Could Puerto Rico become the first US territory to deploy commercial SMRs?

University students are making the case for nuclear power to transform Puerto Rico's energy landscape. The American Nuclear Society Student Section at the University of Puerto Rico–Mayagüez (ANS-UPRM) testified June 3rd before the Puerto Rican House of Representatives supporting Proyecto de la Cámara 1092, legislation that would direct the territorial government to evaluate small modular reactor deployment alongside other low-carbon technologies.

Section president Francisco Paravisini Domenech led the testimony advocating for PC 1092's passage. Puerto Rico's electricity grid remains vulnerable following Hurricane Maria's 2017 devastation, with baseload power generation primarily dependent on imported fossil fuels. The territory's 3.2 million residents face electricity costs roughly double the US mainland average.

The student advocacy represents a notable grassroots push for nuclear in a jurisdiction where no commercial reactors have operated. PC 1092 would establish a framework for evaluating SMR technologies' potential to provide reliable, carbon-free electricity while reducing Puerto Rico's energy import dependence. The legislation requires government analysis but stops short of mandating reactor deployment.

Why Puerto Rico presents unique SMR deployment challenges

Puerto Rico's isolated grid creates both opportunities and obstacles for SMR integration. The territory's peak demand typically ranges from 2,500-3,000 MWe, making it potentially suitable for multiple small reactor units rather than large gigawatt-scale plants. However, the jurisdiction operates under complex federal oversight structures that could complicate regulatory approval processes.

The Puerto Rico Electric Power Authority (PREPA) filed for bankruptcy in 2017, creating uncertainty around long-term power purchase agreements that SMR developers typically require. The territory's government has pushed renewable energy mandates targeting 100% clean electricity by 2050, but intermittency challenges from solar and wind have highlighted needs for firm, dispatchable generation.

Student advocate Paravisini Domenech emphasized nuclear's potential to provide energy security while meeting climate goals. The ANS-UPRM testimony specifically highlighted SMR technologies' enhanced safety features and smaller footprints compared to traditional large reactors.

Regulatory pathway remains unclear for territorial SMR deployment

Puerto Rico falls under NRC jurisdiction for nuclear regulation, but territorial status creates potential complications for SMR licensing. The NRC has not previously licensed commercial reactors in US territories, though the agency's NRC Design Certification process theoretically allows deployment anywhere under federal jurisdiction.

NuScale Power's VOYGR reactor received design certification in 2023, making it the only US SMR with full regulatory approval. However, the company has focused marketing efforts on mainland utilities and international markets rather than territorial deployments.

PC 1092 would require Puerto Rico's government to study SMR deployment timelines, costs, and regulatory requirements. The legislation acknowledges that territorial nuclear development might require congressional action to clarify jurisdictional authorities and financing mechanisms.

Economic factors could drive or derail SMR consideration

Puerto Rico's high electricity costs—averaging $0.22 per kWh compared to $0.12 mainland—create economic incentives for alternatives to fossil fuel imports. The territory spends roughly $3 billion annually on energy imports, primarily natural gas and petroleum products for electricity generation.

However, SMR economics remain challenging with First of a Kind (FOAK) projects facing construction costs potentially exceeding $10,000 per kWe. The Utah Associated Municipal Power Systems' project using NuScale technology has faced multiple cost escalations and timeline delays, raising questions about near-term SMR commercial viability.

Student advocacy groups argue that federal infrastructure programs could provide financing mechanisms for territorial SMR deployment. The Department of Energy's Advanced Reactor Demonstration Program has allocated billions for nuclear technology development, though territorial projects have not received significant funding to date.

Key Takeaways

• University students testified supporting PC 1092 legislation directing Puerto Rico to evaluate SMR deployment
• Puerto Rico's isolated 3,000 MWe grid and high electricity costs create potential SMR market opportunity
• Territorial regulatory status under NRC jurisdiction presents unclear pathway for commercial reactor licensing
• Student advocacy represents grassroots push for nuclear in territory with no prior commercial reactor experience
• Economic challenges from high FOAK SMR costs could limit near-term deployment prospects despite energy security benefits

Frequently Asked Questions

Does Puerto Rico have any existing nuclear facilities? Puerto Rico has no commercial nuclear reactors. The University of Puerto Rico operated a small research reactor from 1964-2009 that was permanently shut down and decommissioned.

Which SMR companies are targeting Puerto Rico markets? No major SMR developers have announced specific Puerto Rico deployment plans. Most companies focus on mainland US utilities and international markets with clearer regulatory pathways.

How would territorial status affect SMR licensing? Puerto Rico falls under NRC jurisdiction, but territorial deployment would be unprecedented. The regulatory process might require congressional clarification of federal authorities and financing mechanisms.

What are Puerto Rico's current electricity generation sources? The territory relies primarily on natural gas (47%) and petroleum (38%) for electricity generation, with renewables comprising roughly 15% of the mix.

Could federal programs fund territorial SMR deployment? Existing DOE programs like ARDP have not specifically targeted territorial projects, but infrastructure legislation could potentially provide financing mechanisms for strategic deployments.