The U.S. Palisades Nuclear Power Plant could be the first nuclear plant in the U.S. to restart after a shutdown, potentially ushering in a new era for U.S. nuclear power. As the U.S. government supports a new wave of nuclear reactor development to promote a green transition, reopening existing plants could help the country expand its nuclear capacity more quickly. The Biden administration has provided financial support to several struggling nuclear plants to keep their doors open, and the Inflation Reduction Act (IRA) and other recent policies are encouraging the development of new nuclear operations. Government pressure to decarbonize the economy and financial incentives for companies pursuing green energy could also support alternative nuclear developments, such as refurbishing and reopening old reactors.
The Palisades Generating Station in Covert, Michigan, closed its doors in May 2022 after 40 years of operation. This was largely due to rising production of cheap, abundant natural gas, which encouraged a shift away from nuclear power. It was not the only power plant to shut down; several major plants fell over the past decade. The U.S. has the largest nuclear power fleet in the world, with 93 reactors capable of generating around 95,522 MW of electricity. Nuclear power has contributed around 20 percent of the country’s electricity annually for the past 30-plus years. However, the enormous cost of operating nuclear power plants, as well as concerns about safety and nuclear waste, have led to the closure of several plants in recent years. Between 2012 and 2022, 12 U.S. nuclear power plants with a total electricity generation capacity of 9,436 MW closed their doors. Some of the power plants slated for closure survived thanks to state and federal interventions, but companies could not afford to keep many of the others operating.
However, increasing global pressure to go green and the introduction of the IRA have encouraged companies across the U.S. to develop new nuclear power plants in the hopes of providing abundant clean energy as the country moves beyond its long-standing dependence on fossil fuels. The administration supports this move and has announced $6 billion in funding from the bipartisan infrastructure bill in 2022 to keep safe and reliable nuclear power plants operating. Now the administration wants to reopen a recently closed power plant to support the planned expansion of nuclear capacity.
The Palisades Nuclear Power Plant is set to be the first reactor in U.S. history to restart after a shutdown. Palisades’ private owner, Holtec International, hopes to restart the plant by the end of 2025. The move is supported by $1.5 billion in loans from the Department of Energy and $300 million in grants from the state of Michigan. It reflects a shift in U.S. public policy in favor of nuclear energy. Several risk assessments related to nuclear power generation in recent years suggest that nuclear energy is one of the safest forms of energy. In addition, it is clean and abundant. Despite poor public perception of nuclear energy following several notable nuclear disasters in recent decades, recent polls indicate a shift in public support for this energy source.
The Nuclear Regulatory Commission is currently reviewing plans to reopen Palisades. If approved, the project could pave the way for restarting nuclear energy production at other decommissioned plants, such as Three Mile Island in Pennsylvania. Holtec President Kelly Trice stressed the importance of the project in supporting longer-term nuclear energy goals, saying, “It’s a bridge to our small modular reactor program… Our goal is to increase the number of plants in the country and elsewhere in the world that have small modular reactors.” Holtec plans to nearly double the plant’s power generation capacity by 2030 using small modular reactors (SMRs).
A single 800 MW reactor could provide enough electricity for over 800,000 homes. This shows how much potential there is to reopen previously closed reactors before it’s too late. Some of the recent closures could be reassessed to see if they are suitable for reopening to support the country’s green transition. This is especially relevant at a time when demand for clean energy is skyrocketing due to increased demand for new data centers to support artificial intelligence and other technologies, as well as the increase in domestic manufacturing and vehicle electrification. Technology companies across the country are already showing their interest in nuclear power, and many major technology companies are looking to invest in nuclear power to support data center growth.
As nuclear power gains increasing public and political support in the U.S., reopening recently closed nuclear plants is one way for the country to rapidly increase its nuclear capacity in the coming decades. This would reduce the need for lengthy and expensive development of new nuclear power projects and potentially support the growth of the SMR sector. Federal and state funding would likely be supported by high levels of private investment from energy and technology companies, which predict sharp increases in demand for clean electricity in the U.S. in the coming decades.
By Felicity Bradstock for Oilprice.com
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