviews and debates. The 1960s plants get their scale benefits from their sheer size. Similar to building a few massive aircraft carriers or massive olympic stadiums, however inefficiently each one is built.

SMRs are more akin to mass manufactured widgets, where the scale benefits come solely from manufacturing efficiencies gained through volume. They'll have a learning rate that governs the price declines for each doubling in production volumes.

From a unit economics POV, it's probably more useful to think of SMRs as a solar/battery-like technology rather than a 1960s nuclear-like technology. The problem for SMR proponents is that solar/batteries have had 50 years of this feedback loop playing out, but SMRs are starting from no volume.

jacquesm 3 days ago | parent | next [-]

All of the plans that I've seen for SMR 'farms' were hopelessly naive when it came to security, decommissioning and compliance costs. They were just a hair above that 'swimming turtle island' when it comes to design phase realism. I really see them more as a way to milk subsidies than something that will actually happen in the next 30 years or so, especially not given the rate at which we are putting up solar and stringing HVDC interconnects, which in my opinion are the answer to the storage problem.

energy123 3 days ago | parent [-]

> stringing HVDC interconnects

Agree that this solves many of the same problems as storage (as does overbuilding).

The PR problem with renewables is that the solutions are invariably cognitively complicated and multifactorial. The solution is going to be some kind of optimized result that mixes various storage forms, HVDC interconnects, overbuilding, and diversifying with solar and wind, and the exact nature of the solution is going to vary by geography.

It's just a hopelessly difficult communication challenge. If so many HN people can't grasp these concepts and jump to provably incorrect catchphrases like "storage is too expensive", then what hope is there for the general public.

jacquesm 3 days ago | parent [-]

People on HN don't generally realize that energy has pretty much always been a mix and that adding new energy sources with different availability, slew rates (both up and down, and not necessarily symmetrical), cost, peak capability, base load capability and so on is a well understood problem that markets know perfectly well how to deal with.

Then there is the 'cool' factor ascribed to some solutions, an element of hope that a favorite technology will one day power the planet and all kinds of unrealistic assumptions about what is and what isn't technically, socially and economically possible. You are right that this is a difficult communications challenge but the level at which the discourse takes place is well below the minimum standards for taking part in such a debate.

We're talking about very simple basic and factual knowledge here we are still very far away from the complexity of say the 15 minute ahead market, balancing and long term cost projections of a particular technology, we are more in outright disinformation and denialism territory.

_aavaa_ 3 days ago | parent | prev | next [-]

The analogy is incorrect though.

There is economies of scale for creating the thing, and then the economies of scale for the thing making electricity.

You can make nuclear reactors smaller under the assumption that you’ll be able to make them faster and cheaper over time. But the cost of the electricity they make goes up versus larger reactors because the costs for parts aren’t linear. An SMR is a basically a tiny plant for making electrify.

A solar panel doesn’t have this issue. Making the panel 2x, 5x, 10x bigger does not change the unit economics of the electricity it produces.

bryanlarsen 3 days ago | parent | prev [-]

SMR's have neither of those economics of scale. Ontario is building 4, and there's a couple others at similar scale. Nobody is contemplating the thousands you'd need for the scale necessary to make the switch from bespoke to assembly line worth it. So the worst of both worlds.

jacquesm 2 days ago | parent [-]

And the risk with bespoke but still much higher numbers than regular plants is that you will need all of the overhead for a much smaller amount of output and you'll definitely not have the same QA budget that you have for a much larger plant. Prediction: many small failures. Hopefully not a 'small Chernobyl'.

panick21_ 3 days ago | parent | prev [-]

> They're fixations on the wrong question. The dominant issue is delivering competitive unit economics.

The problem is. The regulation around safety, waste and land-use is what make the economics the problem.

But you are right, it is difficult, or just straight up impossible with the current state or regulation and policy.

Just for reference, since NRC was establish, basically new nuclear has been approved. During the AEC, innovation was rapid. Basically, no longer a balance between concerns, but simply all out focus on safety for a specific set of reactors. That's not the only factor, but its a big one.

ProjectArcturis 3 days ago | parent [-]

It's pretty clear that for-profit entities will optimize to maximize profit at the expense of all other variables, including safety and the environment. We certainly can't trust the CEO class to properly prioritize safety concerns. So we will always need government regulations to keep these tradeoffs balanced.

You seem to be calling for a magical new set of regulations that are just as effective but don't cost as much. That's not going to happen.

panick21_ 2 days ago | parent [-]

Nuclear plants were already operated pretty safely and the saty was constantly improving as people were learning more and research was progressive.

