Compiled by A.J. Kaufman, Managing Editor
The Tennessee Valley Authority (TVA) is leading a team of nuclear companies and utilities applying for an $800 million federal grant to help finance small modular reactors (SMRs) at its Clinch River Nuclear Site, a 1,200-acre tract at the south end of Oak Ridge.
The grant could shrink the timeline for building the reactors by two years, with a plan for commercial operation by 2033.
As a public utility owned by the federal government, TVA may build up to four 300-megawatt reactors at the site but is focused on bringing the nation’s first small modular reactor online.
“It’s not about building one reactor, it’s about building a fleet of reactors in TVA’s footprint, in the U.S. and globally,” TVA CEO Jeff Lyash told Knox News. “This technology takes federal support to develop and deploy, and that’s what this grant is about.”
Small modular reactors are smaller than large traditional nuclear power plants and therefore can be built faster and in more places. Smaller-scale reactors could also make nuclear energy more accessible for utilities that otherwise lack the resources or space for a larger power plant.
Nuclear energy is the largest single source of clean energy in the U.S., at around 20% of the electricity supply. In Tennessee, it’s nearly double that.
TVA submitted an early site permit nearly a decade ago. The project was the first of its kind to receive an early site permit from the U.S. Nuclear Regulatory Commission in 2019. TVA’s Board of Directors has approved $350 million to fund early development. TVA is the nation’s largest public power supplier, delivering energy to 10 million people across seven states.
U.S. Rep. Chuck Fleischmann, a Republican representing southeast Tennessee, told USA Today that conservatives and liberals alike now embrace nuclear technology.
In order to meet growing power demands across the country, Fleischman claimed officials look at small modular reactors, advanced reactors or micro-reactors because they’re efficient, reliable and resilient.
At the federal level, U.S. Department of Energy Secretary Chris Wright, a former oil and gas CEO, is also considered pro-nuclear and interested in advanced nuclear energy. In an interview late last year, President Donald Trump praised SMRs “as a potential answer to long-running cost concerns surrounding the energy source” and a way to “avoid the complexities associated with large reactors.”
There is renewed bipartisan support for the nuclear energy industry for many reasons.
Large-scale data centers for AI, especially in Virginia, have augmented demand.
Russia’s invasion of Ukraine upended the global energy market, once again proving that reliable energy is part of national security.
Meanwhile, ambitious clean energy goals adopted by governments and companies around the globe have made nuclear financing a secondary concern.
Yet, where will grant money come from?
The $800 million grant is part of the U.S. Department of Energy’s Generation III + Small Modular Reactor Program and will go to one or two teams of utilities and construction partners.
As far as when these reactors could come online, the current TVA timeline is:
- First half of 2025: TVA will submit a construction permit application to the U.S. Nuclear Regulatory Committee.
- August 2025: TVA will ask its board to approve procuring materials, detailed design engineering and construction planning.
- January 2026: TVA could begin early site preparations.
- July 2026: Excavation could begin.
- August 2028: Nuclear construction could begin.
- End of 2033: First U.S. small modular reactors at Clinch River Site could begin commercial operation.
According to a recent Knoxville News Sentinel story, the first reactor at the Clinch River Site could cost almost $18,000 per kilowatt, or nearly $5.5 billion for a 300-megawatt plant. Reports say these costs would precipitously decline after the first reactor is built.
In his Feb. 10 State of the State address Gov. Bill Lee spoke about energy, noting at one point that, “The Volunteer State is on track to be the epicenter of energy innovation, and it couldn’t happen at a more crucial time.”
The governor’s proposed budget includes $50 million to demonstrate the state’s commitment to build the first SMR on Tennessee soil and position the state as a leader in next-generation nuclear energy. He’s also allotted $10 million for further investment in the Nuclear Energy Fund to attract advanced nuclear technology companies.
