The U.S. Department of Energy (DOE) recently re-issued a $900 million solicitation intended to support the deployment of small modular reactors (SMRs).
The DOE announced the move in a recent press release, which noted that U.S. electricity demand is forecasted to continue rising due to ballooning consumer needs, the ongoing boom in data center construction driven by increased artificial intelligence (AI) use, and the industrial sector’s need for constant power.
SMRs have the potential to deliver dependable power to energy-intensive industries, with the added advantage of flexible deployment due to their compact size and modular construction. Light-water small modular reactors could tap into the existing service and supply network that supports the nation’s current fleet of light-water reactors—helping to accelerate the near-term rollout of new nuclear technologies.
“America’s nuclear energy renaissance starts now,” said U.S. Secretary of Energy Chris Wright. “Abundant and affordable energy is key to our nation’s economic prosperity and security. This solicitation is a call to action for early movers seeking to put more energy on the grid through the deployment of advanced light-water small modular reactors.”
According to the press release, the DOE is offering funding to de-risk the deployment of Generation III+ light-water small modular reactors (Gen III+ SMR) through two tiers:
- Tier 1: First Mover Team Support will provide up to $800M to support up to two first mover teams of utility, reactor vendor, constructor, and end-users/off-takers committed to deploying a first plant while facilitating a multi-reactor, Gen III+ SMR orderbook and the opportunity to work with the National Nuclear Security Administration to incorporate safeguards and security by design into the projects.
- Tier 2: Fast Follower Deployment Support will provide approximately $100M to spur additional Gen III+ SMR deployments by addressing key gaps that have hindered the domestic nuclear industry in areas such as design, licensing, supply chain, and site preparation.
The selection of awardees will be solely based on technical merit.
Applications are due on April 23, 2025, at 5:00 p.m. ET. Previous applicants who applied to the 2024 solicitation must resubmit their proposals following the new guidance to receive consideration. New applications are also welcome.
For more information, visit the Gen III+ SMR webpage here.
The State of Nuclear Power in America
The United States has long been a global leader in nuclear energy, operating the largest fleet of nuclear reactors worldwide. As of April 2024, the U.S. boasts 94 commercially operating nuclear reactors across 28 states, collectively generating approximately 19% of its electricity. These reactors have been instrumental in providing a stable, low-carbon energy source, contributing significantly to the country's energy mix.
Aging Infrastructure and Modernization Efforts
Many of the U.S. nuclear reactors have been in operation for several decades, with an average age of about 42 years. While these facilities have demonstrated remarkable longevity, concerns about aging infrastructure have prompted discussions on extending the operational life of existing reactors and investing in modernization. The recent addition of Unit 3 at the Alvin W. Vogtle Electric Generating Plant in Georgia, which began commercial operation on July 31, 2023, marks a significant milestone as the first new reactor to come online since 2016. But admittedly, that project was not without its hiccups.
Legislative and Policy Developments
In recent years, the U.S. government has enacted several policies to bolster the nuclear energy sector. The Inflation Reduction Act of 2022 introduced production tax credits for existing nuclear plants and allocated funds for advanced nuclear technologies. Furthering this momentum, the ADVANCE Act of 2024 was signed into law, aiming to streamline the licensing process for advanced reactors, reduce regulatory costs, and promote international collaboration in nuclear technology.
Emergence of Advanced Nuclear Technologies
The focus on advanced nuclear technologies, particularly small modular reactors, has intensified. SMRs offer the potential for enhanced safety, reduced construction times, and scalability. Companies like NuScale Power have received regulatory approval for their SMR designs, signaling a shift towards more flexible nuclear solutions. Additionally, startups such as Oklo are developing microreactors tailored for specific applications, including powering data centers.
Integration with the Tech Industry
The burgeoning energy demands of the technology sector, especially from data centers supporting artificial intelligence and cloud computing, have led to strategic partnerships between tech giants and nuclear energy providers. For instance, Amazon Web Services has entered into agreements to source nuclear power for its data centers, reflecting a trend where reliable, low-carbon nuclear energy is increasingly sought after by the tech industry.
Public Perception, Challenges, & Outlook
A recent Pew Research Center survey indicated that a majority of U.S. adults remain supportive of expanding nuclear power in the country.
“Americans remain more likely to favor expanding solar power (78%) and wind power (72%) than nuclear power,” the survey reads. “Yet while support for solar and wind power has declined by double digits since 2020… the share who favor nuclear power has grown by 13 percentage points over that span.”
Despite the advancements, the nuclear industry faces challenges, including high capital costs, competition from other energy sources, and concerns over waste management.
These hurdles haven’t stopped the DOE from setting ambitious targets to triple the nation’s nuclear energy capacity by 2050, aiming to add 35 gigawatts of new capacity by 2035 and sustain a pace of 15 gigawatts per year by 2040.
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