Germany is sticking to its nuclear phase-out, even as many industrialized nations examine small modular reactors (SMRs) as a potential key technology for their future power supply. This trend is gaining momentum because SMRs are attracting research funding, industrial projects, and political support worldwide. EU Commission President Ursula von der Leyen has described Germany’s phase-out as a “strategic mistake.” In doing so, Germany is not only foregoing a potential option for ensuring security of supply and climate-friendly baseload power; it is also losing access to a key technology capable of generating know-how, patents, and numerous industrial jobs.
Nuclear power remains part of the international industrial strategy
Germany is now one of the few large industrialized countries without nuclear power plants. Austria and Italy are also pursuing an exit course. France, Sweden and Finland, on the other hand, continue to rely on nuclear power. This creates an energy policy divide in Europe.
Nuclear technology is gaining renewed importance outside Europe as well. The USA, China, and Russia are investing in new reactor types, linking these efforts to climate goals, security of supply, and industrial policy interests. At the same time, they are gaining experience that will open up future export opportunities and create jobs.
SMRs aim to bring electricity closer to industry and consumers
Small Modular Reactors (SMRs) differ from conventional large-scale power plants in terms of size and construction. While they typically generate significantly less power, they are designed for industrial prefabrication and modular installation. Consequently, they are viewed as a viable option for existing power plant sites, industrial facilities, and remote regions.
Their economic viability remains to be seen. Many projects currently exist only as designs, pilot plants, or early-stage construction plans. Only serial production will reveal whether the promised cost advantages actually materialize. Nevertheless, nations are investing early because they do not want to cede control over supply chains and standards to others.
A key technology facing unresolved technical hurdles
Some research focuses on thorium and molten-salt reactors. Thorium is more abundant than uranium, and its fuel cycle promises to generate less long-lived waste. Furthermore, these concepts are designed to be inherently safer than current reactors.
However, the technology remains challenging. Thorium must first be converted into fissile material, and molten-salt reactors require materials capable of withstanding sustained exposure to heat, radiation, and corrosion. Success therefore depends not merely on the concept itself, but on practical experience gained through construction and operation.
Germany Risks an Industrial Gap
China is testing new reactor designs and building a commercial small-scale reactor on Hainan Island. Russia is already operating a floating nuclear power plant, the Akademik Lomonosov. Belgium, Denmark, and Austria are also working on new concepts. Consequently, a market for planning, components, control systems, maintenance, and safety is emerging in several countries.
Although Germany developed its own advanced concept—the Dual Fluid Reactor—further development shifted abroad following the decision to phase out nuclear power. Without domestic projects, the country lacks practical training opportunities, industrial track records, and nuclear expertise. Nuclear technology has meanwhile become an exotic niche subject at German universities. Should SMRs become commercially viable, Germany would be forced to import the technology later rather than generating jobs and value creation domestically. (KOB)