What is our assessment?

Based on our analysis, SMRs are a plausible and potentially impactful climate solution, but they are not yet ready for widespread deployment. The core technology is credible and carries significant potential for reducing GHG emissions. However, readiness, cost certainty, and deployment evidence are still lacking. For now, SMRs are "Worth Watching."

What is it?

Small modular nuclear reactors (SMRs) are advanced reactors that produce low-carbon electricity by harnessing the heat from nuclear fission, an established and well-understood physical process. The innovation of SMRs lies primarily in their design. Typically smaller than traditional reactors, with a capacity of less than 300 megawatts (MW), SMRs are factory-built for enhanced quality control. This design allows them to be delivered to installation sites more quickly and potentially at a lower cost compared to conventional reactors, which typically range from about 700 MW to over 1,600 MW. While SMRs are generally considered "utility-scale" in their capacity, their smaller size makes them a viable option for smaller-scale applications, such as large micro-grids. These reactors can be assembled in a modular fashion, allowing incremental capacity additions. Additionally, some SMR designs boast enhanced safety features, including passive cooling systems that can function without external power sources, reducing the risks associated with reactor overheating or meltdowns. Currently, several countries are planning the deployment of SMRs, particularly China and the United States. Given their modular nature, several African countries, such as Ghana, are also looking toward SMRs to address their energy access deficits. Based on current plans, the International Energy Agency expects several countries to have multiple SMRs installed and operational by around 2030.

Does it work?

The physics behind SMRs is sound, and their potential as low-carbon energy sources is also scientifically valid, as they do not emit GHG emissions during operation. Several pilot SMR projects have also been launched. SMRs have yet to move beyond the demonstration phase to widespread commercial adoption. No SMR is currently deployed at the scale necessary to reduce global emissions measurably. Furthermore, independent, peer-reviewed empirical data on long-term operational performance, scalability, and cost remain sparse. While several countries, including the United States, Hungary, China, and Ghana, have announced plans or are discussing deploying SMRs within the next decade, those plans are still in the preparatory stages.

Why are we excited?

SMRs have several features that make them appealing as a potential climate solution. If scaled appropriately, they could displace fossil-fuel-based power generation and reduce carbon emissions significantly. Projected deployment scenarios by the Nuclear Energy Agency suggest that by 2050, the global SMR market could reach 375 gigawatts of installed capacity, avoiding up to 15 Gt of cumulative CO₂ emissions. Their smaller size and modular nature reduce financial risk, making them potentially more accessible to developing countries or smaller utilities. They are also flexible in siting and can complement variable renewable energy sources like solar and wind by providing reliable baseload or backup power. Additionally, SMRs could help decarbonize hard-to-electrify sectors like process heat in industry or remote energy systems. These attributes have prompted excitement among proponents who see SMRs as a scalable, flexible, and resilient solution for emissions-free power. 

Why are we concerned?

Despite their promise, SMRs face several challenges that limit their readiness for large-scale deployment. Safety remains a concern – not necessarily because of design flaws, but because any nuclear reactor carries inherent risks. Waste disposal and the potential for proliferation of nuclear materials remain persistent issues. Regulatory hurdles are also significant, as existing frameworks are often geared toward conventional reactors and may slow the licensing of newer designs. The cost of SMRs is another outstanding question. Recent analyses by Wood Mackenzie suggest that SMRs could cost US$6,000 to US$8,000 per kilowatt of capacity, which is well above the costs of utility-scale solar (US$1,448) or onshore wind (US$2,098). Deployment timelines also pose a challenge. Given the urgency of climate action, technologies that cannot be deployed at scale within the next 10–15 years may offer limited near-term benefits. A recent study by the Institute for Energy Economics and Financial Analysis opines that SMRs are still too costly, too time-consuming to construct, and too risky to significantly impact the transition away from fossil fuels in the next decade. While peer-reviewed academic studies have been conducted, a comprehensive, independent evaluation of large-scale deployment remains absent.

What is our assessment?

Based on our analysis, nuclear fusion is a promising alternative form of electricity generation, but it is still at a theoretical stage and will not be ready for large-scale deployment within the next 10–15 years, when it could have the most impact on meeting global climate targets. This potential climate solution is “Worth Watching.”

What is it?

Nuclear fusion is the process by which two individual elements are fused together into a single larger element using high pressure and temperature; this reaction releases large amounts of energy. This is the same reaction that happens in stars such as the Sun. The energy from the fusion reaction can then be harnessed to produce electricity without emitting any GHG emissions. Nuclear fusion power plants are best suited for centralized, large-scale generation (between 500 MW and 1.2 GW of electricity output).

Does it work?

Nuclear fusion experiments have been carried out that prove the scientific principle is sound. However, only in recent years have experiments succeeded in producing more energy than was needed to initiate and sustain the fusion reaction. There have been no nuclear fusion power plants built to date, and it is unlikely that nuclear fusion-powered electricity generation will be ready for deployment before 2050.

Why are we excited?

