By Keith Woods, Chairman of SRP Landowners Alliance
In recent months, tech giants like Google, Microsoft, and Amazon have been securing power purchase agreements (PPAs) for nuclear energy. This marks a significant shift in how these companies plan for clean, reliable energy in the future. But today’s nuclear energy doesn’t look like the massive, costly plants of the past. Instead, it’s focused on safer, scalable technologies such as Small Modular Reactors (SMRs), which innovative companies like NuScale Power and TerraPower are developing.
As the chairman of SRP Landowners Alliance, I lead an organization dedicated to advocating for sound energy and water policies for customers and landowners who depend on Salt River Project (SRP) for power and water. While we’re not affiliated with SRP, we recognize that decisions about energy policy, like those involving nuclear or natural gas, ultimately determine electric prices for ratepayers. SMRs hold enormous potential, but it’s essential to be practical about the timeline for implementation and the energy mix we need right now.
Why New Nuclear is Real and Why We Need It
New nuclear technologies are no longer just theoretical. Companies like NuScale Power and TerraPower are at the forefront of developing SMRs, which promise safer, more efficient nuclear power. NuScale’s SMR design has already gained approval from the U.S. Nuclear Regulatory Commission, marking a critical step forward. TerraPower, backed by Bill Gates, also pushes the boundaries of what’s possible with advanced nuclear technology.
Major corporations like Google, Microsoft, and Amazon have recognized this potential, recently signing PPAs to lock in clean, reliable energy for their operations. These companies know that as their data centers and facilities grow, the demand for energy will skyrocket, and SMRs could play a vital role in meeting that demand with carbon-free power.
But while SMRs are promising, they won’t be ready to meet our energy needs for another 7 to 15 years. In the meantime, we need solutions that are reliable today—and that’s where natural gas remains essential.
The Role of Natural Gas: A Critical Bridge
While SMRs represent the future of energy, they’re not yet contributing to the grid. Natural gas, on the other hand, is already providing the reliable, affordable power that we need right now. It’s more than a bridge—it’s an essential component of a balanced energy mix that ensures power stability while we expand renewables like solar and wind.
Natural gas provides the flexibility to ramp up quickly when renewable sources aren’t generating enough electricity. This ability to meet peak demand and stabilize the grid makes it a key partner for both renewables and nuclear energy as they develop. Without natural gas, we would face significant gaps in energy reliability, particularly as we navigate the next decade of energy transitions.
At SRP Landowners Alliance, we believe in a diversified energy portfolio. Natural gas, alongside nuclear, renewables, and other energy sources, offers the best path to secure, affordable energy.
SRP’s Clean Coal Plants: A Transition Opportunity?
As SRP, a public utility separate from SRP Landowners Alliance, looks toward the future, it faces the challenge of transitioning away from coal-powered plants. For example, the Coronado Generating Station (CGS) is set to close by 2032. SRP recently announced plans to explore low-carbon replacements for CGS, including hydrogen, battery storage, and advanced nuclear technologies like SMRs.
In 2022, SRP launched a series of studies, collaborating with Gateway for Accelerated Innovation in Nuclear (GAIN) to assess whether advanced nuclear reactors could replace CGS. While this exploration is promising, SRP has acknowledged that deploying such technology could take 20 to 30 years due to high costs and lengthy approval processes with the Nuclear Regulatory Commission. This long timeline underscores the need for natural gas and other resources to play a vital role in the interim.
At SRP Landowners Alliance, we applaud efforts to explore long-term solutions like SMRs, but we also understand the realities of regulatory and financial constraints. As SRP navigates this transition, it’s clear that maintaining a balanced energy mix—including natural gas—is critical to keeping electricity affordable and reliable.
A Balanced Energy Strategy
The reality is that no single energy source will be sufficient to meet all of our future needs. While SMRs and other advanced technologies are exciting, they won’t be operational for years. In the meantime, we need a balanced energy strategy that includes natural gas, clean coal, hydroelectric power, solar, and wind.
At SRP Landowners Alliance, we advocate for policies that support a diversified energy mix. Natural gas, in particular, is indispensable because it provides the reliable, affordable power necessary to fill gaps left by intermittent renewables. It’s the backbone of our grid today, and it will continue to play a vital role as we move toward a cleaner energy future.
The Role of SRP Landowners Alliance
SRP Landowners Alliance is a non-profit organization representing the interests of customers and landowners relying on SRP for power and water. While we are not affiliated with SRP, we work to ensure that the policies SRP enacts align with the needs of the communities it serves. Policy decisions—whether related to SMRs, natural gas, or other energy sources—ultimately determine electric prices, and it’s our mission to advocate for practical, cost-effective energy solutions.
While SMRs offer a promising future, natural gas remains critical in both the short and long term to ensure energy reliability and affordability. We’ll continue to push for balanced energy policies that protect the interests of those who depend on SRP for power and water.
Conclusion: Embrace New Nuclear, But Stay Practical
The potential for new nuclear energy is real, and companies like NuScale Power and TerraPower are paving the way for a safer, scalable future. But as promising as SMRs are, they’re not yet a reality for today’s grid. That’s why we must continue to prioritize practical, reliable energy solutions like natural gas while expanding renewables and exploring advanced technologies.
At SRP Landowners Alliance, we’ll continue advocating for policies that ensure Arizona’s energy future remains secure, reliable, and affordable. While SMRs may light the way ahead, today’s focus must remain on maintaining a balanced energy portfolio that includes natural gas, nuclear, and renewables—ensuring current and future power security.
