Dominion Energy takes important step to determine feasibility of Small Modular Reactor (SMR) technology to support customers' needs

Rhea-AI Summary

Dominion Energy Virginia announced a Request for Proposals (RFP) to evaluate the feasibility of developing a Small Modular Reactor (SMR) at North Anna Power Station in Louisa County, VA. This RFP is a preliminary step and not a commitment to build an SMR but aims to assess the technology's viability to meet future energy demands as outlined in the company's Integrated Resource Plan.

SMRs are touted for their reliability and environmental benefits, similar to traditional nuclear power but with lower upfront costs and a smaller footprint.

The announcement was made at North Anna, attended by company leaders and Virginia state officials, including Governor Glenn Youngkin.

Dominion Energy also plans to seek cost recovery for SMR development through a filing with the Virginia State Commission, with costs capped at $1.40 per month for a typical residential customer, though the initial request is expected to be lower.

Positive

• Dominion Energy is taking proactive steps to evaluate advanced SMR technology which could enhance future energy reliability and environmental benefits.
• The feasibility study for SMR at North Anna aims to support Dominion Energy's Integrated Resource Plan aligned with future energy needs.
• Potential SMR development costs are capped, minimizing financial impact on residential customers.

Negative

• None.

Insights

Energy Market Analyst

Dominion Energy's announcement of issuing an RFP for Small Modular Reactors (SMRs) at their North Anna Power Station is significant. SMRs are a budding technology in the nuclear energy sector, offering several potential benefits including a reduced footprint and lower upfront capital costs compared to traditional nuclear power plants. This could be a game-changer for Dominion, allowing them to enhance their energy mix with a cleaner and more flexible energy source.

The feasibility study and subsequent RFP represent an early but important step in this long-term investment. If SMRs prove viable, Dominion would be better positioned to meet growing energy demands and environmental goals. However, the move carries risks, including regulatory hurdles and the nascent state of SMR technology. The cost recovery capped at $1.40 per month per residential customer is a safeguard, but the actual costs will need to be scrutinized closely as the project progresses. Ultimately, this initiative aligns well with broader trends towards diversification and decarbonization in the energy sector, which could be beneficial for long-term investors.

Technology Analyst

SMRs are a promising innovation in nuclear technology. Unlike traditional nuclear reactors, SMRs can be prefabricated and assembled on-site, potentially speeding up deployment and reducing costs. Dominion's exploration of SMRs reflects a forward-thinking strategy and could position the company as a leader in nuclear innovation. However, technical and regulatory challenges must be addressed.

One potential benefit of SMRs is their scalability, making them suitable for various applications including remote locations and integration with renewable energy sources. The feasibility study will need to assess not only the technical viability but also the integration with existing infrastructure and the regulatory landscape. Dominion's ability to navigate these complexities will be critical to the success of the project and could set a precedent for future SMR developments across the U.S.

RICHMOND, Va., July 10, 2024 /PRNewswire/ -- Dominion Energy Virginia today announced it has issued a Request for Proposals (RFP) from leading SMR nuclear technology companies to evaluate the feasibility of developing an SMR at the company's North Anna Power Station in Louisa County, Va. 

While the RFP is not a commitment to build an SMR at North Anna, it is an important first step in evaluating the technology and the North Anna site to support Dominion Energy customers' future energy needs consistent with the company's most recent Integrated Resource Plan.

For several years, utilities, state and federal agencies and leading technology firms have explored SMRs as the next generation of carbon-free nuclear power in the U.S. SMRs have the same reliability and environmental benefits as traditional nuclear, but with a significantly smaller footprint and lower upfront capital costs.

The company announced the news at an event today at North Anna. Company leaders were joined at the event by Virginia Governor Glenn Youngkin, Virginia Lieutenant Governor Winsome Earle-Sears, Virginia State Senator Dave Marsden, Virginia State Senator Mark Peake and Louisa County Board of Supervisors Chair Duane Adams, among other local and state leaders.

"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 Robert M. Blue, Chair, President and CEO of Dominion Energy. "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."

"The Commonwealth's potential to unleash and foster a rich energy economy is limitless," said Governor Glenn Youngkin. "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."

The company also announced that it intends to seek rider recovery of SMR development costs in a filing with the Virginia State Corporation Commission (SCC) expected in the fall. This important step was enabled by bipartisan legislation passed by the Virginia General Assembly earlier this year. Governor Youngkin ceremonially signed the legislation at today's event, where he was joined by its chief patron Senator Marsden.

The legislation contains cost caps limiting current SMR development cost recovery to no more than $1.40 per month for a typical residential customer. The company anticipates that its initial request will be substantially below that limit.

Photo and video of today's event will be available for download here by 3 p.m.

About Dominion Energy

More than 4.5 million customers in 13 states energize their homes and businesses with electricity or natural gas from Dominion Energy (NYSE: D), headquartered in Richmond, Va. The company is committed to providing reliable, affordable, and increasingly clean energy every day and to achieving Net Zero emissions by 2050. Please visit DominionEnergy.com to learn more.

 

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SOURCE Dominion Energy

FAQ

What did Dominion Energy announce on July 10, 2024?

Dominion Energy announced a Request for Proposals to evaluate the feasibility of developing a Small Modular Reactor at the North Anna Power Station.

What is the purpose of Dominion Energy's RFP related to SMR technology?

The RFP aims to assess the feasibility of developing a Small Modular Reactor at North Anna Power Station to meet future energy needs.

Will Dominion Energy definitely build an SMR at North Anna Power Station?

No, the RFP is an initial step to evaluate the feasibility, not a commitment to build an SMR.

What are the expected benefits of SMRs mentioned in Dominion Energy's announcement?

SMRs offer reliability and environmental benefits similar to traditional nuclear power but with lower upfront capital costs and a smaller footprint.

How will the costs of SMR development impact Dominion Energy customers?

The costs are capped at $1.40 per month for a typical residential customer, with initial requests expected to be substantially below this limit.

Which officials attended Dominion Energy's announcement event?

Virginia Governor Glenn Youngkin, Lieutenant Governor Winsome Earle-Sears, and other local and state leaders attended the event.

What future plans does Dominion Energy have regarding SMR development costs?

Dominion Energy plans to seek rider recovery of SMR development costs in a filing with the Virginia State Commission.