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There is no single replacement for a small modular reactor (SMR) that performs every role. Wind and solar can supply low-carbon electricity, while hydropower, sustainable bioenergy, geothermal in suitable locations, fossil-fuel plants with carbon capture, and existing large nuclear plants can contribute dispatchable or firm power. The right alternative depends on whether the need is low-cost energy, reliable output at a particular hour, or a balanced electricity system.

First decide what an SMR is being asked to replace

A technology comparison can give the wrong answer if it compares different services. A power system needs to meet total electricity demand over time, including hours when demand is high and variable generation is low. Before choosing an alternative, distinguish among these needs:

  • Annual energy: How much electricity a source generates over a year. Wind and solar can contribute substantial low-carbon energy where resources are favorable.
  • Firm or dispatchable power: Electricity that can be made available when the system needs it, subject to the plant’s operating limits. Hydropower, bioenergy, fossil generation with carbon capture, and nuclear plants can provide dispatchable generation in appropriate circumstances.
  • System flexibility: The ability to balance changes in supply and demand. Grids, interconnection, storage, and demand response help integrate generation; they are not themselves primary energy sources.

These categories overlap, but they are not interchangeable. Comparing annual generation costs alone does not establish which option can meet a specific region’s peak demand.

How the main alternatives compare

Option What it can contribute Important limits
Onshore wind Low-carbon electricity and, in recent global reporting, a low average cost for new generation. Output varies with wind conditions. The need for transmission and balancing depends on where projects are built and how the wider system operates. IEA, Electricity 2025
Solar PV Low-carbon electricity and a low recent global average cost for new generation. Output varies with sunlight and has a day/night profile, so other resources and system measures are needed to match supply with demand. IEA, Electricity 2025
Hydropower Renewable electricity that can also be flexible or dispatchable, depending on the plant and water availability. Suitable sites and water resources are limited; drought and climate variability can affect output. IEA, Nuclear Power and Secure Energy Transitions
Sustainable bioenergy Potential dispatchable generation where sustainable feedstock is available. Feedstock is limited, and biomass should not automatically be treated as low-carbon regardless of how it is sourced. IEA, Nuclear Power and Secure Energy Transitions
Geothermal Dispatchable renewable power where geology supports development. It is not a uniform global resource; the available evidence does not establish that it can scale broadly in all regions. IRENA, Renewable Power Generation Costs in 2024
Fossil-fuel generation with CCUS Dispatchable power with lower emissions than an equivalent unabated fossil plant, when carbon capture, utilization and storage (CCUS) works as intended. It is not zero-emissions power, and the IEA identifies economic, political, and technical barriers to scaling CCUS. IEA, Nuclear Power and Secure Energy Transitions
Existing large nuclear plants Firm low-emissions electricity without using an SMR design. Whether this is a practical choice depends on nuclear policy and public acceptance, financing, construction, safety governance, and waste management. IEA, Nuclear Power and Secure Energy Transitions

The IEA names hydropower, bioenergy, and fossil-fuel plants equipped with CCUS as the main dispatchable low-emissions alternatives to nuclear. Each is constrained by its own resource, sustainability, or scaling limits. Wind and solar remain important alternatives for supplying energy, but they do not by themselves answer every question about firm capacity.

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What recent cost figures do—and do not—show

The IEA’s 2025 reporting gives these 2024 global weighted-average levelized costs of electricity (LCOE) for new generation:

Technology 2024 global weighted-average LCOE
Onshore wind USD 0.034/kWh
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Hydropower USD 0.057/kWh

Source: IEA, Power – Breakthrough Agenda Report 2025.

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These are global weighted averages, not quotes for a particular project. LCOE compares generation costs; it does not by itself account for the full cost or value of delivering electricity at the required place and hour. Location, financing, transmission, storage, output timing, and dispatchability can change the comparison. The figures therefore do not establish that wind or solar is always the cheapest way to provide firm, delivered power, nor do they directly compare those technologies with an SMR.

IRENA reports that 91% of newly commissioned utility-scale renewable capacity in 2024 had a lower LCOE than the cheapest newly installed fossil-fuel alternative. That is a comparison with new fossil capacity—not with SMRs or a complete system portfolio. IRENA, Renewable Power Generation Costs in 2024.

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How grids and storage make variable generation more useful

When wind or solar output does not line up with demand, the system can respond through a combination of resources:

  • Transmission and interconnection move electricity between areas, allowing regions to share available generation.
  • Storage shifts some electricity from one time to another. Batteries can also provide grid-stability services, though storage is an enabling resource rather than a primary source of energy. IEA, Electricity 2024: Executive Summary
  • Demand response changes when some electricity is used, helping align demand with available supply.
  • Dispatchable generation can provide power when variable output and other available resources are insufficient.

These are system-planning tools, not a guarantee that any particular mix will be reliable. Grid adequacy, storage needs, and the value of flexible generation depend on local demand patterns, resource quality, and infrastructure. The IEA describes grid modernization and storage as important to integrating renewable deployment. IEA, Electricity 2025

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How to choose an alternative for a particular region

A useful comparison starts with the service the system needs, then tests which resources can provide it under local conditions. Ask:

  1. What must be supplied? Estimate annual energy needs separately from peak demand and the need for firm capacity.
  2. Which local resources are dependable? Assess wind and solar profiles, hydropower and water constraints, geothermal potential, and sustainable bioenergy availability.
  3. What integration is required? Consider transmission, interconnection, storage, demand response, and dispatchable resources together with generation.
  4. What are the full project and system costs? Compare financing and delivered electricity, not only plant-level LCOE.
  5. Can the option be built and operated under local rules? Account for permitting, policy, public acceptance, environmental effects, safety governance where relevant, and resilience.

There is no universal winner in the available global comparison. A region with strong renewable resources and adequate grid connections may rely heavily on wind and solar alongside flexibility measures. Another may need more dispatchable generation or may choose existing nuclear capacity. The answer is a portfolio matched to local resources and the specific reliability service required.

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