TVA Boosts Investment in Small Modular Nuclear Reactors

Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--The Tennessee Valley Authority (NYSE:TVE) (TVA) (Knoxville, Tennessee) plans to invest nearly $16 billion through fiscal-year 2027 in new generation, infrastructure and reliability enhancements, the agency said in late August after its board of directors adopted the agency's FY 2025 budget.

As part of its August 22 vote, the TVA board decided to increase the agency's investment in the small modular nuclear reactor (SMR) being developed at its site in Clinch River, Tennessee, bringing the agency's investment there to $350 million. TVA made its initial Clinch River SMR investment of $200 million in February 2022.

"We believe advanced nuclear technologies will play a critical role in our region and nation's drive toward a clean energy future," said Jeff Lyash, TVA president and chief executive. He said the board's August 22 decision to increase the agency's investment in its Clinch River SMR "demonstrates TVA's commitment to continue leading" the way to a clean-energy future.

"Small modular reactors are an energy innovation technology that America must dominate--for our energy security, which is really our national security," he added.

Industrial Info also is tracking several other potential SMR projects under development at TVA. But an agency spokesperson declined to confirm those projects, and they were not mentioned in the agency's August 22 statement.

Industrial Info's data shows TVA is considering deploying as many as 10 SMRs besides the one at Clinch River, but those activities are not scheduled to begin construction until late in the current decade and into the 2030s. Those sites, which share the footprint of existing TVA generation, are Kingston, Bull Run, Gallatin, Watts Bar, John Sevier, Widows Creek, Colbert, New Johnsonville, Paradise and Bellefonte sites. The total investment value (TIV) for each of those potential SMR projects is about $2 billion.

If they are built, the Bellefonte and Colbert SMR projects will be in Alabama. All the other potential SMR projects are scheduled to be built in Tennessee, except for the Paradise project, which is slated to be built in Kentucky. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project and Plant databases can click here for a list of detailed project reports and click here for a list of related plant profiles.

The agency also plans to invest heavily in new pumped storage hydropower and traditional hydro generation over the next five years, according to data tracked by Industrial Info.

Industrial Info is tracking 62 capital-spending projects from TVA that are scheduled to begin construction between January 2024 and December 2028. The total investment value (TIV) of those projects is approximately $33.85 billion. Subscribers can click here for a full list of detailed project reports.

TVA aims to deploy 10,000 megawatts (MW) of solar generation by 2035, to advance its clean energy credentials. The agency has been retiring coal-fired generation for years, and it is replacing that shuttered generation with a mix of nuclear, gas-fired generation, utility-scale renewables, distributed renewables and customer energy efficiency programs.

Nearly 60% of the agency's generation is carbon-free. It generates and distributes electricity to 153 distribution utilities across seven states in the Tennessee Valley.

The region's population is growing three times faster than the national average, and in 2023, gross domestic product (GDP) in TVA's service territory grew a little faster than the national average, TVA said August 22.

To meet the electric needs of a growing population and regional economy, the TVA statement said the agency is committed to building about 3,500 MW of new electric generation. This year alone, it said it completed construction of about 1,400 MW of new generation and secured about 800 MW of solar through power purchase agreements (PPAs). Overall, it plans to invest nearly $16 billion through September 2027 to build new generation and infrastructure and enhance the reliability of its existing asset base.

TVA has had to raise its wholesale electric prices to help pay for its capital expenditures (capex). It recently added generation at its Paradise Fossil Plant in Kentucky and is moving forward with plans to add generating capacity at its Cumberland, Kingston and Johnsonville stations, all of which are in Tennessee, as well as its Shawnee station in Kentucky.

Subscribers can read detailed reports on the Cumberland, Kingston, Johnsonville and Shawnee projects.

The big-ticket items in TVA's planned capital program, some of which are not scheduled to break ground for several years, include:

• $8 billion to build the grassroot, 1,600-MW Widow's Creek pumped storage hydropower project in Stevenson, Alabama; see project report
• $8 billion to build the grassroot, 1,600-MW Rorex Creek pumped storage project in Pisgah, Alabama; see project report
• $5.6 billion to add about 800 MW of new generation at the existing Racoon Mountain Hydroelectric Station in Chattanooga, Tennessee; see project report
• As much as $4.1 billion to build up to 800 MW of new SMR generation at the Clinch River Modular Nuclear Site in Oak Ridge, Tennessee; see project report

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).