What lies behind China’s offer to build small modular nuclear reactors in Serbia?

Discussion about the possible construction of a nuclear power plant in Serbia is becoming increasingly intense, as can be seen from ongoing preparations involving technical, legal and human-resource capacities.

However, conversations about nuclear power plants are now going hand in hand with discussions about small modular reactors (SMRs) – a new technology being considered worldwide as a potential solution to growing electricity demand, particularly in the era of artificial intelligence.

Although SMR systems are still in an early stage of development and their commercial application is only beginning to be considered, Serbian President Aleksandar Vučić said during a recent visit to China that Serbia had received an offer from Chinese partners to build small modular power plants under “favourable conditions, with short construction timelines, as well as personnel education and training”.

Experts interviewed by Insajder assess that this announcement is little more than “selling illusions”, arguing that the development of this technology in Serbia is almost impossible and that the International Atomic Energy Agency (IAEA) would not permit unproven programmes.

The Chinese offer, however, is not the only one. France is also competing to develop nuclear energy in Serbia, while Russia is likewise being considered, according to the Serbian President.

“We will continue discussions. You know that we have an agreement with France’s EDF, and we have also spoken with the Russians, who are very successful in this field. We have received offers from other Asian countries as well, so we will consider what is best for Serbia, but this proposal was very concrete,” Vučić told RTS on 27 May.

Serbia could obtain its first nuclear power plant by 2040, and concrete preparations began with the lifting of the nuclear energy moratorium in 2024. Soon afterwards, the relevant ministry established cooperation with Électricité de France (EDF), one of the world’s largest nuclear energy companies.

Two months ago, EDF also published a preliminary technical study on the peaceful use of nuclear energy in Serbia, representing one of the key stages in a series of steps required to meet international standards for the potential construction of a nuclear power plant.

While public attention is focused on large nuclear plants, references to small modular reactors have largely gone unnoticed. This technology is still in its early stages of development and has not yet entered commercial use.

“Unlike traditional high-capacity reactors, which require extensive on-site construction, SMRs follow a product-based model that enables assembly at existing power plant sites or deployment in remote and industrial areas. This modular approach improves cost predictability, reduces construction time and minimises project risks,” states the summary of EDF’s preliminary technical study.

Pilot projects and unproven technologies

Professor Miloš Banjac of the Faculty of Mechanical Engineering told Insajder that there are several problems with the entire concept, ranging from cooperation with France to the use of unproven technologies.

“We have already gone quite far with the French regarding agreements and the construction of nuclear power plants. We signed a memorandum of understanding and a preliminary technical study with them, effectively creating a pre-agreement that we would work together. As for small modular reactors, based on the current situation, the International Atomic Energy Agency will not allow new countries to pursue unproven programmes,” Banjac said.

He added that, according to these criteria, only nuclear power plants that have already been tested and are operating in other countries would be permitted, arguing that this is exactly the kind of approach Serbia currently needs.

“I do not believe the option of small modular reactors is realistic. We are talking about a fourth-generation technology that remains unproven. There are only a handful of such facilities in the world, mostly pilot projects rather than part of standard practice,” Banjac said.

Energy expert Milun Babić also considers the construction of small modular reactors in Serbia unlikely, describing such announcements as “selling illusions”.

“If this is accepted, Serbia will once again become an experimental guinea pig,” he said.

A large nuclear plant is needed, not partial solutions

Babić explained that small modular reactors operate on the same principles as large nuclear power plants, only on a much smaller scale, and that their application remains limited due to a lack of sufficient practical experience.

He added that such reactors contain nearly all the key components of large nuclear power plants, including the reactor itself, cooling systems and strict safety procedures, but produce significantly less energy.

“A reactor must be cooled, which requires substantial amounts of water. Maintenance must be extremely strict and precise, just as it is in large nuclear power plants,” Babić said.

He identified the lack of experience with broader deployment of the technology as one of the greatest challenges, as well as the fact that “a single small nuclear power plant would not be able to meet Serbia’s energy needs”.

“More would be required. And as soon as you have more, you have more problems,” Babić said.

Professor Banjac noted that small reactors are primarily used for applications such as nuclear submarines, ships and aircraft carriers. “So the technology exists, but our energy needs should not be reduced to modular nuclear reactors. What we need is a conventional large-scale nuclear power plant with substantial capacity. We must phase out a significant share of our thermal power generation over the next 10 to 15 years, which means we need large capacities, not piecemeal solutions,” he said.

Energy dependence on other countries

Banjac also pointed out that international institutions have clear rules regarding the deployment of small modular nuclear reactors.

“The International Atomic Energy Agency has a very clear position that a country entering a nuclear programme for the first time should not implement technology that has not previously been used elsewhere. Serbia has no experience with nuclear power plants, and introducing something completely new is not something we should experiment with,” Banjac said.

He added that European energy policy is aimed at increasing independence from external actors, meaning that potential cooperation between Serbia and China could run counter to those objectives. As an example, he cited the construction of the new Paks II nuclear power plant in Hungary, which is being built by Russia.

“That project is already quite advanced and will probably be completed. But it represents a serious commitment, a serious marriage between two countries when something like that is built,” Banjac said.

In the case of small modular reactors, Serbia would, according to the professor, become dependent on China “for nuclear fuel supply, nuclear waste management and technology”.

Failure to maintain existing infrastructure

Energy expert Milun Babić argues that one of the fundamental problems facing Serbian infrastructure is insufficient commitment to maintaining existing systems, leading to their gradual deterioration.

He cited the problems seen during the floods in Obrenovac, as well as numerous later breakdowns and incidents in the energy and infrastructure sectors.

“Judging by how things are done here and how energy facilities are maintained, we could already see the consequences during the major floods in Obrenovac and later through various accidents. We are simply not inclined to carry out maintenance properly and systematically,” Babić said.

According to him, similar issues can be observed in road and railway infrastructure, as well as in buildings that deteriorate over time despite having been constructed to standard specifications.

Long-term planning

Insajder’s interviewees emphasise that Serbia would need a clearly defined long-term plan if it intends to build a nuclear power plant, along with timely and transparent communication with the public.

Milun Babić stressed that centralised management of complex systems presents an additional challenge, since operating such technologies requires constant monitoring.

“Such systems cannot be managed on an ad hoc basis. They require continuous forecasting and forward planning, not merely reacting to problems as they arise,” he said.

Professor Miloš Banjac, on the other hand, believes that before making any further decisions, the authorities should conduct a comprehensive public information campaign to familiarise citizens with both the necessity and the safety aspects of such projects.

He noted that nuclear energy is currently not discussed in Serbia in a sufficiently systematic manner and that there is no clear public communication strategy.

“I believe there should be serious preparation of Serbian citizens through a campaign explaining whether we need this and why it is safe, whether we are talking about a large nuclear power plant or any other type. The way this is currently being handled is, in my opinion, completely wrong,” Banjac said.

He added that problems in managing complex energy systems can also affect other sectors, including thermal power generation, where poor management can lead to serious consequences. “We manage other things poorly as well, and that is why problems occur that would otherwise be difficult to imagine, such as the situation with thermal power plants,” Banjac concluded.

(Insajder, 08.06.2026)

https://insajder.net/vesti/prodavanje-magle-ili-eksperimentalni-zamorcici-sta-stoji-iza-ponude-kine-da-srbiji-gradi-male-modularne-reaktore

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