Europe faces a make-or-break window for small modular reactors

Small modular reactors (SMRs) are frequently pitched as a cost-effective alternative to traditional, large-scale nuclear power plants. However, their economic viability hinges on serial production rather than individual unit construction. Data from the EFI Foundation indicates that in a four-unit order sequence, the fourth reactor can be one-sixth cheaper than the first, thanks to standardized design and factory-based fabrication. Without a coordinated European order book, these cost benefits remain unattainable, leaving the EU to choose between a robust industrial strategy or continued reliance on disjointed national efforts.

Scaling the infrastructure

The European Commission projects that SMR capacity across the bloc could reach between 17 and 53 gigawatts by 2050. Achieving even the lower threshold requires overcoming significant regulatory and financial hurdles. Currently, countries including France, Poland, the Czech Republic, and Sweden are pursuing nuclear deployment at varying speeds. For these efforts to coalesce into a competitive advantage, the EU must harmonize its licensing processes to avoid duplicative reviews, potentially by expanding the role of the European Nuclear Safety Regulators Group. Furthermore, member states must adopt risk-sharing models—similar to Sweden’s combination of state-backed loans and profit-sharing—to lower the initial capital barriers that often stall nuclear projects. Ultimately, the challenge is not technological but industrial: Europe must rebuild the supply chains, engineering expertise, and manufacturing capacity required to move beyond strategy and onto the grid.