Economic Impact of Small Modular Reactors (SMRs) in Texas
BACKGROUND
At the direction of Governor Greg Abbott and under the direction of Commissioner Jimmy Glotfelty, the Public Utilities Commission of Texas (PUCT) formed the Texas Advanced Nuclear Reactor Working Group (TANRWG). Its membership is made up of stakeholders with applicable experience and expertise to best understand how Texas can encourage the timely implementation of advance nuclear reactors. As part of this overall initiative, the PUCT selected the Bureau of Business Research (BBR) at the IC² Institute at The University of Texas at Austin to conduct an economic impact study on the creation of a Small Modular Reactor (SMR) industry in the Texas.
PROJECT DESCRIPTION AND OBJECTIVES
Working in conjunction with TANRWG, the Bureau of Business Research is developing an estimate of the economic size and impact of the creation of a Small Modular Reactor (SMR) industry in Texas over a 30-year period (2024-2054), including an analysis of the economic impact of building and deploying multiple SMRs in Texas. A final report will be submitted to the PUCT in October, 2024. Specific elements of the analysis will include:
- Dynamic macroeconomic modeling of the new SMR sector utilizing REMI software.
- Estimating state and federal financial incentives and subsidies needed to encourage new market participants and to reduce SMRs relatively high Levelized Cost of Energy compared to other sources of electricity.
- Profiling SMR workforce requirements, any gaps in the workforce supply, and measures to close those gaps, if necessary.
- Describing supply chains of Texas companies for new SMRs in Texas and in other states.
- Surveying businesses about their interest in joining the supply chain for SMR manufacturing in Texas.
FINDINGS
BBR published an initial report in October, 2024; a revised report is expected in December.
Economic Impact – The report modeled three economic impact scenarios. Based on a “medium” scenario, the report estimates the following over the next 30 years:
- An annual average of 148,000 people employed directly and indirectly by the new SMR industry
- $50.6 billion in new economic output in Texas
- $27.3 billion in income to Texas workers
Supply Chain Analysis – In terms of the state’s ability to support an advanced nuclear energy plant supply chain, the report concludes that Texas is strong compared to the nation across the SMR supply chain, although there are other states that are also competitive.
Grid Modeling – ERCOT grid modeling results indicate that Houston and Dallas regions are load centers, likely to receive the most SMR capacity because of their industrial needs and growing populations.
MEDIA
RELATED CONTENT
