Small Modular Nuclear Reactors (SMR): The Future of energy Thailand

According to an analysis by Krungthai Compass, Small Modular Reactors (SMR) are poised to become a key component of Thailand's clean energy future.

Amid the global push for clean energy, Small Modular Reactors (SMR) are emerging as a promising solution for Thailand. The latest development plan by the Electricity Generating Authority of Thailand (EGAT) includes an SMR construction project with a total capacity of 600 MW, set to be part of the PDP2024 plan. The project aims to begin construction in 2032, with full commercial operation expected by 2035, and a lifespan of 60 years.

The plan divides the production capacity into two main areas: 300 MW in the Northeast and 300 MW in the South, spreading the energy sources and enhancing electricity security in the region. 

With an investment of approximately 93 billion baht, the project is expected to generate about 780 billion baht in revenue from electricity sales over its lifetime (averaging 13 billion baht annually), while also offering opportunities for Thai businesses in the supply chain to earn a total of over 43 billion baht during the development phase.

The "Land-Based Water-Cooled SMRs" (LWR) seem to be the best fit for Thailand, as they feature Passive Safety systems that can automatically dissipate heat and prevent radioactive leakage. 

They also use water as a coolant, which is abundant in Thailand, making it a suitable choice for areas with medium-sized transmission networks, thus minimising the need for significant grid expansion. 

Another option is the "Molten Salt SMRs" (MSRs), which are ideal for drought-prone areas as they can dissipate heat using air and can use a variety of fuels like thorium or spent uranium, reducing long-term costs.

Economically, the investment in LWR is expected to average around 155 million baht per MW in 2032, with a payback period of 12.6 years and an average internal rate of return (IRR) of approximately 6.8% per year, in line with global SMR project standards. 

This presents a golden opportunity for various Thai businesses, especially in construction and civil engineering, which are expected to benefit the most with an estimated 22.6 billion baht in revenue. 

Other sectors, such as manufacturers and suppliers of electrical equipment for control and distribution (14 billion baht) and cooling system equipment (6.5 billion baht), will also gain significantly.

However, the success of SMRs is not solely determined by investment figures but also by public confidence. The government and private sectors must select installation sites near water sources and ensure protection against seismic activity. 

Public consultations should be held, and operational data must be transparently shared. Additionally, emergency shutdown systems and the establishment of a permanent underground radioactive waste storage facility (DGR) in stable, fault-free geological formations must be prioritised to guarantee long-term safety.

Ultimately, Thailand's SMR plan is not just about building a new power plant but about laying the foundation for "future energy infrastructure" that will drive the economy, enhance energy security, and ensure sustainability for decades to come.

(2025/08/14-00:00)