Comparative Analysis of Regulatory Compliance and Legal Issues in Small Modular Nuclear Reactor Deployment

Abstract

The deployment of small modular reactors (SMRs) is a critical pathway toward achieving clean and reliable energy solutions globally. However, the pace and success of SMR deployment vary significantly across different countries, driven by a combination of regulatory, financial, and social factors. This study utilized the most similar systems design approach, comparing five countries with similar control variables while focusing on variations in regulatory and legal frameworks to assess their impact on SMR deployment. Using a combination of correlation analysis and partial least-squares regression (PLS-R), the authors analyzed the effects of independent variables: regulatory flexibility, licensing processing time, public engagement and consultation procedures, compliance costs, environmental impact assessment (EIA) regulations, government support, and liability and risk management regulations. The results show that government support, regulation flexibility, and liability management frameworks have the strongest positive correlation with SMR deployment. Conversely, EIA regulations and licensing processing time were identified as significant barriers, slowing the approval and development processes. Although public engagement showed a moderate negative effect in correlation analysis, the PLS-R analysis revealed a small positive influence, indicating its long-term benefits in enhancing public trust and reducing opposition. Further, the compliance costs were found to have minimal impact when considered alongside other factors. This study offers important practical applications for accelerating SMR deployment by addressing regulatory and legal challenges. Policymakers can utilize the discussion on regulatory flexibility and government support to design adaptive, innovation-oriented frameworks that streamline licensing and operational processes, similar to best practices observed in Canada. Stakeholders, including developers and operators, can benefit from promoting transparent public engagement to build trust, reduce opposition, and enhance project timelines. Furthermore, developers can align their technological advancements with regulatory expectations, creating designs that meet compliance requirements while addressing industry needs. A regulatory body can implement reforms in licensing and environmental impact assessment procedures to minimize delays without compromising safety or environmental standards. Additionally, the comparative results from this study can guide international collaboration, harmonizing regulatory standards to facilitate cross-border SMR projects and ensure consistency in global safety protocols. Governments and private investors can prioritize financial incentives and liability management frameworks to mitigate economic risks and stimulate investments through tax credits and subsidies.