You do not achieve safety by hard-coding all regulation to a specific technology and make everything else practically impossible.

It works like this:

"Your computer needs a C compiler with good error messages otherwise you can't build this",

"Ok but we are building a LISP machine, there literally is no C".

"We hear you but your C compiler needs good error messages".

"Ok, could you maybe tell us who you would accept from, we can show you our LISP compiler will have amazing error messages"

"MMhh sure we can do that, give us a full specification, and then we get back to you, but its going to cost you for every 1h we invest in that. And at the end, will tell you what we will accept as an application"

"Ok, how long will that take and how much will it cost"

"We can not give you a time or a cost, you will just have to wait (implied it will take at least many years and at least 100s of millions of $ with no outcome certainty what so ever)"

That's just the tip of the iceberg. And then each individual country has their own version of something like this.

So we have a market that is ultra heavy capital that needs scale. But scale is basically impossible to achieve.

Thankfully the US government has finally made some steps into relaxing some of these and adopting a smarter approach, but its like turning the titanic, see GAIN for example.

I am not suggesting we hand out plutonium the everybody who asks for it.

In fact what I dislike, is that anybody who even suggest that regulatory form is part of the solution people instantly bring out 'we need some regulation' or 'new regulation wont be magic'. Both are true, and both are irrelevant.

The de/re-regulation of many other industries has had dramatic effects, think of airlines, trucking, software, the Bell System and so on and so on. The current regulatory regime was created at a high point in panic and anti-nuclear sentiment.

What I would like to see is something like what NASA did, for commercial cargo and commercial crew. You start with something achievable (commercial cargo). Create programs where the government want's to achieve something, and has multiple companies bid in a technology independent way. Start with some smaller things, nuclear reactor for space, medical isotope reactors, off-grid nuclear and then do SMR.

torginus 3 days ago | parent | prev [-]

Renewables can't meet the base energy needs. You can't only run your datacenters and factories when the wind blows or the sun shines. They also have low power density, making them problematic at grid scale.

SMRs fix all the issues of modern nuclear reactors. SMR's are not 'small' in the absolute sense, they're on the scale of traditional power plants, not existing nuclear reactors.

They have a ton of advantages:

- They are inherently safe, no need to worry about meltdowns.

- They produce power comparable to existing power plants. Nuclear plants have huge issues with producing tons of power in a centralized manner, meaning the energy infrastructure needs to be designed around them, and probably you need a centralized infrastrucure for power distribution, which might not jive well with local politics. They also need huge concentrated cooling capacity, which might have negative ecological effects, and present a huge risk should they need to be shut down. The recent issues in France with global warming, where the rivers water level got lower and the water warmer, cutting down on cooling margins dramatically leading to shutdowns comes to mind.

- In contrast SMRs can be slotted into current energy infrastructure. Modern reactor designs can be throttled to match grid needs.

- SMRs are standardized, smaller and don't need to be built on site and can be built relatively quicker and cheaper. This is huge. If a traditional plant costs $20B and takes 20 years to build, the interest on the loans could mean it's never going to be financially viable. If you cound do something that makes quarter the power, but costs $5B and 5 years to build, it's an entirely different value proposition.

China is already building these, and they are the main country of origin for solar panels and equipment. Renewables make a ton of sense, but can't solve every issue.

bluGill 3 days ago | parent | next [-]

> You can't only run your datacenters and factories when the wind blows or the sun shines.

This has been false in the real world. Factories that use a lot of energy do work with the power company and shutdown all the time based on demand. Large steel mills have their own power plant onsite, but smaller ones just buy grid energy and they want the cheapest. They arrange their factory maintenance schedules with the power company so that the power plants are maintained as the same time they are shutdown. They shutdown every December so the power company can sell the power they were using to run Christmas lights. They often run overnight shifts only because that is when power is cheapest. Even the large factories with their own power generation have shutdown for a couple weeks to sell power to the grid (this is very rare, but it has happened).

Wind and solar is a little more difficult because it isn't as predictable, but that is different from unpredictable. The power companies already are running models to predict the wind and solar cycles because it is important for many things they do. You can bet those smaller factories are already working with the power company to schedule shutdowns when power is predicted to be expensive - factories have to do regular maintenance anyway so it is just a matter of being ready (spare parts) when asked, and wind/solar is predictable enough for this.

jillesvangurp 3 days ago | parent | prev | next [-]

> Renewables can't meet the base energy needs.

