Darlington's SMR Program: A Risky Investment for Canada's Clean Energy Future?

Darlington's Small Modular Reactors (SMRs): A High-Risk Venture?

In October 2025, the federal government announced a $2 billion investment through the Canada Growth Fund, complemented by an additional $1 billion from the provincial Building Ontario Fund, to support Ontario Power Generation's (OPG) four-unit SMR build at the Darlington site.

This decision marks a significant shift in Canada's clean energy policy, raising concerns about potential price hikes, increased greenhouse gas (GHG) emissions, and political risks associated with SMR technology.

Soaring Costs and Emissions

Small modular reactors are billed as a cost-effective and environmentally friendly alternative to traditional nuclear power plants. However, recent studies indicate that SMRs may not deliver on these promises.

SMRs are likely to be more expensive than large-scale nuclear facilities due to their smaller output and the need for multiple units to achieve the same power generation capacity. Moreover, SMRs' energy production costs per unit will be higher than those of conventional nuclear and renewable energy sources, making them less competitive in the market.

Furthermore, SMRs are expected to emit more GHG emissions than large-scale nuclear and renewable energy installations during the construction and operation phases, potentially undermining Canada's climate change commitments.

Political Risks and Uncertainties

The SMR program also presents political challenges, as it involves complex regulatory frameworks, international partnerships, and long-term financial commitments. The OPG Darlington project, for instance, requires the collaboration of multiple stakeholders, including the federal and provincial governments, Indigenous communities, and international partners.

Given the potential for delays, cost overruns, and geopolitical tensions, the SMR program may lead to increased political risks, threatening Canada's energy security and stability.

A Questionable Path Forward

While the federal and provincial governments aim to promote clean energy and reduce GHG emissions, the Darlington SMR program presents significant challenges in terms of financial viability, environmental impact, and political risks. As Canada charts its clean energy future, it is essential to consider alternative, more cost-effective, and environmentally sustainable solutions to meet the country's long-term energy needs.