Energy utilities across the country are facing the challenge of increasing electricity supply to meet rising demand, primarily driven by the expansion of data centers. Duke Energy, a major utility serving millions in the Southeast, is betting that small modular reactors (SMRs) can be an integral part of America’s future, providing baseload, clean power.

Unlike conventional nuclear reactors, which can produce over a gigawatt of electricity and often require a decade or more to construct, SMRs are compact, factory-built units generating between 50 and 300 megawatts each. Their modularity allows utilities to scale capacity gradually, deploying additional units as demand increases or as coal plants are shut down.

Operational advantages make SMRs particularly compelling. Their smaller size allows for off-site manufacturing, which cuts construction costs and reduces delays. They can be shipped to prepared sites and installed more quickly than traditional reactors. Passive safety systems in SMRs, which rely on natural circulation instead of pumps, reduce accident risks. In addition, SMRs can operate continuously for extended periods without refueling, providing a steady, carbon-free power supply that complements intermittent sources such as wind and solar. For Duke, this reliability is critical, particularly in the Southeast, where electricity demand spikes in the summer and extreme weather events often strain the grid.

For Duke Energy, SMRs present a way to replace retiring coal without disrupting. Duke Energy views small modular reactors (SMRs) as a means to replace aging coal plants without disrupting the power grid. They’re studying how SMRs could fit into their future mix of clean energy and have partnered with developers and research groups to explore sites, technology, and regulatory pathways for bringing them online in the 2030s.

Federal policy is also creating momentum. The U.S. Nuclear Regulatory Commission (NRC) recently approved NuScale’s SMR design, the first-ever regulatory license for SMRs in the United States. This milestone accelerates deployment timelines by offering a standardized, pre-approved reactor blueprint, thereby reducing regulatory delays and hurdles that have historically plagued large nuclear projects. With a renewed national focus on energy security and abundance, SMRs are suddenly moving from theoretical to feasible for utilities like Duke.

Cost remains a sticking point. SMRs are not cheap, with per-megawatt prices higher than natural gas and some renewables. Critics also highlight the challenges of nuclear waste management, public perception, and the nascent supply chain for SMR components. Yet cost comparisons overlook the value of consistency and security. Fossil fuels carry volatility in fuel prices and regulatory costs, while renewables, though increasingly inexpensive, require storage or backup generation to handle variability. SMRs can offer a predictable, long-term hedge against both economic, geopolitical, and environmental uncertainty. 

Importantly, as C3 Solutions’ Nick Loris and Robert Eccles point out, “improved learning curves and economies of scale bring down costs for many reactor technologies to help meet the world’s growing energy needs.” They emphasize that “policymakers must address the government-imposed regulatory burdens that increase costs and time to bring new plants online.” 

Duke’s interest in SMRs goes beyond just economics. It’s about getting ahead of the curve in a technology that could reshape the entire energy market. By moving early, the company can shape the future of nuclear energy in the U.S., build supply chains, develop expertise, and influence national energy policy. At the same time, the move addresses growing pressure from investors and the public to shift away from carbon-intensive fuels. In an industry being pushed toward change, those who act first are far more likely to gain both public trust and regulatory support.

What makes SMRs especially interesting is how they could change the way utilities operate. Unlike massive nuclear projects that demand billions upfront, SMRs can be built in increments, lowering financial risk. They can also be placed closer to cities or factories, reducing transmission costs and improving efficiency.

Of course, they’re not a silver bullet. Licensing remains slow, and public trust in nuclear energy remains a work in progress. But the momentum is real: federal regulators are streamlining approvals, standardized designs are emerging, and companies like Duke are willing to put them to the test.

That’s why Duke’s exploration of SMRs feels bigger than just another technology trial. It could signal a real comeback for nuclear power in America. With coal plants closing and demand for clean, reliable energy increasing, SMRs stand out as an innovative and promising solution. The challenges are real, but so is the opportunity. 

The views and opinions expressed are those of the author’s and do not necessarily reflect the official policy or position of C3.