July 10 (Reuters) - Dominion Energy ( D ) said on

Wednesday it has issued a Request for Proposals from leading

smaller modular reactor nuclear companies to assess the

feasibility of developing an SMR at its North Anna site in

Virginia.

SMRs are smaller-sized nuclear reactors, touted as being

more cost-effective and quicker to deploy than full-sized

models, which can take decades to build. They're aimed at

replacing coal-fired plants and providing more localized energy

needs.

The U.S. utility company also plans to seek cost

recovery for SMR development, capping the additional cost for a

typical residential customer at $1.40 per month.

WHY IT'S IMPORTANT

Clean energy facilities, including nuclear plants, are

eligible for tax credits under the Inflation Reduction Act,

which aims to decarbonize the U.S. power sector.

NuScale's SMR technology, the only one to receive

design certification from the U.S. nuclear power regulator last

year, has faced cost and subscription issues and has had to

shelve one of its projects.

In the U.S., Florida-based Holtec and Pennsylvania-based

Westinghouse also have SMR plans under review.

BY THE NUMBERS

After about two decades of flat U.S. electricity growth,

power demand is rising rapidly due to the increased use of data

centers for artificial intelligence and cloud computing, as well

as the electrification of manufacturing and transportation.

About 80% of the 2023 U.S. data center load is concentrated

in 15 states, primarily Virginia and Texas.

Power consumption in the U.S. is expected to reach record

highs in 2024 and 2025, with projections of 4,099 billion

kilowatt-hours (kWh) in 2024 and 4,128 billion kWh in 2025,

according to the U.S. Energy Information Administration.

KEY QUOTES

"As Virginia's need for reliable and clean power grows, SMRs

could play a pivotal role in an 'all-of-the-above' approach to

our energy future," said Robert M. Blue, chief executive officer

of Dominion.