Eastern Tennessee has strong ties to nuclear energy and electric cooperatives. The region is home to Oak Ridge National Laboratory, a global leader in energy research and one of the first sites to produce energy from nuclear power.

Nearly 80 years after that groundbreaking experiment, nuclear technology may be poised to take another step forward near Oak Ridge, one that could benefit electric cooperatives in the state and serve as a test case for co-ops nationally.

In December 2025, the Department of Energy announced a $400 million award for the Tennessee Valley Authority's Clinch River small modular reactor project. If built, the project could be among the first SMRs constructed in the U.S. and the first in the country to use GE Vernova Hitachi's BWRX-300 SMR design.

TVA expects to get its construction permit this year from the Nuclear Regulatory Commission, although construction cannot begin until TVA's board approves the project.

“We are hoping that we can be used as the starting point for this to share technologies across the country to the benefit of everyone, co-ops of course included," said Chris Jones, president and CEO of Middle Tennessee Electric, one of TVA's top power distributors.

SMRs are a type of advanced reactor that can range in size from 20 to 300 megawatts and can be assembled in a factory, reducing cost and construction times compared with traditional, large nuclear plants. They can also be installed in remote areas unsuitable for larger generating facilities.

TVA serves more than 150 power companies, including many electric co-ops. The fate of the Clinch River project could help determine whether other co-ops across the country pursue SMRs in the years ahead to meet meteoric expected power demand growth while curbing carbon emissions.

While co-ops are eyeing the promise of SMRs, long-standing hurdles to deployment remain.

“Most advanced nuclear reactor technologies, including small modular reactors and microreactors, remain in the prototype or early demonstration stage. Only a limited number have progressed further, entering active regulatory licensing processes and developing full commercial designs that integrate their advanced technologies," said Dan Walsh, NRECA's senior power supply and generation director.

“Full-scale, commercial deployments are unlikely to happen until at least the end of the decade—and even that timing is uncertain."

Co-ops say they need more certainty to consider future ownership stakes or power purchase agreements with SMRs—confidence that will require major federal investments and other government support for the technology.

“We advocate for the federal government to support the continuation and expansion of nuclear power, including through SMRs, viewing it as a critical component within cooperatives' long-term power supply options," NRECA Regulatory Affairs Director Stephanie Crawford said. “That includes advocating for legislative and regulatory solutions that ensure these reactors will be commercially available at a price point that cooperatives could reasonably afford."

'One of the Best Things We Could Do'

SMRs have been on co-ops' radar for years but are gaining interest amid a demand spike. Power demand projections are surging from planned data center development, advanced manufacturing and the electrification of buildings and vehicles.

At the same time, the U.S. is losing a substantial amount of coal-fired generation, and pipeline constraints and other transportation issues could limit growth in natural gas-fueled power plants.

Along with providing firm, dispatchable generation, SMRs—like traditional nuclear plants—would have zero-carbon emissions.

Small modular reactors are also designed to ramp up and down more easily than traditional, large nuclear plants, making them well-suited to back up intermittent renewable resources.

If success on the emerging technology were assured, “I'd engage in small modular nuclear units from a generation standpoint," said Jeff Bowman, president and CEO of Hattiesburg, Mississippi-based Cooperative Energy.

“Small modular nuclear reactors would be one of the best things we could do to address the strain on generation assets … while also building more dispatchable generation and addressing CO₂ concerns," Bowman said in January at NRECA's CEO Close-Up in Palm Desert, California.

Lisa Johnson, CEO and general manager of Tampa, Florida-based Seminole Electric Cooperative, echoed Bowman's thoughts.

If SMRs become viable, “I would work with the membership to put together a plan to implement a small modular nuclear reactor," Johnson said at CEO Close-Up. “I just think that is a part of the future."

'Significant Milestones'

SMR projects are making cautious strides around the world, including in the U.S. As TVA's Clinch River project moves ahead, Ontario Power Generation in Canada aims to connect the first of four SMRs at its Darlington nuclear site to the grid by the end of 2030.

Holtec International, which is repowering the Palisades nuclear plant in Michigan through PPAs with Hoosier Energy and Wolverine Power Cooperative, plans to deploy two small modular reactors at the Palisades site. As with TVA, the DOE tapped Holtec in December to receive a $400 million award for that SMR project.

