In December of 2019, Ontario, Saskatchewan and New Brunswick signed a memorandum of understanding (“MOU”) between the provinces, establishing a framework for the deployment of nuclear energy by way of Small Modular Reactors (“SMRs”) in each jurisdiction. On April 14, 2021, Alberta formally became a signatory to this MOU, signalling further commitment to the economic diversification of the province. This news comes concurrently with the release of the Feasibility of Small Modular Reactor Development and Deployment in Canada report (“SMR Feasibility Report”), prepared by power utilities in each of the three original signatory provinces, detailing the potential of SMRs as a clean energy option, able to address climate change and regional energy demands while supporting economic growth and innovation.   

Small Modular Reactors

SMRs are poised to become the next generation of nuclear energy innovation, providing Canada with the ability to contribute towards a resilient, low-carbon future. SMRs are classified as nuclear reactors generally 300 MW equivalent or less, and are among the most promising emerging technologies in nuclear power. These reactors are “modular”, in that they can operate individually, or as part of a larger nuclear complex, and are easy to produce and deploy. SMRs respond to the need for smaller, simpler and cheaper nuclear energy. These reactors also provide a safe source of energy, due to the high level of passive or inherent safety mechanisms in their design.¹ Continued technological advancements in SMR designs will lead to increased efficiency in the management of spent fuel and of radioactive waste when compared to other nuclear reactors, further allowing SMRs to provide a clean source of energy for Canada. 

In Canada, SMRs can compete with other low-cost forms of electricity generation, and have the potential for new applications, such as hybrid-renewable energy systems (such as with wind and solar), low-carbon heat and power for industry use, and the ability to power remote communities and mines.² SMRs are an opportunity for Canada to export technology and expertise, while addressing global issues such as climate change and energy security.

Timeline of SMR development in Canada

1. November 7, 2018 - the Canadian government released its Canadian Roadmap for Small Modular Reactors (the “Canadian SMR Roadmap”), a 10-month nationwide study of SMR technology, concluding that Canada was well positioned to become a global leader in the development and deployment of SMR technology. 
2. December 1, 2019 - Ontario, Saskatchewan and New Brunswick entered into memorandum of understanding, establishing a framework for deployment of SMRs in each respective jurisdiction.
3. August 7, 2020 - Alberta announces intention to sign on to the MOU. 
4. April 14, 2021 - the SMR Feasibility Report is released.  
5. April 14, 2021 - Alberta becomes a formal signatory to the December 2019 MOU. 
6. Spring 2021 - the strategic plan for deployment of SMRs is projected to be developed under the MOU.

Alberta joins the MOU

With the addition of Alberta to the MOU, all provinces involved have agreed to collaborate on the advancement of SMRs as a clean energy option to address climate change and regional energy demands, while simultaneously supporting economic growth and innovation. For Alberta, this poses an opportunity to reduce the province’s greenhouse gas emissions, power its remote communities, and provide a form of economic diversification. 

In the MOU, the following non-binding commitments are made co-operatively between the parties:

Develop and deploy SMRs. The Parties commit to advance the development and deployment of SMRs to address the needs of the provinces to address climate change, regional energy demand, economic development and research and innovation opportunities.

Address key issues. The Parties commit to work together to address key issues for SMR deployment including technological readiness, regulatory frameworks, economics and financing, nuclear waste management and public and Indigenous engagement.

Seek support from federal government. By working together, the Parties commit to positively influence the federal government to:

• provide a clear, unambiguous statement that nuclear energy is a clean technology and is required as part of the climate change solution,
• to provide support for SMRs identified in the Canadian SMR Roadmap and those identified by the CEOs of Ontario Power Generation, Bruce Power, New Brunswick Power Corporation, and SaskPower, and
• to make changes as necessary to facilitate the introduction of SMRs.

Inform the public. The Parties will work co-operatively to inform the public about the economic and environmental benefits of nuclear energy and SMRs.

Engage other provinces and territories. Lastly, the Parties agree to work co-operatively to engage with other interested provinces and territories to explore the potential for SMR deployment in their jurisdictions.

One of the early promises arising out of the MOU was the preparation of a feasibility report addressing the development and deployment of SMRs in Canada.

The SMR Feasibility Report

The SMR Feasibility Report, prepared by SaskPower, NB Power, Bruce Power and Ontario Power Generation for the governments of Ontario, New Brunswick and Saskatchewan, was formally requested as part of the original MOU. 

The SMR Feasibility Report comes to the following conclusions:

Economics. SMRs have the potential to be an economically competitive source of energy. This is dependent on other low-carbon alternatives available in each jurisdiction, as well as natural gas prices and carbon pricing. 

Technology. Three streams of SMR project proposals have been identified, all of which are said to create employment and economic growth benefits for Canada:

• Stream 1. A first grid-scale SMR project of about 300 MW constructed at the Darlington nuclear site in Ontario by 2028, followed by four units in Saskatchewan, the first of which being in service in 2032. 
• Stream 2. Two 4th generation, advanced SMR designs would be developed in New Brunswick through the construction of demonstration units at the Point Lepreau nuclear site in New Brunswick. 
• Stream 3. A new class of micro SMRs designed primarily to replace diesel use in remote communities and mines. A 5 MW gas-cooled reactor project by Ultra Safe Nuclear Corporation is underway at the Chalk River site in Ontario and is expected to be in service by 2026. 

Federal support. Cost and risk-sharing with the federal government will be necessary. In turn, these projects would support Canada’s goals of phasing out coal by 2030, becoming carbon net zero by 2050, and providing affordable clean energy to remote communities. 

Provincial support. Provincial governments will need to establish policy and regulatory frameworks to enable SMRs as a clean energy option and support training programs to enhance the skilled workforce needed for an SMR industry. 

Nuclear industry support. It is critical for the successful deployment of SMRs in Canada that a strong domestic supply chain exists.

Next steps

The culmination of the positive results of the SMR Feasibility Report, with the additional provincial support provided by Alberta in joining the MOU, indicates that SMRs will play an important role in Canada’s energy sector in the near future. However, there are still some regulatory challenges that SMRs are facing.

All reactor facilities, including SMRs, are classified as Class IA nuclear facilities under the Class I Nuclear Facilities Regulations.³ Due to this classification, the stringent licensing and approval process set out in the Nuclear Safety and Control Act ⁴ for traditional large-scale nuclear methods applies to SMRs. Additionally, these reactors will also need approval under the federal Impact Assessment Act.⁵ In the Canadian SMR Roadmap, several recommendations were made indicating that legislative changes are necessary in order to expedite the regulatory approvals process applicable to SMRs. Given the timeline required for these significant regulatory approvals, the in-service timelines for the SMR projects discussed in the SMR Feasibility Report will not be achievable without modernization of this regulatory regime.

The next step under the MOU is the development of a joint strategic plan, drafted in collaboration between the governments of Saskatchewan, Ontario, New Brunswick and Alberta. This plan will identify next steps, key risks, mitigation measures, as well as the policy and regulatory analysis necessary to enable and govern the deployment of expanded nuclear technology in Canada. 

For more information, please contact George Antonopoulos, Vivek Bakshi, Courtney Burton, Bernie Roth, Hazel Saffery or any member of our Energy Innovation and Transition group.

1. See for more detail the World Nuclear Association, “Small Nuclear Power Reactors” (2019), online: Click here
2. Natural Resources Canada, “A Call to Action: A Canadian Roadmap for Small Modular Reactors” (2018).
3. SOR/2000-204.
4. SC 1997, c 9.
5. SC 2019, c 28.

This article was written by Kate Wiltse.