Nuclear Energy’s Next Generation
It’s been many years since the heyday of nuclear power plants. In the 1970s, hyperboloid cooling towers rose across the U.S., but today, over a dozen states maintain moratoria on new nuclear power plant permits. However, nuclear power appears poised for a comeback, driven by a new generation of technology.
Reliably and safely meeting the anticipated surge in electricity demand from manufacturing, electrification, artificial intelligence and data centers will take many energy solutions, balancing cost, availability, carbon intensity and responsiveness. Traditional nuclear power plants are best suited to providing a constant baseload for the grid — the energy source stands out for its low carbon footprint and 24/7 reliability. Plants being designed today offer the same low carbon footprint and reliability while adding attractive new features.
Major technology companies are already investing in nuclear power as an answer to their energy-intensive operations. Amazon, Google, Microsoft and Meta have announced plans to incorporate nuclear power into their energy strategies. For instance, Meta — parent company of Facebook and Instagram — has issued a request for proposals seeking over a gigawatt of nuclear capacity by the 2030s. Microsoft is partnering with Constellation Energy to reopen the Three Mile Island Unit 1, rebranded as the Crane Clean Energy Center. Meanwhile, Google has contracted Kairos Power to develop and operate a series of small modular reactors (SMRs) by 2035, and Amazon is collaborating with X-energy to deploy new reactors across multiple locations by 2039.
The Promise of SMRs
SMRs represent the latest innovation in nuclear energy. Designed to be smaller, safer, more flexible and more cost-effective than traditional large-scale nuclear plants, SMRs are heralded as a key solution to growing energy demands in a decarbonizing world. Their modular design allows multiple reactors to be combined to form larger-capacity plants that can adapt to grid needs by ramping up or down.
Unlike conventional nuclear power plants, SMRs can respond dynamically to fluctuations in grid demand and are well suited for decentralized energy generation, with a maximum capacity of 300 megawatts (MW) per reactor. SMRs have additional safety and operational benefits. For example, their passive safety systems automatically cool reactors in emergencies without operator action. They’re also expected to have smaller emergency planning zones than traditional reactors.
Nuclear Power in North Carolina
North Carolina is home to five nuclear reactors. The Brunswick Nuclear Plant, located in Brunswick County, powered up its first reactor in 1975, followed by its second in 1977. With a total capacity of 1,870 MW, it produces over 15,000 gigawatt-hours (GWh) annually. The McGuire Nuclear Station near Charlotte started operating its two reactors in 1981 and 1984, respectively. McGuire is the state’s largest nuclear facility, with a capacity of 2,316 MW and over 19,000 GWh of yearly production. The most recent addition is the Harris Nuclear Plant in New Hill, which opened in 1987 and features a single 968-MW reactor generating approximately 8,000 GWh per year.
North Carolina also imports nuclear energy from neighboring states through the interconnected grid. For instance, the Catawba Nuclear Station in York, South Carolina — near the shared border — produces around 18,500 GWh annually. According to the U.S. Energy Information Administration, nuclear energy accounts for roughly one-third of North Carolina’s utility-scale electricity generation.
While load on the electric grid is expected to grow significantly in the coming decades, Duke Energy is committed to a multifaceted plan to reach net-zero emissions by 2050. This plan may include building advanced nuclear power plants. Indeed, one proposed advanced nuclear facility is already in the planning stages at a site near the utility’s Belews Creek Steam Station in Stokes County. The North Carolina Utilities Commission recently approved Duke Energy’s plans to evaluate advanced nuclear generation at the Belews Creek site, with additional steps, such as Duke Energy submitting an Early Site Permit to the U.S. Nuclear Regulatory Commission (NRC), anticipated in 2025. If approved, the facility could be operational within a decade. The image below shows the size of an SMR power plant compared to a traditional nuclear plant.
Global SMR Development
Globally, SMR development is still in its infancy. Only four SMRs are operational as of 2024. Russia launched the first two in 2020 aboard the floating Akademik Lomonosov power plant, which supplies electricity to the remote village of Pevek. In late 2023, China began operating its first two onshore SMRs at the Shidaowan site.
More SMRs are under construction worldwide. China and Russia each plan to open additional plants by 2026, and Argentina aims to complete its first by 2028. SMR projects are planned in Canada, France, the U.K., Japan, South Korea and other nations as well. Additional SMR designs are being considered in countries such as India, Jordan, Romania, Estonia, Poland, the Czech Republic and Ghana. Interest is particularly strong in developing countries and remote regions, where SMRs’ scalability and cost-effectiveness make them an attractive solution.
More than 60 firms are currently developing SMRs. Some are startups, but others are more well known, like GE Vernova, Westinghouse and Rolls Royce. The following graphic shows a map of some of the most prominent SMR designer headquarters.
