Stephenson Harwood | Small modular reactors: the next chapter of the energy revolution

The global appetite for energy, in particular electricity, is insatiable. Our demand for electrification is driven to a significant extent by our digital lives, underpinned by the rapid roll-out of data centres, new technologies such as artificial intelligence (AI), as well as the electrification of mobility (EVs) and increased demand for heat and cooling. In a February 2025 report, the International Energy Agency's (IEA) director, Keisuke Sadamori stated:

“The acceleration of global electricity demand highlights the significant changes taking place in energy systems around the world and the approach of a new Age of Electricity. But it also presents evolving challenges for governments in ensuring secure, affordable and sustainable electricity supply, … While emerging and developing economies are set to drive the large majority of the growth in global electricity demand in the coming years, consumption is also expected to increase in many advanced economies after a period of relative stagnation.”

As the world is looking beyond traditional fossil-fuel based energy sources, nuclear is emerging as the source of long term, low carbon and efficient electricity supply. When people think of nuclear power, they likely think of the huge nuclear power plants in Europe, Asia, and North America. These grid scale plants typically start at 1 GW and up, take many years to plan, permit and build and come at significant cost, generally in the billions. However, small modular reactors (SMRs) (typically reactors that produce 300MW or less though some designs are closer to 500MW) are emerging as a more efficient and cost-effective alternative.

Many countries are developing SMRs with over 120 different designs under active development. Such countries include the US, UK, France, Canada, Korea, Czech Republic, Poland, Finland, UAE, Switzerland, Netherlands, and South Africa. With such interest and investment, SMRs are expected to play an important role in future energy markets.

In July 2025, the Nuclear Energy Agency – a part of the OECD – published its third edition of the Small Modular Reactor Dashboard (the Dashboard)¹ which sets out the current state of play of SMRs across the globe. It identifies a surge in designs, financing, and regulatory engagement relating to SMRs. This article will look at some of the findings of the Dashboard including the key benefits of SMRs and considerations around their licensing in addition to other key issues, including financing, security and the need for public engagement.

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