That assertion is not something everyone agrees with. And baseload is hardly ever qualified with even a ballpark estimate in GW or GWH of capacity needed. So, it's a fairly hollow and meaningless term.

And the reality is that for every 100GW added to grids world wide, about 80% or more is renewable. Nuclear is only small portion of the remaining capacity. And SMRs are a rounding error on that. Most of the rest is gas based generation.

Besides, data centers are a great example of something that can easily scale up and down its energy consumption based on price signals, user demand, etc. So, it's actually ideal to pair with fluctuating supply and demand from renewables. Using e.g. spot instances makes it easy for data centers to scale down their demand if energy is scarce and expensive. Other things they could do is throttle CPUs/GPUs based on energy pricing or encourage people to time shift non critical jobs to when energy is plentiful.

SMRs won't have fixed anything until there are lots of them. Whether you believe this will happen or not, it won't be happening very soon. Realistically, SMRs will remain a niche solution for decades to come; even if they do work at reasonable cost levels.

torginus 3 days ago | parent [-]

> And baseload is hardly ever qualified with even a ballpark estimate in GW or GWH of capacity needed.

If we close all the steel mills and ship off manufacturing to China, then yes, we won't have baseload, and we can be happy that we saved the planet using solar!

> Renewables can't meet the base energy needs. That assertion is not something everyone agrees with. And baseload is hardly ever qualified with even a ballpark estimate in GW or GWH of capacity needed. So, it's a fairly hollow and meaningless term.

> And the reality is that for every 100GW added to grids world wide, about 80% or more is renewable.

Do you have solar at home? Because I do, I have 10kW of panels on my roof. I just checked my stats and in December I approximately made about 15% o peak capacity. And even that isn't the whole picture, as there were chunks days where I basically made nothing and even the batteries couldn't pull me through it. And I have no idea how you're calculating this 100GW. If you count adding 2000 500W panels as adding 1MW, then even on the Caribbean your calculation is going to be incredibly generous.

> Nuclear is only small portion of the remaining capacity

As for nuclear, it was made way too expensive because the economy and money became fake, divorced from real value, and pearl-clutchers and concern trolls made it too expensive. But even in the 70s-80s when things were actually built in Europe, it was clear that Gen IV (of which SMRs are an example) was the future of nuclear, its just nobody bothered to build it because it was easier to ship off manufacturing into the 3rd world.

>Besides, data centers are a great example of something that can easily scale up and down its energy consumption.

Yeah when you buy millions of dollars of HW, the 'we'll need to run it at 15% capacity in December and during night, not at all' sounds like a sound return on investment. Way to cheerlead to get another industry shipped off from the continent.

> SMRs won't have fixed anything until there are lots of them.

SMRs are not small, they are scalable, and can be made in similar capacity to existing coal and gas plants. Once they reach EOL, they'd be a perfect slot-in zero emissions replacement. But since nuclear is the devil's work, I guess we'll get to keep burning gas for another half a century.

cycomanic 3 days ago | parent | next [-]

That fact that people can't even agree on what SMRs even are tells you everything. You advocate that they are essentially the same thing as a regular power plant, others say they are small boxes that can be put at any neighborhood corner.

But everything because they are going to scale magically. Nobody ever explained how that scalability is supposed to happen. A large portion of any nuclear reactor is still a steam turbine, we have built lots of these without seeing prices fall exponentially (like solar) why should adding a couple (really a miniscule) number of SMRs suddenly fundamentally change the way their price scaling?

torginus 3 days ago | parent [-]

I might be wrong but I don't think anyone's seriously proposing on building these truly tiny reactors - I think every one of these is being built is powerplant sized.

SMRs identifying trait is that these reactors are prefabricated and transported onsite and do not have to be built in pace.

lukeschlather 3 days ago | parent | prev | next [-]

> If we close all the steel mills and ship off manufacturing to China, then yes, we won't have baseload, and we can be happy that we saved the planet using solar!

86% of generation added in China in 2024 is renewable.

torginus 3 days ago | parent [-]

If you want reliable all-year round-the-clock solar, you have to over build by 20x, not to mention the batteries. (Wind has different but analogous issues)

That's not to hate on solar - I think it's great, and I personally have solar at home, but its not a substitute for everything

seec 8 hours ago | parent | prev [-]

I'm glad I'm not alone thinking this.

Much of the renewable price/cost calculation is plain wrong because we have offloaded the cost to other countries (who gladly still use fossil fuels).

