WASHINGTON, June 5 (Reuters) - The United States could
revive some of its recently retired nuclear power plants to help
meet rising demand for zero-emissions electricity, or add
reactors to existing sites, Energy Secretary Jennifer Granholm
said in an interview.
The administration of President Joe Biden believes nuclear
power is critical to meeting greenhouse gas reduction goals and
decarbonizing the economy by 2050 to fight climate change, but
the industry has been hindered by the high cost of new
construction.
"I do think they can come back," Granholm said about some
shut nuclear plants, in an interview late on Tuesday.
The Department of Energy's Loan Programs Office (LPO) in
March issued a $1.52 billion conditional loan to Holtec
International to reopen the shut Palisades reactor in Michigan,
which could become the first nuclear plant in the country to
restart after being shuttered. The plant, which closed in 2022,
now needs approval from the Nuclear Regulatory Commission, which
oversees nuclear safety.
Granholm said she would be surprised if the LPO wasn't
talking to operators of other shuttered plants around the
country about reopening as well. She did not name any, and said
she is not involved in LPO's talks.
The LPO does not reveal the status of loan applications.
About a dozen U.S. reactors have closed since 2013, due to
competition from natural gas fired power and increases in safety
costs. Some of those are too far into decommissioning to
restart.
Granholm said U.S. nuclear energy capacity could also be
expanded in a cost-effective way by building new reactors at
existing sites. She said about 30 power plant sites across the
U.S. have been licensed or permitted for the construction of
more 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 said.
Joseph Dominguez, CEO of Constellation Energy ( CEG ), the
U.S. company with the most nuclear power generation, said in an
earnings call last month that restarting its Three Mile Island
Unit 1 reactor in Pennsylvania would be one of a number of
opportunities the company would think about after Palisades got
its LPO loan.
The unit, which is separate from a reactor at Three Mile
Island that in 1979 went into a partial nuclear meltdown, closed
in late 2019.
Constellation did not immediately respond to a request for
comment.
Nuclear power critics say it's too expensive and too slow to
build new reactors, compared to wind and solar farms paired with
battery storage, and note that it generates long lasting
radioactive waste.
Two new reactors at the Vogtle plant in Georgia that opened
in 2023 and 2024 were years behind schedule and billions of
dollars over budget, with consumers bearing some of the costs.
No U.S. reactors are now under construction.
Granholm pointed out that the second new Vogtle reactor was
30% cheaper than the first because of lessons learned.
She also said that some heavy users of electricity could be
willing to pay a "green premium" for nuclear power because
reactors generate virtually emissions-free electricity, and they
are considered a source of dependable power.