TVA Advances Nuclear Development and Grid Modernization Efforts in FY25

TVA has secured a construction permit application by the Nuclear Regulatory Commission for the BWRX-300 SMR technology.

Nov. 10, 2025

4 min read

The Tennessee Valley Authority (TVA) is expanding its investments in advanced nuclear technology, grid modernization, and strategic partnerships to strengthen energy reliability and support economic growth in the Tennessee Valley and across the nation.

The TVA Board of Directors received updates on the agency’s progress, recognized the strong performance of employees, and reaffirmed its goal to deliver affordable, reliable, and innovative American energy solutions to meet rising demand, fuel economic growth, and power next-generation infrastructure of the AI era at its November meeting.

In FY25, TVA rapidly advanced its role in energy innovation, a hub for next-generation nuclear technology, and a key driver of regional economic growth.

During the Board meeting, Don Moul, TVA President and CEO, shared the successes in FY25:

New Nuclear Innovation: TVA has secured a construction permit application by the Nuclear Regulatory Commission for the BWRX-300 SMR technology, demonstrating the agency’s national leadership in small modular reactor development. In addition, TVA has signed a power purchase agreement for electricity from an advanced Gen IV nuclear reactor – Kairos Power’s Hermes 2. TVA also signed a collaboration agreement with ENTRA1 to explore the development of up to 6 GW of new nuclear power generation to advance the nation’s energy security and maintain America’s nuclear leadership.
Fusion Energy Development: With support from Tennessee Governor Bill Lee, TVA and Type One Energy signed a letter of intent to bring a commercial stellarator fusion power plant to the Tennessee Valley. TVA’s workforce will help manufacture components for the prototype fusion machine at TVA’s Bull Run site.
Meeting Power Demand: TVA’s gas, hydro, and coal generation fleet delivered strong reliability performance in 2025, with 389 billion cubic feet of natural gas and 14 million tons of coal supplied. This fuel mix generated enough electricity to power an estimated 7.2 million homes, underscoring the fleet’s critical role in meeting energy demands. To continue to meet record-breaking power demand, like in January, TVA completed 530 MW of new generation at its New Johnsonville natural gas plant and has more than 3,500 MW currently under construction, enough to power over two million homes. TVA plans to build more than 6,200 MW of new generation to support industrial growth, economic development and energy security. TVA is working closely with communities to identify optimal locations for new energy assets.
Economic Development: TVA, with its partners, helped attract over $6.6 billion in projected capital investment to the region that is expected to create more than 9,000 jobs while expecting to retain about 43,250 jobs, earning Site Selection Magazine’s recognition for 20-years in a row. Companies include: Barrett firearms, GE Aerospace, Hitachi Energy, Mahle, Oklo and U.S. Space Command. Over the past five years, TVA has helped create over $44 billion in projected capital investment, which is expected to bring more than 81,000 new jobs and retain more than 230,000 jobs.
Energy Efficiency & Demand Response: In partnership with local power companies and communities, TVA programs enabled energy upgrades to more than 200,000 residents and 98 schools across the Valley. Since October 2023, TVA’s energy efficiency programs have delivered almost $750 million in lifetime energy savings for participants.
Disaster Response & Environmental Stewardship: Following the impact of Hurricane Helene, TVA joined a year-long cleanup effort in partnership with FEMA, TEMA, and TDEC to restore Douglas Lake. This initiative reinforced TVA’s commitment to community resilience and earned the Outstanding Watershed Management Project Award from the Clean Water Professionals of Kentucky and Tennessee.
Enterprise Transformation Program (ETP): TVA met its FY25 cost optimization reduction targets and has plans to meet the targets set for FY26. ETP is designed to enable TVA to deliver at least $500 million of sustainable reductions to planned cost increases in FY26 and beyond to support future fleet investments needed to meet growing demand. TVA’s ETP is focused on improving financial health, enhancing asset performance, automating processes, optimizing third-party spend through the supply chain, and making the workforce more efficient.