Biden Administration Eyes Resurrecting Shuttered Nuclear Power Plants

Biden Energy Secretary Jennifer Granholm told Reuters that the administration might resurrect many of its recently shuttered nuclear power stations to assist satisfy increased demand for zero-emissions electricity, or add reactors to existing locations.

The Biden administration believes nuclear power is crucial to fulfilling greenhouse gas reduction targets and decarbonizing the economy by 2050 to combat climate change, but the industry has been hampered by the high cost of new development.

“I do think they can come back,” Granholm said of certain closed nuclear plants in an interview late Tuesday.

In March, the Department of Energy’s Loan Programs Office (LPO) granted Holtec International a $1.52 billion conditional loan to rebuild the Palisades reactor in Michigan, which might become the country’s first nuclear facility to resume after being shut down.

The plant, which will close in 2022, now need permission from the Nuclear Regulatory Commission, which regulates nuclear safety.

Granholm said she would be shocked if the LPO isn’t in talks with operators of other shutdown plants across the country about reviving them as well. She did not name any and stated that she is not active in LPO discussions.

Nuclear Power Plant Reactor: Reuters Image

Building new Nuclear Power Plants

Since 2013, over a dozen reactors in the United States have shuttered owing to competition from natural gas-fired power and increased safety expenses. Some are too far along in the decommissioning process to restart.

Granholm stated that building new reactors at current locations could be a cost-effective solution to boost the United States’ nuclear energy capacity. She claimed approximately 30 power plant locations in the United States have been licensed or permitted for the development of further reactors.

“So you don’t have to go through the whole rigamarole again, you can just use the existing footprint to be able to increase generation capacity,” she explained.

Emissions-free electricity: Reuters Image

Emissions-free electricity

In an earnings call last month, Joseph Dominguez, CEO of Constellation Energy, the U.S. company with the most nuclear power generation, stated that restarting its Three Mile Island Unit 1 reactor in Pennsylvania would be one of several opportunities the company would consider once Palisades received its LPO loan.

The plant, which is separate from the Three Mile Island reactor that experienced a partial nuclear meltdown in 1979, closed in late 2019.

Nuclear power skeptics argue that building new reactors is excessively expensive and slow when compared to wind and solar farms with battery storage, and that it produces long-term radioactive waste.

Two new reactors at Georgia’s Vogtle plant, which opened in 2023 and 2024, were years behind time and billions of dollars over budget, with consumers absorbing some of the costs.

Granholm stated that the second new Vogtle reactor was 30% cheaper than the first due to lessons learnt.

She also stated that some major electricity customers may be willing to pay a “green premium” for nuclear power because reactors provide nearly emissions-free electricity and are regarded as a reliable source of energy.

Nuclear Power is Green Energy

Nuclear power is one of the most efficient ways to generate significant amounts of electricity while avoiding the carbon emissions caused by fossil fuels. Nuclear power is fundamentally based on the process of nuclear fission, which involves splitting uranium or plutonium atoms to liberate energy.

This energy heats water, creating steam, which powers turbines to generate electricity. Nuclear facilities, unlike wind or solar electricity, can operate around the clock, providing a consistent and dependable energy supply. It’s also worth noting that nuclear energy produces less trash than coal or oil.

The trash it generates, while radioactive and requiring cautious management, is controlled and handled. The primary disadvantage is the high expense of developing and operating nuclear facilities, as well as the difficulty of safely storing radioactive waste.

However, technological improvements are making these difficulties more bearable. Some governments are even looking into new types of reactors that may be safer and more efficient.

Despite the challenges, nuclear power remains a viable option in the balance of energy sources required to fulfill rising global demand while mitigating climate change.

Source: Reuters