In a historic move for American energy infrastructure, the Tennessee Valley Authority (TVA) has submitted the nation’s first construction permit application for a small modular nuclear reactor (SMR) to the U.S. Nuclear Regulatory Commission (NRC), the utility announced Tuesday.

The permit request represents a significant step toward developing next-generation nuclear technology, with the proposed reactor slated for TVA’s Clinch River site in Oak Ridge, Tennessee. The move is part of a broader strategy to meet rising electricity demand while reducing carbon emissions.

“We believe this application will help pave the way for other utilities to follow,” said TVA President and CEO Don Moul in an exclusive interview with The Associated Press. “Nuclear is very reliable, very resilient. It is carbon free. It is, what I would consider, one of the highest quality generating sources we have. And so starting a path forward not only helps others in America follow, but it can also help America lead the world in the new technology.”

TVA, the largest public utility in the U.S., already operates three large nuclear plants that supply 40% of the electricity used across its seven-state service area. The region is experiencing growing power needs as population increases, manufacturers electrify operations, and data centers and other high-demand industries expand.

According to TVA, meeting projected demand will require up to 26 gigawatts of additional power by 2035 — enough to power approximately 15 million homes. In response, TVA launched a dedicated program in 2022 to explore SMRs as a low-carbon solution and has invested $350 million to date in development.

Jacopo Buongiorno, professor of nuclear science and engineering at MIT, said TVA’s decision to move forward with the permit application is “meaningful” for the industry. “This could signal the beginning of a broader trend,” he noted, especially as many utilities have remained hesitant due to past nuclear cost overruns and delays, such as those seen during the expansion of Georgia Power’s Plant Vogtle.

Currently, no advanced reactors are commercially operating in the U.S. A number of applications are under review by the NRC, with hopes that some reactors could begin producing power in the early 2030s. However, a prior effort to build the first such plant collapsed in 2023 due to rising costs and limited participation from local utilities.

Meanwhile, Canada has surged ahead. Ontario Power Generation has broken ground on the world’s first fleet of small modular reactors using the same GE Hitachi design favored by TVA. The Canadian utility projects the initial unit will cost $4.4 billion (USD), with total equipment costs for all four reactors expected to reach $1.1 billion. Costs are expected to drop with each additional unit.

TVA’s financial estimates are reportedly in line with Ontario’s, though Moul declined to provide specifics. He said the utility is actively seeking partners to help offset initial capital costs.

Federal support for SMRs has come from both the Biden and Trump administrations. The Biden administration last year announced $900 million in new investments for SMR technology, while former President Trump’s administration also backed the development of SMRs as part of an effort to modernize energy systems for sectors like manufacturing and data centers. Energy Secretary Chris Wright said in March the funds will be awarded based purely on technical merit, eliminating previous diversity, equity, and inclusion criteria.

TVA and its partners have applied for $800 million of that federal funding, aiming to accelerate reactor deployment by approximately two years.

Environmental groups, however, remain skeptical. Alex Formuzis, spokesperson for the Environmental Working Group, said SMRs represent an expensive distraction from proven, cost-effective alternatives.

“There’s no bigger example of a money pit than the fantasy of small modular reactors as a viable source of energy in the U.S.,” Formuzis said. He argued that investments should instead prioritize solar, wind, and battery storage, which he described as cheaper, faster, and safer solutions.

Still, TVA is pressing ahead. The NRC has already approved the Clinch River site as suitable for new nuclear development. The location could ultimately accommodate up to four SMRs. If plans proceed on schedule and both the NRC and TVA board give final approval, the first reactor could begin operating around 2032. It would produce 300 megawatts of electricity — enough to power roughly 175,000 homes.

Originally reported by Associated Press in Broad band Breakfast.