Furthermore, tech companies including Amazon are plowing hundreds of millions of dollars into nuclear energy, both to restart large, idled plants and invest in new capacity to feed data center power demand.

The federal government is also taking new steps to support the technology. Last year, the DOE launched a nuclear reactor pilot program to expedite testing of advanced reactor designs, as well as a supporting program to strengthen domestic supply chains for nuclear fuel.

In terms of SMR deployment, “we are a lot closer, I think, than we were three years ago," Dairyland Power Cooperative President and CEO Brent Ridge said. “There have been some pretty significant milestones that have happened."

The La Crosse, Wisconsin-based co-op is “seriously considering partnerships and opportunities" around SMRs, Ridge said.

Five years ago, Dairyland signed a nonbinding memorandum of understanding with NuScale to explore its SMR technology. The MOU expired, but the co-op still has its eye on small modular reactors.

“At Dairyland, we think it is an absolute critical part of our future portfolio," said Ridge, who was appointed in 2023 to the Nuclear Energy Institute's Used Fuel Executive Task Force. “The connection is how far in the future. And right now, I think it's a decade out for us, but so many things have to happen between now and that 10 years for it to occur."

Big Hurdles to Clear

The lack of an operating, full-scale advanced reactor makes estimating project timelines and construction and operating costs difficult, particularly since manufacturers typically don't publish engineering and capital costs, NRECA's Walsh said.

In addition, supply chain gaps for the emerging technology could take years to resolve.

“Together, these factors present considerable risks to project developers, plant owners, operators and off takers," Walsh said.

Without a small modular reactor in operation, co-ops will be wary of cost and supply chain uncertainties, Oglethorpe Power Corp. Chief Operating Officer Rich Wallen said.

The Tucker, Georgia-based generation co-op does not have any active SMR projects but “wants to keep its finger on the pulse for our members," Wallen said. Nuclear energy currently makes up 20% of Oglethorpe's portfolio.

“The first challenge is absolutely cost certainty—or lack thereof," Wallen said. “Construction timelines are another concern, along with overall commercial maturity. None of these units are operating today and while some utilities may have the appetite to be the first of a kind, no one wants to be the only of a kind."

Generation cooperatives “must maintain disciplined financial stewardship of their members' dollars," Wallen explained. “If and when we decide to invest in an SMR, we need much greater confidence around cost and how long it's going to take."

Dairyland's Ridge agreed, noting the high rates of poverty in many co-ops' service territories.

“We have a very price-sensitive membership, and you're talking about mammoth capital investment," Ridge said. Any SMR investment for Dairyland would likely be a power purchase agreement with a group of partners such as investor-owned utilities or large tech companies for a small stake of a reactor's output, he added.

What Co-ops Need

Potential cost overruns and financial challenges are among the biggest impediments to SMR development. Addressing those risks will require extensive commitments from the federal government, Ridge said.

“There's a history in the nuclear power business of [cost] overruns, cancellations," he said. “It gets … into the federal government needing to step in and say, 'We're going to make sure this gets built.'"

Ridge recommended that the government pick two or three SMR designs, offer low-to-zero interest loans for their construction, and provide cost overrun protection.

Wallen made similar suggestions.

“We need some certainty that if a project experiences significant overruns, there is a backstop in place so those costs aren’t passed to the end-of-the-line customers,” Wallen said. “Our members serve some of the most economically challenged areas of the state.”

NRECA’s Crawford said the government can help expand nuclear energy, including SMRs, through grants, loans, tax credits, and research, development and demonstration programs.

“We have advocated for all of these to ensure maximum benefit and flexibility to the members depending on their unique circumstances,” she said.

Even with its $400 million DOE award, the Clinch River project needs additional federal support to move ahead more affordably, Middle Tennessee Electric’s Jones said.

“We’re hoping to get more federal funding to help to mitigate the cost impact that would otherwise have to be borne by the ratepayers of the Tennessee Valley, many of [which] are co-op members,” Jones said.

Despite those headwinds, co-ops see emerging nuclear technologies, including SMRs, have a role to play in a growing, carbon-constrained power sector.

“I do believe SMRs will be a part of our energy future to help strengthen reliability of the grid while advancing environmental progress,” Wallen said. “If this technology really delivers on its promise, we will be ready to make that move as it makes sense for our members.”