TVA puts $150 million toward SMRs as NRC backs quality assurance plan

The Tennessee Valley Authority's board of directors approved $150 million in additional funding to continue design work and TVA's plans for small modular reactors at its Clinch River site near Oak Ridge, Tenn. With that decision late last week and an initial $200 million investment announced in early 2022, TVA has put a total of $350 million toward the development of SMRs at the site.

The utility has also developed a quality assurance program (QAP) for its New Nuclear Program that could help it streamline the licensing of additional new nuclear construction in its service area. The final version of that QAP was approved by the Nuclear Regulatory Commission on August 19.

Growing demand: According to TVA, the region's population is growing three times faster than the national average. In 2023, GDP (gross domestic product) in TVA's service territory grew 0.5 percent faster than the national average. TVA is responding by investing in new electricity capacity-including solar-to the tune of $16 billion through fiscal year 2027, which includes building about 3,500 megawatts of capacity. That buildout comes with a new 5.25 percent base rate increase "to fund ongoing construction and energy development" that was announced following TVA's August 22 board meeting.

Nuclear investment backing: "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 chief executive officer. "[SMRs] are an energy innovation technology that America must dominate-for our energy security, which is really our national security."

"Tennesseans appreciate TVA's continued investment in safe, clean, and reliable nuclear energy for the future. This additional investment, coupled with the state's focus on creating a nuclear energy ecosystem, will ensure Tennessee is the number one state for nuclear energy companies to invest and thrive, driving continued opportunity and economic growth," said Tennessee Gov. Bill Lee.

New Nuclear is NRC approved: TVA's New Nuclear Program now has confirmation in an August 19 letter that the latest revision of a topical report-"Quality Assurance Program Description for TVA New Nuclear Program" (NNP-TR-001-NP-A)-submitted by TVA in February 2024, has been approved by the NRC. That approval follows an NRC final safety evaluation of the same document in December 2023.

Since 2019, TVA has held an early site permit for the Clinch River SMR project that was developed under an earlier QAP, so the new and approved QAP does not apply to Clinch River, where TVA announced in 2022 that it would pursue deployment of GE Hitachi's BWRX-300 small light water reactor. But TVA can use the approved QAP "for the site selection, design, construction, and operation of nuclear plant(s) at multiple sites and projects."

According to a TVA fact sheet updated on August 22, "TVA's New Nuclear Program is looking at a variety of advanced nuclear technology options that might help meet both our near- and long-term generation needs, including [SMRs]. Some SMR designs, such as the BWRX-300, use elements of proven technology and new innovations that simplify construction, maintenance, and operations to achieve a cost-efficient and reliable design. These designs can also leverage the existing nuclear supply chain, including fuel supply, to increase cost effectiveness and reduce risk."

TVA has partnered with Kairos Power to support its development of fluoride salt-cooled reactor technology, including support for Kairos's demonstration-scale Hermes reactor being constructed in Oak Ridge, Tenn.

More on the QAP: The document spells out organizational roles and responsibilities as well as procedures for design and procurement control and other measures to ensure that future projects conform to nuclear quality assurance standards. The document is "approved for referencing in future licensing applications by TVA to the extent specified and under the Plant Specific Action Items and limitations delineated in the staff's final safety evaluation."

The QAP's policy statement says in part that the program will "provide for control of TVA New Nuclear activities that affect the quality of safety-related nuclear plant structures, systems, and components (SSCs) and include all planned and systematic activities necessary to provide adequate confidence that such SSCs will perform satisfactorily in service."

The QAP can satisfy quality assurance requirements for certain nuclear power plant license applications submitted under 10 CFR Parts 50 or 52, including Part 50 limited work authorizations, construction permit applications, and operating license applications; and Part 52 early site permit applications, design certification applications, combined operating license applications, and standard design approval applications.`