Thorcon International proposed 500 MW floating nuclear plant in Indonesia. (Image: ThorCon)
As part of their energy transition efforts, many ASEAN countries view small modular reactors (SMRs), which have a lower electricity output, as a transitional energy solution. Indonesia has made the most progress, with 29 potential sites already confirmed. However, the overall development of SMRs in Southeast Asia still faces three major challenges.
Indonesia leads ASEAN in SMR development
Driven by economic and technological factors, Southeast Asia is expected to account for a quarter of global energy demand growth. While fossil fuels will continue to be the primary source of electricity, low-carbon energy options, including nuclear power, are among the solutions for these developing countries to pursue net-zero targets.
For instance, the Philippines has already selected an American SMR supplier, and Vietnam's National Assembly passed a law to restart nuclear power in 2024. Thailand's power development plan also includes the development of two 300 MW SMRs.
Attaurrahman Ojindaram Saibasan, Senior Power Analyst at UK-based consultancy GlobalData, believes that compared to other ASEAN countries facing more scrutiny and opposition, Indonesia’s SMR development is progressing more rapidly.
The state-run utility PLN is collaborating with the U.S. and Japan to develop SMRs for remote areas. ThorCon, a U.S.-based nuclear developer, plans to start commercial operations at Indonesia's first nuclear plant by 2032.
Faith Birol, Executive Director of the International Energy Agency (IEA), noted that signs of a nuclear revival are emerging worldwide. With new plants, national plans, and growing interest in small modular reactors, the IEA expects nuclear electricity generation to reach a historic high by 2025.
Indonesia’s experimental small modular nuclear reactor. (Image: National Nuclear Energy Agency of Indonesia)
Three major barriers: cost, safety risks, talent shortages
Despite advancements in nuclear technology, most countries operating SMRs have state-run organizations overseeing them, leading to opacity in results and costs.
Putra Adhiguna, Director of the Energy Shift Institute in Indonesia, pointed to a SMR plant in Idaho, USA, which originally promised to provide nuclear power at $55 per megawatt-hour, but its costs have already risen to $89. Putra explained that critics have questioned the claim of lower costs for SMR technology due to the lack of large-scale commercial operations.
Fortunately, more and more financial institutions are supporting nuclear energy, which helps ease the financing pressures of nuclear plant construction. Henry Preston, Corporate Communications Manager at the World Nuclear Association, stated that 14 financial institutions globally support the goal of tripling nuclear capacity by 2050. He also expects that improved nuclear policies and regulations will encourage more investment.
However, safety concerns remain a significant barrier. The IEA highlighted that public acceptance of nuclear power will depend on how well nuclear waste and radiation-contaminated materials are handled. The nuclear accidents at Chernobyl in 1986 and Fukushima in 2011 have left lasting impressions on the public in Southeast Asia.
Additionally, the IEA pointed out that nuclear technology is still highly controlled by a few countries. Russia holds 40% of the world’s uranium fuel supply. This dominance highlights the lack of trained engineers and scientists in Southeast Asia. Vietnam has estimated a talent gap of 2,400 people for its nuclear restart program, signaling that it will take time to build the necessary ecosystem and technical expertise.
Source: AP, Asia Power
