Chicago City Wire

Chicago is facing a significant increase in electricity demand, with current usage at around 30 terawatt-hours (TWh) per year and projections suggesting a rise of 10–40 percent by 2035. This growth is driven by the electrification of buildings and industry, as well as expanding data center operations fueled by artificial intelligence (AI) technologies. Meeting this demand with clean and reliable energy sources presents a major challenge for the city.

While wind and solar power are often considered, their reliance on large land areas and the limitations of current battery storage technology make them less feasible for dense urban environments like Chicago. As a result, Small Modular Reactors (SMRs)—factory-built nuclear units ranging from tens to a few hundred megawatts—are being discussed as an alternative energy solution.

Unlike traditional nuclear reactors, which are large-scale projects with high costs and long construction times, SMRs are designed for replication and use passive safety systems such as natural circulation and gravity-fed cooling. Some designs utilize advanced fuels that can withstand extreme temperatures. "Several light‑water SMRs around 300 megawatts electric (MWe) target conventional steam cycles familiar to operators and regulators; smaller 77–80 MWe modules aim at modular multi‑unit plants," according to the press release.

The compact footprint of SMRs allows for potential underground installation in industrial areas or brownfields within Chicago. The Calumet industrial corridor has been identified as a strong candidate due to its available space, rail and water access, and existing infrastructure buffers. Other retired coal sites could also be considered but may face environmental justice concerns.

A single 300 MWe SMR operating at a 90 percent capacity factor could produce about 2.37 TWh annually—roughly eight percent of Chicago’s current consumption. If demand reaches approximately 38 TWh by 2035, four to five such reactors could supply about one-quarter of the city's needs; more units would be required to meet higher proportions.

Illinois law now permits small reactors up to 300 MWe alongside federal licensing from the Nuclear Regulatory Commission (NRC). A recent NRC rule allows performance-based emergency planning for these reactors, potentially reducing emergency zone sizes if safety analyses support it. Federal loan programs may help lower financing costs for developers.

However, initial deployments of SMRs remain costly compared to natural gas plants—estimated between $90–$150 per megawatt-hour (MWh), while gas typically ranges from $40–$70/MWh depending on market conditions. Over time, costs for mature SMR projects could fall into the $60–$90/MWh range due to economies of scale and improved manufacturing processes.

Because ComEd operates only transmission lines in Chicago’s wholesale power market (PJM), new nuclear projects would likely be led by private developers supported by federal loans or tax credits rather than traditional utility rate-basing models. Long-term contracts with industrial customers would be crucial for securing project financing.

"Any Chicago proposal would need binding community benefits, third‑party monitoring, and a visible local jobs pipeline to earn trust," states the press release. Public acceptance will depend not just on technical assurances but also on transparent oversight and tangible local benefits.

A phased approach is suggested: starting with one site in an industrial corridor paired with an anchor customer such as a district energy provider or industrial facility. If successful, additional modules could follow as demand increases over time.

The future competitiveness of SMRs compared to natural gas depends on multiple factors including fuel prices, technological advances in reactor manufacturing, and evolving regulatory frameworks. While there is optimism about falling costs if mass production occurs, uncertainties remain regarding long-term economic viability relative to other energy sources.

"SMRs are not a free market panacea, but with the advent of unimaginable demand for electricity due to AI they do have a greater recoverable supply in uranium versus natural gas," concludes the press release.