U.S. faces challenges in launching small modular nuclear reactors

Small modular reactors (SMRs) are being considered as a solution to the challenges of expanding nuclear power in the U.S. These reactors, which have a capacity of 300 megawatts or less, are designed to be simpler and cheaper to construct compared to traditional nuclear plants. However, the high costs associated with building the first SMR in the U.S. have hindered commercialization efforts. Currently, only three SMRs are operational worldwide, creating a reluctance among companies to be the first to invest in this new technology. Dominion Energy is evaluating the feasibility of constructing an SMR at its North Anna nuclear station in Virginia, which is strategically located near a significant data center market. The utility has engaged with SMR technology companies to explore potential collaborations. Interest in this proposal has been strong, indicating a growing recognition of the need for reliable, clean energy sources as coal plants are retired. Holtec is also planning to install two SMRs at the Palisades plant by the early 2030s, which would significantly increase the plant's power capacity. This initiative reflects a broader trend in the nuclear industry to upgrade existing facilities with smaller reactors, leveraging community support for nuclear energy. Constellation Energy, the largest operator of nuclear plants in the U.S., is similarly exploring the possibility of integrating an SMR at one of its sites. The focus is on collaborating with customers interested in clean power, highlighting the potential of SMRs to meet rising electricity demands while facilitating the transition away from fossil fuels.