Optimizing Hybrid SMR–Renewable Energy Systems for Remote and Climate-Vulnerable Communities: A Techno-Economic Framework

Remote and climate-vulnerable northern communities in Canada remain heavily dependent on diesel-based electricity and heating, leading to high energy costs, fuel-supply challenges, and significant greenhouse gas emissions. This study develops a techno-economic framework to evaluate hybrid small modular reactor (SMR)-renewable energy systems for remote regions. The framework integrates a 6 MW light-water SMR, wind and photovoltaic (PV) generation, battery energy storage, combined heat and power (CHP) recovery, and hydrogen production from surplus electricity. A representative cluster of northern Canadian communities is used as a case study, and two hybrid system configurations are assessed. The SMR-wind-battery configuration achieves the best economic performance, with a levelized cost of electricity (LCOE) of $0.26/kWh and a net present cost (NPC) of $241 million, compared with $0.31/kWh and $288 million for the SMR-wind-PV-battery configuration. A diesel-only reference system yields an LCOE of $0.72/kWh and an NPC of $675 million. In both optimized configurations, the SMR supplies 52.5 GWh/year of electricity, representing 75-78% of total generation, and provides about 96 GWh th /year of recoverable thermal energy through CHP operation. Surplus electricity supports hydrogen production of approximately 215,000-261,000 kg/year. Sensitivity and Monte Carlo analyses identify SMR capital cost as the dominant source of economic uncertainty, followed by battery and wind-turbine costs. A key contribution of this study is the development of an integrated framework for assessing SMR-centered hybrid energy systems in remote and climate-vulnerable communities. The results demonstrate the potential of SMR-centered hybrid energy systems to provide reliable, low-carbon, and economically competitive energy for remote and off-grid regions.