Nuclear Energy Seen As Critical to U.S. Power, Climate Goals

Nuclear power is seeing a renaissance of sorts, as a surge in electricity demand and a need for clean energy sources that can provide around-the-clock generation are intersecting. Just a few years ago, utilities were shutting down nuclear plants seen as too expensive to operate. Now, they are announcing the restart of closed reactors.

In this state, the owner of a shuttered Three Mile Island nuclear reactor recently announced plans to reopen as part of a 20-year deal with Microsoft, which will purchase the electricity to power its artificial intelligence data centers.

A recently updated U.S. Department of Energy report, “Pathways to Commercial Liftoff: Advanced Nuclear” lays out a playbook for the U.S. to rapidly increase the amount of nuclear energy being deployed in order to meet the increasing demand for electricity and at the same time meet its climate goals set out in the Paris Accord.

Much of the increase in electricity demand is being driven by AI and data centers, but increasing electrification of buildings and cars is also contributing. The report notes that data center operators who need clean, 24/7 power provide a set of customers willing to support investment in new nuclear generation. Combined with generous tax credits and incentives in the Inflation Reduction Act, nuclear development is becoming economically feasible.

The DOE believes that U.S. nuclear capacity has the potential to triple from about 100 GW presently to 300 GW by 2050. However, that will require the construction of new, large nuclear reactors capable of generating more than 1000 megawatts (MW) of power, in addition to ensuring that the existing fleet of 94 reactors continues to operate. While small, modular reactors and microreactors have a place in the mix, the DOE is focused on the development of large-scale reactors.

Those reactors will be Gen III+ and Gen IV designs – Gen III+ reactors are advanced designs of operating reactors that use water as a coolant and low enriched uranium as fuel, while Gen IV reactors are not currently in operation and will use non-water coolants have be able to produce high heat for industrial processes.

While building a new, first-of-its-kind reactor is expensive and can have significant cost overruns and delays, the DOE argues that repeating the deployment of the same type of reactor will drive substantial cost reductions, due to standardization and increased knowledge and experience. Delivering the first projects on time and within budget will be essential for achieving this goal.