Behind-the-meter (BTM) generation refers to power production equipment installed at an end user's facility that supplies electricity directly to the customer's loads without passing through the public utility grid or utility metering infrastructure. BTM generation avoids transmission and distribution charges, demand charges, and various grid-related fees, potentially offering significant cost savings compared to grid-purchased power. For nuclear applications, behind-the-meter deployment also sidesteps certain grid interconnection studies, capacity market obligations, and wholesale market participation requirements, simplifying the commercial and regulatory pathway in some jurisdictions.
The behind-the-meter model has emerged as a primary deployment pathway for SMRs and microreactors serving data centers and industrial facilities. X-energy's Xe-100 project at Dow's Seadrift, Texas manufacturing facility is a paradigm example: four reactor modules generating 320 MWe will provide both electricity and high-temperature process heat directly to Dow's chemical operations, with the NRC accepting the construction permit application in May 2025. Last Energy's business model is built entirely around behind-the-meter microreactor deployment, with its PWR-20 (20 MWe) units targeting data centers across Europe (80+ commercial agreements, half for data centers) and 30 microreactors planned in Haskell County, Texas for data center applications. Radiant Industries' agreement with Equinix for 20 Kaleidos microreactors specifically targets behind-the-meter digital infrastructure power.
The regulatory and commercial implications of behind-the-meter nuclear are substantial. Traditional utility-scale nuclear plants are subject to public utility commission rate cases, wholesale market dispatch, and grid operator balancing requirements, all of which add complexity and risk. BTM installations operate under a simpler bilateral arrangement between the generator and the host facility. However, the NRC's safety oversight applies regardless of grid connection status; the licensing requirements for a BTM nuclear plant are identical to those for a grid-connected facility. Amazon's agreement with Talen Energy to develop a data center campus adjacent to the Susquehanna nuclear plant, representing over $20 billion in investment, blurs the line between BTM and grid-connected nuclear, as existing nuclear output is essentially dedicated to adjacent computing loads. The behind-the-meter model is particularly suited to microreactors (1-20 MWe) and small SMRs, where the output scale matches individual facility demand and the compact footprint enables co-location with the customer's operations.