Nuclear fusion energy offers several advantages as a solution to climate change, including high power density, the ability to deliver “firm” power (i.e., power that can be relied upon to meet demand when needed), and no greenhouse gas emissions. In addition, the most commonly used fuel for nuclear fusion – hydrogen – is readily accessible, there is no risk of a nuclear meltdown, and the process produces relatively little nuclear waste, meaning the risk of nuclear proliferation is almost nonexistent. Some research suggests that nuclear fusion could provide up to 15% of total electricity production either by replacing existing centralized power plants (e.g., oil and gas, coal, nuclear fission) that have reached end-of-life or to satisfy growing demand for electricity as access and electrification increase.

Why are we concerned?

Nuclear fusion is not considered remotely close to being ready to deploy as a climate solution. It faces many technical challenges, including uncertainties related to fusion reactor design and optimal fuel types. The costs for nuclear fusion-produced electricity are highly uncertain and are expected to grow compared to existing estimates. Current estimates for nuclear fusion energy costs exceed US$150/MWh, nearly double the 2020 price per MWh for other energy sources. There are also large uncertainties about the policy environment for nuclear fusion plants, which could hinder both development and deployment. Currently, projections suggest that nuclear fusion reactors could be introduced between 2050 and 2060. This means that even under optimistic conditions, nuclear fusion is unlikely to make a significant contribution to meeting 2050 emissions reduction targets.
 

What is our assessment? 

Based on our analysis, micro wind turbines are a promising technology for reducing emissions, but given the limited potential for global adoption and variable financial viability, their climate impact is below our threshold for global climate solutions (<0.1 Gt CO₂‑eq/yr). Despite the low climate impact, Deploy Micro Wind Turbines is an important solution for achieving energy equity. Therefore, this potential climate solution is “Worth Watching.”

What is it? 

Micro wind turbines (MWTs) are small-scale turbines that rely on natural wind to generate electricity, charge batteries, or power equipment. Specific definitions for MWTs vary from country to country. Our analysis assessed energy production and GHG emissions reduction potential for wind turbines rated to generate a maximum of 100 kW of electrical power. MWTs are actively used for a variety of applications, including telecommunications, lighting, and agriculture. The total installed capacity for MWTs globally as of 2023 is nearly 1.8 GW or 0.002% of utility-scale onshore wind capacity. MWTs are most commonly used in rural settings.

Does it work? 

When connected to a regional or national electricity grid, MWTs can reduce baseline electricity grid emissions by reducing reliance on fossil fuel energy sources. Off-grid MWTs, which accounted for more than 90% of commercial sales in 2019, help electrify industrial and agricultural processes that otherwise may have been powered by fossil fuels, such as diesel or natural gas. Energy production from MWTs is highly dependent on the availability of consistent wind speeds, with the majority of turbines requiring an average wind speed of around 5 m/s to generate electricity. As long as sufficient wind resources are available, MWTs are effective at producing electricity to meet local energy demand and reduce reliance on fossil fuels.

Why are we excited? 

Micro wind turbines reduce reliance on fossil fuels for electricity generation, whether they are connected to an electric grid or isolated for local energy use. For grid-connected systems, more available renewable energy sources reduce the need for fossil fuel-based energy generation to meet demand. MWTs isolated from the electricity grid still reduce the local carbon footprint of a household, farm, or commercial building. Globally, the average household consumes approximately 17,000 kWh of electricity annually. Depending on the size of the turbine, local wind energy can produce 1,000–20,000 kWh/yr. Fluctuations in wind speed throughout the day and year can lead to unreliable power output, but this risk can be mitigated by integrating batteries or hybrid electricity generation systems, such as combining wind and solar photovoltaics (PV). In addition to emissions reduction, MWTs are crucial tools for expanding electricity access worldwide. Since MWTs can operate independently of an electric grid, they can electrify rural areas where transmission lines are nonexistent or challenging to install. For example, many populations in Africa live in remote areas that could be well-served by installing MWTs to power telecommunications and other local electrification needs. Increasing interest in smart energy systems and Internet of Things technologies presents promising future applications for MWTs.

Why are we concerned? 

While micro wind turbines show potential for expanding electrification, they have a number of limitations compared to other small-scale renewable energy technologies, like solar photovoltaics. First, real-world performance due to wind speed variability and turbulence at installation sites can be unpredictable and is often substantially lower than manufacturers’ power ratings. Second, life-cycle emissions from manufacturing and installation can be more than five times higher for small-scale wind than for large, multi-MW turbines. Energy payback times – the time period for the MWT to generate enough clean energy to offset the energy used during manufacturing and installation – can be long, sometimes exceeding the 20–25 year lifetime of the turbine. Third, MWTs are expensive, ranging from approximately US$3,000/kW to more than US$10,000/kW. Costs to properly assess wind resources at the potential MWT site can be on the order of US$100,000. Finally, noise pollution and vibration are environmental concerns for the wide-scale adoption of MWTs in urban areas. In addition, MWT performance can be poor in urban and suburban areas because buildings and other obstacles disrupt airflow. There is a general consensus in the scientific community and commercial market that MWTs remain a niche technology due to uncertain economic viability and lack of reliable power generation in suburban and urban areas.