The US government recently announced that it is launching a €5.5 billion effort to rescue nuclear power plants at risk of closing, given the need to continue nuclear energy as a carbon-free source of power.
A warning sign of radioactive materials seen on a fence around a nuclear reactor containment building on April 26, 2021, a few days before it stopped generating electricity at Indian Point Energy Center in Buchanan, New York. Credit: Seth Wenig, Associated Press
The US government recently announced that it is launching a €5.5 billion effort to rescue nuclear power plants at risk of closing, given the need to continue nuclear energy as a carbon-free source of power.
A certification and bidding process opened on Tuesday for a civil nuclear credit program that is intended to bail out financially distressed owners or operators of nuclear power reactors, the U.S. Department of Energy (DOE) told the media. It’s the largest federal investment in saving financially distressed nuclear reactors. Owners or operators of nuclear power reactors that are expected to shut down for economic reasons can apply for funding to avoid closing prematurely. The first round of awards will prioritize reactors that have already announced plans to close. The second round will be opened up to more economically at-risk facilities. The program was funded through President Joe Biden’s €0.92 trillion infrastructure deal, which he signed into law in November.
There are 55 commercial nuclear power plants with 93 nuclear reactors in 28 U.S. states. Nuclear power already provides about 20% of electricity in the U.S., or about half the nation’s carbon-free energy.
A strong majority of states say that nuclear, in one fashion or another, will help take the place of fossil fuels. A dozen U.S. commercial nuclear power reactors have closed in the past decade before their licenses expired, largely due to competition from cheaper natural gas, massive operating losses due to low electricity prices and escalating costs, or the cost of major repairs.
This has led to a rise in emissions in those regions, poorer air quality and the loss of thousands of high-paying jobs, dealing an economic blow to local communities, according to the DOE. The owners of seven currently operating reactors have already announced plans to retire them through 2025.
Andrew Griffith, acting assistant secretary for nuclear energy at DOE said: “If reactors do close before their licenses expire, fossil fuel plants will likely fill the void and emissions will increase, which would be a substantial setback. While natural gas may be cheaper, nuclear power hasn’t been given credit for its carbon-free contribution to the grid and that has caused nuclear plants to struggle financially.”
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