DOE estimates the U.S. will need approximately 700-900 GW of additional clean, firm power generation capacity to reach net-zero emissions by 2050. Nuclear power is a proven option that could be deployed to meet this growing demand. In 2023, nuclear energy provided nearly half of America’s carbon-free electricity. Utilities are looking to extend the lifespan of current nuclear reactors, planning to uprate reactor capacity, reversing plans to close reactors, and even restarting formerly closed reactors. At the same time, they are earnestly exploring building new reactors to meet the fast-growing demand for carbon-free energy. Designed with a variety of capabilities, sizes, and deployment scenarios in mind, small modular reactor (SMRs) can be used for power generation, process heat, desalination, and more. In particular, SMRs offer the potential for greater modularity, more factory-style construction, and the ability to be matched with loads and scaled to meet demand.

DOE anticipates offering funding in two tiers:

• Tier 1: First Mover Team Support, managed by the Office of Clean Energy Demonstrations (OCED), will provide up to $800M for milestone-based awards to support up to two first mover teams of utility, reactor vendor, constructor, and end-users/off-takers committed to deploying a first plant while facilitating a multi-reactor, Gen III+ SMR orderbook and the opportunity to work with the National Nuclear Security Administration (NNSA) to incorporate safeguards and security by design into the projects. For Tier 1, teams must include a U.S. utility, reactor technology vendor, and engineering, procurement, and construction (EPC) company with the lead applicant being the utility, end-user/off-taker, a development company, or incorporated consortium.
• Tier 2: Fast Follower Deployment Support, managed by the Office of Nuclear Energy (NE), will provide up to $100M to spur additional Gen III+ SMR deployments by addressing key gaps that have hindered the domestic nuclear industry in areas such as design, licensing, supplier development, and site preparation. Tier 2 funding is sorted into three different categories, for which applicants must be either planned project owners or utilities, or entities looking to improve the capability, capacity, or cost competitiveness of the domestic supply chain for Gen III+ SMRs.

This solicitation makes available approximately federal funds for projects that will create a credible and sustainable pathway to fleet-level deployment of Gen III+ SMRs. Gen III+ SMRs can provide around-the-clock electricity or process heat to meet the increasing demand for clean, reliable, firm electricity generation or process heat required by U.S. industries. In particular, SMRs offer the potential for modularity, factory construction, and scalability to meet demand. Additionally, Gen III+ SMRs may be able to revitalize and leverage the service and supply chain infrastructure supporting the existing fleet of light water reactor designs, thus providing a near-term path for new nuclear deployments. However, a demonstration project is critical to overcoming the first-of-a-kind commercial adoption challenges for Gen III+ SMR technology, including:

• Cost Reliability – Delivered cost of recent reactor projects, including cost-overruns and project non-completion, has constrained nuclear energy relative to competing baseload technologies, such as natural gas.
• Resource Maturity – Multiple factors have hindered adoption including capital flow; project development, integration, and management; manufacturing and supply chain; and workforce.
• Licensing Uncertainty – The risk of licensing new technologies, including the timeframe and cost associated with receiving NRC approval of new nuclear designs, drives hesitancy for potential adopters.

Funding applications will be selected based on the expectations and details described throughout this solicitation. Priority will be given to projects with

1. the highest probability of a successful deployment,
2. the greatest potential to develop a Gen III+ SMR orderbook, and
3. the greatest potential contribution to the resilience of the domestic nuclear industry.