Breaking Free from Coal: How SMR Technology Can Be a Solution in Securing ASEAN's Energy Independence

The Association of Southeast Asian Nations(ASEAN) has pledged to cut emissions and uphold the Paris Agreement. However, an emissions gap of 400 MtCO2e remains with current unconditional pledges, requiring an 11% reduction by 2030. The gap widens to 900 MtCO2e for conditional pledges, necessitating a 24% reduction by 2030.

However, the ASEAN countries confront a dual challenge as they must decrease greenhouse gas (GHG) emissions while simultaneously expanding their energy supply to meet the demands of their rapidly advancing economies. This challenge is further complicated by the fact that the ASEAN region heavily relies on fossil fuels, particularly coal, for power generation. Notably, as of 2020, according to ASEAN Center for Energy  (ACE) the cumulative installed capacity of coal power plants in ASEAN stands at approximately 89.5 GW, accounting for roughly 31% of the region's total installed capacity. Leading countries in terms of coal capacity include:

• Indonesia (35.2 GW)

• Vietnam (21.6 GW)

• Malaysia (12.8 GW)

• the Philippines (10.9 GW)

• Thailand (6.1 GW)

Interestingly, the oldest coal plants in ASEAN were built in the 1980s and may operate for 40 more years. However, 60% of ASEAN coal plants are less than 10 years old. By comparison, US and EU coal plants average lifespans are 40 and 35 years, respectively. A study by Cui et al. emphasized ASEAN must reduce coal plant lifespans to 35 years to meet Paris Agreement targets, requiring 7.8 GW retired in 5 years. Further, avoiding 37.1 GW of new 2021-2025 coal plants is possible. Carefully chosen solutions are critical to address this complex challenge.

Lesson Learned: UK's Approach to Phasing Out Coal

In 2015, the United Kingdom became the first country to pledge to completely stop using coal power by 2025. The United Kingdom has made significant progress in reducing its reliance on coal-fired power over the past decade. Coal once supplied nearly 40% of the UK's electricity in 2015 , but by 2022 accounted for just 1.5%. This decline is the result of deliberate policy actions by the UK government to drive coal off the energy system. Phasing out coal is essential if the UK is to meet its target of net-zero emissions by 2050. Notably, In 2022 the UK obtained 20.7% of its primary energy from low carbon sources, with 34% of this from bioenergy, 30% from nuclear, and 20% from wind. To complete the transition away from unabated coal generation, the UK must find other baseload generation sources than coal power plant, increase grid flexibility, and support workers and communities impacted by coal phase-out. 

A major driver of coal's decline has been the UK's carbon price support mechanism, introduced in 2013. By putting a price on carbon emissions, it has made coal generation economically uncompetitive compared to lower carbon alternatives like natural gas and renewables. The UK has also legislated a phase-out of unabated coal generation by 2025, forcing closure of coal plants. 

In 2023, the UK government launched the Great British Nuclear (GBN) initiative. GBN aims to rapidly expand nuclear power generation in the UK by building new plants faster than ever before. This will strengthen UK energy security by reducing dependence on imported fossil fuels, provide more affordable electricity, and grow the economy. The nuclear industry could generate around £6 billion for the UK by 2050. GBN will help the government achieve its goal of getting up to 25% of UK electricity from domestic nuclear sources by 2050, while also supporting the lowest wholesale electricity prices in Europe. Along with supporting this emerging agile technology, the government remains committed to large-scale projects like Hinkley Point C and Sizewell C. GBN will also consider the potential role of additional massive nuclear plants.

The launch of GBN is accompanied by a competition aimed at securing funding support for the development of nuclear products such as small modular reactors (SMRs). The government has unveiled a £157 million grant package, which includes up to £77.1 million intended to expedite the growth of advanced nuclear businesses within the UK. This funding also aims to bolster advanced reactor designs through regulatory mechanisms, thereby enhancing the likelihood of prompt SMR construction. Additionally, the grant package allocates up to £58 million for the advancement of a specific type of advanced modular reactor (AMR) and the development of next-generation fuel technologies.

Repurposing Coal Plants with Small Modular Reactors

Small modular reactors (SMRs) have been garnering increasing global attention owing to their capacity to offer both adaptable power generation and baseline power for diverse applications. SMRs can also be deployed to convert retiring fossil fuel power plants to new uses. From economics to preservation of the environment, projects in countries like France, India, Poland, Romania, the UK and the US are exploring how repurposing fossil fuel plants with small modular reactors (SMRs) can provide benefits. According to the U.S Department of Energy (DOE), Replacing coal power plants with nuclear power could significantly improve air quality and public health for communities across the country. A case study found that transitioning from coal to nuclear at a power plant could reduce greenhouse gas emissions in the surrounding region by 86% - the equivalent of taking over 500,000 gas-powered cars off the road.

The transition could also boost local economic opportunities. When a large coal plant is replaced by a nuclear plant of the same size, the case study projected over 650 new permanent jobs added in the community. The increase in long-term employment could generate around $275 million per year in additional economic activity, potentially raising local tax revenue by 92%.There are also opportunities to reduce costs by reusing existing infrastructure from coal plants. Reusing equipment like transmission lines and cooling systems at the same site can potentially save 15-35% in construction costs for advanced nuclear reactors.

This strategy could help reduce emissions and maintain energy security while ensuring a just economic transition for local communities reliant on fossil fuel plants. Repurposing coal plants with SMRs could actually facilitate phasing out coal. It would allow existing plants to continue providing power to local customers. Cost saving factors could include avoiding land acquisition for the SMR plant, having an existing water source as well as rail and road connectivity, and a pool of trained human resources within commuting distance, according to Dr Arun Kumar Nayak, Head of Nuclear Control & Planning Wing, in India Department of Atomic Energy (DAE). SMR capacity, between 200-400 MWe, is similar to a typical coal plant. Thus, SMRs could utilise existing grid connections at these facilities. 

Conclusion 

For ASEAN countries to successfully retire coal power plants and fulfill Paris Agreement commitments while ensuring energy stability, several key points should be considered:

• Prioritize community and worker involvement in clean energy transition plans.

• Provide adequate time for consultation and implementation, supporting affected workers and communities.

• Maintain electricity supply security during coal phase-out.

• Enhance conditions for clean electricity investment and infrastructure development.

• Implement carbon pricing or similar mechanisms to incentivize emission reduction.

• Explore the conversion of coal power assets, such as repurposing with SMRs, to retain value and local benefits.