Robert Besser
04 Apr 2025, 18:52 GMT+10
HARRISBURG, Pennsylvania: New, cheaper nuclear power is on the way, and U.S. states are competing to build and supply the next generation of reactors.
Policymakers are considering increased financial support and revising rules that hinder progress.
Companies are developing advanced reactor designs, which the industry says are a reliable and eco-friendly way to meet growing electricity needs. Tech giants like Amazon and Google are investing in nuclear power to support their expanding artificial intelligence operations.
These new reactors could be ready as early as 2030, but states must act fast to attract investment. Public concern about safety and competition from wind and solar energy remains a persistent challenge. Despite this, the federal government supports the technology, and utility companies are preparing to add nuclear power to their energy mix.
In 2023, 25 states passed laws supporting nuclear energy, and this year, over 200 new bills have been introduced. Small modular reactors (SMRs) and microreactors are designed to be quicker and easier to build than traditional nuclear plants. While conventional reactors generate 800–1,000 megawatts—enough to power about 500,000 homes—modular reactors produce 300 megawatts or less, and microreactors generate no more than 20 megawatts.
Governors across the U.S. are pushing for nuclear projects. Tennessee has pledged over $90 million to support small reactors and atomic research. Utah aims to double its electricity production, investing $20 million in nuclear site preparation. Texas wants to lead the country in nuclear power and is considering major financial incentives. Michigan and Indiana are also moving to boost nuclear energy, while Arizona lawmakers want to ease environmental rules for reactor construction.
However, challenges remain. No modular reactors are currently operating in the U.S., and a planned project in Idaho was canceled in 2023. The Department of Energy estimates the U.S. will need 200 gigawatts of new nuclear power by 2050 to meet energy demands and reduce greenhouse gas emissions. Currently, the U.S. has just under 100 gigawatts of nuclear power, and only about 30 new reactor projects are planned for the early 2030s.
The nuclear industry is receiving billions of dollars in federal subsidies, loans, and tax credits. Supporters hope this backing will continue under future administrations.
Concerns about safety, waste storage, and the efficiency of smaller reactors remain. Some experts warn that nuclear power may not develop quickly enough to compete with the improvement of battery storage for wind and solar energy. The U.S. also lacks key manufacturing skills and materials for building reactors, which could increase costs and cause delays. Expanding uranium enrichment is another challenge.
For the new reactors to succeed, early projects must be completed on time, proving that the technology is reliable and cost-effective.
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