Constellation Energy will receive a $1 billion federal loan from the Trump Administration to restart the Three Mile Island nuclear power plant in Pennsylvania, which experienced a partial core meltdown in 1979. Energy Secretary Chris Wright stressed that officials plan to expedite the return of nuclear generation and stated Tuesday that the administration thinks bringing the plant back online will help lower electricity prices. “We want to bring as much addition of reliable electricity onto the grid to stop these price rises,” he said, noting that the increased capacity will help “reshore manufacturing in our country.”
U.S. backs $1 billion loan to create a three mile nuclear plant
In order to provide Microsoft with electricity, which it needs for its growing artificial intelligence operations, Constellation said last year that it would restart the intact reactor at Three Mile Island. In 2019, the reactor was shut down because of high operating costs, but the company agreed to revive it and sell the power to Microsoft under a 20-year contract. The tech industry has emerged as one of the main forces behind interest in nuclear energy due to the continuous, massive electricity demands of AI data centers.
In addition to pledging to quadruple U.S. nuclear generation by 2050, the Trump Administration has promoted nuclear power. The plan aims to increase total generating capacity from about 100 gigawatts to 400 gigawatts by restarting shut-down reactors and constructing 10 new large-scale units. Despite this goal, the United States has only built three large reactors since the 1990s, and each one has experienced significant delays and cost overruns. For decades, gas-fired and renewable power plants were able to outcompete nuclear plants due to the shale boom’s cheap natural gas and flat electricity demand.
However, opinions about nuclear power have changed globally. Countries like France, Japan, and the United Kingdom are pursuing more nuclear generation as a result of Russia’s invasion of Ukraine and the ensuing energy supply crisis, especially the disruption of natural gas markets. According to Wright, the Three Mile Island restart will boost the grid’s generation by about 800 megawatts. According to Constellation, reopening the plant in 2027 will cost roughly $1.6 billion.
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