nuclear-news

$6 Billion to Keep Uncompetitive Nuclear Plants Alive

The Infrastructure Investment and Jobs Act includes $6 billion to create a credit program to extend the life of existing nuclear power plants, the largest source of carbon-free energy in the nation. The first deadline to bid for credits is May 19.

Planetizen, May 11, 2022, By Irvin Dawid

“While the Infrastructure Bill is wide-reaching, it includes a number of nuclear energy-related provisions, including support for keeping nuclear power plants facing economic hardship operating and funding for the Department of Energy’s Advanced Reactor Demonstration Program,” write Amy Roma & Stephanie Fishman for the law firm, Hogan Lovells, on November 15, 2021, the day President Joe Biden signed the bill.

An example of a projected funded through that demonstration program is TerraPower’s (a Bill Gates’ startup) Natrium reactor that will replace a coal plant in Kemmerer, Wyoming (see AP article, Jan. 18, and the Planetizen post when it received the funding from the Energy Department last November shortly after the Infrastructure Investment and Jobs Act became law.

Civil Nuclear Credit Program

In February, the Energy Department established a $6 billion Civil Nuclear Credit Program to tackle the first issue – extending the life of existing nuclear plants, particularly those that are facing imminent closure largely for economic reasons, by “allowing owners or operators of commercial U.S. reactors to apply for certification and competitively bid on credits to help support their continued operations,” according to their press release on Feb. 11………………………..

Let the Bidding Begin

Two months later, the Energy Department announced that it was seeking applications for the new program.

“The guidance published today directs owners or operators of nuclear power reactors that are expected to shut down due to economic circumstances on how to apply for funding to avoid premature closure,” states their press release on April 19.    

The credit program “aims to give a financial lifeline to plants facing imminent shutdown for economic reasons,” writes Evan Halper for The Washington Post (source article) on April 19.

The first round of credits are set aside for plants that have already announced plans to close. There are at least two such operations in the United States: Diablo Canyon in California and Palisades in [Covert] Michigan.

But the nation still has a sizable nuclear fleet, with 55 plants in 28 states. Most of them have at least two reactors. Many of them have fallen under financial hardship as the prices of renewable energy and natural gas dropped in recent years.

The Office of Nuclear Energy has set May 19 as the deadline for applications 

for the first cycle of civil nuclear credit awards…………………………….  https://www.planetizen.com/news/2022/05/117103-6-billion-keep-uncompetitive-nuclear-plants-alive

May 12, 2022 - Posted by Christina Macpherson | business and costs, politics, USA