United States – Speaking to Granholm, the Energy Secretary, she opined that to meet higher demand for cleaner power, the United States may want to reclaim some of its decommissioned nuclear reactors or ramp up existing nuclear power stations, as reported by Reuters.
The Biden administration policy considers the nuclear power as useful in achieving its goal of getting rid of greenhouse gases by 2050 and establishing a decarbonized economy. However, nuclear construction has drawbacks due to the fact that it entails great expenses which might be an issue.
In March, the Loan Programs Office (LPO) under the Department of Energy gave light on a possible USD 1.52 billion loan to Holtec International to re-energize the Palisades nuclear power plant in Michigan. This plant may be the first to start operations again after having been closed down subject to further approval from the Nuclear Regulatory Commission.
Granholm also said that the LPO may be considering negotiating with other operators with a view to reopening other shut down plants even though this has not been made public.
Economic Considerations and New Constructions
Since 2013, around a dozen U.S. reactors have shut down due to competition from natural gas and high safety costs. Some plants are too far along in decommissioning to be reactivated.
Granholm emphasized that expanding nuclear capacity economically could involve building new reactors at existing sites. Currently, 30 U.S. power plant sites have the licenses or permits needed for such expansions.
Industry Insights
Joseph Dominguez, CEO of Constellation Energy, noted the potential to restart the Three Mile Island Unit 1 reactor in Pennsylvania, following the Palisades LPO loan. This unit, separate from the one that partially melted down in 1979, was shut down in 2019.
Challenges and Future Prospects
Nuclear power is expensive and slow to commission compared to wind or solar farms with battery storage. It also poses the long-term issue of nuclear waste.
Despite these challenges, two new reactors in Vogtle, Georgia, opened in 2023 and 2024, years behind schedule and billions over budget. Granholm highlighted that the second Vogtle reactor was 30% cheaper than the first due to lessons learned.
Granholm also noted that some companies might pay a “green premium” for nuclear power due to its low emissions and reliability.