In the U.S., the NRC approved construction of the first SMR — NuScale’s Carbon Free Power Project — in February 2023. However, this project was terminated later that year due to escalating costs. In December 2023, the NRC issued a permit for Kairos Power’s Hermes Low-Power Demonstration Reactor in Oak Ridge, Tennessee, and construction began in July 2024. This fluoride salt-cooled SMR is designed to provide heat instead of electricity and is scheduled to begin operation in 2027. The NRC issued construction permits for the electricity-producing Hermes 2 in November 2024. Hermes 2 will be built at the same Oak Ridge location as Hermes and is slated for completion in the early 2030s.
U.S. Policy and Innovation
Licensing and certification by the NRC can still be a challenge for SMRs, but the process of permitting a nuclear power plant has gotten easier in recent years. In 2018 and early 2019, the NRC introduced updates to its licensing processes (aligning 10 CFR Part 50 and Part 52). These updates intend to make it easier and faster to obtain permits for new nuclear reactors. In particular, the rules were developed for advanced reactor designs, including non-light water reactors and various types of SMRs, to ensure that they would meet safety and operational standards.
In 2019, Congress approved the Nuclear Energy Innovation and Modernization Act, which streamlined the regulatory framework for advanced nuclear power plants to promote innovation in nuclear technology. This act directed the NRC to modernize its processes and enhance the efficiency and predictability of its regulatory activities by encouraging the use of risk-informed and performance-based approaches for safety and regulatory assessments. The law reduced the regulatory burden for companies seeking to design, license and build new nuclear plants, including SMRs, while addressing the need for updating regulations to reflect advancements in nuclear technology.
The Bipartisan Infrastructure Law, also known as the Infrastructure Investment and Jobs Act, passed in November 2021, contained significant provisions aimed at supporting the nuclear industry. These components were part of a broader strategy to revamp public infrastructure while transitioning to cleaner energy. The law allotted funding to support the research, development and commercialization of advanced nuclear reactors, including SMRs and other next-generation technologies. It included the Civil Nuclear Credit Program, which provides funding for improving and modernizing existing nuclear plants to ensure they operate safely and effectively, as well as for training the workforce for those facilities. Further funding was allocated for the safe disposal of spent nuclear fuel and the decommissioning of older reactors, which indirectly supports the continued development of nuclear power by managing legacy challenges.
The Inflation Reduction Act (IRA) of 2022 included direct support and subsidies for nuclear power. It allows power generators to choose between two tax credit options to subsidize new nuclear plants. The Production Tax Credit provides 2.5 cents per kilowatt-hour of energy produced in the first 10 years of operation. Alternatively, the Investment Tax Credit offsets 30% of a facility’s investment costs. Even higher tax credits are available for facilities built on a brownfield site, on a former coal plant or in an economically disadvantaged area. In addition, the IRA allocates $700 million to develop a supply chain for High-Assay Low-Enriched Uranium, an essential fuel source for advanced nuclear reactor technology.
Most recently, the Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy Act, better known as the ADVANCE Act, was voted in by a bipartisan majority in July 2024, with the aim of making the permits and construction of nuclear reactors faster, easier and cheaper. This law directs the NRC to lower fees and speed up licensing processes, including establishing an expedited procedure for reviewing new reactor license applications.
Rather than permitting new sites, retrofitting existing infrastructure, such as aging nuclear plants or decommissioned coal plants, represents a viable pathway for SMR deployment. These sites often have established transmission lines and large land footprints, making them ideal for hosting modular reactors. While SMRs require infrequent refueling, spent fuel storage remains a challenge that policymakers and engineers must address.
“Just like in most business endeavors, it is all about the money. SMRs are significantly less capital intensive, requiring less than one-third of the capital of their large counterparts. Less capital is less risk, and everyone likes less risk.”
– Ken Canavan, President, E4 Carolinas
Conclusion
As the world confronts the challenges of growing energy demands and the need for reliable electricity, advanced nuclear technologies like SMRs offer a promising path forward. Their smaller footprint, lower cost, enhanced safety features and ability to integrate into existing energy infrastructure position them to be a key player in the future energy landscape. With significant advancements in technology, increasing governmental support and rising interest from global industry leaders, the resurgence of nuclear energy is gaining momentum.
While challenges such as regulatory hurdles, funding and spent fuel management remain, advanced nuclear power has many potential benefits. By fostering innovation and collaboration, nations worldwide can harness the power of SMRs to create a cleaner, more resilient energy future. The next generation of nuclear energy isn’t just about technology — it’s about addressing humanity’s pressing needs for sustainable and reliable power in a rapidly changing world.
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