
What Investors Need to Know About Small-Modular and Microreactors
R. Scott Kemp, instructor of MIT's 22.04 Social Problems of Nuclear Energy, devotes this lecture to the economics of small modular reactors and microreactors. He examines whether new reactor designs can become real competitors to wind and solar, focusing on the promise of factory fabrication to cut costs compared to traditional on-site construction of large plants. Kemp walks through proposed electricity market structures tailored to microreactors, considering how their smaller scale and different cost profile might change financing and deployment compared to conventional nuclear plants. The lecture is pitched explicitly at the investor's question: where might returns and risks lie in this technology. Drawn from MIT OpenCourseWare's Fall 2025 offering of the course, it runs at the depth of a graduate seminar discussion, weighing engineering claims against market realities rather than advocating for or against nuclear power broadly.