The Tennessee Valley Authority Board of Directors has approved $150 million in additional advanced nuclear funding to support continued design work and TVA’s development of potential small modular reactors (SMRs) at its Clinch River site near Oak Ridge, Tennessee.
The TVA board, which initially approved $200 million at its February 2022 board meeting, has now permitted $350 million in total for the small nuclear project.
SMRs are advanced light water reactors and other designs with power capacity of 50 MW to 300 MW. The reactors, none of which have been built or put into operation yet, are designed to be assembled in factories for installation efficiency that could enhance both cost savings and safety features.
Nuclear power generation is carbon free.
“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 CEO, in a statement. “Small modular reactors are an energy innovation technology that America must dominate – for our energy security, which is really our national security.”
TVA announced the Clinch River SMR project two years ago. The future SMR site could include multiple advanced small reactors, and is starting with GE-Hitachi Nuclear Energy's BWRX-300 SMR design.
To pay for this and fund ongoing construction and energy development, the TVA Board approved a 5.25% base rate increase that will take effect October 1, to fund ongoing construction and energy development. An average residential bill will increase to about an additional $4.35 each month compared to FY 2023.
Board approved a set of strategic elements including an initiative to accelerate TVA’s clean energy programs.
In August 2023, the TVA Board of Directors approved a 4.5 percent base rate increase for FY 2024. Through the first nine months of FY 2024, power rates of TVA were recorded to be three percent lower as compared to FY 2023, despite the increase.
The board received an update on TVA’s $1.5 billion effort to help offset 30 percent of anticipated load growth over the next 10 years by investing in energy efficiency and demand response. In the first 10 months of the program, TVA has helped businesses and residents reduce their energy use, avoiding over 320,910 tons of CO2, equivalent to the carbon emissions of 35,072 homes powered for a year.
In FY 2024, TVA helped more than 653 businesses reduce their energy use, resulting in over $121 million in savings on their electric bills over the life of their energy improvements.
