Listen now on Spotify, Apple, and YouTube.
Mark Nelson, nuclear advocate and founder of Radiant Energy Group, provides a brief update on developments at the Three Mile Island nuclear plant. Microsoft and nuclear plant owner Constellation have entered into to an unprecedented deal to restart the closed Three Mile Island Unit 1 (which never melted down) by 2028 to power its data centers.
Microsoft will purchase as much power as possible from its 880 MW reactor over 20 years for prices rumored to be above $100 per MWh.
Most famous for its 1979 meltdown at Unit 2, the remaining Unit 1 closed in 2019 because of cheap fossil fuels and tech companies refusing at the time to consider buying its electricity to meet clean energy goals. This deal aims to bring Unit 1 back to life.
In a nutshell
Constellation has signed a 20-year power purchase agreement with Microsoft to restart Three Mile Island Unit 1, which was shut down in 2019 due to economic reasons. This deal represents a significant shift in the nuclear energy landscape, potentially paving the way for new nuclear plant construction and highlighting the growing demand for reliable, clean energy from tech companies.
We talk about
The shutdown and planned restart of Three Mile Island Unit 1
Economic factors affecting nuclear power plants in the US
Tech companies' evolving approach to clean energy procurement
The potential for new nuclear plant construction
Challenges and opportunities in the current energy market
Some takeaways
Three Mile Island Unit 1 is set to restart by 2028, backed by a lucrative power purchase agreement with Microsoft
Tech companies are increasingly seeking reliable, clean power sources for their expanding data center operations
The deal could set a precedent for financing new nuclear plant construction in the US
Existing nuclear sites and partially completed plants may offer "low-hanging fruit" for future nuclear development
In Mark’s words
"It's shocking how little you can get done with nuclear in a year. It's incredible what you can get done with nuclear over a decade." - Mark Nelson
"Three Mile Island seems to be getting a deal that may be the largest electricity deal in U.S. history, or at least one of the largest, certainly from a single power plant." - Mark Nelson
Deeper Dive
The restart of Three Mile Island Unit 1 is a significant development in the US nuclear industry. The plant was shut down in 2019 due to economic pressures from cheap natural gas and the challenges of operating a single-unit plant. The new deal with Microsoft involves a power purchase agreement exceeding $100 per megawatt-hour, potentially generating annual revenue of almost $800 million.
This agreement reflects a broader shift in the energy market, particularly regarding tech companies' approach to power procurement. Initially relying on renewable energy credits and avoiding nuclear power, these companies are now actively seeking reliable, large-scale clean energy sources to power their expanding data centers.
The economics of this deal are particularly noteworthy. The revenue scales are comparable to those needed for financing and building new gigawatt-scale nuclear plants in America. This could potentially catalyze new nuclear construction, with Mark Nelson suggesting that if construction were to begin by the end of 2025, new plants could be operational within 7-10 years.
The interview also touches on the potential for restarting or completing partially built nuclear plants across the US. Sites like Summer, which had partially completed AP1000 reactors, represent lower-hanging fruit for nuclear expansion. The discussion highlights a tiered approach to potential nuclear development sites, from those with existing permits to entirely new locations.
Mentioned
Three Mile Island Nuclear Power Plant
AP1000 reactor design
ESBWR and ABWR reactor designs
APR 1400 reactor design
Westinghouse
GE Hitachi
Keywords
nuclear energy, Three Mile Island, power purchase agreement, Microsoft, data centers, clean energy, nuclear restart, tech companies, energy market, AP1000, nuclear construction, Constellation
Share this post