industrySmall modular reactors could spur nuclear innovation

A look to the future of energy production

March 2025 | By Jess Donald

Texas’ nuclear landscape currently includes two conventional power plants and the Pantex Plant, the nation’s primary nuclear weapons facility, but something innovative is on the horizon: small modular reactors (SMRs).

As Texas grapples with challenges associated with rising energy demand, state officials are taking measured steps toward incorporating SMR technology into its power generation portfolio. SMRs represent an innovative departure from traditional nuclear technology, featuring compact designs that generate up to 300 megawatts, close to one-third of the amount produced by conventional one-gigawatt reactors. These units offer advantages in manufacturing, transportation and safety, incorporating passive cooling systems that operate independently of external power or human action.

Energy in demand

The state’s robust economic expansion and sustained population growth have intensified the demand for a reliable electric grid — critical infrastructure that powers everything from homes to industry.

Evidence of improving grid performance can be seen in the sharp decline in the number of times the Electric Reliability Council of Texas (ERCOT) has asked customers to voluntarily reduce their energy usage, which dropped from 11 requests for conservation in 2023 to just two requests for conservation in 2024. Despite advancements in winterization protocols and an increase in generation capacity, ERCOT President and CEO Pablo Vegas acknowledges that winter weather still poses a risk to grid stability given limited availability of renewable resources when storms coincide with peak demand periods.

The scale of Texas’ growth has prompted ERCOT to significantly revise its long-term load growth forecasts. In April 2024, ERCOT increased its long-term load growth projections, including increasing its forecasted peak summer load for 2030 by 64 percent from 90,928 megawatts to 148,000 megawatts. A January 2025 article by the Federal Reserve Bank of Dallas cited emerging power consumers, including data centers, major industrial facilities, cryptocurrency operations and hydrogen electrolyzers.

Inviting innovation

Gov. Greg Abbott’s August 2023 directive to the Public Utility Commission of Texas (PUCT) urged exploring all forms of dispatchable energy (PDF), including nuclear power. It prompted the establishment of the Texas Advanced Nuclear Reactor Working Group, bringing together more than 100 industry experts and stakeholders to examine the potential of SMRs. In November 2024, the group released its comprehensive report, Deploying a World-Renowned Advanced Nuclear Industry in Texas (PDF), which outlines a pathway for Texas to lead in advanced nuclear technology deployment.

The Texas A&M University System has invited the development of SMRs at Texas A&M-RELLIS, a 2,400-acre research and innovation campus, as state leaders propose that Texas’ existing energy infrastructure and workforce, coupled with projected economic benefits, could incentivize the state to play a substantial role in advancing nuclear technology development.

In February 2025, Texas A&M University System Chancellor John Sharp announced that the university system will pursue hosting SMR testing facilities near its flagship campus. Texas A&M System officials have streamlined the regulatory process to allow four companies to quickly get their reactors operational, having already initiated the Early Site Permit application process with the U.S. Nuclear Regulatory Commission. Sharp stated in a Texas A&M Today article, “Plain and simple: the United States needs more power. And nowhere in the country, other than Texas, is anyone willing to step up and build the power plants we need. Thanks to the leadership of Gov. Greg Abbott and others in Texas state government, Texas A&M System stands ready to step up and do what is necessary for the country to thrive.”

Weighing economic benefits and security risks

The University of Texas at Austin’s Bureau of Business Research (BBR) projections suggest significant potential economic benefits from SMRs, including job creation within the manufacturing and construction industry sectors. BBR released these data in its October 2024 report, Economic Impacts of Texas Small Modular Reactor Industry Development, 2024-2055 (PDF) (Exhibit 1).

