Biden launches $6bn effort to save America’s troubled nuclear plants
The Biden administration is launching a $6bn effort to protect nuclear power plants from the risk of closure, citing the need to continue using nuclear power as a carbon-free source that can help combat climate change. does.
On Tuesday, a certification and bidding process opened for a civilian nuclear loan program that aims to bail out financially distressed owners or operators of nuclear power reactors, the US Department of Energy said shortly before an official announcement from Exclusively Associated told the press. It is the largest federal investment in saving financially endangered nuclear reactors.
Owners or operators of nuclear power reactors that are expected to shut down for economic reasons can apply for funding to avoid premature closure. In the first round of awards, priority will be given to reactors that have already announced closure plans.
In the second round, the facilities will be opened for more economically risky facilities. The program was funded through Joe Biden’s $1tn infrastructure deal, which he signed into law in November.
“America’s nuclear power plants contribute more than half of our carbon-free electricity, and President Biden is committed to keeping these plants active to reach our clean energy goals,” Energy Secretary Jennifer Granholm said in a statement. “
“We are using every tool available to drive this country clean energy by 2035, and in this our current efforts to allow continued emission-free electricity generation and economic sustainability for the communities leading this important work.” including prioritizing the nuclear fleet.”
A strong majority of states — about two-thirds — say nuclear will, in one fashion or another, help replace fossil fuels.
A dozen US commercial nuclear power reactors have shut down over the past decade before their licenses expire, largely due to competition from cheaper natural gas, low electricity prices and rising costs, or large-scale operations due to the cost of major repairs. due to losses.
According to the DOE, this has led to increased emissions, poor air quality and the loss of thousands of high-paying jobs in those areas, causing an economic blow to local communities. The agency said a quarter or more of the fleet are at risk. The owners of the seven currently operating reactors have already announced plans to retire them by 2025.
Most US nuclear plants were built between 1970 and 1990 and the older fleet costs more to operate. The only nuclear plant under construction in the US is in Georgia. Costs have risen and in February another delay was announced.
The reactors that have been shut down include Indian Point in New York, the Pilgrim Plant in Massachusetts, Fort Calhoun in Nebraska, and Duane Arnold in Iowa. Entergy cited lower natural gas prices and increased operating costs as key factors in its decision to close Indian Point last year. New York officials called for the shutdown, saying the plant, located 24 miles (39 km) north of Manhattan, posed a huge risk to the millions of people living and working nearby.
If reactors shut down before their licenses expire, fossil fuel plants will likely fill the void and increase emissions, which will be a major blow, said Andrew Griffith, acting assistant secretary of nuclear energy at the DOE.
While natural gas may be cheaper, nuclear power has not been credited for its carbon-free contribution to the grid and has left nuclear plants struggling financially, Griffith said.
California is set to close its last remaining nuclear power plant, Diablo Canyon, in 2025. Officials there think they can replace it with new solar, wind and battery storage resources, though skeptics have questioned whether California’s all-renewable plan could work in a state of nearly 40 million people.
