With electricity demand expected to surge by 26 GW by 2035, the Tennessee Valley Authority (TVA) has positioned itself at the forefront of U.S. small modular reactor (SMR) development, filing a permit application to build the country’s first commercial-scale SMR at its Clinch River site in Oak Ridge, Tennessee.
TVA, the nation’s largest public utility, aims to deploy up to four GE Hitachi BWRX-300 reactors at the site, a modular design pitched as “walk-away safe” with simplified construction and a 60-year lifecycle. While proponents tout SMRs as a scalable, low-carbon alternative to fossil generation—particularly for repowering coal sites—the sector’s recent track record raises questions about feasibility at commercial scale.
The decision to move forward comes just months after the collapse of NuScale’s Utah project, once the flagship of U.S. SMR development. That project was terminated in 2023 due to escalating costs and insufficient off-taker interest, despite years of Department of Energy (DOE) backing. TVA now hopes to avoid similar pitfalls through early engagement with regulators and a bid for an $800 million DOE grant, along with $8 million in support for licensing.
CEO Don Moul framed the Clinch River project as a cornerstone of national energy security, emphasizing nuclear’s resilience and suitability for coal-to-nuclear conversions. However, the timing of TVA’s move—just weeks after it suggested prolonging coal plant lifespans—highlights a complex energy transition landscape in which nuclear is still contending for long-term relevance.
The BWRX-300, TVA’s chosen design, is currently under regulatory review in Canada, where Ontario Power Generation plans to begin site work in 2025. While GE Hitachi claims significant cost and schedule advantages due to its reliance on existing light-water reactor technology, no full-scale unit has yet been completed.
Even if regulatory approval is expedited—TVA has already completed an environmental impact statement for the Clinch River site—construction would not begin before 2026, with commissioning likely years beyond that. The window to replace retiring baseload capacity is narrowing, especially in regions like the Southeast U.S., where electrification and data center growth are accelerating demand faster than national averages.
Policy clarity remains another limiting factor. Although SMRs are considered eligible for federal tax credits, inconsistent state-level support and the lack of a comprehensive spent fuel policy leave developers with unresolved risks. TVA’s unique status as a federally owned corporation may afford it greater latitude than investor-owned utilities, but it also puts the project in the political spotlight—particularly amid broader scrutiny of DOE loan guarantees and public funding for advanced nuclear technologies.
Stay updated on the latest in energy! Follow us on LinkedIn, Facebook, and X for real-time news and insights. Don’t miss out on exclusive interviews and webinars—subscribe to our YouTube channel today! Join our community and be part of the conversation shaping the future of energy.
