DOE gives Microsoft partner $1B loan to restart Three Mile Island reactor
4 days ago
- #clean energy
- #nuclear energy
- #tech investments
- The Trump administration announced a $1 billion loan to Constellation Energy to restart a nuclear reactor at Three Mile Island.
- Microsoft committed to purchasing all the electricity from the 835 megawatt power plant for two decades, prompting Constellation to reopen the reactor.
- The project is estimated to cost $1.6 billion, with completion expected in 2028.
- Microsoft's deal terms were undisclosed, but analysts estimate a cost of $110-$115 per megawatt-hour over 20 years.
- Nuclear power is cheaper than new plants but more expensive than wind, solar, and geothermal, even with battery storage.
- Tech companies like Microsoft and Meta are increasingly investing in nuclear energy for data centers and AI.
- The reactor being restarted is Unit 1, not the infamous Unit 2 that melted down in 1979.
- The loan is facilitated by the Department of Energy’s Loan Programs Office (LPO), which supports clean energy technologies.
- The LPO has a 3.3% default rate and has previously funded Tesla and American Electric Power.
- The Inflation Reduction Act created the Energy Infrastructure Reinvestment program to restore power plants while reducing emissions.