On top of that there is the problem of maintaining a real economy inside the country, to benefit people actually living in said country. I believe most of HN don't care because they get paid to make stuff that is sold globally and they profit from that. They can't understand that not everybody can do that and you need to create value inside of the country so that they can share/benefit from that value creation.

I also have access to solar generation statistics in the middle of France and they make no sense without the generous subsidies and electricity generation purchase from the provider. But plenty are profiting from that so of couse they are happy about it.

energy123 3 days ago | parent | prev | next [-]

> You can't only run your datacenters and factories when the wind blows or the sun shines.

You're going to need more work than a bare assertion to demonstrate this, given that storage exists, and given that gas peaking exists, and given that interconnects exist.

Consider these:

- https://www.offgridai.us/

- https://sci-hub.se/10.1039/c7ee03029k

zozbot234 3 days ago | parent | prev | next [-]

Throttling a reactor makes no sense when the fuel is dirt cheap, which it is for nuclear. It's not clear given the choice of providing the same amount of power with thousands of SMR's worth a few MW's each or a handful of traditional nuclear plants, that SMR's are inherently the better choice. SMR's make obvious sense as a distributed source in cases where power transmission is itself costly and the density of power use is low, but not obviously otherwise.

ViewTrick1002 3 days ago | parent [-]

The wear and tear and fuel costs are non-zero.

Which is why old paid off nuclear reactors are today are being forced off the grids when renewables bring sustained low prices.

Kon5ole 3 days ago | parent | prev | next [-]

>- They are inherently safe, no need to worry about meltdowns.

I don't worry about designed meltdowns, I worry about someone bunker-busting it, crashing a plane into it, detonating a convoy of trucks filled with fertilizer inside it, someone deciding that an old mine close the the ground water is "good enough" to store the waste from it, that war, forest fires, floods or famine will leave the sites unmanned until the storage pools dry out and the waste starts burning, or any number of similar scenarios which become so much more likely the more of these things we have.

But mostly I worry that they are more expensive than anything else even in a best-case scenario.

Why should we invest in more expensive electricity, that also carries a significant risk for immense disasters, when we have solved cheap solar, cheap batteries and synthesized fuels? The path forward seems obvious, even though it's less traveled.

ziotom78 a day ago | parent [-]

They are so safe that nobody has ever attempted a terrorist attack against them since the first fission reactor (1941). Terrorists have targeted the Twin towers, the Pentagon, the White House, the Bataclan, Nice, but no fission reactors nor waste deposits. (If terrorists are reading this, I suggest them to plan an attack to the Baogang Lake [1], which is considerably less guarded and potentially more effective in terms of people killed.)

And if reactors are really so expensive (5 G€/reactor, while Italy spends 10 G€ per year in subsidies for renewables), why are Italians like me paying twice as much for electricity as the French, even though 70% of their energy comes from uranium and 0% of ours?

[1] https://en.m.wikipedia.org/wiki/Baogang_Tailings_Dam

Kon5ole a day ago | parent [-]

>They are so safe that nobody has ever attempted a terrorist attack against them since the first fission reactor (1941)

Attempts are made regularly, and nuclear plants all over the world implemented additional security measures after 9/11.

"A foiled Chechen rebel assault on the Russian city of Nalchik in October 2005 would have involved an attempt to hijack and fly one of five aircraft into a nuclear power station. Papers released in the UK in February 2005 under the Freedom of Information Act (2000) revealed there were more than 40 cases of potential security breaches at UK civil nuclear sites from 2004 to 2005."

https://www.rusi.org/publication/countering-threats-nuclear-...

>why are Italians like me paying twice as much for electricity as the French, even though 70% of their energy comes from uranium and 0% of ours

It's complex but a simplified answer is that Italy pays what it actually costs, while the French leaves a lot of the cost to their children.

The children (of the people who built the french nuclear plants) recently had to pay over 50 bn euros to cover the debts of EDF, and will likely have to pay another ?? bn to cover lack of maintenance on the aging reactors. (Google it). For 50+ years, france sold nuclear electricity at a loss, mostly unknowingly.

Once they have paid the sins of the parents, the remaining costs to maintain the plants for another 20+ years again will likely be postponed to the next generation, since covering the cost today would make the electricity too expensive to sell.

Note that France is running their economy at a much larger deficit than Italy for the past few years. Nuclear power that is not paid by electricity consumers now, but instead by the government, is of course not the entire explanation but it's part of it.

riffraff 3 days ago | parent | prev [-]

but SMRs have the problem of not actually being proven.

China has a few under construction, but having reactors built is not proof of them being viable, e.g. remember the superphénix.