Exhibit 1: Employment projections by occupations, 2030-40

Exhibit 1 data

Employment projections by occupations, 2030-40

Occupation	2030	2031	2032	2033	2034	2035	2036	2037	2038	2039	2040
Metal Workers and Plastic Workers	1,016	7,560	7,327	7,286	6,965	6,919	14,656	14,422	14,005	13,826	13,418
Construction Trades Workers	645	4,766	4,390	6,141	3,002	4,452	6,239	7,639	4,702	5,912	3,009
Material Moving Workers	639	4,749	4,049	4,229	3,406	3,557	7,834	7,367	6,563	6,559	5,743
Other Production Occupations	475	3,522	3,287	3,273	2,985	2,968	6,420	6,211	5,877	5,770	5,449
Business Operations Specialists	474	3,515	2,959	3,235	2,405	2,628	5,583	5,320	4,531	4,623	3,815
Other Installation, Maintenance and Repair Occupations	472	3,512	3,142	3,436	2,687	2,929	5,981	5,926	5,217	5,363	4,644
Motor Vehicle Operators	415	3,117	2,714	2,933	2,304	2,462	5,228	5,037	4,427	4,482	3,840
Assemblers and Fabricators	338	2,474	2,288	2,244	2,015	1,969	4,291	4,095	3,816	3,688	3,426
Total	4,474	33,215	30,156	32,777	25,769	27,884	56,232	56,017	49,138	50,223	43,344

This workforce analysis incorporated the BBR’s likeliest scenario, the medium impact scenario, which envisions the deployment of 37 SMRs rated at 300 megawatts each, along with the manufacture of 771 units in Texas. According to this scenario, the new SMR industry would employ an annual average of 148,000 people directly and indirectly over a 26-year period, resulting in $50.6 billion in new economic output and $27.3 billion in worker income throughout Texas (Exhibit 2).

Exhibit 2: Average estimated economic impact of new SMR manufacturing and deployment in Texas

Average estimated economic impact of new SMR manufacturing and deployment in Texas

Category	Years 1-5	Years 6-10	Years 11-15	Years 16-20	Years 21-25	Annual average 2030-2055
Total Employment	50,473	103,770	139,579	215,522	219,389	148,345
Percent Change	0.25%	0.49%	0.65%	0.97%	0.97%	0.69%
Gross Domestic Product	$10,561,216	$26,180,571	$41,379,243	$74,195,000	$91,137,730	$50,597,629
Percent Change	0.33%	0.68%	0.89%	1.33%	1.36%	1.03%
Disposable Personal Income	$5,243,096	$13,450,633	$22,031,935	$39,880,953	$50,465,013	$27,324,159
Percent Change	0.21%	0.44%	0.59%	0.87%	0.90%	0.69%

The Texas Advanced Nuclear Reactor Working Group emphasizes workforce development through the state’s community colleges and universities while recommending the establishment of non-regulatory oversight mechanisms and public outreach initiatives. During his February 2025 appearance on the Energy Capital podcast, former PUCT Commissioner Jimmy Glotfelty emphasized Texas’ unique manufacturing potential for SMR development. According to Glotfelty, Texas possesses an unmatched global oil and gas fabrication infrastructure that could be leveraged to manufacture SMR components efficiently. He envisions these modular components being manufactured locally to reduce costs, with the final assembly process mirroring that of offshore oil and gas facilities.

While SMR technology offers notable advantages, these same characteristics present significant concerns. As highlighted in a 2024 Nuclear Engineering and Technology article, “Assessing the nuclear weapons proliferation risks in nuclear energy newcomer countries: The case of small modular reactors,” nuclear technology and materials have an inherent “dual-use” nature. The commercial benefits of SMRs — their compact size and manufacturing efficiency — also raise security concerns, as both the technology and materials could potentially be used for nuclear weapons proliferation. The article emphasizes that robust regulatory frameworks and safeguards must accompany SMR deployment to address these risks.

As Texas advances its nuclear energy initiatives, the successful integration of SMR technology into the state’s power generation portfolio hinges on continued collaboration between regulatory bodies, industry stakeholders and educational institutions. The Texas Advanced Nuclear Reactor Working Group’s comprehensive assessment of SMR deployment highlights a compelling opportunity for the state. Texas possesses three critical advantages — an established energy infrastructure, skilled workforce and robust manufacturing capabilities — that collectively position the state with the opportunity to become a leader in nuclear technology while meeting its expanding energy needs.