Dominion Energy issues RFP for small modular reactor at North Anna

At an event with Virginia Gov. Glenn Youngkin and other state officials at its North Anna nuclear power plant in Louisa County, Dominion Energy announced plans Wednesday to potentially develop a small modular reactor (SMR) at North Anna.

Dominion officials said they were issuing a request for proposals for the SMR from nuclear technology companies, stressing that it was not a commitment to build an SMR at North Anna, but the first step in evaluating the feasibility of doing so.

The terms of the RFP are being kept private, according to Dominion, but a group of SMR manufacturers have been notified of the request.

“For over 50 years, nuclear power has been the most reliable workhorse of Virginia’s electric fleet, generating 40% of our power and with zero carbon emissions,” said Dominion Energy Chair, President and CEO Robert M. Blue. “As Virginia’s need for reliable and clean power grows, SMRs could play a pivotal role in an ‘all-of-the-above’ approach to our energy future. Along with offshore wind, solar and battery storage, SMRs have the potential to be an important part of Virginia’s growing clean energy mix.”

In a statement, Youngkin said, “The commonwealth’s potential to unleash and foster a rich energy economy is limitless. To meet the power demands of the future, it is imperative we continue to explore emerging technologies that will provide Virginians access to the reliable, affordable and clean energy they deserve. In alignment with our all-American, all-of-the-above energy plan, small nuclear reactors will play a critical role in harnessing this potential and positioning Virginia to be a leading nuclear innovation hub.”

Under a tent by the 50-year-old North Anna nuclear power station, Youngkin signed SB 454, a state Senate bill with bipartisan support that permits Dominion to petition the State Corporation Commission at any time by the end of 2029 for the approval of a rate adjustment clause to recover development costs for an SMR.

Legislators in Southwest Virginia and Youngkin have been bullish on the prospect of building a SMR in Virginia as part of the Virginia Clean Economy Act passed in 2020, which requires the state’s two major electric utilities — Dominion and Appalachian Power — to shift to carbon-free, renewable energy sources such as wind and solar power for electricity generation in the next 26 years. Youngkin has pushed for VCEA to allow natural gas and nuclear energy to be part of the state’s energy production; in 2022, he announced a goal to build an SMR in Southwest Virginia in the next decade.

Located between Richmond and Charlottesville, North Anna is far from Southwest Virginia, but Del. Terry Kilgore, R-Gate City, was still enthusiastic about Wednesday’s announcement, which he attended. “We’re going to get there with Southwest. We realized we may be second or third down the line.”

Kilgore said he hopes the state’s first SMR — a smaller, less expensive version of a large nuclear power plant, producing up to 300 megawatts per unit, about one-third of the capacity of conventional nuclear reactors — will take less than 10 years to develop and build. However, as of 2023, only China and Russia had successfully built operational SMRs.

Asked if he had any views on non-U.S.-based companies bidding for Dominion’s RFP, Youngkin said Wednesday he expects the utility “will have a wide-open technology request for proposals, and then they will work to make sure that they have the very best. I have to say … that U.S. companies are at the forefront right now of providing the technology and small modular reactors, and that’s who I’d expect to win.” He added that Virginia nuclear companies sometimes are part of joint projects in developing SMRs.

“The process of designing and building an SMR is a multipurpose team,” he added. “I believe that there will be Virginia companies deeply involved. I also expect companies that will be building these reactors in the future will very much want to locate here in Virginia.”

Blue noted in the presentation that he is “unabashedly” a cheerleader for nuclear energy, which produces about 90% of the zero-carbon energy Dominion produces annually, as well as 40% of all energy produced by the utility, at its North Anna and Surry nuclear plants.

He said that Dominion hopes to develop the state’s first SMR at North Anna in the 2030s, and added that the law signed Wednesday caps SMR development cost recovery to no more than $1.40 per month for a typical residential customer.