The U.S. Department of Energy, through its Loan Programs Office, on Sept. 30 announced the closing of a loan guarantee of up to $1.52 billion under the Inflation Reduction Act’s Energy Infrastructure Reinvestment program to Holtec Palisades to help finance the restoration and resumption of service of an 800-megawatt nuclear generating station in Covert Township, Michigan.
The Palisades Nuclear Plant, which ceased operations in May 2022, will be brought back online and upgraded to produce baseload power until at least 2051, subject to U.S. Nuclear Regulatory Commission licensing approvals.
The NRC also issued new guidance to ensure the restart is performed safely and to high standards.
Once complete, this project will be the first recommissioning of a retired nuclear power plant in U.S. history.
DOE said that once operational, the Palisades Nuclear Plant will be “a vital addition to Midcontinent Independent System Operator’s (MISO) resource mix as coal plants are retired.”
Holtec Palisades has already signed long-term power purchase agreements for the full power output with rural electric co-ops Wolverine Power Cooperative and Hoosier Energy, which serve rural communities in Michigan, Illinois, and Indiana.
The Sept. 30 announcement marks the first closing of a loan guarantee through the Energy Infrastructure Reinvestment program under Title 17 Clean Energy Financing Section 1706, first authorized and appropriated by the Inflation Reduction Act.
EIR can finance projects that retool, repower, repurpose, or replace energy infrastructure that has ceased operations or enable operating energy infrastructure to avoid, reduce, utilize, or sequester air pollutants or greenhouse gas emissions.
As of September 30, 2024, $64.89 billion in Advanced Nuclear projects have submitted applications or are expected to submit applications in the next 120 days: $12.09 billion in Section 1703 projects and $52.8 billion in Section 1706 (EIR) projects.
USDA
In related news, the U.S. Department of Agriculture on Sept. 30 announced that Wolverine Power Cooperative is being awarded more than $650 million in New Empowering Rural America financing to purchase approximately 435 MW from the Palisades Nuclear Power Plant to serve its members throughout rural Michigan.
Hoosier Energy is being awarded more than $675 million to lower the cost of purchasing approximately 370 MW of energy from the restart of Palisades Nuclear Plant and approximately 250 MW of solar energy to serve their members in Illinois and Indiana.
