Request for Proposals Issued
Dominion Energy, a prominent US utility company, has initiated a Request for Proposals (RFP) from vendors of small modular reactors (SMRs). This move aims to assess the feasibility of integrating an SMR into its existing North Anna nuclear power plant in Virginia.
No Commitment to Build, but a Crucial Step
Dominion emphasizes that issuing the RFP doesn’t guarantee the construction of an SMR at North Anna. However, it signifies a pivotal step in evaluating the technology and the site’s suitability to meet future energy demands, aligning with the company’s Integrated Resource Plan (IRP).
Dominion’s 2023 IRP outlines its plans to continue evaluating SMRs, focusing on feasibility, operating parameters, and costs. This ongoing assessment will inform future filings and decisions regarding SMR deployment.
Potential for Accelerated SMR Deployment
The IRP suggests that as SMR designs mature and construction timelines become clearer, cost reductions could be realized compared to current assumptions.
These factors, coupled with licensing progress and policy developments, could potentially accelerate the deployment of SMRs, with the first one possibly operational within a decade.
High-Profile Announcement and Legislative Support
The RFP announcement took place on July 10th at the North Anna site, with the participation of Virginia Governor Glenn Youngkin, Lieutenant Governor Winsome Earle-Sears, state senators, and local leaders.
Dominion also revealed its intention to seek “rider recovery” of SMR development costs through a filing with the Virginia State Corporation Commission later this year, as enabled by bipartisan legislation recently passed by the Virginia General Assembly.
Cost Caps and Customer Impact
The legislation includes cost caps to limit the impact on consumers, with SMR development costs capped at no more than $1.40 per month for a typical residential customer. Dominion expects its initial request to be significantly lower than this limit.
Robert Blue, Dominion Energy’s chair, president, and CEO, underscored the importance of nuclear power in Virginia, providing 40% of the state’s electricity with zero carbon emissions. He emphasized the potential role of SMRs, alongside offshore wind, solar, and battery storage, in meeting the state’s growing demand for clean and reliable energy.
Virginia’s Potential as a Nuclear Innovation Hub
Governor Youngkin expressed enthusiasm for Virginia’s vast potential to foster a thriving energy economy. He emphasized the necessity of exploring emerging technologies like SMRs to meet future power demands and position Virginia as a leading hub for nuclear innovation.
The North Anna site currently houses two 944 MWe pressurized water reactors that have been in operation since 1978 and 1980. Their current licenses allow operation until 2038 and 2040, respectively, although Dominion has applied for 20-year extensions.