New Jersey launches 1,100 MW small nuclear procurement

New Jersey has enacted legislation requiring the state’s utility board to procure at least 1,100 megawatts of electricity from advanced nuclear projects. The law tasks the New Jersey Board of Public Utilities with a strict timeline to review and select expressions of interest specifically for small modular reactors (SMRs).

This procurement is a direct response to surging baseload electricity demand from data centers and tech infrastructure. For power markets and utilities, the mandate translates to a guaranteed offtake pipeline for next-generation nuclear developers attempting to commercialize a technology that has historically struggled with high costs and regulatory delays in the US.

SMRs offer a different economic model than traditional large-scale fission. By shifting construction to factories and assembling units on-site, developers aim to drastically reduce capital expenditures. The reactors also provide flexible output to manage grid volatility. “This flexibility helps balance the power grid during extreme weather events, which often cause sudden disruptions to less resilient infrastructure,” a recent Interesting Engineering report noted.

The state-level move aligns with federal efforts to scale SMRs, anchored by Executive Order 14301 signed in May 2025 to accelerate commercialization. However, the technology faces skepticism from some financial quarters. A recent Wall Street Journal op-ed warned that “The administration is chasing unproven technology when it could encourage Wall Street investment in large-scale reactors,” arguing this distracts from the goal of quadrupling US nuclear capacity by 2050.

The urgency for new American nuclear capacity is underscored by the pace of international competition. China is rapidly building out its fleet and is projected to surpass the US and France as the world's largest nuclear energy producer within a decade. “By a wide margin, China will have the world’s most dynamic and significant nuclear industry through 2035,” an analyst for Gavekal Technologies told the South China Morning Post, noting China can build a plant in about six years compared to over a decade for recent US projects.

New Jersey already derives 40% of its total power and 80% of its clean energy from traditional nuclear. State Senator Burzichelli framed the expansion as an economic imperative, stating, “Giving serious consideration to additional supplies of nuclear power would serve our energy needs. Advanced nuclear power is clean, reliable and strengthens our long-term energy security.”

Erick Ford, President of the New Jersey Energy Policy Coalition, added that the law is “an important step toward increasing base load capacity, improving grid reliability, and ensuring our state has the energy needed to support residents, businesses, and economic growth.”