Large NPPs do not fit in any of these specific markets; therefore, SMRs would compete only with the local non-nuclear energy options.

To analyse the deployment potential of SMRs in remote or isolated areas, the LUEC estimates were compared with the electricity tariffs for that area (because the generating costs of other technologies would be extremely difficult to calculate). The analysis of SMR competitiveness in “off-grid” locations has identified a significant potential for their applications in remote areas with severe climatic conditions hosting mining or refinement enterprises, or military bases, and the affiliated small settlements (see Figure E.8).

On a purely economic basis, isolated islands and small off-grid settlements in populated developing countries (e. g. Indonesia, India) could also become potential market.

It has been found that a variety of land-based and barge-mounted SMR plants with LUEC substantially higher compared to large reactors could still be competitive in these niche markets if they meet certain technical and infrastructure requirements, defined by the specific climate, siting and transportation conditions. In particular, co-generation with the production of heat or desalinated water appears to be a common requirement in many of the niche markets analyzed.

In the analysis performed for the “off-grid” locations, many cases were found when small barge-mounted NPPs with the PWR-8 and the PWR-35 twin-unit plants (based on the Russian ABV and KLT-40S designs) would be competitive.