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JAM| Jan 3, 2025
FROM/ Our Today (administrator)
Reading Time: 4 minutes
Beware of nuclear power talk in Jamaica
Once, during my occasional role writing speeches for the late Edward Seaga, he shared his thoughts on a particular promoter’s presentation. The speech was filled with dazzling phrases like “future-proof,” “quick start-up,” and “compact efficiency.”
The speaker included an evocative appeal: “Imagine a future where your leadership transforms the Jamaican nation’s power supply into a high-speed beacon of innovation, setting an Olympian gold standard—this is your legacy waiting to happen, Prime Minister.”
The presenter also made sure to boast about his “private audiences” with notable American figures, mentioning “recent talks with Ronnie’s people” in the US. However, Mr Seaga saw through the polished delivery, recognising that the content was insubstantial, designed more to impress less discerning politicians.
Today, Jamaica faces a similar scenario as entitled moneyed interests aggressively promote SMRs as the ultimate solution to “fix our electricity grid once and for all.” Our people urgently need to understand the realities behind these claims.
Promoters of small modular reactors (SMRs) often stand to gain personally from their promotion through a variety of mechanisms, whether or not the projects deliver as promised. Some of these include:
1. Financial investments and partnerships
SMR promoters often have financial stakes in companies that stand to benefit from the construction, operation, or sale of SMR technology. This could involve direct investments in reactor companies, partnerships with suppliers, or private equity in the businesses behind the SMR initiatives. These financial interests incentivize them to push for government contracts, subsidies, MoUs, or favourable policies that boost their personal wealth, regardless of the outcome of the projects.
2. Lobbying for subsidies
SMR promoters frequently lobby governments for subsidies, tax breaks, and funding to support their projects. This can translate into massive public funding for SMR initiatives that line their pockets, regardless of whether these projects meet their energy promises. With the rising concern over climate change and energy security, government funds are often funneled into green or low-carbon initiatives, which SMR promoters capitalize on by falsely positioning SMRs as a ‘clean’ solution.
3. Consulting and advisory fees
Promoters often position themselves as experts or consultants for SMR projects. By advising governments or private companies on how to structure deals, navigate regulations, or select technology partners, they can earn significant consulting fees or retainers. This often occurs in a “revolving door” fashion, where they move back and forth between government roles, private companies, and lobbying positions.
4. Ownership of supply chain
Promoters can also stand to benefit if they or their associates own or have business interests in key parts of the supply chain that SMR technology depends on—whether it’s reactor components, safety systems, construction companies, or power distribution networks. If an SMR project is approved or moves forward, they profit from supplying these components or services, regardless of whether the reactor proves efficient, safe, or cost-effective.
5. Long-term service contracts
SMR promoters may also arrange for long-term service contracts, including maintenance, operation, and waste disposal. Even if an SMR fails to live up to expectations in terms of cost or performance, these service agreements can still be lucrative. The failure of the reactor to deliver expected performance can lead to costly repairs or longer operational lifespans, which ensure continued revenue for the promoters’ associated companies.
6. Selling the “future potential”
SMR promoters often focus on the long-term potential and future possibilities of their technology rather than on immediate results. By selling a narrative of technological innovation, energy independence, and environmental responsibility, they can secure deals and investments based on hope rather than actual results. They maintain their personal financial position by perpetuating optimism and positioning themselves as “visionaries” in the energy space, regardless of any short-term underperformance.
7. Politician or corporate insider relationships
SMR promoters often build relationships with politicians, regulators, or executives in companies that would benefit from the proliferation of SMR projects. This network allows them to secure lucrative contracts or favorable policies that ensure personal financial gain. Their insider knowledge and influence enable them to push through policies or funding decisions that benefit their investments, sometimes at the expense of more proven or safer alternatives.
8. Exit strategy through buyouts or IPOs
As the SMR sector grows, early promoters often position themselves for significant exits via buyouts or public offerings. When larger companies, such as energy conglomerates or government-backed utilities, decide to take over or invest in SMR projects, early promoters often cash out with a substantial profit, even if the technology itself fails to live up to its promises.
Ultimately, the personal gains of SMR promoters are often tied to creating an illusion of future success, using lobbying power, exploiting public funds, and positioning themselves as gatekeepers to future energy solutions, all while maintaining financial benefits irrespective of the performance of the actual projects.
Dennis A. Minott
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