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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--The seven-state service area served by the Tennessee Valley Authority (TVA) (Knoxville, Tennessee) has experienced strong economic growth over the last few years, and the agency's board of directors late last month approved investing $15 billion in new generation and transmission projects over the next three years to meet rising electric demand.
The $15 billion in budget authority was not tied to specific projects, partly because some projects are still going through permitting reviews, Scott Fiedler, a TVA spokesperson, said in an interview with Industrial Info.
"In our region, business growth is driving population growth and increased electric demand," Fiedler continued. TVA's electric demand is growing at three times the national average, he said, adding that automakers, including electric vehicle assembly plants and EV battery factories, were leading the charge. "Some businesses are making plant location or expansion decisions based in part on the carbon content of the local electric supply."
Over the prior decade, the agency invested $25 billion in its generation fleet. As TVA retired coal-fired units, it brought gas-fired units online as well as adding new renewable resources.
Over the next three years, TVA said it plans to add:
In its August 24 announcement, TVA also added that it brought three gas-fired, combustion turbine units totaling 750 MW online at its Colbert Combustion Turbines Plant, located in Tuscumbia, Alabama, in July.
Industrial Info is tracking 59 active capital projects involving TVA, with a TIV of about $13.3 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here for a list of detailed project reports.
"It took us 90 years to build our current power system which positively changed the lives of millions," TVA President and Chief Executive Jeff Lyash said in an August 24 statement announcing the capital program. "In the next 30 years, we will have to double or triple the current systems at a speed unlike any other time in TVA history to ensure we can continue to provide affordable, reliable, resilient and sustainable energy to fuel the region's economic growth."
Fiedler said TVA will have to add about 1,000 MW of new generation annually to 2050 to meet expected load growth.
Some of that new generation could be built in Cheatham County, Tennessee. Earlier this summer, TVA began exploring siting options for a 900-MW generation station and battery energy storage system (BESS) for that county. If built, this project would replace the generation capacity that will be lost when TVA closes Unit 2 of the coal-burning Cumberland Fossil Plant in 2028.
The agency also is exploring the construction of up to 800 MW of small modular reactor (SMRs) generation at its Oak Ridge, Tennessee, facility, a project that would not begin until 2027 at the earliest. The agency also plans to invest in environmental remediation by closing coal ash ponds at several generation sites.
TVA's August 24 announcement also said the agency would invest $1.5 billion over the fiscal year 2023-2027 period in customer programs that would lower customer usage and reduce peak electric demand. These programs are expected to offset more than 30% of the new load growth expected over the next 10 years.
Fiedler said nearly 60% of TVA's electricity is generated from carbon-free resources today, and the government-owned electric utility plans to be net-zero carbon emissions by 2050.
"In 2005, 57% of our electricity was generated from coal," he said in an interview. "By 2030, that number will drop to 5%."
Click on the image at right to see what percentage of TVA's electricity was generated from which fuel in 2005, and what the agency's planned fuel mix is for 2030.
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) 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 over 200,000 current and future projects worth $17.8 Trillion (USD).
The $15 billion in budget authority was not tied to specific projects, partly because some projects are still going through permitting reviews, Scott Fiedler, a TVA spokesperson, said in an interview with Industrial Info.
"In our region, business growth is driving population growth and increased electric demand," Fiedler continued. TVA's electric demand is growing at three times the national average, he said, adding that automakers, including electric vehicle assembly plants and EV battery factories, were leading the charge. "Some businesses are making plant location or expansion decisions based in part on the carbon content of the local electric supply."
Over the prior decade, the agency invested $25 billion in its generation fleet. As TVA retired coal-fired units, it brought gas-fired units online as well as adding new renewable resources.
Over the next three years, TVA said it plans to add:
- 1,450 megawatts (MW) of new gas-fired generation at its Kingston Power Station in Harriman, Tennessee, at a cost of about $1.6 billion. TVA has not yet chosen a firm to provide engineering, procurement and construction (EPC) services for this unit addition project. Project construction is expected to begin in mid-2026, and the new generation is slated to begin operating by late 2027. This generation will replace the generation capacity that will be lost when the coal-fired units at Kingston are retired.
- 1,450 MW of new gas-fired generation at the Cumberland Fossil Power Station in Cumberland City, Tennessee. Construction of this new generation capacity is scheduled to begin in late 2024, and the plant is expected to begin operating in late 2026. The total investment value (TIV) of this project is about $1.6 billion. TVA plans to issue a request for proposals (RFP) for an EPC firm later this year.
- 750 MW of new gas-fired, simple-cycle generation capacity at its Paradise Fossil Plant in Drakesboro, Kentucky, at a cost of about $750 million. Burns & McDonnell (Kansas City, Missouri) is providing EPC services for the project, which began construction in late 2022. The new generation is expected to begin operating in early 2024.
- 500 MW of new gas-fired peaking generation at its Johnsonville Combustion Turbines plant located in New Johnsonville, Tennessee, at a cost of about $500 million. Burns & McDonnell also is providing EPC services for the project, which began construction in late 2022. The new generation is expected to begin operating in late 2024.
- About $2.8 billion of new transmission infrastructure, which includes $300 million to construct a new system operations center in Meigs County, Tennessee.
In its August 24 announcement, TVA also added that it brought three gas-fired, combustion turbine units totaling 750 MW online at its Colbert Combustion Turbines Plant, located in Tuscumbia, Alabama, in July.
Industrial Info is tracking 59 active capital projects involving TVA, with a TIV of about $13.3 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here for a list of detailed project reports.
"It took us 90 years to build our current power system which positively changed the lives of millions," TVA President and Chief Executive Jeff Lyash said in an August 24 statement announcing the capital program. "In the next 30 years, we will have to double or triple the current systems at a speed unlike any other time in TVA history to ensure we can continue to provide affordable, reliable, resilient and sustainable energy to fuel the region's economic growth."
Fiedler said TVA will have to add about 1,000 MW of new generation annually to 2050 to meet expected load growth.
Some of that new generation could be built in Cheatham County, Tennessee. Earlier this summer, TVA began exploring siting options for a 900-MW generation station and battery energy storage system (BESS) for that county. If built, this project would replace the generation capacity that will be lost when TVA closes Unit 2 of the coal-burning Cumberland Fossil Plant in 2028.
The agency also is exploring the construction of up to 800 MW of small modular reactor (SMRs) generation at its Oak Ridge, Tennessee, facility, a project that would not begin until 2027 at the earliest. The agency also plans to invest in environmental remediation by closing coal ash ponds at several generation sites.
TVA's August 24 announcement also said the agency would invest $1.5 billion over the fiscal year 2023-2027 period in customer programs that would lower customer usage and reduce peak electric demand. These programs are expected to offset more than 30% of the new load growth expected over the next 10 years.
Fiedler said nearly 60% of TVA's electricity is generated from carbon-free resources today, and the government-owned electric utility plans to be net-zero carbon emissions by 2050.
"In 2005, 57% of our electricity was generated from coal," he said in an interview. "By 2030, that number will drop to 5%."
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) 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 over 200,000 current and future projects worth $17.8 Trillion (USD).
