This month’s announcement of a power purchase agreement that would pave the way for the restart of Three Mile Island Unit 1 in Pennsylvania, a nuclear power plant unit, is the latest sign that the power sector is increasingly looking to the baseload resource for a variety of reasons including helping to meet a surge in power demand spurred by data centers.
Meanwhile, interest in new advanced modular reactors is continuing to grow as illustrated most recently by the announcement by Idaho Falls Power in September that it is negotiating a power purchase agreement with Aalo Atomics, a nuclear engineering company developing small-scale, factory-built modular nuclear reactors.
Potential Second Lives for Nuclear Power Plants
Constellation on Sept. 20 announced the signing of a 20-year power purchase agreement with Microsoft that calls for the restart of Three Mile Island Unit 1. Under the agreement, Microsoft will purchase energy from the renewed facility as part of its goal to help match the power its data centers in PJM use with carbon-free energy.
The Unit 1 reactor is located adjacent to TMI Unit 2, which shut down in 1979 and is in the process of being decommissioned by its owner, Energy Solutions
Under the agreement, Microsoft will purchase energy from the renewed facility as part of its goal to help match the power its data centers in PJM use with carbon-free energy.
DOE Offers Up to $1.52 Billion Conditional Commitment to Bring Mich. Nuclear Plant Back Online
Earlier this year, the U.S. Department of Energy through its Loan Programs Office announced the offer of a conditional commitment of up to $1.52 billion for a loan guarantee to Holtec Palisades to finance the restoration and resumption of service of an 800-megawatt electric nuclear generating station in Covert Township, Michigan.
The project aims to bring back online the Palisades Nuclear Plant, which ceased operations in May 2022, and upgrade it to produce baseload power until at least 2051, subject to U.S. Nuclear Regulatory Commission licensing approvals.
Holtec Palisades has lined up long-term power purchase agreements for the full power output with rural electric co-ops Wolverine Power Cooperative and Hoosier Energy.
At the end of 2023, Holtec International said that it had started a program to build two small modular reactor units at the Palisades Nuclear Power Plant site.
New York’s Indian Point Nuclear Plant
In August, State Sen. Tom O’Mara joined Senate Republican Leader Rob Ortt and members of the Senate Republican Conference to unveil a comprehensive energy legislation package.
Among other things, the proposal calls for studying the feasibility of bringing the shuttered Indian Point nuclear plant back online.
Indian Point Energy Center was shut down permanently by Entergy on April 30, 2021.
Iowa’s Duane Arnold Energy Center
In Iowa, the Duane Arnold nuclear plant ceased operations in 2020.
In a July 2024 conference call with investors, NextEra Energy CEO John Ketchum said that “with regard to Duane Arnold I think there would be opportunities and a lot of demand from the market if we were able to do something with Duane Arnold.”
He added, “obviously bringing back a nuclear plant into service is not something that you can do without a lot of thought and it is something that we’re looking at, but there’s a lot of thought that has to go into it and obviously a real assessment around risks associated with that as well.”
Ketchum said that “We would only do it if we could do it in a way that is essentially risk free with plenty of mitigants around the approach and there are a few things we would have to work through.”
Advanced Nuclear Reactors
Utilities – including public power -- are also pursuing advanced nuclear projects to add to their overall generation portfolios.
Public power utility Idaho Falls Power on Sept. 16 announced that it was negotiating a power purchase agreement with Aalo Atomics, a nuclear engineering company developing small-scale, factory-built modular nuclear reactors.
“The electric utility industry is facing major challenges meeting demands while still maintaining affordable reliable service. Aalo’s innovative approach to advanced nuclear with no emissions appears to have the right risk and economics for our utility to take this next step,” said Bear Prairie, general manager of Idaho Falls Power.
The Tennessee Valley Authority Board of Directors on Aug. 22 approved $150 million in additional advanced nuclear funding to support continued design work and TVA’s development of potential small modular reactors at its Clinch River site near Oak Ridge, Tenn.
The Board, which approved an initial $200 million at its February 2022 board meeting, has now approved $350 million in total for the project.
Energy Northwest, a Washington State-based joint action agency, on Jan. 10 announced an agreement with Puget Sound Energy to accelerate the agency's program examining the feasibility of developing and deploying a next-generation nuclear energy facility.
