Finding Solutions to Meet Growing Energy Demand

December 02, 2024

AEP, and almost every electric company across the country, is seeing demand for electricity grow at a pace that hasn't been seen for decades. A digital revolution is shaping how energy is being used now, and how it will be used in the future. Computer chip makers and data centers are investing billions in AEP's service territory. These industries need a lot of energy, and AEP's operating companies are proposing new solutions to meet this growing demand.

Data centers need power 24/7/365. And they need a lot of it. A single data center can require as much power as a small city. Those needs, combined with finding solutions that align with state energy goals, have led Appalachian Power in Virginia to explore small modular reactors (SMRs), a new nuclear power plant design.

SMRs offer many advantages to benefit customers and stakeholders. They have a relatively small physical footprint, can be built on smaller sites than larger nuclear plants, have a lifespan of at least 60-80 years and can be scaled to match the energy needs of the state. SMRs can generate from 50 to 500 megawatts of clean energy, which is enough to power as many as 500,000 homes annually. They are a fraction of the size of a traditional nuclear reactor and utilize the latest advances in design to ensure safe and efficient construction and operation.

AEP's Nuclear Future is Built From Experience

A proven clean energy technology, nuclear power generation has been around since the 1950s and has seen massive growth around the globe since. According to the U.S. Energy Information Administration, in 2023, 18.6% of U.S. electricity came from nuclear power. Natural gas accounted for about 40%, followed by 21.4% from all renewable sources and 16.2% from coal. Nuclear power is the largest clean source of electricity generation in the U.S.

The Donald C. Cook Plant in Bridgman, Michigan, began generating power in 1975. AEP's Indiana Michigan Power company operates the plant, which can produce enough power for 1.5 million homes. AEP's experience safely operating Cook Plant makes exploring SMR technology a natural extension.

"SMR technology is a key component to providing perfect power to our customers. Appalachian Power and AEP are committed to working with our states to develop energy solutions that align with state policy goals and reliably serve our customers," said Bill Fehrman, AEP president and chief executive officer.

Safety is Priority #1

SMRs are among the safest means of generating electricity. To keep the reactor core safe, they take advantage of natural forces such as gravity, condensation or pressure differences. Operators will be trained to monitor the systems to ensure they are performing appropriately. SMRs will operate under stringent regulatory oversight and include comprehensive operational safety and emergency response plans.

Benefits for Our Communities

The development of SMRs also provides significant economic benefits to communities and states. As many as a thousand employees are needed for construction, which spurs direct and indirect employment opportunities. The operation of SMRs can create hundreds of jobs, create new economic activity, promote advanced training and educational opportunities, and add millions of dollars in new annual local, state and federal tax revenue.

Providing reliable and clean power to customers is a top priority at AEP and Appalachian Power, and SMR technology offers the potential to provide that 24 hours a day, 365 days a year.

APCo's Early Site Permit Application

The first step in the life of an SMR is applying for an Early Site Permit with the U.S. Nuclear Regulatory Commission. Appalachian Power is beginning the Early Site Permit Application process as we work to bring an SMR to Virginia on a company-owned property in Campbell County. The permit application and review process focuses on examining the potential construction site to ensure an SMR can be safely built.

The complete permitting process is extremely detailed and can take a decade to complete. The company also plans to apply for part of the U.S. Department of Energy's $900 million grant program to accelerate the deployment of SMRs and help reduce customer costs.

Appalachian Power will work closely with the U.S. Nuclear Regulatory Commission, state and local agencies and other stakeholders to share the benefits of SMRs and gather community feedback.

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