The Tennessee Valley Authority recently applied to be the first major utility to permit a small modular reactor.
The Tennessee Valley Authority (TVA), the nation’s largest public power company, has become the first U.S. utility to submit a construction permit application to the Nuclear Regulatory Commission (NRC) for a small modular reactor (SMR). The proposed reactor, to be located at the Clinch River site in Oak Ridge, Tennessee, represents a significant step toward developing next-generation nuclear power. TVA officials emphasized the reliability, resilience, and carbon-free benefits of nuclear energy, suggesting that this initiative could serve as a model for other utilities. The utility anticipates a substantial increase in electricity demand—up to 26 gigawatts by 2035—driven by population growth and industrial shifts toward electrification. To address this, TVA has allocated $350 million for the SMR program and is seeking $800 million in federal funding to expedite development. If approved, the reactor could be operational by 2032, supplying 300 megawatts of power, sufficient for approximately 175,000 homes.
The SMR design selected by TVA is GE Hitachi’s light water reactor, the same model currently under construction in Ontario, Canada. The Canadian project estimates the first reactor’s cost at $6.1 billion, with expectations of reduced costs for subsequent units. TVA’s cost projections align with these figures, though specific details have not been disclosed. The move toward SMRs marks a shift in U.S. nuclear energy strategy, aiming to overcome historical challenges associated with large-scale nuclear projects, such as cost overruns and delays.
Lessons from Ontario and the TVA would be very timely for Maryland policymakers. A big part of the debate around the Next Generation Energy Act of 2025 (HB1035/SB937) was new incentives and a prioritization of SMRs in the state’s medium and long-term energy futures.
