The Tennessee Valley Authority (TVA) is poised to build and operate the nation’s first commercial small modular reactor (SMR) at its Clinch River Nuclear Site in Oak Ridge, Tennessee. This initiative raises the question of how it will impact the future of nuclear energy in the United States. The TVA aims to generate about 300 megawatts electric (MWe), enough to power approximately 300,000 homes, marking a significant advancement in the country’s energy landscape.

Key developments leading to this moment

In 2019, the U.S. Nuclear Regulatory Commission (NRC) granted TVA an early site permit for the Clinch River Nuclear Site, paving the way for this groundbreaking project. Following this, TVA submitted a construction permit application to the NRC in May 2025, becoming the first U.S. utility to seek an SMR construction permit. The project has garnered substantial support, including $400 million in federal cost-shared funding awarded by the Department of Energy in December 2025.

Collaborations and partnerships

TVA has established technology collaboration agreements with prominent entities such as GE and Ontario Power Generation. Additionally, TVA has developed partnerships with innovative nuclear companies in the Oak Ridge area, including Kairos Power and Oklo. Kairos Power plans to construct two Generation IV, salt-cooled Hermes reactors on its site, with the first Hermes reactor expected to commence operations in 2028.

Employment and economic impact

The construction of TVA’s first SMR is projected to create significant employment opportunities, with expectations of employing up to 9,000 workers at peak construction. This development not only highlights TVA’s commitment to advancing nuclear technology but also its role in stimulating local economic growth.

Innovative reactor technology

The Hermes reactors being developed by Kairos Power will utilize TRISO fuel, designed for high-temperature, gas-cooled reactors, embedded in graphite pebbles. This innovative fuel technology enhances safety and efficiency, as noted by a Kairos Power engineer, who stated, “The actual reactor building will have columns that interlock at grooves.” The multi-layered structure of the TRISO fuel makes each particle highly resistant to corrosion, irradiation, and high temperatures.

Future energy agreements

In a notable development, TVA and Google have signed a power purchase agreement (PPA) for electricity generated from the Hermes 2 reactor, set to begin in 2030. This partnership marks a significant milestone as it is the first time a U.S. utility has entered into a PPA to procure electricity from an advanced reactor.

Looking ahead

As TVA moves forward with its plans, the target year for the operation of its first SMR is set for 2032. The implications of this project extend beyond energy production; it represents a pivotal moment in the evolution of nuclear energy in the United States. However, details remain unconfirmed regarding the full scope of the project’s impact on the energy market and regulatory landscape.

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