The Evolution of the Canadian Energy Landscape with RMS promises to mark a significant transition to a more stable and sustainable energy source. Against this backdrop, Ontario Power Generation is building and operating four small modular reactors (SMRs) at its Darlington site. According to a Conference Board of Canada report, this initiative will contribute C$15.3 billion (US$11.2 billion) to Canada’s GDP, of which C$13.7 billion will benefit Ontario. The report points out that the company will create and maintain 2,000 jobs in Canada every year for the next 65 years.
The Key Role of SMRs in Energy Stability
Investment in stable, reliable energy resources, such as large-scale SMR technology, is becoming increasingly imperative. The report states, “Deploying more nuclear power in Ontario represents a major investment decision. It is therefore essential to understand the potential economic benefits to the province and the country of investing in new nuclear power generation facilities.” The Conference Board of Canada collaborated with Ontario Power Generation (OPG) to analyze the economic impact and tax benefits of building and operating four SMRs in Ontario.
The Economic Impact of SMR
The study revealed that SMR would have a significant and positive economic impact on both the Ontario and Canadian economies, with Ontario reaping 89% of the economic benefits associated with the project. Each SMR built would increase GDP by nearly C$3.8 billion and create 500 jobs every year over a 65-year period. In addition, tax revenues for all levels of government are expected to total approximately C$4.9 billion over the next 65 years, including construction and operation of the facilities. The expected number of jobs created by the project would be around 113,161 at provincial level and 128,431 at national level.
The SMR Economic Multiplier
The report indicates an economic impact, or the ratio between GDP increase and spending (the “economic multiplier”), of 0.82: every dollar spent would increase Canadian GDP by $0.82 over the total lifetime of the technologies, according to the Conference Board of Canada.
The SMR Construction Process
On October 31 last year, OPG submitted an application to the Canadian Nuclear Safety Commission (CNSC) for a license to build a GE Hitachi Nuclear Energy (GEH) BWRX-300 reactor at the Darlington site. This license is required before any nuclear construction work can begin on SMR. However, site preparation work is already underway. OPG expects to make a construction decision by the end of 2024. Construction of the unit is scheduled for completion at the end of 2028, with electricity supply to the grid scheduled for 2029.
Potential expansion of SMR
In July, the Ontario government announced that it was working with OPG to begin planning and licensing three additional BWRX-300 reactors at Darlington. Subject to regulatory approval for construction by the Ontario government and the CNSC, the additional SMRs could be commissioned between 2034 and 2036. This schedule will enable OPG to apply the lessons learned from the construction of the first unit to achieve cost savings on subsequent units, the government noted. Building several units will also enable common infrastructure, such as cooling water intake, transmission connection and control room, to be used for all four units instead of just one, further reducing costs.
“Being the first North American player in this innovative technology positions Ontario as a world leader in nuclear power and a welcoming destination for new businesses,” said Ken Hartwick, President and CEO of OPG. “Our plan to build four new reactors in Darlington will also generate opportunities across Ontario and Canada, as suppliers of nuclear components and services will have the opportunity to expand to meet the growing demand of the SMR market, both here and abroad.”