The agreement, a $10 million investment by Puget Sound Energy in Energy Northwest's new nuclear project feasibility phase, will guide future participation and investment decisions. The collaboration does not obligate Puget Sound Energy to any future financial commitment nor signify an ownership interest in a developed project.
And Nebraska Public Power District reached phase two of a feasibility study assessing preliminary siting options for advanced nuclear reactors in Nebraska, it announced over the summer of 2024.
States Also Taking Closer Look at Nuclear Power
States are also taking a closer look at nuclear energy in their overall generation mix.
New York
For example, at the Future Energy Economy Summit recently held in Syracuse, N.Y., New York Gov. Kathy Hochul called for advanced clean energy technologies to play a key role in supporting renewable energy and economic development.
The Summit outlined next steps needed to plan for growing energy demand that can support the state’s commitment to accelerate progress toward a zero-emission electricity system.
Using insights gained during the Summit, the state will engage the industry to undertake a number of steps including soliciting industry feedback on the draft report and finalize the draft blueprint by the end of this year.
Using insights gained during the Summit, the state will engage the industry to undertake next steps including soliciting industry feedback on the draft Advanced Nuclear Technologies Blueprint and finalize the draft blueprint by the end of this year.
Texas
In Texas, in August 2023, Gov. Greg Abbott announced a directive to the Public Utilities Commission of Texas Interim Chair Kathleen Jackson to form a working group to study and provide recommendations tied to advanced nuclear plants.
Texas Public Utility Commissioner Jimmy Glotfelty on Sept. 28, 2023 provided details about a working group in the state that will study and plan for the use of advanced nuclear plants in Texas.
Areas of study for the Texas Advanced Nuclear Reactor Working Group include financial incentives, state and federal regulatory impediments to growth, Texas electric market impacts, technical challenges, and additional factors necessary to foster growth of nuclear energy in Texas.
The Working Group must report its findings and recommendations to Abbott by December 1, 2024.
Florida
The Florida Public Service Commission in early September held a Nuclear Power Technology Workshop. Topics included economic and technology updates on advanced nuclear power technologies, policy and regulatory issues related to advanced nuclear development, and opportunities for Florida.
Presenters included, among others, two officials from the Florida Electric Power Coordinating Group -- Jacob Williams, Chair, Board of Directors, and Lauren Sher, Chair, Next Generation Nuclear Workgroup.
Along with his role at the Florida Electric Power Coordinating Group, Williams is also General Manager and CEO of Florida Municipal Power Agency.
Florida House Bill 1645, passed in the 2024 legislative session, requires the PSC to study and evaluate the technical and economic feasibility of using advanced nuclear power technologies, including small modular reactors (SMRs), to meet the State’s electrical power needs.
The Bill also states that the PSC should evaluate ways to encourage and foster the installation and use of such technologies at military installations in the State, in partnership with public utilities.
This evaluation is to be conducted in consultation with the Department of Environmental Protection and the Department of Emergency Management, concluding with a report submitted to the Governor and the Legislature by April 1, 2025.
Major Banks, Financial Institutions Express Support for Effort to Triple Nuclear Energy by 2050
And, in another recent sign of nuclear energy’s resurgence, on Sept. 23 nations endorsing the Declaration to Triple Nuclear Energy launched at COP28 in 2023 were joined by 14 financial institutions who expressed support for the call to action to triple global nuclear energy capacity by 2050.
The group of financial institutions in the convening include: Abu Dhabi Commercial Bank, Ares Management, Bank of America, Barclays, BNP Paribas, Brookfield, Citi, Credit Agricole CIB, Goldman Sachs, Guggenheim Securities LLC, Morgan Stanley, Rothschild & Co., Segra Capital Management, and Societe Generale.
“The financial institutions recognized that global civil nuclear energy projects have an important role to play in the transition to a low-carbon economy. They further expressed support for long-term objectives of growing nuclear power generation and expanding the broader nuclear industry to accelerate the generation of clean electrons to support the energy transition,” a news release said.
Survey Finds Majority of Americans Support More Nuclear Power in the Country
A majority of U.S. adults remain supportive of expanding nuclear power in the country, according to a Pew Research Center survey from May. Overall, 56% say they favor more nuclear power plants to generate electricity. This share is statistically unchanged from last year.
Americans remain more likely to favor expanding solar power (78%) and wind power (72%) than nuclear power. Yet while support for solar and wind power has declined by double digits since 2020 – largely driven by drops in Republican support – the share who favor nuclear power has grown by 13 percentage points over that span.
