USA’s Inflation Reduction Act of 2022 (IRA) cleverly worded so it could be a bonanza for small nuclear plant developers

Advanced Nuclear Plants Poised to Benefit from Inflation Reduction Act, Retiring Coal Plants

American Power Association, November 27, 2022 Peter Maloney “………………………………… The Inflation Reduction Act of 2022 (IRA) provides production tax credits (PTC) for existing nuclear power plants but, more importantly, for new nuclear power plants and specifically for advanced reactors and small modular reactors – the type NuScale Power is working on. The IRA amends the definition of a qualified facility eligible for a “clean PTC” to mean any plant placed into service after Dec. 31, 2024, that produces zero greenhouse gas emissions.

The IRA also amends the Internal Revenue Service (IRS) rules on qualifying for a clean energy investment tax credit (ITC) by changing the language in the code to allow investments for advanced reactors to qualify for the credit. The change provides a tax credit of 30 percent of the cost of building a zero-emission advanced nuclear power plant that is placed in service after 2025.

“If you design and plan to put in a small modular reactor at the site of a retired coal plant, there is a further 10 percent ITC available, and if you use domestic content there is another 10 percent ITC added on,” Colbert said. “That can add up to a 50 percent reduction in costs.”

In September, the Department of Energy (DOE) released a study that found that hundreds of coal power plant sites across the country could be converted to nuclear power plant sites……………………..

Each NuScale small modular reactor (SMR) is designed to generate 77 megawatts (MW) of electricity. Up to 12 SMRs can be combined to make a 924-MW VOYGR™-12 power plant. In addition to their compact design, which makes them scalable and cost competitive, …………………………..

NuScale is now looking forward to reaching another milestone in the regulatory process.

In July, the NRC directed its staff to issue a final rule certifying NuScale’s SMR design.

The rulemaking would amend NRC regulations to incorporate NuScale’s SMR standard plant design, which would allow applicants intending to build and operate an SMR plant to reference the design certification rule.

“If approved, the certification would be published in the Federal Register and have the effect of law,” Colbert said.

The rulemaking is on the docket for the NRC to make a decision in November.

November 28, 2022 - Posted by Christina Macpherson | politics, USA