SMR Economic Impact Assessment

Executive Summary

This report provides a detailed economic impact assessment of Small Modular Reactor (SMR) deployment in island nations, with a particular focus on the Caribbean region. The analysis examines both direct and indirect economic benefits, job creation potential, and long-term fiscal impacts.

Key Findings

• SMR deployment could reduce energy costs by 30-45% compared to current fossil fuel generation
• Each 300 MWe SMR project could create approximately 650-800 direct jobs during construction
• Long-term operations would support 200-250 high-skilled permanent positions
• Energy price stability would improve GDP growth forecasts by an estimated 1.2-1.8% annually
• Carbon emissions reduction would position islands favorably in carbon credit markets

Economic Multiplier Effects

The analysis indicates that for every direct job created in SMR construction and operation, approximately 2.5 additional jobs are created in the broader economy through indirect and induced effects. These include positions in supporting industries, services, and increased consumer spending.

Fiscal Impact

Government revenues would benefit from multiple streams, including:

• Increased corporate tax revenues from energy production
• Income tax from higher-wage nuclear sector jobs
• Reduced subsidies currently allocated to fossil fuel imports
• Potential export revenues from excess power generation

Tourism and Service Sector Benefits

The tourism sector, critical to many island economies, would benefit from:

• More reliable energy infrastructure reducing service disruptions
• Lower operating costs for hotels and resorts
• Enhanced "green destination" marketing opportunities
• Capacity for expanded development without increased emissions

Methodology

This assessment utilized input-output economic modeling, comparative case studies from similar deployments, and stakeholder interviews across government, industry, and community sectors. Cost projections are based on current SMR designs in advanced development stages with anticipated deployment in the 2025-2030 timeframe.