A Techno-Economic Evaluation of Microreactors for Off-Grid and Microgrid Applications

Abstract

There is a large and growing literature evaluating the efficacy of microgrids for expanding energy access for off-grid and islanded communities. Increasingly, studies are looking at the economics of supplementing or replacing fossil fuel generators with renewable energy and batteries on microgrids. Nuclear power has historically served as a baseload generator on central grids but has been far too large for microgrid applications. However, new microreactor concepts with power outputs of less than 10 megawatts have begun licensing in the U.S. and aim to serve off-grid customers. Here, I examine whether these microreactors could be cost-competitive with fossil fuels and renewables. I use the HOMER software package to optimize microgrids for application under various technological scenarios, including diesel, microreactors, renewables, and batteries. I compare systems across several metrics: levelized cost, emissions, and reliability. Microreactors could be cost-competitive with diesel generators where fuel costs are greater than $1.50 per liter. They are significantly cheaper than a 100% renewable and battery system in these use cases.