Jan 17, 2025

For more than 90 years, the core of TVA’s mission has been to provide affordable, reliable and increasingly clean energy that helps bring American-made jobs to our seven-state region. TVA’s work to deploy a small modular reactor (SMR) is the next chapter in that story.

TVA announced that it is leading an application for an $800 million grant from the U.S. Department of Energy’s Generation III+ Small Modular Reactor (SMR) Program with a strong coalition of partners, including Bechtel, BWX Technologies (BWXT) , Duke Energy, Electric Power Research Institute (EPRI), GE Hitachi Nuclear Energy (GEH), Indiana Michigan Power – an AEP Company, Oak Ridge Associated Universities, Sargent & Lundy (S&L), Scot Forge and North American Forgemasters (NAF), the State of Tennessee and other utilities and advanced nuclear project developers.

As TVA receives no federal funding, the agency is eligible, like any other company, to apply for federal grants like this one, and by working with these partners, TVA is ensuring this funding paves the way for deployment of not just the first SMR at Clinch River, but will also help establish a domestic supply chain for the BWRX-300 reactors and support future deployment of the reactor.

“We believe advanced nuclear technologies will play a critical role in our region and nation’s drive towards greater energy security,” said CEO Jeff Lyash. “Enabling and accelerating this technology will take innovation and partnership, as well as discipline and hard work. Nuclear is the most reliable and efficient energy the world has ever known, and TVA is uniquely positioned to help drive this forward. We are committed to working with partners and this grant would expedite our work as we invest in America’s nuclear future.” 

In 2024, Congress appropriated grant funding to spur the first Gen III+ SMR deployments in the U.S., which will strengthen America’s domestic nuclear industry and help meet the growing demand for affordable, reliable and clean power.   

TVA has not committed to building an SMR, and, if awarded, the DOE funding would not commit TVA to building an SMR. TVA continues to use the structured planning phase/ decision gate approach as we explore potential development of SMR technology.

Should the Board approve an SMR at the Clinch River Nuclear Site, the availability of DOE funding would help accelerate the early activities of the project. This would reduce TVA’s risk and cost as evaluation of the potential for an SMR continues. This is in line with the gated decision-making process we developed with the Board that carefully advances the project in phases and allows for pauses or stops in the project.

If awarded, Jeff said the funding will accelerate construction of an SMR at TVA’s Clinch River Project, in Oak Ridge, Tenn., by two years – with commercial operation planned for 2033. 

The benefits from this funding reach beyond Clinch River as TVA will work with partners to share lessons and best practices that will offset costs and reduce risks for customers, while advancing nuclear technology for the entire country.   

This first-of-a-kind technology must be built in the United States and there is broad, bipartisan support for this. Nuclear energy helps provide energy security – reliable, affordable energy – and energy security is really national security.

“Tennessee is leading the nation with safe, reliable, clean nuclear energy to ensure America’s energy independence and a brighter future for all,” said Tennessee Governor Bill Lee. “I thank the Tennessee Valley Authority and key partners for requesting funding to accelerate SMR development, which will support Tennessee’s nuclear ecosystem development and strengthen our workforce to create even more high-paying jobs for Tennesseans.”

Emerging nuclear technologies are showing great promise for increasing our nation’s power generation capabilities by offering reliable, affordable, flexible and clean-energy alternatives. Traditional nuclear energy is already a safe and secure energy source and SMRs will continue to improve safety and security. Their smaller footprint means they can be built more quickly, are easier to operate and better fit into the landscape due to their compact size.

Our region is uniquely suited to support this effort. With a growing number of nuclear energy companies, research institutions, and supportive state governments, TVA understands the valuable role nuclear energy places driving jobs and investment to our region – and we have the skilled workforce to take on these opportunities.